SMART goals are a proven method for goal formulation where each goal must meet five criteria: Specific, Measurable, Achievable (or Attractive), Relevant (or Realistic), and Time-bound. The method was developed in 1981 by George T. Doran and helps HR professionals create goal agreements that are clear, traceable, and verifiable.

What Are SMART Goals? – Definition

SMART goals are a structured method for formulating goals in a way that makes them unambiguous, verifiable, and achievable. The term "SMART" is an acronym – a word formed from the initial letters of five criteria that a well-formulated goal should meet.

In the HR context, SMART goals are primarily used in goal agreements between managers and employees. They form the basis for performance reviews, bonus systems, and employee development. The advantage: both the manager and the employee know exactly what is expected and when a goal is considered achieved.

What Does SMART Stand For? – The 5 Criteria Explained

The acronym SMART stands for five characteristics that every goal should have. Depending on the source, there are slight variations in the meaning of individual letters – but the core idea remains the same.

S – Specific

A goal must be clearly and unambiguously formulated. Vague phrases like "achieve better results" or "increase sales" are not sufficient. Instead, the goal should specifically describe what exactly is to be achieved.

Helpful W-questions: What exactly should be achieved? Who is involved? Where does it take place? Why is it important?

M – Measurable

Only what is measurable can be verified. A measurable goal contains quantifiable criteria – for example, numbers, percentages, or specific key performance indicators (KPIs). This allows for an objective determination of whether and to what degree the goal was achieved.

A – Achievable (or Attractive/Accepted)

The "A" is interpreted differently: as "achievable," "attractive," or "accepted." The core message: the goal should be motivating for the person concerned. Goals that are dictated from above and have no personal relevance are less likely to be achieved.

R – Relevant (or Realistic)

A goal must be achievable with the available resources, skills, and timeframe. Unrealistic goals lead to frustration and demotivation. At the same time, the goal should be relevant – meaning it should align with the company's overarching strategy.

T – Time-bound

Every goal needs a clear timeframe with a deadline. Without a deadline, there is no pressure to implement, and goals are postponed indefinitely. A clear deadline helps with prioritization and prevents procrastination.

Origin of the SMART Method

The SMART formula was first described in 1981 by George T. Doran in his article "There's a S.M.A.R.T. way to write management's goals and objectives" in Management Review. Doran developed the method as a practical answer to the problem of vague and hard-to-measure corporate goals.

The scientific foundation was provided by Edwin A. Locke and Gary P. Latham with their "Goal Setting Theory" (1990). Their research showed that specific, challenging goals lead to better performance than vague or overly simple goals. The SMART method builds on these findings.

The concept of "Management by Objectives" (MbO) by Peter Drucker from the 1950s is considered a precursor. MbO laid the foundation for goal-oriented leadership – SMART specified how these goals should be formulated.

How to Formulate SMART Goals – Step by Step

Here's how to formulate a SMART goal in five steps:

1. Make it concrete (Specific): Describe precisely what is to be achieved. Avoid vague terms like "improve" or "increase" without further specification.
2. Define metrics (Measurable): Determine the criteria by which you will measure success. These can be numbers, percentages, or qualitative criteria.
3. Ensure acceptance (Achievable): Make sure all stakeholders support the goal. In job interviews or employee meetings, goals should be agreed upon together.
4. Check feasibility (Relevant): Verify whether the goal is achievable with the available resources and capabilities. Also consider external factors.
5. Set a deadline (Time-bound): Define a specific timeframe with an end date. For longer-term goals, milestones help with interim monitoring.

SMART Goals Examples for HR

The following examples show what SMART goals can look like in the HR field:

Recruiting Goal

Not SMART: "We want to hire faster."

SMART: "Time-to-hire for IT positions will be reduced by 20% – from an average of 45 to 36 days – by the end of Q3 2026."

Onboarding Goal

Not SMART: "Onboarding should be better."

SMART: "New employee satisfaction with the onboarding process will be increased to at least 85%, measured through a standardized feedback survey after 90 days. Target date: December 31, 2026."

Employee Retention Goal

Not SMART: "Fewer employees should quit."

SMART: "Voluntary turnover in the sales team will be reduced from 18% to below 12% within the next 12 months, supported by a new development program and regular stay interviews."

