View source for SMART goals: A project management tool

== Why SMART is relevant to project managers ==
First, it is necessary to establish how the terms 'goals' and 'objectives' will be used in this article, as there are different views on how they should be defined. Goals are by some considered as a high level statement in the long-term and objectives as a low level statement in the short-term. Some may find the opposite true, while others treat these terms as synonyms. According to George Doran, who is considered the founder of the term SMART, it is of little significance to differentiate between the two terms from a practical point of view, as the principles in SMART apply to both.<ref name="doran" > Doran, G. (1981). ''There’s a S.M.A.R.T. way to write management’s goals and objectives''. Management Review. pp. 35-36. https://community.mis.temple.edu/mis0855002fall2015/files/2015/10/S.M.A.R.T-Way-Management-Review.pdf </ref> Since the point of this article is to elaborate the SMART tool and not to investigate the definition of goals and objectives, these terms will be treated as synonyms and will be used interchangeably throughout the article.

=== Background on goal-setting theories ===
In the late 1960’s, Edwin Locke put forward the goal-setting theory of motivation. This theory states that goal setting is essentially linked to task performance, and that specific and challenging goals along with appropriate feedback contribute to higher and better performance. Furthermore, Locke’s research has shown that the more difficult and specific the goal is, the harder people tend to work.<ref> Locke, E. (1968). ''Toward a theory of task motivation and incentives''. https://www.sciencedirect.com/science/article/abs/pii/0030507368900044 </ref> In one study, Locke found that, for 90 percent of the time, specific and challenging goals led to higher performance than easy or "do your best" goals. For instance, advising someone to "do your best" is less viable than saying "attempt to get more than 80% correct". Hard goals are more persuading than easy ones, since there is a greater sense of accomplishment involved when there has been put in a bigger effort.<ref> 
Locke, E. et al. (1980). ''Goal setting and task performance: 1969-1980''. https://www.researchgate.net/publication/238682789_Goal_setting_and_task_performance_1969-1980 </ref> 

A few years after Locke’s published article, Gary Latham studied the effects of goal setting in the workplace. His results supported Locke’s findings – that there is an inseparable link between goal setting and workplace performance. According to Locke and Latham, there are five goal setting principles that can improve our chances of success: Clarity, Challenge, Commitment, Feedback and Task complexity.<ref> Locke, E. & Latham, G. (1991). ''A theory of goal setting & task performance''. Prentice-Hall, Inc. https://www.researchgate.net/publication/232501090_A_Theory_of_Goal_Setting_Task_Performance </ref> Since Locke's first findings, numerous techniques based on goal setting theory have been published including SMART goals which will be covered in the next section.

=== SMART goals ===
Due to the importance of an effective goal setting technique in organisational performance management, the main principles of SMART goals were introduced for the first time in 1981 by George Doran<ref name="doran" /> and are in many ways similar to the principles established by Locke and Latham. Since its first introduction, there have been made a couple of adjustments to the acronym SMART. Today, the current state-of-the-art is generally accepted as:<ref> ''How to Make Your Goals''. https://www.mindtools.com/pages/article/smart-goals.htm </ref>

[[File:SMART_figur.PNG|500px|thumb|right|Process of establishing SMART goals. With inspiration from <ref> ''SMART Goals: Definition and Examples''. (2020). https://www.indeed.com/career-advice/career-development/smart-goals </ref>]]

*'''S'''pecific - target a specific area for improvement
*'''M'''easurable - quantify or suggest an indicator of progress
*'''A'''ttainable - state what results can realistically be achieved, given available resources
*'''R'''elevant - determine if the goal is in alignment with your values and long-term objectives
*'''T'''ime-bound - specify when the result(s) can be achieved

==== Why and when is it relevant to use this tool? ====
Setting goals and objectives is critical for every organisation because goals determine the broad vision and direction for any organisation. The best goals will align with the organisation mission, vision and culture and describe the organisation's longer term aspirations before laying out specific actions. Lower level goals and project goals should ideally relate to the corporate level goals. In order for this to happen, leaders and managers need to get the process of setting objectives right, as inadequately formulated objectives can cause confusion or lead individuals, teams or the whole organisation in the wrong direction. 

