SMART Goals: What They Are, How to Set SMART Goals and Objectives, with Free Template

1. What are smart goals?

SMART is a goal-setting methodology used in management. This technique is widely applied in management, marketing, project management, and other fields. The SMART method is suitable for businesses of all sizes, regardless of their profitability, industry, or other factors.

The core idea of the SMART method is to turn abstract goals into clear, specific, and achievable objectives. George T. Doran, an expert in strategic planning, described this methodology in his article "There’s a S.M.A.R.T. Way to Write Management’s Goals and Objectives" in 1981. When used correctly, this method helps companies grow, improve key performance indicators, organize employee tasks, and manage teams effectively.

2. Smart criteria 

The acronym SMART represents five key criteria used to evaluate goals. Following these requirements when setting objectives ensures a clear and specific direction for future actions.

A SMART goal should be:

S — Specific

M — Measurable

A — Achievable

R — Relevant

T — Time-bound

Let's take a closer look at each SMART criterion.

Specific

A SMART goal should be specific, so it cannot be interpreted in different ways. It should clearly guide the work. If a goal is not specific, the chances increase that everyone will "run in different directions" when trying to achieve it. All employees should interpret the SMART goal in the same way.

What to Remember:

• A SMART goal answers the question "What needs to be done?". For example:
  - Increase website conversions with the same traffic,
  - Improve customer satisfaction,
  - Reduce customer churn,
  - Enhance the customer experience.
• One SMART goal = one result. A company may have several priority areas for development—formulate one goal for each area.
  
  

Questions to help you set a specific SMART goal and ensure it's the right choice:

• What result do you want to achieve with this goal?
• Why will this goal help you achieve the desired result?
• Does this goal align with the company's strategy?

Measurable

A SMART goal should be measurable with a numeric indicator, so you can determine how close you are to achieving the result. Meeting this criterion in goal setting helps define the finish line and shows the direction you need to move in. Without it, tracking progress becomes impossible.

What to Remember:

• You can track progress only if you define the goal with a quantitative metric:
  - Increase the number of leads from the website chatbot by 30%,
  - Increase the number of new users to 100,000 per day,
  - Boost sales by 25%,
  - Double the conversion rate,
  - Increase the number of subscribers by 10%. 
• The target metric needs to be agreed upon with management.

Questions to help you set a measurable SMART goal:

• How will you know when the goal is achieved?
• What metric do you need to work on to reach the goal?

Achievable 

A SMART goal should be achievable and open up new opportunities, rather than being an unrealistic target. However, a SMART goal should also be ambitious enough and not too easy to reach. It's important to strike a balance. For example, "gaining a million Instagram followers" for a local business is more of an unrealistic and unnecessary goal than an ambitious one.

To set a goal, you need to rely on past experience, company resources, and its capabilities: data on growth from previous months, the skill level of the team, and the volume of future investments. If the goal is too ambitious and the resources to achieve it are lacking, it may demotivate the team.

What to Remember:

• A SMART goal is formulated based on the company's capabilities: the experience and knowledge of the employees, the volume of investments, and the market situation. 
• Unachievable goals demotivate the team. The feeling that a goal is unattainable makes employees disengaged. 
• The goal should be ambitious. Underestimating targets does not motivate the team to achieve results and will not elevate the company to a new level of growth, sales, etc. 
• It is better to achieve 80% of an ambitious goal than to overachieve a mediocre one.
  
  

Questions to help you set an achievable SMART goal:

• Is it realistic to achieve this goal within the set timeframe?
• What could hinder the achievement of the result?
• Does the team have enough experience and knowledge to accomplish the goal?

Relevant

A SMART goal should align with the company's overall strategy and mission. It is a goal whose achievement will positively impact the company's growth and development. To set such a goal, it's important to answer questions like: Why is this result needed? Why is it needed now? What will it achieve?

What to Remember:

• A relevant SMART goal aligns with the company’s strategy and does not contradict other objectives. 
• Achieving a relevant goal should elevate the company to a new level of development.

