Any business activity needs to set specific goals to complete and evaluate results. However, many business strategies do not achieve the expected success due to expectations that are too high, unrealistic, and inconsistent with the organization’s resources. And the birth of the SMART model is a solution to help businesses set smart goals and guide the development of effective plans.
What is SMART Tool?
SMART is a rule for setting goals that includes criteria as a basis for determining business goals, building strategies, KPIs, project management, employee performance… Goals are set from the SMART model ensure it is specific, measurable, feasible within a certain time limit and related to the common values of the organization. This helps businesses and teams clearly understand their goals and focus resources, trying to achieve the desired results. Thanks to its high efficiency and flexible application, SMART has become one of the most popular business goal setting models in the world.
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- S – Specific: Mục tiêu cụ thể, ngắn gọn, dễ hiểu
- M – Measurable: Mục tiêu cần gắn với các yếu tố định lượng, đo lường khách quan
- A – Achievable: Mục tiêu nằm trong phạm vi có thể thực hiện được
- R – Relevant: Mục tiêu có liên quan đến tầm nhìn, giá trị chung của doanh nghiệp
- T – Timely: Cần xác định thời gian rõ ràng để tiến hành và hoàn thành dự án
Applying SMART tools in business
Step 1: Determine business goals
To determine the right business goals, organizations need to conduct research and survey market fluctuations, changes in consumer habits, shopping behavior of the target audience, and the current position of the brand. … Once you have a firm grasp of where the organization stands in this fierce market, the team will evaluate and make informed decisions. An accurate goal is a guideline that helps businesses build appropriate plans to conquer the market.
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Step 2: Associate goals with measurable factors
Brands need to tie business goals to measurable factors. For example, “Reach 200 million in revenue in October 2024”. Quantitative factors not only clarify goals but also motivate personnel to complete KPIs. In terms of psychology, people tend to focus and make great efforts to accomplish specific goals. In addition, this criterion also helps managers monitor the feasibility and success of strategies and projects.
Step 3: Assess the possibility of achieving the goal
The goal should not be too easy, nor too difficult. Organizations need to analyze and evaluate company resources. Market situation, opportunities, risks in the future… Then from there, set positive goals that are challenging enough for employees to strive to complete, avoiding discouragement and disorientation due to unexpected results. Hope is too far from reality.
Step 4: Relevance of the goal to business value
Business development strategy is part of the overall picture of the business. Business goals should be related to vision and mission. The organization’s direction and values as well as alignment with other ongoing goals. The level of mutual relevance and resonance between strategic goals helps businesses quickly achieve results. For example, the company’s 2024 business goal is “Expanding the market to 63 provinces and cities nationwide”. Then you should not set the business goal of the third quarter of 2024 as “Promoting product distribution to Laos and Cambodia”.
Step 5: Set a specific deadline
Always have to determine a specific time to achieve strategic goals. The time limit shows high determination from the leadership. As well as increasing pressure on the team in charge. When employees clearly understand their tasks, they can easily allocate resources. Arrange time to complete KPIs on time.
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