The SMART acronym is a tool designed to help organisations and individuals set goals in an effective and productive manner. Specific and measurable goals define the success of a project or initiative. Achievable and realistic goals engage and motivate individuals. Time-bound goals ensure that all stakeholders agree time scales for the achievement of goals. The beauty of SMART goals is that it can be applied in almost any context, including project, program and portfolio management or in the entire company - regardless of the size of the organisation. In the field of project management, SMART goals generate a sense of direction, structure and focus in the planning phase. Furthermore, it can be used to measure and to track project phases and results and can be implemented in conjunction with many methodologies such as Work Breakdown Structure, Gantt Chart<ref> Lamachenka, A. (2016). ''10 SMART Goal Setting Best Practices For Project Planning''.
https://blog.capterra.com/10-smart-goal-setting-best-practices-for-project-planning/ Retrieved February 19th, 2021.</ref> or the Balanced Scorecard.<ref> Miller, R. (2012). ''Smart goals and goal setting for career enhancement''. https://jalt-publications.org/tlt/departments/job-info-centre/articles/1661-smart-goals-and-goal-setting-career-enhancement Retrieved February 19th, 2021. </ref> To summarize, its easy applicability and level of awareness combined with the positive resonance among users are some of the main reasons for the tool's success.

Using the SMART criteria in goal-setting works best when the goal is ''to improve'' an existing system about which much is known. The criteria fit extremely well when some aspect of the company has deviated from normalcy in a negative way, and the task is to return that aspect to normal. Typical examples include increasing revenue, cutting costs or restoring production yield or quality. In each of these cases, using the SMART criteria to set good goals works because ambiguity about the situation is minimal, and the desired outcome is to restore the system to normal operation.<ref name="inno" > Prather, C. (2005). ''THE DUMB THING ABOUT SMART GOALS FOR INNOVATION''. Research Technology Management. Vol. 48. No. 5. pp. 14-15. https://www-jstor-org.proxy.findit.dtu.dk/stable/24134792?seq=1#metadata_info_tab_contents </ref>

So when should the tool be used in project, programme and portfolio mangagement? In ISO 21500, it is stated: ''“The purpose of Define scope is to achieve clarity of the project scope, including objectives, deliverables, requirements and boundaries, by defining the end state of the project. The definition of project scope makes clear what the project will contribute to the strategic goals of the organization”''. <ref> ISO 21500. (2012). ''Guidance on Project Management'' </ref>  As the definition of the scope is initiated in the planning phase of a project, SMART goals will typically be applied at this stage from a project management perspective. In programme and portfolio management, the scope tends to be more fluid than that of a project, as it is unlikely that solutions for all the projects within the programme/portfolio can be identified at the outset, and at the same time the business environment may change. Normally, a portfolio is distinguished between a standard and structured portfolio. A standard portfolio is an accumulation of projects and programmes with unconnected objectives. Its scope is flexible and is simply the sum of the projects and programmes it contains. In this case, it is inexpedient to use SMART goals as the scope is derived from a bottom-up approach. A structured portfolio is, however, defined by the strategic objectives of its host organisation that it is designed to satisfy. Its scope is the sum of the projects, programmes and change activity required to deliver those strategic objectives. In this context, the use of SMART goals is more apparent as defining the strategic objectives in the portfolio scope forms the basis for the initiated programmes and projects.<ref> Praxis. (n.d.). ''Scope management''. https://www.praxisframework.org/en/knowledge/scope-management </ref> In short, the appliance of SMART in programme or portfolio management should only be relevant if the scope is defined from a top-down approach. Even then, there may be some drawbacks to using the technique. These will be covered in the section 'Limitations'.

==== Connection to standards ====
Even though SMART is well-known and commonly used, it is rarely mentioned in the British or PMI standards that provide guidelines for achieving specific project, program and portfolio management results. However, in the standard "Managing Successful Projects with PRINCE2", SMART is used as part of a quality criteria for a project brief in line with the PRINCE2 method. Here, it is stated that the project objectives and project approaches in the quality criteria should be consistent with the organization's directive, and that project objectives should be specific, measurable, achievable, relevant and time-bound.<ref> 
Axelos. (2017). ''Managing Successful Projects with PRINCE2''. The Stationary Office. pp. 403-405. </ref>