SMART goals in project planning and performance management

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	{| class="wikitable" style="margin-left: auto; margin-left: 0px;"		{| class="wikitable" style="margin-left: auto; margin-left: 0px;"
	| How can I attain the goal?		| How can I attain the goal?
−	| Test results of prototypes, cu	+	| If necessary internal resources are available and market offers opportunity
	|-		|-
	| How realistic, considering internal capabilities?		| How realistic, considering internal capabilities?
−	| Financial, human, patents	+	| Are financial, R&D, manufacturing resources available?
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−	Attainable Goals
−	5. Set goals in accordance to your team members’ strengths.	+	This corresponds to capabilities, where the difficulty is to determine goals that challenge, but not overcharge available capabilities.
−	Each person has a unique set of knowledge and skills, so it is necessary to select the appropriate goals for individual people. Referencing the skills and knowledge of the person, goals can be categorized:	+	====Relevant:====
−	Unreachable: The goals are unrealistic.
−	Elusive: The goals are unclear.
−	First of all, you should assign difficult or complicated goals to experienced and ambitious employees. The harder the goal, the greater the sense of achievement.
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−	Good goals look like this:
−
−	Achievable: These goals correspond to the knowledge and skill level of the performer. For example, to draw the layout design of the approved site outline and brief in one day. Such tasks are necessary for respite between more difficult tasks and to develop self-confidence.
−	Easily accessible: These goals do not correspond to the competence of the employee. Reaching them does not give any sense of satisfaction for an employee. For example, to draw the button for a form in the specified style in a day. It is desirable to entrust such goals only to new employees to integrate them into the team.
−	The general conclusion is that it is necessary to alternate accessible and elusive goals. Using agile methodologies, when a team evaluates backlog items, such alternation is obtained in a natural way.
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−	6. Set Learning Goals Instead of Performance Goals.
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−	Most project managers measure goal achievements by learning metrics, but not performance metrics. The difference is that performance goals focus on the final result. In contrast, learning goals focus on the process itself and answer the question, “How can I reach this goal?”
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−	Why is it important to focus on learning goals?
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−	Surprisingly, learning goals are more likely to be achieved. Usually, when people face performance goals (these goals answer the questions like, “Can I outperform others?”), they focus on the end result and have a strong apprehension of failure. Doing so decreases their motivation and stops them from completing goals collaboratively.
−
−	With learning goals, people are able to devote their cognitive resources to a second task with minimal impact on performance.
−
−	Relevant Goals
	7. Keep goals inspiring for the team.		7. Keep goals inspiring for the team.

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Revision as of 21:37, 21 September 2017

>>>Work in progress<<<

Considering the obstacles an effective goal setting can encounter such as lacking organisational capabilities or resistance to change, e.g due to individual anxiety, creating and implementing appropriate goals seem to be challenging. However, in a dynamic company environment establishing effective goals followed by developed action plans is of great importance in any project management process. Initially created by George T. Doran in the Management Review^[1], the SMART goals can be classified as an effective goal setting technique. The acronym SMART stands for: Specific, Measurable, Achievable, Relevant, Time bound.

Being in line with the purpose perspective of projects, this goal setting method is not only applicable in professional projects, but also in any project of private nature. Using this tool allows to generate success substantially related to its original efforts, which is of high value for any project manager. Due to the SMART goals' great scope in diverse industrial areas, a deep investigation of the SMART traits and simultaneously a critical reflection of its potential limitations will be conducted as follows.

Contents 1 Introduction to goal setting 2 Why SMART? 3 Application: How to be SMART? 3.1 Guidance 3.1.1 Specific: 3.1.2 Measurable: 3.1.3 Achievable: 3.1.4 Relevant: 3.2 Case studies 4 Limitations 5 Conclusion 6 Annotated bibliography

Introduction to goal setting

Starting in the 1960's with the studies conducted in the area of organisational performance, Dr. Edwin Locke established 1968 the conclusion that setting goals results in great organisational performance^[2]. Followed by George T. Doran in the Management Review^[1], the study extended to the recognition that unclear goal settings in companies hindered a continues progress within the organisation.

