Set smarter goals at work to better measure performance

With the end of the year approaching for many of us in jobs, annual review and appraisal season is almost upon us.

While this may be back to front, I want to talk about goals in the workplace in this post. Some refer to them as key performance indicators (KPIs), others as objective and key results (OKRs). Whether you use KPI or OKR, they both measure performance against a documented goal.

Photo by Charles Deluvio on Unsplash

I am certain that you’ve heard of SMART goals. Smart goals refer to goals that are:

• Specific

• Measurable

• Achievable

• Relevant

• Timed

An example SMART goal for a salesperson would look like this:

To achieve a 10% year-on-year increase in sales in 2021 on sales made in 2020 as measured by closed deals as of 31 December 2021. :

Specific: The goal is specific as it states time, performance metric, comparative results.

Measurable: The objective is measurable, as it documents a percentage improvement and specifies closed deals and a date.

Achievable: While each situation varies and there will, of course, be sales situations and markets where a 10% increase in sales is not achievable. The number used in this example may be achievable, particularly if you compared it to a goal to achieve a 300% increase in sales.

Relevant: The goal is relevant to a salesperson who would set and agree to such a goal.

Timed: The goal states both the end date and the comparative period in time.

While SMART goals add the relevant framework to performance management and goal setting, they exclude two crucial elements that make SMART goals smarter. From my experience, you should also ensure that in setting a SMART goal, you are equipped for the task and have the resources to achieve the task.

Equipped: If the salesperson does not have a source of leads, prospects, advertising, product or services to sell, they are not equipped to do the task.

Resourced: In addition, the goal is at risk if they do not have the available time or resources such as hardware, software, sales support, assistants, and whatever key resources are essential to achieving the goal.

Using the leads generated by marketing activity and networking, with sales and administrative support, in 2021, achieve a 10% year-on-year increase on sales made in 2020 as measured by closed deals as of 31 December 2021.

This revised goal is smarter than the original goal. In addition, this change puts some of the onus for achieving the goal on the organisation and the employee.

In 2022, I recommend you consider making SMARTER goals with your teams and for yourself.