Questions to help you set a relevant SMART goal:

• What benefits will the company gain after achieving the goal?
• Does the chosen goal align with the company’s strategy and mission?
• Does the chosen goal conflict with any other objectives?
• What will happen if the goal is not achieved?

Time bound 

A SMART goal should be time-bound. The optimal timeframe for achieving SMART goals is three months (a quarter), six months, or a year. Setting shorter timeframes may not allow for significant results, while longer timeframes can lead to the goal losing relevance and focus shifting to other tasks. For example, "increase sales by 10% in 3 months".

A time-bound goal with a specific deadline helps determine the team's workflow and plan tasks for the set period.

What to Remember:

•  Break down long-term goals—if the goal's deadline is more than three months, identify intermediate stages and tasks. These help in tracking progress and make the planning process easier. 
• Goals with deadlines longer than a year may be forgotten. The maximum acceptable timeframe is one year (12 months).

Questions to help you set a time-bound SMART goal:

• How much time will it take to achieve the goal?
• What intermediate stages will the goal be broken into?

Good examples of a SMART goal for your website is:

3. Advantages of the smart method

The SMART methodology helps improve a company's efficiency across various areas. This approach allows for step-by-step increases in profit and average order value, enhances service quality and customer experience, grows the number of loyal customers, improves usability, and much more. Let's explore the advantages of the SMART technique in goal setting:

1. Focus on specific tasks: SMART analysis helps break down large goals into manageable tasks, making them achievable step by step.
2. Progress tracking: Teams can easily monitor results thanks to clear tasks, understandable KPIs, and set deadlines. This makes outcomes measurable and aids in team management.
3. Simplified communication: All team members know the company's target outcomes, reducing the time needed for explanations and boosting employee motivation.
4. Increased chances of success: SMART simplifies goal formulation, eliminates questions and doubts during goal setting, and is easy to adopt.
5. Clear action plan: SMART helps create a clear action plan.
6. Continuous growth and development: The methodology promotes continuous growth and development of the company in the market.
7. Versatility: It is suitable for various business sectors and areas of work without requiring special skills or additional financial resources.
8. Deadline setting: SMART helps establish deadlines and monitor employee accountability.
9. Performance Tracking: The methodology allows for tracking the effectiveness of decisions and actions.
10. Elimination of irrelevant goals: SMART helps filter out irrelevant goals and avoid unnecessary resource expenditure.
11. Risk reduction: The methodology reduces the risk of moving in the wrong direction.

4. Disadvantages of the smart method

While the SMART methodology offers many advantages, it also has certain drawbacks that should be considered when setting goals and objectives:

1. Uncertainty at the start of a project: Setting specific tasks can lead to uncertainty at the beginning of a project. Although the end result is clear, the initial steps may be less obvious. This can make it difficult to start work and cause delays in implementation.
2. Participant frustration: High target metrics can cause frustration or stress among project participants. It's important not only to set goals but also to explain how achieving these goals will impact the company's future. Emphasizing a gradual approach to reaching the goal can reduce tension and increase motivation.
3. Unexpected problems: During the implementation of the plan, unexpected issues may arise that were not anticipated when the tasks were set. This can distract the team from its main work, forcing them to address urgent issues, which may, in turn, extend the project's timeline.
4. Overemphasis on details: Focusing on details and specific metrics can lead to overload, especially if the team adheres too strictly to all aspects of the SMART methodology. This can limit creativity and flexibility in task execution.
5. Overly rigid frameworks: Setting very specific and rigid timeframes can leave little room for adaptation and changes, which inevitably arise during project execution. This can make the methodology less effective in a rapidly changing environment.
6. Neglect of long-term goals: The SMART methodology often focuses on short- and mid-term goals, which can lead to the neglect of longer-term strategic objectives and the company’s vision.
7. Risks of underestimating resources: Setting goals that seem achievable at first glance may underestimate the actual resources needed to achieve them, including time, money, and team effort. This can lead to unforeseen difficulties and a decline in team morale.