A) As stated in the Standard for Project Management^[3], goals are defined outcomes and benefits specifying the expected result of a project. They can be short term and long term, and serve as the translation from established program's vision. Hence, goals are set after the scope of a project, program or portfolio has been developed and are further described in the planning phase, the 2nd stage of the project management process^[4]. Moreover, goals are used throughout the project management process to track achievements and to measure the performance, which are important in the Program Governance process.

B) Organisations such as companies aim to create benefits and to reach outcomes or goals, respectively^[3]. This process is often initiated by establishing a vision which is translated into measureable goals in the project planning phase on an organisation's strategic, tactical or operational level. Next to the performance evaluation of the proposed goals, goals create a direction^[1] which allows to be followed throughout the phases of any project management process^[5]. As any managerial task such as a planning process is accompanied by uncertainties^[6] that can lead to ambiguity and fallacy, an effective way of setting achievable goals is absolutely essential(QUELLE finden, wo es angesprochen wurde!!!!!) to mitigate negative outcomes.

Next to the findings by Doran^[1] and the Standard for Project Management^[3], further experimental research accomplished by Locke and Latham (2002)^[7] prove that setting goals increases both motivation of the affected, achievements and success rates in different areas. Lastly, it provides accountability for the completion of a project^[8]

Why SMART?

Due to the importance of an effective goal setting technique in the organisational performance management, Doran^[1] proposed the SMART goals which acronym stands for: Specific, Measurable, Achievable, Relevant, Time bound.

Studies show that using a tool such as the SMART goals technique is valuable due to its requirement for specificity. Having specific or clear goals, respectively, increases persistence and self efficacy, reduces the influence of anxiety of individuals and eventually allows an outperformance of a reference group without a specific goal setting according to research^[7]. The time constraint of SMART goals is also facilitating a fast work pace compared to undefined deadlines^[10].

Another reason for its success is the level of awareness of the technique, the great scope of appreciation among users it experiences and the easy applicability^[11].

In the field of project management, SMART goals generate a sense of discipline, structure^[12] and focus in the planning phase^[13]. Moreover, a higher rate of accomplishment compared to a vague goal setting is ensured, hence, a roadmap to success can be developed. This tool allows to generate success substantially related to its original efforts, which is of high value for any project manager^[1]. By reducing ambiguity and increasing commitment^[14] in a managerial environment and its great applicability in any part of a company whether the project management or the entire company^[15] - regardless of the size of the organisation^[16] - it stands out in the industry. It can be used to measure and to track project phases and results, and can be implemented in a great amount of methodologies such as Mind mapping^[17], WBS, Gantt chart^[18] or Balanced scorecard^[19]. In terms of performance measurement, using SMART goals enables developing indicators to analyse the performance compared to its expected outcomes^[20] and thus enables feedback and learning^[21]. Lastly, an improvement of the team efficiency within a project team is another attitude.

Application: How to be SMART?

As mentioned in section "Introduction to goal setting" implementing smart goals takes place after the project scope has been defined^[22]. According to this, implementing it in the planning phase is the obvious choice. Because of its great scope of application possibilities SMART goals can be utilised throughout the project management process^[11]. However, the main aspects of application in project managements are planning, performance management and monitoring^[21]

Before applying the tool on a specific case, certain things need to be considered^[23]:

1)A clear linkage between set goals and the company's strategic goals or an alignment between goals, respectively, is necessary to ensure commitment and motivation of affected employees.

2)Following a hierarchical and clear goal setting approach is essential, i.e. strategic goals have to be determined before any tactical or operational goal setting can happen. Though this might seem obvious, establishing goals on an operational level with clear defined strategic goals can promote higher performance as an understanding of task achievements in comparison to company goals takes place.

3)Lastly, ability to create measurable goals is unalterable as it is substantial for generating performance measuring indicators to evaluate the success of the goals within the project.

Guidance

A typical application environment can be a workshop^[24], more commonly used are simple Microsoft Excel Spreadsheets.

The following guidance along the acronym of SMART shows how to implement the tool using an example of a shoe manufacturer by answering the questions of the subcategories below.

Specific:

Project related case(http://www.brighthubpm.com/project-planning/26374-smart-goals-in-project-management/)

Specific:

What do I want?	Develop a more comfortable shoe
Why is it important?	To sustain on the market
Who is involved?	Marketing, R&D
Where is it located?	Northern Europe
Which resources?	Financial, human, patents

Be precise to avoid misinterpretation, but keep it simple.

