What are SMART Performance Metrics, and what are best practices, tools and online templates for teams and organizations?
Definition of SMART Performance Metrics
SMART Performance Metrics is a tool used to create criteria to help improve the chances of an organization’s business success. It is an acronym that many businesses use for different purposes, from goal-setting to performance reviews to evaluating innovation. SMART Metrics provide a meaningful way to measure performance and success.
Description of SMART Performance Metrics
SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant and Time-Bound. Setting SMART Metrics helps to clarify what success means to a business, which will ultimately help it achieve that success. The following explains each part of the tool and how to best utilize it:
Specific – Being specific helps define exactly what the business wants to achieve and sets the path for getting there. For example, being specific helps define what it will take to achieve success, such as “improve the quality of a particular product which will result in increased sales”.
Measurable – Innovation and improvements need to be measurable in order to verify that they are working. Instead of a vague goal of “sell more products”, being specific helps define what that success means, such as “increase sales by 25%.”
Achievable – Achievable objectives should be challenging enough to encourage a team, but not too lofty that it discourages the team and leads ultimately to failure. It’s easy to want to set lofty goals, but if they aren’t feasible, it can set a team up for discouragement and failure. If the metrics are achievable, the team is more likely to remain focused and intent on success.
Relevant – Relevance requires that the metrics fit with the broader business goals of the company.
Time-Bound – If the metrics set in place lack realistic time objectives, the chances of success decrease dramatically. It is important to provide target dates for all deliverables and based on if they can be accomplished within the time frame given.
The final step in creating SMART Performance Metrics is to set a regular review schedule in advance and stick to it. This will allow the group to celebrate successes along the way, as well as course-correct, should that become necessary.
Tools & Templates
The tools managers can use to create and communicate SMART Performance Metrics include presentations, spreadsheets, and other strategic documents.
upBOARD's Online SMART Performance Metrics Tools & Templates
Unlike most traditional SMART Performance Metrics processes, upBOARD’s online SMART Performance Metrics tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
Learn more about upBOARD’s portfolio of other business strategy best practice tools and templates, including:
2 X 2 Matrix, ADL Matrix, Affinity Diagrams, Baker’s 4 Strategies of Influence, Balanced Scorecard, Benchmarking, Blue Ocean Strategy, Bowman Strategy Clock, Build-Measure-Learn Feedback Loop, Business Model Canvas, CAGE Distance Framework, Competitive Analysis, Competitive Landscape Analysis, Contingency Planning, Core Competence Analysis, Critical Success Factors, Discovery Driven Planning, Economic Value Added, First Mover Advantage, Five Forces Model, Force Field Analysis, Gap Analysis, GE McKinsey 9-Box Matrix, Go To Market Strategy, Hambrick & Frederickson’s Strategy Diamond, Hedgehog Model, Hook Model of Behavioral Design, Hoshin Planning System, Kay’s Distinctive Capabilities Framework, Key Outcome Indicators, Kotler’s Five Product Levels Model, Kotler’s Pricing Strategies, Lafley & Martin’s Five Step Strategy Model, McKinsey 7S Model, McKinsey’s Seven Degrees of Freedom for Growth, Mergers & Acquisitions, Mission Statements, Mullin’s Seven Domains Model, OGSM Framework, Ohmae’s 3-C’s Model, Partner Relationship Management, PEST Analysis, PESTLE Analysis, Porter’s Diamond, Portfolio Management, Purpose Statements, Pyramid of Purpose, Scenario Planning, Simonson & Rosen’s Influence Mix, SMART Performance Metrics, SMARTER Goals, SOAR, Strategic Goals, Strategy Map, Strategy Roadmap, Strategy Uncertainty Map, SWOT Analysis, TOWS Matrix, Triple Bottom Line, USP Analysis, Value Chain Analysis, Value Disciplines Model, Value Net Model, Values Statement, Vision Statements, VRIO Analysis, and Weisbord’s Six-Box Model.