Setting SMART Objectives Training. ©SHRM Introduction Of all the functions involved in management, planning is the most important. As the old saying.

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1 Setting SMART Objectives Training

2 ©SHRM 20082 Introduction Of all the functions involved in management, planning is the most important. As the old saying goes, “Failing to plan is planning to fail.” Setting goals and objectives is the first and most critical step in the planning process. Employers need to be sure all employees are well trained in how to set these important performance measurements. This sample presentation is intended for an audience of employees at all levels. It is designed to be delivered by an individual who has knowledge of the basics of setting goals and objectives, of the employer’s own policies and practices on goals and objectives setting, tactical and strategic planning, and performance management. This sample presentation must be customized to include and match the employer’s own policies and practices.

3 ©SHRM 20083 Objectives At the close of this session, you will be able to: Recognize the difference between goals and objectives. Understand the importance of setting objectives to support company/departmental goals. Describe how SMART objectives are set at [Company Name]. State what SMART objectives are.

4 ©SHRM 20084 Goals vs. Objectives Goals General Intangible Broad Abstract Strategic—long-range direction, set by senior management Objectives Specific Measurable Narrow Concrete Tactical—short-range, set by managers to support the accomplishment of goals Although the terms “goals” and “objectives” are often used interchangeably, there is a difference between them:

5 ©SHRM 20085 Quiz – Goals vs. Objectives Which of these are goals, and which are objectives? 1.Increase profitability. 2.Improve community relations. 3.Provide short-term disability insurance to employees by mid-year. 4.Improve employee computer skills. *Note to presenter: Ask “Is this a goal or an objective?” If a goal, ask what the related objective would be; if an objective, ask what the general goal might be.

6 ©SHRM 20086 Importance of Setting Goals and Objectives Planning is the most important management function. > As the old quote goes, “Failing to plan is planning to fail.” Setting goals and objectives is important because it is the first and most critical step in a company’s planning process. Goals are forward-facing and provide the company with the direction in which it will move. Objectives can be mile markers along the road indicating progress and maintaining motivation.

7 ©SHRM 20087 How We Set Goals and Objectives At [Company Name], senior management refines our corporate goals for the next 3-5 years on an annual basis as part of the company’s strategic plan. Under our Management by Objectives (MBO) process, individual managers use these goals to set their departmental objectives and their own objectives, and collaborate with employees to help develop employees’ individual objectives. We evaluate the performance of managers and employees based primarily on their accomplishment of these objectives.

8 ©SHRM 20088 SMART Objectives At [Company Name], we set SMART Objectives: S Specific M Measurable A Achievable R Realistic T Time-oriented

9 ©SHRM 20089 Specific Objectives Specific objectives are: Concrete Detailed Focused Well-defined Straightforward Action-oriented

10 ©SHRM 200810 Specific Objectives (cont’d.) When setting objectives that are specific, ask the following questions: What am I going to do? Use action verbs such as develop, execute, conduct, build. Why is it important to do this task? Who is going to be involved? When do I want this task to be completed? How am I going to do this task?

11 ©SHRM 200811 Measurable Objectives Measurements for objectives help you know you are making progress toward completing the objectives. Progress measurements also allow for course corrections along the way for both direction and pace. If you set an objective that is measurable, you will have tangible evidence of completion of the objective.

12 ©SHRM 200812 Measurable Objectives (cont’d.) When setting objectives that are measurable, ask the following questions: How will I know when this objective has been achieved? What measurements can I use? What milestones can I use to track progress toward completion?

13 ©SHRM 200813 Achievable Objectives Achievable objectives are those that you can actually accomplish (something you can realistically do within the time frame set)—not an aspiration or vision. Achievable objectives need to challenge you but not so much so as to be unattainable or to cause frustration in being unable to complete them. You need to fully commit to achieving the objectives.

14 ©SHRM 200814 Realistic Objectives Realistic objectives are those that you have the resources to accomplish, including: > Skills > Funding > Equipment > Time > Staff

15 ©SHRM 200815 Realistic Objectives (cont’d.) When setting objectives that are realistic, ask the following questions: > Do I have the resources to accomplish this objective? > Do I need to rearrange my priorities to accomplish this objective? > Is it possible to complete this objective? > How will pursuing this objective affect other performance objectives? > Will this objective help meet/support department and company goals?

16 ©SHRM 200816 Time-Oriented Objectives Time-oriented objectives are those that have deadlines for completion. The time frames create a sense of urgency and lead to action. The deadlines, just as with overall objectives, must be achievable and realistic. For a complex objective, break it into small parts and set a deadline for completion of each phase.

17 ©SHRM 200817 When setting objectives that are time-oriented, ask the following questions: > What is the earliest—yet achievable and realistic—date for this objective to be started and to be completed? > Have I included these dates in the statement of the objective? > Are there other projects/objectives that must be completed first, or are there others that are reliant upon the completion of this objective? Time-Oriented Objectives (cont’d.)

18 ©SHRM 200818 Questions? Comments?

19 ©SHRM 200819 Quiz 1. Describe the difference between a goal and an objective. 2. Why and how does [Company Name] set goals and objectives? 3. What does the acronym “SMART” objectives stand for? **Note to presenter : Give participants a few minutes to think about and write down their answers these questions. Make sure you have a copy of this slide or write down these questions for your reference. The next three slides are a summary of this presentation AND answers to these questions. Ask participants to share answers to the first question before going to next slide, then ask for answers to the second question before moving to the following slide, and same with the third question.

20 ©SHRM 200820 Summary Although the terms “goals” and “objectives” are often used interchangeably, there are significant differences: > Goals are general, intangible, broad, abstract and long-range directions generally set by senior leaders. > Objectives are specific, measurable, narrow and concrete. They are short-range plans generally set by managers to accomplish goals.

21 ©SHRM 200821 Summary (cont’d.) Setting goals and objectives is important because it is the first and most critical step in the planning process. Under our MBO process, senior management sets our corporate goals. Individual managers then use these goals to set their departmental objectives and their own objectives, and to collaborate with employees to help develop employees’ individual objectives.

22 ©SHRM 200822 Summary (cont’d.) At [Company Name], we set SMART Objectives S Specific M Measurable A Achievable R Realistic T Time-oriented

23 ©SHRM 200823 Questions? Comments?

24 ©SHRM 200824 Course Evaluation Please be sure to complete and leave the evaluation sheet you received with your handouts. Thank you for your attention and interest!