Measurable:

How do I measure(quality of shoes)?

Test results of prototypes, customer experience measured quantitatively with qualitative aspects - additional aspect: cost and price consideration essential

It represents a crucial part of the goal setting as it strongly influences the project flow. Trends show a numerical illustration is supportive to compare goal results^[25], if necessary qualitative statements need to be considered to translate into numeric values.

Achievable:

How can I attain the goal?	If necessary internal resources are available and market offers opportunity
How realistic, considering internal capabilities?	Are financial, R&D, manufacturing resources available?

This corresponds to capabilities, where the difficulty is to determine goals that challenge, but not overcharge available capabilities.

Relevant:

7. Keep goals inspiring for the team.

The relevance of goals should be considered from two sides: goal relevance for the performer and for the company. Goal relevance (significance) for the team member is closely connected with his or her own set of personal motivations. For example, a research project can and should be given to an employee who enjoys learning new things, and wouldn’t be great for a programmer who would rather just code.

8. Keep goals relevant for the whole team.

Granted, when the team realizes that a goal is important, they’ll put in more effort when compared to “unimportant” goals.

And what can the team do if the goal is prioritized? Focus on efficiency. “Efficiency,” in this case, can be measured by a deadline, the final product, and the cost of work.

Time-Based Goals

9. Set concrete goal deadlines from urgency to availability.

When discussing dates for goals, you should remember one more empirical law called “Parkinson’s Law,” which states, “Any work expands so as to fill the time available for its completion.” If a task doesn’t have a deadline, immediate tasks displace it, and the chance that somebody ever gets around to it decreases. Thus, when setting any goal, always set a deadline.

The urgency of your goals is closely linked to goal-completion attainability. Let me show you why.

Examples of Goals:

Incorrect Goal: Make on the website the section “Contact Us” for a demonstration to the client by tomorrow.

Correct Goal: Make on the website the section “Contact Us” for demonstration to the client by noon 6/10/2016.

These deadline concepts integrate into Scrum. Iterations always have a fixed size and everyone knows precisely when will be a demonstration of sprint results.

10. Keep operational goals small while continuing to set high goals.

One of the SMART project planning tips is that operational goals and high-level goals should be clearly separated. Keep the low-level goals on which you are working small and achievable. This allows you to track the progress of the whole project and instantly make decisions based on the performance metrics.

But when setting ambitious goals, you assume that your colleagues have an ability to meet them, do not have any conflicting goals that can influence the result, and, finally, are moving in the same direction.(http://blog.capterra.com/10-smart-goal-setting-best-practices-for-project-planning/)

So what exactly makes a SMART goal?

S: Specific. A goal of “being the best” is too broad for specific execution. Make your goals more specific steps that will ultimately lead to you being the best. M: Measurable. How will you tell if you are heading towards your goal? If you have metrics that will measure it, you will be much more likely to execute it. A: Attainable/Achievable. Your goals should be lofty enough to inspire but not so big as to be unrealistic. Have big dreams for your company overall, but set smaller goals during the S.M.A.R.T. planning process in order to reach those lofty heights. R: Relevant. Make sure your goals apply to you, your company, and what you want to accomplish. T: Timely. Set a date for completion.(achieveit)

provide template

However, by interpreting “R” as Relevant, leaders add the dimension that the goals should conform with strategic direction.(achieveit)

Case studies

Project management phases: Planning, performance measurement, time management

Project Management SMART Objectives

Increase the cost efficiency of the project by 20 percent by the third release. To sustain the planned versus actual schedule performance index at 1 given a tolerance of +/- 5% in the second release.(http://www.brighthubpm.com/methods-strategies/78817-smart-objectives-samples-for-managers/)

as in case study: 2. Project definition and planning A project plan, project charter and/or project scope may be put in writing, outlining the work to be performed. During this phase, a team should prioritize the project, calculate a budget and schedule, and determine what resources are needed. 4. Project performance and control Project managers will compare project status and progress to the actual plan, as resources perform the scheduled work. During this phase, project managers may need to adjust schedules or do what is necessary to keep the project on track.(https://www.projectinsight.net/project-management-basics/basic-project-management-phases)

Budgeting case study:

I worked in a large, multi-national company with a small corporate staff, a really flat organisation. While there was a lot of financial oversight, there was also a lot of operational freedom at the business unit level. The relationship between the business units and corporate was clear, make your numbers and we'll leave you alone. Fail to make your numbers and close control and changes in business unit leadership will occur.

