Compare the SMART method and the OKR method in 2024.
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.
A quick reminder of the SMART method
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:
- Specific: the objective must be clearly defined and easy to understand.
- Measurable: it must be possible to measure the progress of the objective and to know when it is achieved.
- Achievable: the objective must be achievable and realistic given the company's resources and constraints.
- Realistic: the goal must be ambitious enough to be motivating, but not unattainable.
- Temporally defined: the objective must have a clearly defined deadline.
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.
A quick reminder of the OKR method
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.
Questions about the SMART method
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:
- Lack of flexibility: the SMART method sets specific, measurable objectives that can be difficult to change once they've been set. This can make it difficult to adapt to changes in the environment or to unforeseen events.
- Lack of long-term vision: the SMART method focuses on short-term objectives that are easy to measure, which can limit the company's ability to set long-term goals and project itself into the future.
- Too focused on achieving objectives: the SMART method emphasizes the achievement of set objectives, which can encourage the adoption of short-term strategies rather than focusing on long-term objectives that may be more difficult to achieve immediately but could have a greater long-term impact.
"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).
The limits of the OKR method
- Too complex: Some people find the OKR method difficult to implement and manage, especially for small businesses.
- Too rigid: The OKR method can be inflexible and fail to adapt to changing business needs.
- Too goal-oriented: Some critics believe that the OKR method can place too much emphasis on goals and performance, to the detriment of employee well-being and creativity.
- Low employee involvement: Some companies find it difficult to involve employees in the implementation and management of OKR objectives.
- Limited performance measurement: Some people feel that the OKR method does not allow for comprehensive performance measurement, as it does not take into account qualitative and human aspects.
- Dependence on an OKR management tool: Some companies may become dependent on an OKR management tool, which can lead to additional costs and limited functionality.
Are the SMART and OKR methods still relevant in 2024?
About the SMART method
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.
About the OKR method
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:
- Focus on results: OKRs allow you to focus on the key results for the business, rather than on activities. This allows for a better understanding of the impact of activities on business results and for more informed decision-making.
- Flexibility: OKRs can be easily adjusted to meet changing business needs. It is important to ensure that OKRs are regularly reviewed to adapt to changes in the business environment.
- Improved internal communication: OKRs enable better communication and collaboration within the company, allowing all employees to understand the company's goals and results. OKRs can also help promote a results-oriented corporate culture.
- Performance improvement: OKRs help improve business performance and productivity by focusing on key results. OKRs can also help identify areas for improvement and put in place action plans to address them.
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.
A short presentation of other methods
The FAST method
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.
The BHAG method
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.
Good practices
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:
- Its formulation describes an effect to be produced, which includes an emotional dimension, directly observable in users or customers;
- It does not close any doors: it does not describe any framework, does not suggest any steps to be taken, and is not supported by any figures. The framework and the numbers remain fundamental, but they have the status of constraints to be respected in the achievement of the objective, and never of an objective as such;
- It is discussed with the team: it is adjusted to find the most effective formulation, difficulties and risks are identified, and the manager's support is calibrated accordingly.
Combine the SMART method with the OKR method to set your goals
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.