Understanding these drawbacks helps in applying the SMART methodology more effectively, avoiding potential pitfalls, and ensuring a more flexible and adaptive approach to goal setting and achievement.

5. Goal setting with the grow model

The GROW model is used for setting and achieving goals and is widely applied in coaching and management. The acronym GROW stands for Goal, Reality, Options, and Will. This approach helps structure the goal-achievement process, providing clear understanding and execution of the necessary steps. Let’s take a closer look at each component of the GROW model.

Goal

The first step in the GROW model is defining the Goal. It’s important to clearly articulate what you want to achieve. This stage requires a clear vision of the end result you aim to accomplish. Questions that can help at this stage include:

• What is your main goal?
• What do you want to achieve?
• What will success look like for you?

The goal should be specific and measurable so that you can accurately determine when it has been achieved. Example: "Increase sales by 20% over the next quarter".

Reality

After defining the Goal, it’s crucial to analyze the current situation. This stage helps you understand where you stand in relation to your goal and what factors might affect its achievement.

Questions for this stage include:

• What is your current situation?
• What resources do you already have?
• What challenges are you facing? 

At this stage, it’s important to be honest and objective in assessing your capabilities and limitations. Example: "Currently, sales are growing at 5% per quarter, and we have a team of 10 people".

Options

The third step is exploring all possible options and strategies to achieve the Goal. This stage focuses on generating ideas and identifying the best approaches.

Questions that can help at this stage include:

• What options do you have to achieve your goal?
• What steps can you take?
• What resources and support do you need?

It’s important to consider as many options as possible to choose the most effective and realistic ones. Example: "We can improve our marketing strategy, increase the advertising budget, and conduct training for the sales team".

Will

The final step in the GROW model is determining specific actions and developing a plan to execute them. At this stage, it’s crucial to set timelines and assign responsibilities.

Questions that can help at this stage include:

• What will you do?
• When will you start?
• What resources do you need to begin?

This stage is focused on creating a clear action plan with specific steps and deadlines. Example: "Over the next month, we will increase the advertising budget by 15% and conduct two training sessions for the sales team".

6. Advantages of the grow model

The GROW model helps structure the goal-achievement process and provides a clear understanding of the necessary steps. It is beneficial for both personal and professional growth. Here are some advantages of using the GROW model:

1. Clarity and structure: GROW helps clearly define goals and the steps needed to achieve them.
2. Objective analysis: The model promotes an honest assessment of the current situation and available resources.
3. Idea generation: The Options stage encourages exploring different approaches and selecting the most effective ones.
4. Planning: The model supports the creation of a concrete action plan with clear deadlines and responsibilities.

Using the GROW model helps achieve set goals efficiently by providing a structured and realistic approach to their realization.

7. Differences between smart and grow goal setting

GROW is commonly used in coaching to understand what is currently happening with an employee, what crises they are experiencing, and what resources are available to overcome them. The method is helpful in setting individual goals and objectives. The SMART methodology, on the other hand, is more focused on setting business goals for the entire team. It relies on objective reality and employee motivation to leverage them for the benefit of the company. 

Key differences between SMART and GROW:

1. Focus 
   SMART: The primary focus is on the clarity and measurability of the goal. SMART helps formulate specific goals that can be easily measured and evaluated.
   ​GROW: The main focus is on the process of achieving the goal, including analyzing the current situation, generating options, and developing an action plan.
   
   
2. Structure 
   SMART: The structure of the SMART model centers on the specific characteristics of the goal (specific, measurable, achievable, relevant, time-bound).
   GROW: The GROW model takes a broader approach, covering goal setting, analysis of current reality, exploring options, and developing an action plan.
   
   
3. Application 
   SMART: More commonly used for setting specific, measurable goals within projects and business tasks.
   GROW: Often used in coaching and management to help achieve personal and professional goals.
   
   
4. Approach 
   SMART: Focuses on clear and structured goal formulation.
   GROW: Provides a more flexible and adaptive approach to goal achievement, considering current realities and possible courses of action.

