SMART Goals: Definition and Importance Guide for Your Success
Living with goals and dreams is important. But what is more important is how to achieve these goals and dreams. Did you know that there is a method that can help you and increase your chances of setting goals, plans and life goals? Yes, this is the SMART Goals method.
What are SMART Goals?
SMART stands for Specific, Measurable, Achievable, Relevant and Timebound. This method first appeared in a management review by George T.Doran in 1981.
Currently, SMART is widely used by various companies in the world to achieve their business goals. They hope that by using the SMART method, their business steps and goals can be more focused and easier to achieve.
SMART goals can be an effective tool to achieve business goals realistically and consistently. By setting SMART targets, it will further direct you towards the targets you want to achieve.
Guide for SMART Goals
Then, what are the steps in compiling the SMART Goals? Here's a guide for you, presented in detail and accompanied by examples.
1. Specific (Specific / Special)
When you have a target or plan you need to set specific targets. Make targets that are detailed, clear and well-explained. This means a specific target, not a target that can be determined in general. Like the example:
General Goal: I need to invest more often
Specific Target: I have to invest in owning a house in the next 5 years
Keep goals focused and define them well - more specific goals have a greater chance of being achieved than goals that are still general in nature.
When you set goals, make sure you can answer these 6W questions:
Who - Who is involved?
What - What targets are you trying to achieve?
Where - Where will the target be achieved? (location identification)
When - When will this target be achieved? Set deadlines
Which - Requirements and obstacles you will encounter in the process? Identify this.
Why - why did you set this goal? Write down the reasons and benefits if you managed to achieve your target.
If you have set specific goals, then the next step is to measure the progress of the specific goals that you have made. Can we see we are getting closer to the goal or not. Use of Measurable is also to see and determine the next steps from the facts that already exist.
Goals / objectives must be measurable to show progress towards the goals to be achieved.
For that, measure progress with:
Asking How - How many questions and how do you know that the target has been achieved.
Create a daily reminder to assess and ensure your progress - keep a daily journal to write down important things that happen in the process of reaching your target. So, you can find out how close you are to your target.
Example: When you have a target to own a house within 5 years, then you need to determine the nominal amount of funds that must be set aside every month. If the target house is Rp. 500 million, it means that every month you have to set aside ± Rp. 8.4 million to reach Rp. 500 million. This is a measurable target because we can see whether we are getting closer to our goal of Rp. 500 million or not over time.
3. Achievable (Achievable)
At this point you also need to know that the target you have set is achievable, meaning that this target shouldn't be too easy, but also shouldn't be too difficult.
With this Achievable, you can judge whether the goals you have made can be achieved or not. If not, then you can set other goals.
To achieve your goals you will need:
Assess whether the goals you have set can be achieved or not, by measuring them from the team workload, team knowledge and abilities or from other supportive resources. If not, then you can set other goals that you can achieve in the present.
Attainable targets will also answer questions, such as: Do you have a strong commitment to achieving your goals? Are there other, bigger goals that you would like to achieve?
Example: You invest 10% per month of your total income, the target you have made is 20% per month. Therefore, to make these targets more Achievable, you need to consider well to suit your abilities by setting targets gradually starting from 12% this month, 14% in the next month and so on.
4. Relevant (In accordance)
When you make a target you need to choose a target that is relevant, meaning that if the target is achieved, that target will certainly have an impact on others.
A relevant target will provide 'yes' answers to all of these questions:
Is this target worth fighting for?
Is this target at the right time?
Does this target match your other needs and targets?
Are you the right person to pursue this target?
For example: you want to have education savings for your children later, assuming the cost of children's education increases by 15% per year, meaning you need to set your investment goals with an investment that can give you an interest of at least 15% per year.
5. Timebound (Time Limit)
If you have goals, you have to set a time limit for achieving your goals / goals. This realistic deadline is needed in order to focus and be able to prepare the necessary funding sources as early as possible.
Targets with deadlines will answer the following questions:
What can I do (finish) in 6 months from now?
What can I do (finish) in 6 weeks from now?
What can I do (finish) today?
Example: You want to have an investment portfolio within the next 3 years, so you need to prepare from now on the things that are needed to support you in owning the portfolio according to the predetermined deadline.