SMART goals: 5 criteria to set a goal that works

Setting and reaching goals is a challenge in the corporate world. Without a clear, specific and well-planned objective, effort gets lost and teams lose motivation. SMART goals help managers gain effectiveness and clarity in their management routine.

They are a practical, structured approach to setting objectives. They turn big ambitions into concrete steps, make it easier to track progress and allow adjustments when needed.

In this article, you will see what SMART means, how to apply each criterion, what SMART goals are for and practical examples.

What is a SMART goal?

SMART is an acronym for five criteria a goal must meet: Specific, Measurable, Attainable, Relevant and Time-based.

When a goal meets all five criteria, it can be achieved effectively, which engages and motivates employees. The logic applies to companies and to other contexts too.

The acronym was introduced by George T. Doran in a 1981 article in Management Review. In the original version, the A stood for Assignable (assigned to someone responsible), and later literature adopted Achievable and Relevant.

Example of a non-SMART goal: “Improve customer satisfaction”.

Example of a SMART goal: “Raise the customer satisfaction score (NPS) from 70 to 85 by the end of the year, by implementing a new customer service system and training the whole support team”.

SMART goals create paths toward an objective, with clear milestones and an estimate of how to get there. That is why any goal or objective can be built with the SMART method.

How to apply a SMART goal

Below are the details of each letter of the acronym, with examples. Use the criteria to set SMART objectives in the company’s strategic planning.

Watch the video on SMART goals (in Portuguese):

S: Specific

Broad objectives, such as “make more money” or “sell more”, are rarely reached. They lack specificity: “make more money” can be one amount for the business owner and another for the employee.

So identify and specify the desired result. A specific goal is clear to everyone, with no ambiguity at any level of the company hierarchy.

The easiest way to get there is to answer these questions:

• What do you want to achieve?
• Why do you want it?
• Who is involved?
• Where will this objective take the business once achieved?
• When do you plan to do it?

With this approach, the goal “make more money” can become “win a new customer by the end of the month”.

• Example: saying only “increase sales” is not specific enough. Add detail: “increase sales mainly of the new launches and also of the other products”.

M: Measurable

Objectives that cannot be measured lead to stagnation. The goal of “working more on a given project” is vaguer than “working 30 more minutes a day on this project”.

Collecting and monitoring data, always with numbers, keeps you accountable for progress and shows whether the goal is being met, exceeded or missed. This approach is what separates SMART objectives from random ones.

• Example: the case in the previous item did not define how to measure the sales increase. Add a unit of measure: increase sales of the new launches (by 20%) and of the other products (by 10%).

A: Attainable

Goals must be attainable, that is, reachable with the material, financial and human resources available. Unreachable goals demoralize employees when they do not achieve them. Attainable goals, on the other hand, build confidence.

Goals can and should be challenging, but impossible goals only demotivate the team.

• Example: are you sure the 20% and 10% sales increases are realistic? Analyze the market, the resources available and past sales. Before setting the goals, ask two or three experienced employees.

R: Relevant

Not every objective that can be reached is worth pursuing. Some are not relevant to the needs, skills or current reality of the market. In an economic downturn with less consumer spending, for example, it may not be the time to launch a high-cost product.

Relevant goals are the ones that, if reached, make a difference to the business. Being aware of the relevance of goals helps the organization stand out from competitors.

• Example: how does this sales increase affect the achievement of strategic objectives? Identify the link and pass it on to employees, making clear the importance of the team’s role in the business thriving.

T: Time-based

Give each goal a deadline. For example, increase total sales by 10% by the end of the year.

Set a schedule (deadline) that is realistic for the scope and for the effort required. With a clear deadline, you plan the objective, make progress toward it and reach it.

• Example: the goals in the previous steps had no deadline. The final version reads: increase sales of the new launches (by 20%) and of the other products (by 10%) by the end of the first half of this year.

What SMART goals are for

The purpose of SMART goals is to set and reach objectives simply and effectively. They give a clear structure that raises the chances of success and turns ideas and wishes into concrete, realistic objectives.

The method is used in personal and business planning, project management and other contexts. The main uses are:

• getting more clarity and specificity in objectives;
• raising motivation, because the team works toward clear, attainable objectives;
• monitoring progress, with measurable objectives, and adjusting as needed;
• gaining efficiency, because resources go to clear, specific objectives.

SMART goals also clarify priorities. The team comes to know what needs to be done, when to do it and how it relates to the business’s strategic objectives. That makes it easier to build action plans to monitor and achieve the goals, and 5W2Hopens in a new tab helps with that step.

Benefits of SMART goals

The SMART method offers several benefits:

• focus: it helps the team concentrate on goals and reach them more easily;
• adaptability: tracking progress allows the strategy to be adjusted;
• accountability: with clear, attainable objectives, everyone becomes responsible for them;
• collaboration: SMART goals set shared objectives and promote collaboration among team members;
• clear communication: objectives and expectations are defined and communicated, which avoids misunderstandings;
• continuous improvement: by monitoring progress, you identify strengths and weaknesses in the strategy.

Examples of SMART goals

To make it easier to understand, see how a goal looks without SMART and then with the method.

Non-SMART goal: “I want to make more money”.

SMART goal: “By December this year, I want to raise my current salary by 10% (R$ 2,000) by getting a new position at another company or a promotion at my current one”.

This goal is specific because it sets the percentage of increase and the deadline. It is measurable because it states the exact amount (R$ 2,000).

It is attainable because it indicates the actions needed, whether a new position at another company or a promotion. And it is relevant and time-based because it makes the deadline clear, December this year.

See a few more examples:

Example to increase sales of a product

• Specific: increase sales of product X.
• Measurable: grow sales by 20%.
• Attainable: use digital marketing strategies and promotions.
• Relevant: product X has a good profit margin and is popular with consumers.
• Time-based: reach the goal in 6 months.

Example to reduce employee turnover

• Specific: reduce the turnover rate in the company.
• Measurable: cut turnover by 15%.
• Attainable: implement retention strategies, such as benefits programs and career development.
• Relevant: keeping experienced employees is important for service quality and customer satisfaction.
• Time-based: by the end of the fiscal year.

Example to expand market presence

• Specific: enter new international markets.
• Measurable: launch product Y in at least two new countries.
• Attainable: carry out market research and create an entry strategy.
• Relevant: international expansion can diversify revenue and reduce dependence on local markets.
• Time-based: within the next 18 months.

How to track SMART goals in Stratws

Setting the SMART goal is the first step, and the result depends on tracking it until the deadline, with an indicator and an owner. Stratwsopens in a new tab is the management platform created by Siteware for that.

In it, the feature called Scorecard breaks objectives down into indicators, goals and projects, and the Individual Performance feature tracks individual goals aligned with the company’s objectives.

The Farol feature shows each indicator and compares results with previous years. To see how to break goals down, read our practical guide to goal deployment.

Frequently asked questions

What is a SMART goal?+−

A SMART goal is a model for creating clear, well-defined goals that can be reached. The goal follows five criteria, represented by the acronym: Specific, Measurable, Attainable, Relevant and Time-based.

What does each SMART criterion mean?+−

The five criteria are: specific (clear and detailed), measurable (tracked with numbers or indicators), attainable (challenging but realistic with the resources available), relevant (aligned with strategic objectives) and time-based (with a defined deadline).