SMART GOALS 1

Smart Goals

SMART GOALS
 SMART GOALS 2

1) Starbucks: “In fiscal 2006, we plan to open approximately 1,800 net new stores

globally”

This objective is further explained, “In the United States, Starbucks plans to open approximately

700 Company-operated locations and 600 licensed locations. In International markets, Starbucks

plans to open approximately 150 Company-operated stores and 350 licensed stores.”1

• S– The above goal is specific in terms of number of new stores (what) (How to write

SMART objectives and SMARTer objectives, 2010) they want to achieve. Then the place

is also identified “globally”, (where) they want to operate. Time frame is also mentioned

i.e. year 2006. This short term goal is interrelated to the long term goal of Starbucks, and

based upon the culture, value and mission of the company.2

• M- This goal is quantifiable and can be measured easily. The company has mentioned the

target year to attain this goal. Then the numbers of stores are divided into local and

international markets. In the year end, the company can compare their achievements

against the goal (number of stores) and the figures are motivational for the employees.

• A– Starbucks is one of the blue-chip companies in US, and it is growing exponentially

year by year. So attaining this goal is not difficult for this giant company. As the

company has specified that they want to open more stores in US as compared to the

international market, it shows that it is easier to open stores in US, because of the brand

recognition and the demand of Starbucks coffee.

1
http://www.csrwire.com/press_releases/24563-Starbucks-Unprecedented-Performance-Continues-into-Fiscal-2006-Commitment-to-the-
Starbucks-Experience-Communities-and-Environment-Propels-Company-s-Growth
2
http://www.csrwire.com/press_releases/24563-Starbucks-Unprecedented-Performance-Continues-into-Fiscal-2006-Commitment-to-the-
Starbucks-Experience-Communities-and-Environment-Propels-Company-s-Growth
 SMART GOALS 3

• R- The goal is realistic to be achieved, because the company has mentioned specific

numbers of stores to be opened. As US is a bigger country and due to its brand

recognition in US, they can swiftly expand their business in different cities and towns.

About globally, the company has mentioned lower numbers, but very real numbers that

could be easier for them to be achieved in a year.

• T– Year 2006 shows that it is time based and one of the senses can experience the

launching or expansion of new stores.

2) Walgreens: “Second is to hire a significant number of people with disabilities in our

South Carolina distribution center, scheduled to open in 2007, and achieve 20%

productivity gains there.”

• S– The above is specific that the company wants to target disabled people (who). The

place is targeted South Carolina distribution centre (where). Year is also mentioned

i.e. 2007 (when) and 20% productivity gains need to be achieved (which). In order to

achieve its goal of hiring a workforce that is at least one-third disabled (267 of its

proposed 800 employees).3

• M- This goal is quantifiable and can be measured easily. The company has mentioned the

target year to attain this goal. Another main point is that the company wants to achieve

20% productivity gain to measure the result of hiring disabled people, and there is

something motivational factor behind it.

3
http://www.bedayaonline.org/PDFs/People%20Styles/CDO_Insights_article_published.pdf
 SMART GOALS 4

• A– The company has not clearly mentioned the number of people in this statement, but

has mentioned that significant number of disabled people, but in most of the reports they

have mentioned that they want to at least hire one-third of their proposed employees.

• R- 20% productivity gains is a real number figure that is aligned with the mission of the

company to a mission to hire, engage, and support people with disabilities.

• T– Year 2007 is time based and the 20% productivity gains seem to be trackable.

3) UPS: “65% of drivers will have access to the new technology (implemented in 2004)

by the end of 2005 and in 2005, we will increase operating profit in each of our 3

key businesses: U.S. domestic, international, and supply chain.”

• S– “65% of drivers” is the specific figure that needs to be achieved and they will have

access to the new technology (what) only that would be by the end of 2005 (when).

Then 3 areas (where) are focused, where operating profit (what) would be increased.

• M- This goal can be measured by the end of the year 2005 and the operating profit needs

to be increased only in 3 key businesses. 65% of the drivers sound to be motivating.

• A– UPS is one of the biggest companies in US, and it has implemented new technology

in 2004, so it would be attainable to give access to 65% of the drivers within a year, and

in 3 businesses, they want to increase operating profit firstly.

• R- 3 business areas are relevant as these are the core areas of the company. Secondly,

65% is result-oriented because they are the major employees that deliver the final

products to the customers, and it is realistic in terms of the company’s mission

statement.
 SMART GOALS 5

• T – 65% of drivers would have access to the new technology can be seen in the growth of

the company, and the statement mentions the specific year 2005 to achieve the results.

4) Wrigley’s: “In 2005, the company will decrease the long-term rate of return

assumption for the assets of its U.S. (pension) plans from 8.75 % to 8.5%.”

• S– The company is specific about the U.S. pension plans (what) to be worked upon.

Then the year 2005 (when) is mentioned in which this goal has to be achieved. The

company is clear about the rate of return (what) that needs to be decreased from 8.75%

to 8.5%. (which)

• M- The goal is measureable in terms of the decrease in rate from 8.75% to 8.5%.

• A– The rate of return can be decreased by 0.25% and is action-oriented (that it could be

decreased easily)

• R- The company has set a realistic % to be decreased in a year.

• T– Mentioning the year 2005 is time specific and results would be tangible as the rate

would be decreased.

5) Halliburton: “We estimate that 74% of the backlog existing on 12/31 will be

eliminated the following fiscal year.”

 SMART GOALS 6

• S– The statement is targeting about the backlog (what), and then the specific date is

mentioned. The company wants to decrease 74% (which) of the accumulated unfinished

work in the next year (when).

• M- The figure 74% is motivational to be achieved and its results can be measured in the

following fiscal year.

• A– 74% is action-oriented figure, because the company is focusing to increase the

efficiency in work and it would be more effective for the company, the more it would

decrease the waiting time of any work to be done.

• R- The company has set a realistic % as it is interrelated to the efficiency of the work.

• T– The following fiscal year shows the time framed and the results can be traceable in

the whole year.

6) Martha Stewart Living Omnimedia: “In 2004 we will discontinue the Catalog for

Living and its online product options, and sell remaining inventory in early fiscal

2005.”

• S– The goal is specifically talking about catalog for living and online products (what)

that would be discontinued in the year 2004 (when), and sell remaining inventory

(which) in early fiscal year (when).

• M- Here remaining inventory is measurable. The numbers are not specified because it

could be revealed at the yearend only.

 SMART GOALS 7

• A– In the early fiscal year is action-oriented, because the remaining stock needs to be

sold out and as the company is discontinuing the product line, so it would be attainable

to sell the left over stock.

• R- Early fiscal year 2005 is realistic time frame which consists 3-4 months to sell the

product.

• T– 2004 and early fiscal year 2005 are time framed and the results would be visible if the

remaining stock is sold in the first quarter or not.

REFERENCES:

• Rapidbi, June 28th 2010, “How to write SMART objectives and SMARTer objectives”,
Available from<http://www.rapidbi.com/created/WriteSMARTobjectives.html>
[September, 28 2010]
 SMART GOALS 8

• CDOInsights, December 2007, “ The Search for Talent: Why Hireing and Retaining”,
Availablefrom<http://www.bedayaonline.org/PDFs/People
%20Styles/CDO_Insights_article_published.pdf>[September, 28 2010]