Target Setting
How to set targets
Target setting is most effective when you follow the SMART process.
SMART is an acronym that stands for
S – Specific
Targets should be clear and well-defined. Instead of setting a general goal like “increase sales,” a specific goal would be “increase sales by 20% in the next quarter.”
M – Measurable
The targets you set should allow you to track progress. Using the example above, the sales target is measurable because you can easily determine whether sales have increased by the specified percentage or number.
A – Achievable
Your targets should be realistic and attainable. It’s important to set targets that are challenging but still within the realm of possibility. Setting unrealistic targets can lead to frustration and demotivation which can negatively impact other areas of the business.
R – Relevant
How do your targets align with your future vision, mission, and roadmap?Targets should match with the overall objectives of the company. They should make sense in the context of broader strategies and contribute to the desired outcomes.
T – Time-bound
Target should have a specific timeframe or deadline to create accountability. Timeframes create a sense of urgency and provides clarity for evaluation. For instance, the target could be “increase sales by 15% in the next quarter” to emphasize a specific time frame for achievement.
We cover a more in-depth guide on how to build SMART targets in a later lesson in this topic. For now, you can see that setting SMART targets involves setting objectives that are achievable, realistic, and have deadlines. It’s important to properly define what success is defined as for each target, otherwise this creates confusion and can cause problems later down the line when one person interprets success differently from another. When SMART targets are applied well, they provide direction and motivation to those working on them. It enables people and businesses to see exactly what they need to do and where they need to focus their efforts on to move closer to that target.
Learning and adopting proper target setting is an important part of any successful business strategy. It helps ensure progress, which is what is needed for business growth. Targets ensure that progress is achievable and that the resources are used effectively. It also helps to build a sense of accountability and has a positive effect on employee motivation – as they are all striving for a common goal. By setting clear targets, a business can measure its progress and make alterations along the way to ensure that they are on track to reach them.
To begin with setting effective targets, start by thinking about:
- What you want to achieve
Decide on what it is that you are wanting to achieve. It’s better to start out with your top three goals and then work on making them achievable rather than coming up with a long list of targets. You can work up to managing lots of targets but in order to avoid becoming overwhelmed and to keep everyone accountable, you should start with setting a few.
- Breaking it down into smaller achievable goals.
Each target that you decide should be quite surface level, initially and then you can break it down and build out what the smaller targets and milestones will be. You should also have an explanation as to why you chose these targets, as it’s good to remind yourself and others of the rationale that was put behind them.
- Establishing timelines and deadlines.
You need to think realistically about how long it will take to achieve the targets that you’re going to set. Depending on your personality type, it can be easy to underestimate or overestimate the amount of time it can take to get things done. Setting deadlines is a skill because you don’t want to set a deadline that is too close that it is unachievable and stressful nor do you want one so far in the future that so much time passes that circumstances change, and people forget that it is what they are aiming for.
- Deciding on milestones and how to measure progress.
It’s hard to achieve a target that is set in the future with no meaningful milestones or moments between now and the end. It’s easy to get lost in space in-between. Milestones act as guiding check points along the journey to achieving your target. Without them, it’s still possible to get there but you may take some wrong turn and end up doubling back on yourself as the route isn’t clear.
- What could go wrong?
To help ensure that your targets are realistic, you should ask yourself “what could go wrong?” This is not to say that these things will happen, it’s just better to prepare for any risks and be aware of them rather than being blindsided by them later on. There are always challenges that come up and things that we cannot prepare 100% for, but giving yourself the opportunity to think about this may make you realize how you can lower the risk and make your target even more achievable. What resources or restrictions could impact positively or negatively?