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Using SMART to Develop KPIs or Goals

Key Performance Indicators (KPIs) should be relevant to the organization and should follow the SMART criteria. SMART is a common acronym used to stand for – Specific, Measurable, Attainable, Realistic, and Time Bound. Can you fully describe the goal or KPI? How will progress be measured? Can you really reach that goal or KPI? How will it affect the organization? What is the time frame for progress?

What is an example?

Not SMART Goal -

The Organization will increase Sales Revenue.

SMART Goal –

The Organization will increase sales growth revenue by 20% within the year.


Defining this Goal –

  • Measured by increases in:

o revenue measured in dollars.

o # of sales staff

  • Achieving this target will allow the business to improve profitability

  • Reviewed monthly in meetings to the board by the Chief Sales Officer

  • Revenue will have increased from $X to $X.

Just because you meet your numbers, does not mean that you have met the original objective. Always review and track to ensure that you have selected the right measurements.



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