A critical part of the relationship between corporate and the business units was in arriving at annual budgets and objectives. The corporate people were convinced that the business unit level people were holding back to earn maximum bonuses for their organisations, and themselves. The business unit people were convinced that the corporate people were trying to suck them dry. Both had reason to believe as they did. In that ambiguous situation the annual budget dance was played out and resulted - sometimes smoothly, sometimes not - in a set of financial goals for each business unit.

One division President I had to work with considered the budget to be his organisation's goal, it's only goal. He and his controller developed the budget based on what they thought would fly at corporate. It was the equivalent of throwing a whole lot of balls in the air and then trying to run under all of them. In this business unit, once the budget was approved no further goal setting was done as a means of communicating that budget's requirements. As a result, his business was a complete compliance culture. "Tell me what to do and I'll do it" was a phrase heard often in his business. He lasted three years - never made a budget - and was fired.

In another business unit I had the good fortune to work with a division President who was committed to involving all his functional heads and their direct reports in developing the budget. All the opportunities, problems and issues were put on the table. By the time the budget was ready to be presented at corporate all the functional heads in his business unit knew what was in it, had participated in defining the numbers and had agreed to it.

In this business, the goal setting process started during the development of the budget. The key goal setting question was "What are the top three to five actions that must be taken to ensure exceeding the budget?" Every functional head asked that question of their people. SMART goals were developed at all levels. The result was a goal driven culture with people knowing what were the important few goals they needed to work to ensure success.

Regular performance to goal meetings were held, adjustments made, no surprises allowed. It was a very demanding place to work, but staff turnover was almost non-existent. That division exceeded its budget for five years in a row and the division President was promoted to Group Executive. There were many ambiguous situations that required work, but the top three to five SMART goals kept everyone focused on the important few.

There were many factors that contributed to the success of that business unit. But it started with the leader. He took the potential ambiguity of budget setting and turned it into a clearly defined process that involved input from the the experts. Then he turned the abstraction of a budget into a set of operating elements that could be defined, measured and reported on. He used SMART goals to do that. And the very human tendency to bite off more than could be chewed was controlled by insisting that the goals be limited to the three to five most important, at all levels of the organisation.

The one addition the division President made to the SMART formula was to add "Simple." His SMART acronym was modified to simple/specific, measurable, attainable, relevant/realistic and time framed. Simple is a critical element of goal setting. He had seen too many goal setting processes that morphed into administrative processes that missed the real meaning and intent of goal setting.

Ambiguity is a fact of life in all organisations. In many cases it can be an advantage. But in most cases, the clearer the requirements, the better. Use SMART goals, keep them simple, and watch people respond with a high level of commitment to the enterprise. They can be, as in this case, the difference between success and failure.(https://www.projectsmart.co.uk/smart-goals-reduce-ambiguity-and-increase-commitment.php)

>>industrial feedback after smart application<<

>>>Further consideration in program/portfolio management

Limitations

Bias, human resistance

effective goal setting can encounter such as lacking organisational capabilities or resistance to change, e.g due to individual anxiety (QUELLE-Managementreview)-requires critical reflection of capabilities and encountering unpleasant realisation of lacking capabilities

not easy to set appropriate goals (tbd- check QUELLE-Management review)

set goals need to be meaningful>>Goals should be meaningful and valuable to students. Even though the goals may be SMART, if students don’t perceive them as meaningful or valued, their engagement with goal attainment progress will diminish (Wigfield & Eccles, 1992)(http://hilt.harvard.edu/files/hilt/files/settinggoals.pdf)

Other techniques? >>Cascading Goals, Using Percentage Weights (https://hbr.org/2017/01/3-popular-goal-setting-techniques-managers-should-avoid) The acronym has also expanded to incorporate additional areas of focus for goal-setters. SMARTER, for example, includes two additional criteria:

Evaluated: appraisal of a goal to assess the extent to which it has been achieved. Reviewed: reflection and adjustment of your approach or behaviour to reach a goal.(https://www.projectsmart.co.uk/brief-history-of-smart-goals.php)

CRITIC: While the SMART test may be a useful minor mechanism for making sure that a goal statement has been phrased properly (in the same way that a spell-checker is a useful mechanism for flagging any misspelled words in a document), it provides no help in determining whether the goal itself is a good idea. In other words, a goal can easily be SMART without being wise.

