The SMART method and the OKR method are two commonly used approaches to setting and achieving corporate objectives. They help define clear, precise objectives that are easy to track and measure, which can help the company achieve its goals effectively and efficiently. However, some articles on the net question these methods. Which begs the question of whether the SMART method and the OKR method are still as clear and effective at the dawn of Management 4.0 in 2024.
The SMART method is an acronym that stands for "Specific, Measurable, Achievable, Realistic and Time-bound". It aims to help companies set clear, precise objectives that are easy to track and measure. For an objective to be considered SMART, it must meet the following criteria:
The SMART method is considered to be an effective approach because it enables clear, precise objectives to be defined that are easy to monitor and measure. It also encourages reflection on the company's resources and constraints, which can help to set achievable and realistic objectives. What's more, it's important to understand the SMART method to set motivating objectives for your teams.
The OKR (Objectives & Key Results) method is another approach popularized by Google and commonly used to set and achieve corporate objectives. They consist in setting ambitious Objectives (the "O") and defining Key Results (the "KR") to measure progress towards these objectives through milestones, with due dates, tasks and sub-tasks, and managers to ensure that these tasks are achieved.
The five key benefits that OKRs offer organizations: focus, alignment, engagement, follow-through and fulfillment.
"It's the operational tactics, it allows us to know how to unlock the key steps to achieve the strategy" Romain Cochet, ceo Numa
The objectives of the OKR method give meaning by involving all employees in the definition of common goals. What's more, these objectives boost productivity through intelligent work-sharing and mutual support. Employees gain a greater sense of autonomy, flexibility and creativity. It's also important to understand the OKR method to ensure lasting commitment from your teams.
It's common to question the approaches and methods used in business, including the SMART method for setting and achieving goals. Some criticisms of the SMART method include:
"SMART goals undervalue ambition, focus narrowly on individual performance, and ignore the importance of discussing goals throughout the year." . MIT Sloan Management Review published by MIT
**DonaldSull and Charles Sull (**June 5, 2018).
It's a commonly used approach to setting and achieving corporate goals, and it's still relevant in 2024. It was developed in the 1980s and has since become one of the most popular approaches to setting corporate objectives. In 2024, it is likely that the SMART method will continue to be widely used in companies to set and achieve objectives. It is important to consider it in conjunction with other approaches, and to be aware of its limitations.
Key Objectives and Results (OKR) have many benefits for a company. Here are some key points that explain why OKRs are so useful for the company:
Ideally, therefore, the SMART method should be combined with other approaches, such as OKR objectives or the FAST method, to adapt as closely as possible to the organization's profile and strategy.
The FAST method was developed by Paul R. Niven and John M. Smart to help companies set more effective goals.
The FAST method offers several advantages over traditional goal-setting methods. First of all, it is faster and easier to implement. It also allows for greater flexibility, as goals can be adapted quickly to changes in the business environment. In addition, the FAST method encourages collaboration and communication between team members, which can improve the quality of work and employee satisfaction.
The FAST method consists of four steps: Focus, Accountability, Specificity, and Transparency.
The first step, Focus, is to determine the key objectives of the business. It is important to focus on the goals that have the greatest impact on the company's success.
The second step, Accountability, is to designate a person or team to be responsible for achieving each goal. This step is important because it ensures that each objective is assigned to someone who will be responsible for it.
The third step, Specificity, is to define the objectives in a specific and measurable way. The objectives must be formulated in such a way that they can be evaluated and measured objectively.
Finally, the fourth step, Transparency, involves communicating goals and responsibilities clearly to all team members. This step is important because it allows all team members to understand the company's goals and to contribute to their achievement.
BHAG (Big Long Term Ambitious Goal): a method of setting a big long term ambitious goal for the company that is inspiring and motivating for employees.
The BHAG (Big Hairy Audacious Goal) method is an approach to goal setting that involves setting ambitious and audacious goals. This method was popularized by Jim Collins and Jerry Porras in their book "Built to Last: Successful Habits of Visionary Companies".
The BHAG method offers several advantages over traditional goal-setting methods. First, it encourages creativity and innovation. By setting bold goals, employees are encouraged to step out of their comfort zone and explore new ideas and approaches. In addition, the BHAG method can improve employee motivation and engagement. Bold goals can inspire employees to work hard to achieve those goals, and can also help them feel more invested in the company and its long-term goals.
The BHAG method consists of four steps: goal setting, planning, execution and evaluation.
The first step, goal setting, is to define an ambitious and inspiring goal that is in line with the company's mission and values. This objective must be measurable and must be linked to a specific time period.
The second step, planning, involves developing concrete action plans to achieve the BHAG goal. These plans must be realistic and must take into account available resources and expertise.
The third step, execution, is to implement the action plans and work consistently and purposefully to achieve the BHAG goal.
The fourth step, evaluation, is to assess the company's performance against the BHAG goal. This step is important to identify the company's strengths and weaknesses and to provide constructive feedback for future actions.
For Jérôme Tougne, writer of the article "How to formulate goals that make you smart" for the havard business review, a good goal has three valuable characteristics to empower and stimulate the intelligence of teams:
The SMART method and the OKR method are the keystones of entrepreneurial organization, and have proven their worth over and over again when it comes to setting objectives for all employees. Over time, new methods are integrated and coordinated with them to further increase their effectiveness.
Each organization must therefore demonstrate its agility by seeking to combine methods(OKR, SMART, FAST...) that lend themselves well to its business model.
