5 COMPONENTS OF SMART BUSINESS GOALS

Goals are defined by a business to ensure that everyone associated with the business is working on the same path. For a business to run without goals is like moving on a directionless road. Every organization needs to create and define its goals for the employee. An organization must always create smart goals.

5 COMPONENTS OF SMART BUSINESS GOALS

The 5 components of SMART business goals are

• Specific

Well-defined goals are likely achievable. The first letter of the word SMART relates to how specific the goals are. For example, as an entrepreneur, you should define your goal as, I want to increase my sales by 100 crores, increase revenue by 4% or reduce wastage by 5%. By providing numerical facts about the goals, we make them specific. It clearly defines what is to be achieved by the end of the day. Creating specific goals helps to plan and formulate the policies effectively.

• Measurable

The M stands for measurability of the goals, i.e. the numbers. The goals that can not be tracked are futile. A business with goals in metric terms is just like a cricket team chasing the runs, i.e. sheer determination among the players, more willingness to accomplish the goals, dedication and a clear path to achieve the targets set. Therefore, metrics play a vital role in measuring the success of the SMART goals set by an organization.

• Attainable

It is correctly said that success has no shortcuts, and so is the case with setting up goals. A business must always define goals considering its capabilities. This certainly doesn’t mean dreaming small, but it means being realistic and setting up realistic goals that can be attained by the business with the utmost dedication. Set the goals that challenge you, the goals that drive you crazy, but also, at the same time, are not away from reality. Target big, but do not forget to be realistic. 

• Relevant

The 4th important component of the SMART goals is relevancy. Relevancy of the goals plays an equally important role as the others. The concept of relevant goals states that the goals you set for your business must apply to it. A business must briefly analyze the external and internal environment to set relevant goals. It must be repeatedly asked: is your goal pertinent to your business? Is it feasible- economically, politically, or financially? Conducting meetings with experienced managers can be a guide to the same. 

• Time-bound

Time plays an important role in the achievement of goals. A goal not limited by time may continue forever and never be accomplished. Therefore, it is necessary to attach a time frame to a goal to make the employees work dedicatedly towards achieving it. 

Goals provide unity of direction to the organization by aligning the individual aspirations to the overall organizational goals. Establishing specific, measurable, attainable, relevant, and time-bound goals simplifies tracking progress and enables employees and the organization to achieve them effectively.