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Transform Any Business into a Go-Getting Power House by Working SMART

Probably as well known as SWOT, SMART turns goals, objectives and tasks into concrete deliverables. If there is one key to turning busy, ineffectual organisations into models of streamlined efficiency then this is it.

More accurately SMART ought to be SMARRRT. There are at least three equally valid definitions for the 'R'.

OK, the 10 second introduction to working smarter:

Specific: Be completely clear on the outcome expected of the goal, objective or task

Measurable: Phrase the statement of what is to be achieved so that the achievement of that outcome can be clearly measured.

Achievable: The idea is to clarify and motivate. There is nothing more demoralising than carefully constructed, but utterly impossible, goals.

Realistic: Given your current situation: is your goal realistic? Relevant: Is this specific task or goal relevant to the overall aims of the company or plan? Resourced: Are the relevant time, people, facilities and equipment available to deliver the desired outcome?

Time bound: Make sure there is a claim time limit on the completion of the activity.

Properly applied, SMARRRT transforms your business.

An example:

I specialise in helping owner-managed businesses grow. One of the first questions I ask is "Just how much do you want your business to grow?" Pretty typically the answer is something like "we'd like a few more customers" or "a lot".

Even at this early stage I start to apply SMARRRT.

What does growth mean to you? More income, more profits, more customers, more staff, bigger premises.... Usually we settle on income and profits.

OK, just how much more profit would you like? What would you be delighted with, what would just make you happy and what is OK but not very exciting? (I use stretch goals in a balanced scorecard type of approach - more on this in another article).

Now we start to get some real thought and progress.

"I'd be happy if we could get 50% more in profits each year".

So far so good. When do you want to achieve this level of increased profit by?

Usual answer is immediately - pretty unrealistic. So maybe we settle on within 12 months.

It's certainly more specific. "To increase profits by 50% within the next 12 months". And it's got a time frame.

Is it measurable? For most small companies you would certainly expect them to be able to measure an increase in profits. Tight controls on expenditure may have to be agreed though. Profit can be badly damaged by unplanned expenditure. In general it is much more positive to use precise measures. Instead of a 50% increase it would be better to say "Increase profits from $500,000 per annum to $750,000 within 12 months.

Is it achievable. This is what I do. And I have never seen a business where it isn't possible to increase profits by at least this much. All that holds businesses back is the lack of commitment and will from the top management. So let's assume it is achievable - for now.

Realistic? Good products. Poor history of marketing and promotion. Stable market with ongoing demand for the product. Certainly ought to be realistic.

Relevant? This would be a top level goal. As long it genuinely represents a part of the owner's strategic vision it is relevant by definition.

Resourced? Hmm, this is a difficult one for top level goals. Exactly how much work will be required? How much investment would be needed in terms of marketing or capital investment? How much time will the owner need to put in? Lots of questions which can only be answered as more detailed SMARRRT planning takes place. For now we must take an educated guess. In my experience, if the owner is sufficiently committed the rest of the resources will be found.

Perhaps the most certain aspect of this hypothetical situation is the clear time scale.

A little re-wording of the original goal statement, "In the next 12 months we will grow our profit from the current $500,000 to $750,000," and we have something that is SMARRRT. Note: All the answers to these questions should be recorded as part of an overall strategy document. For public consumption the statement we have used here is generally sufficient.

Time bound? Within 12 months.

As you can see, the goal is defined in the 'Specific' element of SMARRRT. The MARRRT are essentially checks to ensure the goal makes sense for your business given current business context, strategies and constraints.

As you get more sophisticated with your use of SMARRRT you will probably want to start recording not just your goal, but exactly how you will measure progress and achievement, how this goal fits in with your overall organisation, the resourcing implications,...

For now, you will be astonished at how much more you achieve simply by constructing your goals to be SMARRRT.

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Keith Longmire is the owner of JKL Business Growth Solutions. JKL specialises in bringing main stream business improvement and marketing solutions into the reach of smaller businesses.

His website Breakthrough Business Growth is designed to help owner-managers cut through the hype and produce innovative marketing plans that deliver results.

Copyright 2004 Keith Longmire.

Please feel free to pass this article on to your friends. It may be used in your ezine or newsletter as long as this resource box is included intact.

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