SMART Goals: how to formulate goals that can be followed up on
A goal is only useful when it can be unambiguously determined if it has been achieved. Here's the SMART model explained in English, with before-and-after examples from SMEs and a method for goals with a baseline, owner, and deadline.
Published · Updated · 6 min read
In short
- SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
- Always write the current level (baseline) before the target level.
- One named owner per goal — never “management.”
- Five to eight strategic goals are enough for an SME.
What are SMART goals?
SMART is a mnemonic for when a goal is formulated precisely enough to be followed up on. A SMART goal is Specific, Measurable, Achievable (and accepted), Relevant, and Time-bound. If a goal cannot meet all five, no one can determine if it has been achieved.
The purpose is not prettier formulations, but better conversations. A vague goal like “better customer satisfaction” can be debated endlessly. “Customer retention from 82% to 90% by December 31st, owner: service manager” is actionable.
SMART goals are used for strategic goals, project goals, and individual goals. At the strategic level, the goal must always have a KPI, an owner, and a deadline — otherwise, it's just an intention.
The five letters
Review each letter when formulating the goal. It takes two minutes and saves a quarter.
S — Specific
What changes, for whom, and where? Avoid words like “better,” “increased,” and “strengthened” without an object.
Examples: “Delivery precision for service orders in Jutland” instead of “better delivery.”
M — Measurable
What number shows progress, and where does the number come from?
Examples: From 86% to 95%, measured weekly in the order system.
A — Achievable and Accepted
Does the goal matter to the business, and has the owner agreed?
Examples: Owner: operations manager. The goal was agreed upon at the management meeting on February 3rd.
R — Relevant
Is there capacity, budget, and competence to achieve it?
Examples: Requires two new technicians hired by May 1st.
T — Time-bound
When is the goal achieved, and when do you follow up along the way?
Examples: Deadline December 31st, status quarterly.
Before and after: goals made SMART
The difference lies in numbers, owner, and deadline — not in more words.
| Area | Unclear Goal | SMART Goal |
|---|---|---|
| Sales | “We want to grow in the public market.” | Revenue from public tenders from DKK 2.1 million to 4.0 million by 2027. Owner: sales manager. Status quarterly. |
| Operations | “Fewer errors in production.” | Complaint rate from 3.2% to below 1.5% by December 31st. Owner: production manager. Measured monthly. |
| Customers | “Better customer loyalty.” | Share of customers with service agreements from 34% to 60% by year-end. Owner: service manager. |
| Employees | “Less absenteeism.” | Absenteeism rolling 12 months from 5.1% to below 4.0% by Q4. Owner: HR manager. |
How to formulate a SMART goal
1. Start with the strategic direction
The goal must be linked to a strategic theme. Goals without direction become activity lists.
2. Write the current level first
Without a baseline, the ambition cannot be assessed — and progress cannot be measured.
3. Set the target level and deadline
Choose a level that requires effort but can be achieved with the capacity you have or can acquire.
4. Appoint one owner
One person, not a department. The owner reports status and explains deviations.
5. Decide the cadence
How often is follow-up done, and at which meeting? A goal without regular follow-up slips unnoticed.
Common mistakes with SMART goals
- Activities disguised as goals: “hold four workshops” says nothing about the result.
- No baseline, so no one can see if 90% is ambitious or already achieved.
- Too many goals. Five to eight strategic goals are enough for an SME.
- Ownership with “management” instead of a named person.
- Goals that cannot be measured with data you actually have access to every month.
SMART goals vs. OKR
| Area | SMART Goals | OKR |
|---|---|---|
| Purpose | To clarify a goal so it can be followed up on. | To create focus on a few ambitious changes per quarter. |
| Ambition Level | Realistic — the goal is expected to be achieved. | Stretch — 70% achievement is often considered a success. |
| Cadence | Typically annual with quarterly follow-up. | Quarterly with weekly or monthly check-ins. |
Frequently asked questions
What does SMART goals mean?
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SMART stands for Specific, Measurable, Achievable (and accepted), Relevant, and Time-bound. It's a mnemonic to ensure a goal is formulated precisely enough that one can unambiguously determine if it has been achieved.
How do you write a SMART goal?
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State what changes, the current level (baseline), the target level, how it will be measured, who the owner is, and when it should be achieved. Example: “Delivery precision from 86% to 95% by December 31st, measured weekly in the order system, owner: operations manager.”
What is the difference between a SMART goal and a KPI?
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The goal describes the desired change with a level and a deadline. The KPI is the number that continuously shows movement. A SMART goal typically contains a KPI, but a KPI can also be tracked without a goal behind it.
How many strategic goals should a company have?
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Five to eight at the management level. More makes prioritization impossible, and experience shows that the number of goals actually moved in a quarter is lower than most believe.
Are SMART goals better than OKR?
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They solve different tasks. SMART is a quality check of the formulation and suits goals that must be achieved. OKR is a quarterly method for ambitious changes where partial achievement is accepted. Many companies use SMART formulation within their OKRs.
Related guides
These guides are closely connected to smart goals and are natural next steps in your strategy work.
- What is a KPI? Guide with examplesGood KPIs, baselines, target levels and data sources.
- OKR vs KPI: when to use whichThe difference between ambitious quarterly goals and ongoing metrics.
- Strategy plan: template and contentWhat a usable strategy plan contains — and what to leave out.
- Strategy implementation in practiceHow strategy gets executed instead of archived.
More strategy guides
Analysis and environment
Goals, KPIs and performance
Strategy process and planning
Goals with owner, numbers, and deadline
Create a free account and keep strategic goals, KPIs, and follow-up organized — with automatic status per goal.