Objective setting is the foundation for individual and team success. It creates motivation and engagement. The first step in the process of performance management is to establish objectives that are measureable. These objectives state how the performance of team members is to be measured to assess progress throughout the performance year.
SMART Objectives
All objectives should be able to meet the following criteria:
Specific
- Identify the precise and significant outcome of an activity or task in a clearly defined manner. This avoids conflict and confusion later on in the performance review cycle
Measurable
- There has to be a form of measurement in the objective which is meaningful and motivational to give team members and managers a clear indication to know if the objectives were met or not. To increase the clarity objectives are best written in quantifiable terms using specific numbers or percentages.
Achievable
- Is the objective actually achievable and possible? Remember that these should be reasonable given the market conditions, resources available, level and position
Relevant
- Does the objective meet the long-term result of the larger objectives of the business? They should be written as a tangible result or deliverable that the team member will produce. E.g. increase production.
Timebound
- Clearly state when the objective will be achieved. Using targeted project milestones and due dates help team members and managers monitor progress. This allows for corrections during the performance year and enables team members and managers understand the accountability to the overall department goal.
Aligned Objectives
A few basic questions a Team Member can ask to ensure their objectives are aligned to their manager’s business goals:
- Do they represent growth to my manager and the organisation?
- Do they enhance department and group goals?
- Do they reflect the priorities of the department and group?
- Do they support my manager’s goals?
Objective Formula
A useful mnemonic when creating objectives is:
Action word + key result + target date + conditions
Examples of SMART Objectives
Example 1
Description: Find European partners for our new product range.
Measure: Identify at least two partners who will sell £1M of our product by fiscal year end
Example 2
Description: Ensure all team members have had training needs identified in line with their performance objectives
Measure: Completion of development plans for all team members by 31st December each year
Example 3
Develop and deliver a complete product plan for x that defines departmental strategy, implementation steps and timescales.
By end of 2nd financial quarter all product managers will have been communicated the plan
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Clearly state when the objective will be achieved. Using targeted project milestones and due dates help team members and managers monitor progress. This allows for corrections during the performance year and enables team members and managers understand the accountability to the overall department goal. |
