GOAL SETTING USING “SMART”

Nowadays, goals are usually 1 up to 3 years of action statements. Goals are envisions, plans and commits to achieve a desired end-point. However the goals can not be too easy or too difficult, because in this way would be discouraging, not very effectives.

Let's make an analogy! Take a bottle and some rings. The goal is to put the rings on the bottle's neck, throwing the rings. If the bottle is very close, we will have 100% of accuracy. However, if the bottle is so far away, the accuracy will be close of 0%. Of course, for both settings would be very discouraging, wouldn't be? 


Therefore, if your goals seem to be so close, move them more far away from you, otherwise, if they are too far away, put them more closer. We must find out a mid point. However, how we can do this? We can use SMART!


SMART is an acronym for: Specific, Measurable, Actionable, Responsible, Time bound.


Specific – be specific when defining goals, usually using words like: “increasing” and “decreasing”. A specific goal has a much greater chance of being accomplished than a general goal.

• Examples

1. Increase customer satisfaction in 20%.
2. Increase vehicle utilization in 15%.
3. Decrease costs with refueling in 10%.
4. Decrease time expended to open a Rental Agreement to 5 minutes.

Measurable - establish concrete criteria for measuring progress toward the accomplishment of each goal. To determine that they are measurable, ask questions such as: How many? How much? How to know that I accomplished the goal?

• Examples

1. Increase customer satisfaction in 20%.
2. Increase vehicle utilization in 15%.
3. Decrease costs with refueling in 10%.
4. Decrease time expended to open a Rental Agreement to 5 minutes.

Actionable – it means that when you read it one year from now, you must remember your statement, which you wrote, outlining what you can do about it. In another words, after identify the goals that are most important to you, begin to figure out ways you can make them come true, developing abilities, skills, attitudes, marketing plans, financial plans, etc, so you will be able to accomplish them.

• Examples

1. Increase customer satisfaction in 20%
1. CAR WASH
1. Increase their quality of service, enhancing their processes.
2. FLEET MANAGEMENT
1. Decrease operational costs in 10%.
2. Implement Preventive Maintenances of Vehicles available in our system.
3. RENTAL AGENTS
1. Increase their quality of service, having monthly trainings with Supervisors.
2. Schedule an Annual Training to learn about world best practices.
4. PRICING MANAGEMENT
1. Create “Special Rates and Privileges” more attractive for frequent customers.
2. Create “Special Rates and Privileges” more attractive for corporates.
3. Create “Special Rates and Privileges” more attractive for tour agents.
2. Increase vehicle utilization in 15%
1. PRICING MANAGEMENT
1. Create “Special Rates” for Weekends.
2. Create “Special Rates” for Holidays.
3. Create “Special Rates” for Low and High Seasons.
2. MARKETING DEPARTMENT
1. Advertise our Special Rates to 100% of our frequent customers.
2. Meet all Tour Agents to advertise our Specific Weekend Rates.
3. Decrease costs with refueling in 5%
1. FLEET MANAGEMENT
1. Monitor refueling using resources available in our system.
2. Decrease non-revenue movements with our vehicles in 20%.
3. Negotiate a decreasing of 2% in Fuel prices with Gas Stations.
4. Decrease time expended to open a Rental Agreement to 5 minutes
1. RENTAL AGENTS
1. Monthly trainings with Supervisors.
2. Implement pre-printed Rental Agreements available in our system.

Responsible – define who will be in charge, taking actions to accomplish what is outlined in your statements.

