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.

Strategy teams, business leaders and managers looking to drive better decision-making across the organization should implement the new online SMART Performance Metrics template from Praxie. 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. Get started with our SMART Performance Metrics template. 

How to use it: 

1. Review the SMART metrics definitions for the criteria that makes a metric “smart.” 
2. List your smart metrics that you will use and measure for your project or organization.  
3. Try to create metrics that are quantitative in nature (numeric) or binary (completed / not-completed). 
4. Create an action plan based on defining your SMART metrics. 

Unlike most traditional SMART Performance Metrics processes, Praxie’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.