Not everyone sees SMART goals as a positive force in goal setting. Critics argue that the SMART technique doesn't work well for long-term goals because it lacks flexibility. They suggest that you could fail to reach a long-term SMART goal if circumstances change further down the line.,Opponents further suggest that the SMART approach doesn't promote the sense of urgency or excitement needed to succeed. Specifically, they ask whether the SMART approach compels you to act in pursuit of your goal or creates inertia and stifles creativity.(https://www.projectsmart.co.uk/brief-history-of-smart-goals.php)

Worse, the SMART technique encourages people to set low goals. No one is going to set goals that don’t seem attainable or realistic, but a manager’s weakest subordinates may glom on to the A and the R in the acronym as their justification for setting goals at the shooting-fish-in-a-barrel level of challenge. It’s the setting of high goals—tough, demanding, stretching—that generates the greatest levels of effort and performance.

Tip: Rather than using the acronym as a way to determine which goals are wise or worth pursuing, use it only as test to check whether goals are well stated.(https://hbr.org/2017/01/3-popular-goal-setting-techniques-managers-should-avoid)

goals not ambitious enough

strictly following of guidance can lead to disregard better solutions

Conclusion

It is important to note, while the exact definition of “R” is not critical, it should be meaningful and not redundant in a larger context.(achieveit)

there is no ‘one­ size ­fits­ all’ way of utilizing goal setting(http://hilt.harvard.edu/files/hilt/files/settinggoals.pdf)

Be sure to include people that will have responsibility for the goal in the development process.(http://www.brighthubpm.com/templates-forms/78835-a-worksheet-for-preparing-smart-goals/)

Then, review progress on a periodic basis. The parameters surrounding goal development may change. If this occurs, then the goal needs to change as well. Don't allow a goal to limit productivity because the bar was set too high or to discourage performance because it is clear the goal will never be met by the deadline. Pull out the SMART Goals Worksheet that was originally prepared and update it. Even if the goal seems appropriate, review it at an established period. A "6 Month Update" Column is included in the worksheet. However, use whatever timeframe is appropriate for the project.(http://www.brighthubpm.com/templates-forms/78835-a-worksheet-for-preparing-smart-goals/)

Despite its critics, the SMART approach has changed the way we set and measure goals. It offers a clear and simple framework. Its popularity continues to grow, largely because it provides the vital element of organisation(https://www.projectsmart.co.uk/brief-history-of-smart-goals.php)

SMART objectives describe results to be achieved rather than duties undertaken. Writing them well requires understanding of results management concepts, clear definition of targets, and practice with identifying measures that make sense. Using them well requires familiarity with the performance management cycle, how to plan work based on desired results, and how to systematically assess progress and share feedback on achievements.(http://www.aligned4results.com/WritingSMARTjobObjectives.html)

Explanation why SMART: SpecificThe first is for the goal to be specific with the avoidance of generic or undefined objectives. Measurable requires the goal to have quantifiable qualities that can be clearly articulated and measured. Achievable is, for obvious reasons, something that is realistic and not setting someone up for failure to reach the goal. Relevant is going to have several implications, but the most important is that it is something that is going to be important to the goal setter. Finally, the time constraint might be one of the more critical aspects for getting things actually completed.(http://jalt-publications.org/tlt/departments/job-info-centre/articles/1661-smart-goals-and-goal-setting-career-enhancement)

How Do You Write a SMART Objective Statement? First, you must decide exactly what you expect to create, and how you will recognise it when it comes to be. Now put it in words: "Our Internet Marketing system produces a minimum of $3500 per month in product sales by 31 July 2015, with a quarterly increase of at least 5% thereafter." The Specific, Measurable, and Time-bound aspects are built into one short declaration.