Both methods can be used together: for example, individual goals can be set for employees using GROW on a quarterly basis, then work-related goals can be planned using SMART.

8. How to apply smart criteria in practice

The SMART goal-setting process includes the following steps:

1. Conduct Research

 Study the product and company, the market, and competitors. Identify pain points and growth opportunities, such as sales or employee motivation. This will help determine areas that need improvement.

2. Set Goals

For each pain point, define one goal with a specific and achievable result. Ensure that the goals are clear and understandable to all team members.

3. Check Goals Against SMART Criteria

Ask the following questions to ensure that the goal meets SMART criteria:

• Specific: Is the goal clear and precise? Does it avoid ambiguity or vague definitions? Who will be involved? What exactly needs to be achieved? Where will this take place? Why is it important?
• Measurable: What KPIs will be used to assess the result? What specific metrics will measure progress?
• Achievable: Is it realistic to achieve the goal within the given timeframe and with the available resources? What resources are needed? What steps must be taken?
• Relevant: How will achieving this goal benefit the business? Does it align with the company's strategy? How does this goal relate to the company’s overall objectives? Why is it important now?
• Time-bound: Are there clear timeframes set for achieving the goal? What is the deadline? Are there any interim deadlines?

4. Assign Responsibilities

Even if the goal is set for the entire team, designate specific individuals responsible for each stage and for reporting results. This will prevent the shifting of responsibility among team members.

5. Set Deadlines and Milestones

In addition to the final deadline, set intermediate dates for larger tasks to review progress. This allows for timely adjustments to deadlines, resources, or even the task itself if conditions change.

6. Finalize Agreements

After setting the goal, record it and define the deadline using a work organizer like Trello, Google Calendar, or Jira. This helps track progress and keeps all participants informed.

7. Risk Assessment (Optional)

Evaluate potential risks and develop contingency plans to address unforeseen circumstances. This will help minimize the impact of unexpected issues on achieving your goals.

8. Feedback (Optional)

Regularly collect and review feedback from the team on progress and any issues that arise. This enables timely adjustments and helps keep motivation high.

9. Adaptability (Optional)

Be ready to adjust goals and plans as necessary in response to changes in both external and internal conditions. Flexibility will enable you to effectively address new challenges and seize opportunities.

By using this approach, you can set SMART goals more effectively, leading to higher productivity and significant business results.

9. Examples of smart goals vs. non-smart goals

Let’s look at specific examples to understand how to properly set SMART goals and how not to.

🙅🏻‍♂️ Not SMART

Increase website traffic.

Explanation ➢➢

What’s good:

• The goal is specific: increase website traffic;
• Achievable: last month, traffic increased by 10%;
• Relevant: increasing traffic will lead to higher sales.

What’s wrong:

• The goal is not measurable—there’s no clear target for how much traffic should increase;
• Not time-bound.

How to improve: 

• Add measurement criteria and a timeframe, such as specific numbers and deadlines.

✅ SMART

Increase website traffic by 5,000 visitors per month over the next two months.

🙅🏻‍♂️ Not SMART

Earn 30% more by the end of the quarter.

Explanation ➢➢

What’s good:

• Achievable: sales increased by 25% in the last reporting period;
• Measurable: 30% increase;
• Relevant: the goal aligns with the growth strategy;
• Time-bound: end of the quarter.

What’s wrong: 

• The goal is not specific — it’s unclear what exactly needs to be done or what the end result should be.

How to improve: 

• Determine what will help the company earn more, such as reducing customer churn.

✅ SMART

Reduce customer churn by 30% by the end of the quarter.

🙅🏻‍♂️ Not SMART

Increase the number of closed deals by 75% in six months.

Explanation ➢➢

What’s good:

• The goal is specific: number of deals;
• Measurable: 75% increase;
• Relevant: more closed deals will lead to higher earnings;
• Time-bound: 6 months.

What’s wrong:

• The goal is not achievable—last year, the number of deals grew by only 5%.

