Creating SMART Targets
One management tool for objective planning is the SMART target creation. It
implies that objectives should be:
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pecific |
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easurable |
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greed upon |
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ealistic |
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ime-bound |
SMART targets must support the company's mission, strategy and measure of
success. Understanding the drivers (causes) of success leads to establishing the
SMART targets.
In reality, though, a SMART target is not enough. A SMART project must be
created as shown in the following example describing not only the target, but
the methods, timetables and resources needed to accomplish the task:
Example:
We will reduce the current cost-per-barrel by 20% by the end of April 2002
by:
- Adding a 10% bonus to the salary of all employees for every 10% drop of
the cost-per-barrel
- Moving to a completely asset- or area-based organizational structure
- Creating a team that will eliminate non-value-added steps from the
administrative and operational functions, so that only critically essential
functions are kept
The implementation plans for these steps include personnel assignments,
workloads, budget assignments, sequence of implementation, etc.
Source: http://www.tqm.organizedchange.com/balancedscorecard.htm
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