SMART Goals: Definition, Examples, & How to Write Them

What are SMART Goals?

SMART goals are objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound. The SMART framework, first published by George T. Doran in 1981, turns a vague intention into a goal with a clear target, a way to track progress, and a deadline.

SMART goals are:

• Specific: States exactly what will be accomplished, by whom, and why.
• Measurable: Includes a number or milestone that shows progress and completion.
• Achievable: Can be reached with the time, skills, and resources available.
• Relevant: Supports a larger team, business, or career objective.
• Time-bound: Has a deadline and checkpoints that create urgency.

Some versions use Attainable, Realistic, or Timely for the A, R, and T. Doran’s original version stood for Specific, Measurable, Assignable, Realistic, and Time-related.

Specific SMART Goals

Goals that are specific have a significantly greater chance of being accomplished. To make a goal specific, the five “W” questions must be considered:

1. Who: Who is involved in this goal?
2. What: What do I want to accomplish?
3. Where: Where is this goal to be achieved?
4. When: When do I want to achieve this goal?
5. Why: Why do I want to achieve this goal?

For example, a general goal would be “I want to get in shape.” A more specific goal would be “I want to obtain a gym membership at my local community center and work out four days a week to be healthier.”

Measurable SMART Goals

A SMART goal must have criteria for measuring progress. If there are no criteria, you will not be able to determine your progress and if you are on track to reach your goal. To make a goal measurable, ask yourself:

1. How many/much?
2. How do I know if I have reached my goal?
3. What is my indicator of progress?

For example, building on the specific goal above: I want to obtain a gym membership at my local community center and work out four days a week to be healthier. Every week, I will aim to lose one pound of body fat.

Achievable SMART Goals

A SMART goal must be achievable and attainable. This will help you figure out ways you can realize that goal and work towards it. The achievability of the goal should be stretched to make you feel challenged, but defined well enough that you can actually achieve it. Ask yourself:

1. Do I have the resources and capabilities to achieve the goal? If not, what am I missing?
2. Have others done it successfully before?

Relevant SMART Goals

A SMART goal must be relevant, meaning it supports a broader objective that matters to you, your team, or your company. A goal can be specific and measurable and still waste effort if it doesn’t move a bigger priority forward. Ask yourself:

1. Does this goal support a team, department, or company objective?
2. Is this the right time to pursue it?
3. Does it fit my role, skills, or career plans?

For example, an FP&A analyst’s goal to shorten the monthly forecast cycle is relevant if leadership has asked for faster reporting.

Time-Bound SMART Goals

A SMART goal must be time-bound in that it has a start and finish date. If the goal is not time-constrained, there will be no sense of urgency and, therefore, less motivation to achieve the goal. Ask yourself:

1. Does my goal have a deadline?
2. By when do you want to achieve your goal?

For example, building on the goal above: On August 1, I will obtain a gym membership at my local community center. In order to be healthier, I will work out four days a week. Every week, I will aim to lose one pound of body fat. By the end of August, I will have realized my goal if I lose four pounds of fat over the course of the month.

SMART Goal Examples by Finance Role

Role: Financial Analyst

• Vague goal: Get better at Excel.
• SMART goal: Complete an advanced Excel course and rebuild the monthly variance report with dynamic formulas by March 31, cutting preparation time from 6 hours to 3.

FP&A Analyst

• Vague goal: Speed up forecasting.
• SMART goal: Reduce the monthly forecast cycle from 8 to 5 business days by the end of Q2 by automating the data pull from our ERP into the forecast model.

Accountant

• Vague goal: Close the books faster.
• SMART goal: Shorten the month-end close from 10 to 7 business days by June 30 by moving accrual reconciliations to a shared checklist reviewed every Friday.

Investment Banking Analyst

• Vague goal: Improve my models.
• SMART goal: Build three LBO models from scratch over the next 8 weeks and have each reviewed by an associate, with no more than two formula errors per model.

Credit Analyst

• Vague goal: Process applications faster.
• SMART goal: Cut average credit memo turnaround from 10 to 7 business days by September 30 by using a standard spreading template for every new application.

The Importance of SMART Goal Setting

Often, individuals or businesses will set themselves up for failure by setting general and unrealistic goals such as “I want to be the best at X.” This goal is vague, with no sense of direction.

SMART goals set you up for success by making goals specific, measurable, achievable, realistic, and timely. The SMART method helps push you further, gives you a sense of direction, and helps you organize and reach your goals.

Additional Resources

Thank you for reading this guide to SMART Goal-setting in business. Below are additional free resources from CFI, the global provider of financial analyst certification courses.

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• Eisenhower Matrix

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SMART Goals Frequently Asked Questions

1. What are the 5 SMART criteria?

The five SMART criteria are tests a goal must pass. It states exactly what will be done, includes a measure of progress, can be reached with the resources available, supports a bigger objective, and has a deadline.

2. Who developed the SMART criteria?

George T. Doran introduced SMART in the November 1981 issue of Management Review, in an article titled “There’s a S.M.A.R.T. Way to Write Management’s Goals and Objectives.” His original letters stood for Specific, Measurable, Assignable, Realistic, and Time-related.

3. How do you write a SMART goal?

Start with the outcome you want. Make it specific, add a number to measure, check that you have the resources, confirm it supports a bigger objective, and set a deadline. Then write it as one sentence, such as “Reduce month-end close from 10 to 7 business days by June 30.”

4. How do you make a SMART goal relevant?

Tie it to an objective someone already cares about, such as a team target, a company priority, or your next career step. If you can’t name the larger goal it supports, rewrite it or drop it.

5. How do you measure a SMART goal?

Pick one metric with a starting point and a target, such as days to close, forecast accuracy, or models reviewed. Record the baseline before you start and check progress at set intervals, such as weekly or at each milestone.

6. What are the benefits of SMART goals?

SMART goals make expectations clear, make progress easy to track, and set a deadline that creates urgency. For managers, they make performance reviews more objective because both sides agreed on the measure and the date up front.