Management Information |
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. ---------------------------------------------------------------- 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.
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Successful Managing Through Delegation Managers should avoid the tendency to constantly delegate to the same one or two capable individuals. This practice only overloads the best personnel while slighting all others. The Paradox of Job Enrichment Ellen was a clerk working for a large insurance company. One day, she spotted a glaring discrepancy in a form she was typing. Is Busyness Affecting Your Business? I'm too busy; I'd love to but I'm very busy; I'll get round to that when I'm not so busy.How often have you said any of those phrases? How many times a week do you hear someone else say those phrases? They're very common and busyness seems to have become a way of life for many people. Meetings and Road Trips Managing a meeting is like setting off on a long car trip with friends or family. You need to plan your route, pay attention to the rules of the road, consider what will keep your passengers engaged and occupied, and always remember you have to get back home at the end. Test Your Hiring IQ The purpose of any selection process is to discriminate (albeit fairly) among job candidates. Your goal is to select the right people, with the right skills, at the right time for the right position. What Your Employees Want You to Know (But You Might Be Afraid to Ask) This is a challenge for every company owner and manager. You have tremendous plans for growth and expect a lot of your employees. Making Powerful Requests That Launch People Into Action Do you ever wonder why people do not simply do the things that you want them to do? Well, instead of waiting for things to happen, decide to take responsibility for making them happen. The way to do this is often as simple as making an appropriate request. Travel the World - for Free! I have been very fortunate to travel to several countries of the world while on business - countries I may have never visited on a holiday. There are pros and cons to working/doing business in a foreign country vs. Strategies for Planning and Conducting Effective Meetings Did you know that business executives spend about half their time sitting in meetings? In fact, 40 to 50 percent of their working hours are consumed by meetings, according to a study by the Annenberg School of Communications at UCLA and the University of Minnesota's Training & Development Research Center.Meetings are inevitable - whether you're a business executive or member of a volunteer, social, or civic organization. Technology & Communication A study a couple of years ago found that 63% of executives were making fewer business trips because of technology.Instead of a plane trip, face-to-face meetings and a plane trip back, they used email, videoconferencing, or online meetings, according to the Accountemps study. Seeking Help Where does the time go? Billable time. As a consultant, your practice may be doing reasonably well; you're charging $100-150 an hour. Management Apathy I recently received a most interesting phone call.When I answered the phone, I immediately recognized the name of the company as one of the most visible distributors in our construction supply industry. Four Steps to Better Performance Reviews Direct reports-people who need direction and leadership-rely on their leaders to give them feedback and mentoring, not just management and evaluations. However, these people who most need their boss's help frequently lack the guidance that would enable them move to the next levels of success-theirs, their team's and the company's. Character: Is It Necessary In Leadership? (Part Two) In the first part of this two part article, I talked about the importance of character in leadership. After all, the best leadership involves the people bonding with the leader in deep, human, emotional ways. The Most Important Thing Youll Ever Do The wellspring of confidence is belief. When you believe in something, you accept and have conviction about the truth, actuality, or validity of that thing. Corporate Governance for Business Owners It is clear that good Corporate Governance is in the best interests of shareholders of public companies, but how can it benefit shareholders of private companies and other business owners?Will a good system of corporate governance increase the bottom line?One of the elements of a good system of corporate governance is ensuring that the role, and the boards' expectations, of management are understood.SeparationSeparation of the board and management is often lacking when it comes to small medium sized enterprises. Problem-Solving Success Tip: Use Your Project Management Skills Solving a big problem is a project: you're far more likely to solve it successfully if you treat it like one. That means you'll need to identify tasks, make and adjust assignments, and keep track of what is due when. Employee Orientation: The 90 Day Difference Why do some new managers succeed while others fail? It all depends on the first three months - the critical time when the new hire is learning the ropes. The new manager's boss plays a vital role in the orientation process. How to Create a Positive Work Atmosphere Positive versus Negative WorkplacesWe have all worked in places where we grew to dread getting up in the morning, and a few of us have had the pleasure of working for a boss who makes us feel like we can do anything. Let's take a look at the differences between a positive and a negative work environment. Innovation Management - Flexibility Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas. |
home | site map | contact us |