Will it happen? Much depends on whether your objective is aligned with things that really matter to you (and your organisation), and whether you can commit the resources to bring it about. In individuals and in organisations, resource distribution often reflects past priorities and requirements. As you develop your SMART objective, step back and compare proposed results with existing commitments in the larger organisation or systems you serve. This broader perspective can help you decide if:

Your proposed result is consistent with and directly relevant to larger strategic goals and desired outcomes, and Your proposed result has such great pay-off potential that it is worth the resource investment it requires. Taking on a new initiative usually means that something else must go. If you discover that current investments are not producing the gains you had hoped for, you know where you can harvest resources for endeavours you believe will be more fruitful.

Now that your objective embodies the "Alignment" and "Realistic/Relevant" aspects of SMART, you are ready to use it as a target for work plans.(https://www.projectsmart.co.uk/use-smart-objectives-to-focus-goals-plans-and-performance.php)

Annotated bibliography

1. ↑ ^{1.0 1.1 1.2 1.3 1.4 1.5} Management Review, 1981, http://community.mis.temple.edu/mis0855002fall2015/files/2015/10/S.M.A.R.T-Way-Management-Review.pdf, Retrieved September 20, 2017
2. ↑ Dr. Edwin Locke, Toward a Theory of Task Motivation and Incentives, 1968
3. ↑ ^{3.0 3.1 3.2} PMI, The Standard for Project Management, 2013, p26-29
4. ↑ https://www.projectinsight.net/project-management-basics/basic-project-management-phases, Retrieved September 20, 2017
5. ↑ PMI, XXX, https://www.pmi.org/learning/library/project-management-middle-five-stages-6969, Retrieved September 20, 2017
6. ↑ Gareth R. Jones, Essentials of Contemporary Management, 2015, p9
7. ↑ ^{7.0 7.1} http://hilt.harvard.edu/files/hilt/files/settinggoals.pdf, Retrieved September 20, 2017
8. ↑ http://www.brighthubpm.com/templates-forms/78835-a-worksheet-for-preparing-smart-goals/, Retrieved September 20, 2017
9. ↑ Megan M. Flores, 2017, https://www.achieveit.com/resources/blog/history-evolution-smart-goals/, Retrieved September 20, 2017
10. ↑ Dr. Edwin Locke & Latham, American Psychologist, 2002
11. ↑ ^{11.0 11.1} https://www.projectsmart.co.uk/brief-history-of-smart-goals.php, Retrieved September 20, 2017
12. ↑ http://blog.capterra.com/10-smart-goal-setting-best-practices-for-project-planning/, Retrieved September 20, 2017
13. ↑ http://hr-mpact.com/Documents/goals_article.pdf, Retrieved September 20, 2017
14. ↑ https://www.projectsmart.co.uk/smart-goals-reduce-ambiguity-and-increase-commitment.php, Retrieved September 20, 2017
15. ↑ https://blog.weekdone.com/smart-goals/, Retrieved September 20, 2017
16. ↑ https://www.achieveit.com/resources/blog/history-evolution-smart-goals/, Retrieved September 20, 2017
17. ↑ http://www.brighthubpm.com/project-planning/26374-smart-goals-in-project-management/, Retrieved September 20, 2017
18. ↑ http://blog.capterra.com/10-smart-goal-setting-best-practices-for-project-planning/, Retrieved September 20, 2017
19. ↑ http://jalt-publications.org/tlt/departments/job-info-centre/articles/1661-smart-goals-and-goal-setting-career-enhancement, Retrieved September 20, 2017
20. ↑ http://www.kean.edu/sites/default/files/u7/SMART%20Objectives.pdf, Retrieved September 20, 2017
21. ↑ ^{21.0 21.1} https://www.projectsmart.co.uk/use-smart-objectives-to-focus-goals-plans-and-performance.php Retrieved September 20, 2017
22. ↑ http://www.brighthubpm.com/project-planning/26374-smart-goals-in-project-management/, Retrieved September 20, 2017
23. ↑ https://www.aligned4results.com/consultingtipsandtoolsblog/2008/12/how-to-link-smart-job-objectives-to-strategic-plans/, Retrieved September 20, 2017
24. ↑ http://www.aligned4results.com/WritingSMARTjobObjectives.html, Retrieved September 20, 2017
25. ↑ http://blog.capterra.com/10-smart-goal-setting-best-practices-for-project-planning/