Advantages and Limitations of the SMART Method

Advantages

The SMART method offers several benefits for goal setting in HR:

• Clarity: All parties know exactly what is expected
• Measurability: Goal achievement can be objectively assessed
• Fairness: Performance evaluations are based on transparent criteria
• Motivation: Realistic, time-bound goals promote drive
• Resource efficiency: Time and resources are used purposefully
• Easy application: The method is quickly learned and universally applicable

Criticism and Limitations

Despite its widespread use, the SMART method also has limitations:

• Limiting innovation: The focus on "achievable" goals can lead to insufficiently ambitious goals
• Not everything is measurable: Qualitative goals like culture change or improved collaboration are difficult to quantify
• Rigid goal pursuit: In dynamic environments, strict goal adherence can be counterproductive
• Short-term focus: The time-bound nature can neglect long-term, strategic goals

SMART vs. OKR – What's the Difference?

In addition to SMART, the OKR method (Objectives and Key Results) has established itself in recent years, especially in agile companies. The key differences:

Both methods can be combined: OKR for strategic alignment, SMART for the concrete formulation of Key Results.

Frequently Asked Questions About SMART Goals

What are SMART goals?

SMART goals are a method for clear goal formulation. Each goal must meet five criteria: Specific (concrete), Measurable (quantifiable), Achievable (motivating), Relevant (realistic), and Time-bound (with a deadline). The method prevents vague or unrealistic goal setting.

What does the acronym SMART stand for?

S = Specific (clear and unambiguous), M = Measurable (verifiable with metrics), A = Achievable or Accepted (motivating for those involved), R = Relevant or Realistic (attainable and meaningful), T = Time-bound (with a clear deadline).

How do you formulate a SMART goal correctly?

Describe specifically what is to be achieved (S), define measurable success criteria (M), ensure the goal is motivating (A), check achievability with available resources (R), and set a clear timeframe with a deadline (T).

What is an example of a SMART goal in HR?

A SMART recruiting goal: "Time-to-hire for IT positions will be reduced by 20% – from 45 to 36 days – by the end of Q3 2026." It is specific (IT positions), measurable (20%, 36 days), achievable, relevant, and time-bound (Q3 2026).

What is the difference between SMART and OKR?

SMART is a method for formulating individual goals with 5 criteria. OKR (Objectives and Key Results) is a framework with overarching objectives and measurable key results. OKR encourages more ambitious "stretch goals," while SMART focuses on 100% achievable goals.

What are the advantages of SMART goals?

The main advantages are: clarity and unambiguity, objective measurability, higher motivation through realistic goals, better resource planning, and a fair basis for performance evaluations.

Is there criticism of the SMART method?

Yes. Critics point out that the focus on "achievable" can lead to insufficiently ambitious goals. Additionally, not all goals are easily measurable (e.g., culture change), and rigid goal pursuit can be hindering in dynamic environments.

How often should SMART goals be reviewed?

Regular check-ins are recommended – monthly or quarterly. This allows for discussing interim progress and adjusting goals when circumstances change. At year-end, a final evaluation of goal achievement takes place.

Conclusion

SMART goals offer HR professionals and managers a simple yet effective method for creating goal agreements that are clear and verifiable. The five criteria – Specific, Measurable, Achievable, Relevant, Time-bound – ensure that goals don't remain vague but become concretely actionable.

Especially in HR, where topics like talent relationship management and employee development are becoming increasingly important, SMART goals create transparency and fairness. They are not a cure-all, but a solid foundation for professional goal setting.

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Sources

• Doran, G. T. (1981): "There's a S.M.A.R.T. way to write management's goals and objectives." Management Review, Vol. 70, Issue 11, pp. 35-36.
• Locke, E. A. & Latham, G. P. (1990): "A Theory of Goal Setting and Task Performance." Prentice Hall.
• German Federal Administration Handbook (2024): SMART Rule / SMART Method. https://www.orghandbuch.de
• Drucker, P. F. (1954): "The Practice of Management." Harper & Brothers. [Foundation for Management by Objectives]
• Personio HR Lexicon (2024): SMART Objectives. https://www.personio.com/hr-lexicon/smart-objectives/