SMART Goals

We’ve all been there. The annual (or quarterly) goal-setting exercise. The spreadsheet gets passed around. Teams dutifully craft objectives, and sprinkle them with the acronym “SMART” – Specific, Measurable, Achievable, Relevant, and Time-bound. It can seem productive. But how often do those SMART goals truly drive impactful results, and inspire your team?

After 20+ years leading engineering teams, I’ve found that while the SMART framework isn't wrong, it’s often insufficient. It focuses on how to define a goal, but not enough on whether the goal is worth pursuing in the first place. It’s a checklist item that can easily mask a lack of genuine ambition. This post dives into how to move beyond simply making goals SMART, and build a goal-setting process that fosters innovation, motivates your team, and delivers tangible results.

The Problem with "Achievable"

Let’s start with the most problematic part of the SMART acronym: “Achievable.” While avoiding unrealistic expectations is important, striving for merely “achievable” goals is a recipe for stagnation. It encourages incremental improvements at the expense of bold vision.

Think about it: the truly disruptive innovations—the ones that change the landscape—weren't "achievable" at the outset. They required pushing boundaries, embracing risk, and fundamentally challenging the status quo.

As Peter Thiel points out, successful people often find value in unexpected places, and they do this by thinking from “first principles” rather than relying on formulas. First principles thinking involves breaking down complex problems into their fundamental truths, allowing for creative and innovative solutions that aren’t constrained by existing assumptions. “Achievable” leans heavily into the formula, reinforcing existing assumptions.

Instead of asking, “Can we achieve this?” ask, “If we achieve this, what fundamentally changes?” This shifts the focus from execution to impact.

Beyond Execution: What Should We Focus On?

So, if "Achievable" is the wrong metric, what should we focus on? The most effective goals aren’t simply about doing things right; they’re about doing the right things. That requires a different set of criteria. I’ve found that framing goals around four key elements dramatically improves their effectiveness:

1. Ability: Do we have, or can we reasonably acquire, the skills and resources needed to tackle this goal? This isn't about perfection, but honest assessment.
2. Interest: Is this goal genuinely motivating for the team? Do they see the value in it? Enthusiasm is a force multiplier.
3. Effort: How much effort will this goal require? This is where realistic assessment comes in. Don't underestimate the long-term commitment. (Thiel notes we often overestimate what we can accomplish today but underestimate what we can achieve over years.)
4. Luck: While we can't control luck, acknowledging its role is crucial. Some initiatives will naturally benefit from favorable circumstances. Factor in contingency planning for unexpected challenges.

A Revised Framework for Ambitious Goals

Let's adapt the SMART framework to better reflect these principles. I propose this revised approach:

• Significant: Is this goal genuinely important? Does it align with the company’s strategic objectives and support the company’s long-term strategy? (Replaces "Specific" - significance is more important than granular detail initially.)
• Measurable: How will we track progress and define success? (This remains crucial.)
• Ambitious: Is this goal challenging enough to push us beyond our comfort zone? (Replaces “Achievable” - aim higher!)
• Relevant: Does this goal align with the team’s skills, interests, and overall objectives? (This remains important)
• Time-Bound: What is the deadline? (This remains important)

This isn’t about abandoning structure, but about prioritizing impact and inspiration. This revised framework isn’t drastically different, but it subtly shifts the focus from simply completing a goal to achieving something meaningful.

The Tension of Opposing Ideas

F. Scott Fitzgerald famously said, “The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.” This applies perfectly to goal-setting. We need to balance ambition with realism, innovation with execution. This is crucial in all leadership contexts.

This tension is especially relevant when scaling Agile methodologies. Without careful alignment, individual team goals can diverge from overarching strategic objectives, leading to wasted effort and fractured results.

Actionable Steps for Inspiring Your Team

1. Reimagine Your Goals: During your next goal-setting session, challenge the team to move beyond "achievable" and brainstorm truly ambitious goals. This exercise fosters creative thinking and inspires a sense of ownership.
2. Embrace First Principles: Encourage the team to question underlying assumptions and identify fundamental opportunities for improvement. This helps uncover innovative solutions that aren’t constrained by existing thinking.
3. Prioritize for Impact: Use the Ability/Interest matrix (or a similar framework) to prioritize goals based on their potential impact and feasibility. This ensures that you’re focusing on the initiatives that will deliver the greatest value.
4. Regularly Revisit Assumptions: Track progress against goals and revisit the underlying assumptions. Be willing to adjust course if necessary, ensuring that your team remains aligned and motivated.

Ultimately, effective goal-setting isn't about checking boxes. It's about inspiring your team to do their best work, and driving meaningful results. By moving beyond the limitations of the SMART framework, and embracing a more holistic approach, you can unlock the full potential of your engineering team and achieve truly exceptional outcomes.

Challenge your team to identify one goal that is truly ambitious, and see what's possible. What seemingly impossible goal could your team tackle that would fundamentally change the game?