Question

Describe the SMART acronym in details and explain each of the letters in a short paragraph.

Answer 1

The SMART acronym is a benchmark that has served in the success of objectives and goals. When organizations use this method they are highly likely to succeed and this works for everybody. The acronym stands for Specific-S, Measurable-M, Attainable-A, Realistic-R, and T-Time bound. Every element of the acronym contributes to the success of the objective that is set.

Specific: When the objectives or goals are set, they need to be specific and not vague. This indicates that the goals are clear and it helps move forward. Some of the questions that need to be answered to define this are:

What is the goal that needs to be achieved?
The steps required to achieve this goal
For example: Increasing the number of clients in the broking firm by giving free Demat accounts to new clients and 3%brokerage for 2months.

Measurable: The objectives set must always be measurable and can be counted so the progress is clear. Therefore, the numbers must be clearly mentioned in the goals. Only by quantifying the goals, one can ensure that the goals are specific and clear.

For example, the objective for this month is to create 100 client accounts with 20 accounts from each team by giving free Demat accounts to new clients and 3%brokerage for 2months. In this example, the goals are clearly mentioning the number of accounts needed.

Attainable: These goals that are set have to achievable otherwise there is no point in setting them. If the goals are not attainable, there won't be sufficient motivation to try to achieve them. However, if they are attainable, it would make sense to put in the effort to achieve these goals.

For example, setting an objective of 100 client accounts from 6 teams is achievable if each team has been averaging 15-20 accounts every month. The chances are the achievement of the goals can be exceeded.

Realistic: Goals should note set for the sake of it and should be realistic. The goals should yield results and benefits. If the creation of 100 Demat accounts has no benefit then there is less relevance in setting them. Also if each team was averaging only 5 accounts a month, then set a target of 100 would be unrealistic.

Time-bound:  What time-bound really means is that a goal should have a time set to achieve them. If there is no time set, the appropriate amount of work cannot be put and the achievement would not have a date. Therefore, the goals either have to be short term or long term.

For example, By the 1st of next month, we need to hit a sales revenue of $100,000by trading brokerage. In this example, the deadline is the 1st of next month. This would mean that all the employees would put in the required amount of effort to ensure they meet the sales revenue target of $100,000.