• Examples

1. Increase customer satisfaction in 20%
1. CAR WASH (Supervisor: Tom)
1. Increase their quality of service, enhancing their processes.
2. FLEET MANAGEMENT (Fleet Manager: John)
1. Decrease operational costs in 10%.
2. Implement Preventive Maintenances of Vehicles available in our system.
3. RENTAL AGENTS (Operations Manager: Lucy / Supervisors & Agents)
1. Increase their quality of service, having monthly trainings with Supervisors.
2. Schedule an Annual Training to learn about world best practices.
4. PRICING MANAGEMENT (Marketing Manager: Bob / CFO)
1. Create “Special Rates and Privileges” more attractive for frequent customers.
2. Create “Special Rates and Privileges” more attractive for corporates.
3. Create “Special Rates and Privileges” more attractive for tour agents.
2. Increase vehicle utilization in 15%
1. PRICING MANAGEMENT (Marketing Manager: Bob / CFO)
1. Create “Special Rates” for Weekends.
2. Create “Special Rates” for Holidays.
3. Create “Special Rates” for Low and High Seasons.
2. MARKETING DEPARTMENT (Marketing Manager: Bob)
1. Advertise our Special Rates to 100% of our frequent customers.
2. Meet all Tour Agents to advertise our Specific Weekend Rates.
3. Decrease costs with refueling in 5%
1. FLEET MANAGEMENT (Fleet Manager: John)
1. Monitor refueling using resources available in our system.
2. Decrease non-revenue movements with our vehicles in 20%.
3. Negotiate a decreasing of 2% in Fuel prices with Gas Stations.
4. Decrease time expended to open a Rental Agreement to 5 minutes
1. RENTAL AGENTS (Operations Manager: Lucy / Supervisors & Agents)
1. Monthly trainings with Supervisors.
2. Implement pre-printed Rental Agreements available in our system.

Time bound – establish a period of time, with a specific deadline date, to accomplish each goal, reaching the end-point.

• Examples

1. Increase customer satisfaction in 20% by (1 year; at May 15, 2012)
1. CAR WASH (Supervisor: Tom) by (1 month; at June 15, 2011)
1. Increase their quality of service, enhancing their processes.
2. FLEET MANAGEMENT (Fleet Manager: John) by (1 year; at May 15, 2012)
1. Decrease operational costs in 10%. 
2. Implement Preventive Maintenances of Vehicles available in our system.
3. RENTAL AGENTS (Operations Manager: Lucy / Supervisors & Agents) by (1 year; at May 15, 2012 )
1. Increase their quality of service, having monthly trainings with Supervisors.
2. Schedule a annual training to learn about world best practices.
4. PRICING MANAGEMENT (Marketing Manager: Bob / CFO) by (2 months; July 15, 2011)
1. Create “Special Rates and Privileges” more attractive for frequent customers.
2. Create “Special Rates and Privileges” more attractive for corporates.
3. Create “Special Rates and Privileges” more attractive for tour agents.
2. Increase vehicle utilization in 15% by (6 months; November 15, 2011)
1. PRICING MANAGEMENT (Marketing Manager: Bob / CFO) by (2 months; July 15, 2011)
1. Create “Special Rates” for Weekends.
2. Create “Special Rates” for Holidays.
3. Create “Special Rates” for Low and High Seasons.
2. MARKETING DEPARTMENT (Marketing Manager: Bob) by (6 months; November 15, 2011)
1. Advertise our Special Rates to 100% of our frequent customers.
2. Meet all Tour Agents to advertise our Specific Weekend Rates.
3. Decrease costs with refueling in 5% by (6 months; November 15, 2011)
1. FLEET MANAGEMENT (Fleet Manager: John) by (6 months; November 15, 2011)
1. Monitor refueling using resources available in our system.
2. Decrease non-revenue movements with our vehicles in 20%.
3. Negotiate a decreasing of 2% in Fuel prices with Gas Stations.
4. Decrease time expended to open a Rental Agreement to 5 minutes by (6 months; November 15, 2011)
1. RENTAL AGENTS (Operations Manager: Lucy / Supervisors & Agents) by (6 months; November 15, 2011)
1. Monthly trainings with Supervisors.
2. Implement pre-printed Rental Agreements available in our system.

Through understanding the effect of goals setting on individual performance, your company will be able to improve organizational performance. It happens because people will perform better when they are committed to achieve specific goals, knows the  importance of the expected outcomes of goal attainment, works as a team, track performance to see how effective they have been, receive constantly feedbacks, work on an environment with many elements of motivation. So, works together with your HR department to motivate individuals follow your plans.