The MBO system has been actively used by entrepreneurs since its inception. An assessment of accumulated practice allows us to conclude that this approach is most effective when the goals meet a number of established criteria. This allows us to increase employee motivation, as well as obtain real benefits for the company from achieving them.
These criteria include:
Specific – clarity, unambiguity. For example, the goal “Answer the call immediately” will not be clear enough. Specificity will be given by specifying the time interval: the answer must be made no later than three seconds after the call is received.
Measurable – measurability. Assumes the advantages of line database that the formulation of the goal should allow to clearly determine whether it has been achieved or not. For either of these two answer options, no additional explanations should be required, while the degree of fulfillment can be characterized by a specific numerical measure.
Achievable – feasibility. The goal of “flying a human mission to Mars” no longer seems like science fiction, but the requirement to achieve it within the next month is clearly unrealistic even for the leaders in deep space exploration.
Relevant – topicality. The goal must correspond to the company’s strategy, its implementation must benefit the company.
Time-bounded – the period during which the planned task must be fully achieved. The time must also be specified specifically, and not “in the near future”.
Management by SMART goals
Benefits of using the SMART approach:
By observing the specified criteria, the risk of misinterpretation of the content of the goal by individual employees is eliminated.
There are no problems with identifying results, with determining whether the desired indicator has been achieved or not.
However, using the SMART approach is associated with some difficulties:
When it is impossible to include a specific value of the management by objectives indicator in the formulation, which allows for a clear assessment of its feasibility or impracticability, then additional formulations have to be used for this, the selection of which can be difficult.
The use of verbose formulations is highly undesirable.
It is difficult to define a goal in such a way that it meets absolutely all the SMART requirements.
Insufficient attention may be paid to the result, the achievement of which does not require efforts, mobilization of resources. As a result, problems and even failures often arise in this direction. If the goal clearly does not correspond to the capabilities of employees, this can also play a demotivating role.
The SMART system has become a standard for managers, allowing them to increase management productivity, more clearly define key areas of work, reasonably appoint responsible persons and distribute responsibilities.
Please note! The required result may be called differently: goal, indicator, result. Whatever it is called, in all cases it is mandatory that such an achievement meets the SMART criteria.
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