How to improve: 

• Set a more realistic goal.

✅ SMART

Increase the number of closed deals by 10% in six months.

🙅🏻‍♂️ Not SMART

Increase company revenue.

Explanation ➢➢

What’s good:

• The goal is specific: increase company revenue;
• Achievable: last year, revenue increased by 20%;
• Relevant: increasing revenue will support business expansion.

What’s wrong:

• The goal is not measurable—it’s unclear by how much revenue should increase;
• Not time-bound.

How to improve:

• Add measurement criteria and a timeframe: monetary amounts and deadlines.

✅ SMART

Increase company revenue by $100,000 in six months.

🙅🏻‍♂️ Not SMART

Increase the number of active app users by 15%.

Explanation ➢➢

What’s good:

• The goal is specific: increase the number of active users;
• Measurable: 15% increase;
• Achievable: there was a steady 10% growth before;
• Relevant: the number of active users directly impacts sales.

What’s wrong:

• The goal is not time-bound—there’s no deadline for achieving it.

How to improve: 

• Add a deadline.

✅ SMART

Increase the number of active app users by 15% in six months.

Setting goals using the SMART method allows you to clearly define where you need to go, how to get there, and what you need to achieve your objectives. This approach guarantees results. Use the SMART method to set work-related, personal, and strategic goals, and you’ll never find yourself stuck in one place.

10. What to consider when setting smart goals

The way you formulate SMART goals plays a crucial role in the future development of your company—how quickly you grow, enter new markets, and surpass competitors. It's challenging to set perfect goals on the first try. It's important to learn from mistakes and set new goals based on previous experiences.

Let’s look at common mistakes when setting SMART goals:

• Unrealistic expectations
  The goal should match the company’s capabilities. While it's good to aim for better results, setting unachievable goals for your team can be problematic. The issue often lies in how accurately the company assesses its resources. For example, if a brand has only three seamstresses, setting a goal to "increase profit to 100 million rubles in a year" is overly ambitious.
  
  
• Irrelevant goals
  The goal should drive the company forward and align with its overall strategy. If the main revenue comes from monthly collections, then efforts should be focused in that direction.
  
  
• Lack of flexibility
  Much can change during the process of achieving a goal: unforeseen circumstances may arise, competitors might launch a new product, or a crisis could occur. It’s important to analyze the situation and adapt as needed. A SMART goal is not set in stone, it can be adjusted or even abandoned if necessary.
  
  
• Lack of motivation
  ​Specific people work toward achieving goals, so it's important to consider the human factor. For employees to succeed, they need clear and achievable tasks. For example, instead of saying "we need to strengthen email marketing", you should set a goal to "increase email open rates by 10%".

11. Smart goal template with examples

The SMART Goal Template with examples is designed to make the goal-setting process more straightforward and efficient. By using this template, you can easily structure and plan your business objectives, ensuring they are specific, measurable, achievable, relevant, and time-bound.

The template includes all the necessary elements for formulating SMART goals and can be easily adapted to suit the needs of your business.

DOWNLOAD SMART GOALS TEMPLATE BY VASILY NEMCHINOV

12. Conclusion

We have reviewed the SMART methodology — an effective approach to goal setting that, while not a cure-all, helps in formulating achievable and meaningful objectives. Goal setting is a key element of business processes, enabling companies to scale and reach new heights. SMART goals allow you to specify tasks, evaluate outcomes, and adjust the process as needed. This increases the chances of success, as each participant can see the desired result and understand how achieving it will impact the organization.

To successfully implement the SMART methodology, it’s important to consider the company’s resources and strategy. A comprehensive approach to promotion, which includes a variety of tools and methods, also plays a crucial role in achieving goals. For example, when developing a marketing plan, it’s essential to consider all aspects of your business, including resources and strategy, to ensure effective promotion. In this context, it’s helpful to explore the material "Marketing Plan: types, structure, and how to create one", which will guide you in creating a well-rounded approach to promotion and goal achievement.