SMART objectives

• Specific- objectives should specify what the business wants to achieve. They should be clear so that all stakeholders understand what the objective is
• Measurable- objectives should be measured to make sure the objective has been achieved. This measurement should be numeric
• Achievable: are the objectives achievable and attainable? There is no point in setting an unrealistic target, this can be demotivating
• Realistic-is the business likely to achieve the objectives with the resources available?
• Time realistic- a time-scale needs to be set for achieving the objectives
• SMART objectives contain the potential to focus attention and gain commitment from all levels within a business to agreed performance targets. They will also encourage teamwork, and they direct resources to where they can be most effective
• Long term-objectives- if businesses are aiming to grow in the long term, they may want to:

  • Invest in training their staff
  • building up their brands
  • Expanding into new markets
  • Putting money into developing new products
• Short-term objectives- a business that wants to maximise profit in the short-term may:

  • Make staff redundant
  • Change to cheaper suppliers
  • Increase productivity at the expense of quality
  • Set a high price for maximum immediate profit
  • Sell assets