SMART Goals vs. OKRs: Which Framework is Right for You?
In this article, we'll explore the similarities and differences between SMART goals and OKRs, including their respective strengths and weaknesses. We'll talk about how each framework works and provide examples of when it might be appropriate to use one over the other.
While the majority of content on the internet presents SMART goals as best for personal goals and OKRs as better suited for company environments, I find both frameworks equally useful for my personal goal setting. I actually prefer to use them together.
“I have found, over and over, that a person of average intelligence with clear goals will run circles around a genius who is not sure what he or she really wants.”
Here is the content list of what you are going to read:
Overview of SMART Goals: Defining the SMART Framework and Explaining How It Works.
Overview of OKRs: Defining the OKR Framework and Explaining How It Works.
Comparison of SMART Goals and OKRs: Their Strengths and Weaknesses.
How Do You Select the Right Framework for Your Specific Goals and Circumstances?
The Concept of Goal Setting
Simply, goal setting is an essential process for achieving personal growth and development. Goals give you that sense of meaning and purpose, a clear sense of direction.
A review of multiple studies published in the American Psychological Association's Psychological Bulletin found that goal setting has a positive impact on various areas of life, including academic achievement, athletic performance, and job productivity. These studies and many others suggest that setting clear goals can be a powerful tool for achieving success and personal growth. In hindsight, this seems quite obvious, but it's reassuring to have it confirmed by scientific research.
As you move toward your goals you feel happier and stronger. You feel more energized and effective. You feel more competent and confident in yourself and your abilities. Every step you take toward your goals increases your belief that you can set and achieve anything you want.
Okay, it all makes sense, and it's nice to read, but it still might feel a little bit abstract.
I really like the idea from the book (which I highly recommend -- Goals!: How to Get Everything You Want - Faster Than You Ever Thought Possible written by Brian Tracy) of looking at personal goal setting with similar lenses as running a business.
“Just as the president of a corporation is responsible for the strategy and activities of that corporation, you are responsible for the personal strategic planning of your own life and career. You are responsible for your overall management strategy—setting goals, making plans, establishing measures, and performing to get results. You are responsible for achieving certain outputs—the quality and quantity of the work that you produce and the results you are expected to get. As the president, you are responsible for your marketing strategy—developing a self-promotion and advancement plan, creating your image, and packaging yourself to be able to sell yourself for the very highest price in a competitive market. You are responsible for your financial strategy—deciding exactly how much of your services you want to sell, how much you want to earn, how rapidly you want to grow your income year by year, how much you want to save and invest, and how much you want to be worth when you retire. These numbers are entirely up to you. You are responsible for your people strategy and your relationships, both at home and at work. Your choice of a boss is going to have a major impact on how much you earn, how fast you get ahead, and how happy you will be at your job. This choice is your responsibility as well. No one else should do it for you.”
I believe that this analogy is spot on. Most successful companies rely on goals and planning to achieve their objectives, and it only makes sense that we can similarly enhance our personal success and productivity through goal-setting.
Goal setting can also be tremendously helpful in overcoming procrastination. When you have clear goals in mind, it's easier to prioritize reading a book over watching Netflix for hours.
“A dream without a goal is a wish.”
Introduction to Goal Setting Frameworks
I am aware of only about four goal-setting frameworks. I might write a dedicated article in the future, but the SMART goals framework and OKRs are by a wide margin the most popular.
The SMART goals framework is one of the most well-known and widely used goal-setting frameworks. It is commonly taught in schools and used in business and personal settings.
The OKRs framework, on the other hand, has gained popularity among tech companies and startups, and is now being adopted by larger organizations as well.
Before talking about both frameworks in more detail we should talk about a few basic and very important rules when it comes to the goal setting:
Your life is in your hands. No one will help you. - As with everything in life, goal setting will only work for you if you believe in it and are determined to move forward with your life. You can read thousands of articles and productivity books, but if you are not determined to put what you've learned into action, nothing will change.
Find your core values. - It bears emphasizing that goals that are attached to our values are the ones that we’re more likely to adopt and pursue as our own.
A goal is clear, written, and specific. - Many people think that they already have goals. Alas! What they really have are a series of wishes or dreams, such as "Be happy," "Make a lot of money," or "Have a nice family life." But these are not goals at all; they are merely fantasies that are common to everyone. A goal, however, is something distinctly different from a wish. It is clear, written, and specific. It can be quickly and easily described to another person. You can measure it, and you know when you have achieved it or not.
Overview of SMART Goals: Defining the SMART Framework and Explaining How It Works.
The SMART framework provides a structured approach to defining and achieving goals. The acronym SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
Here is an overview of each element of the SMART framework:
Specific: Goals should be clearly defined and specific, leaving no room for ambiguity or misinterpretation. A specific goal is more likely to be achieved than a vague or general one, like "being happy" or "making more money".
Measurable: Goals should be quantifiable or measurable, so that progress can be tracked and assessed. Setting measurable goals helps to ensure accountability and motivates people to achieve them. “That which cannot be measured cannot be achieved,” Locke and Latham summarized beautifully in their seminal textbook.
Achievable: Goals should be realistic and achievable, based on the resources and abilities of the individual or organization. Setting goals that are too ambitious or unrealistic can be demotivating and lead to disappointment.
Note: However it is recommended that your goals should be challenging. They should have about a 50-80% probability of success to create a healthy level of stress, which can bring out your best qualities. The more seasoned you are with goal setting the lower probability of success you can set.
Relevant: Goals should be relevant to the individual or organization's overall mission, values, and priorities. Setting goals that are not aligned with these factors can lead to wasted time and effort. Ideally they should be aligned with your core values.
Note: Studies show that if we have two goals that don’t logically go together, we will not make progress on either one of them. On the other hand leveraged goals create well-being and momentum, and improve your chances of overall goal attainment. And again, I can't stress this enough, it starts with our values. Our values shape the goals we set and our reactions to setbacks, and it clarifies our future endeavors. If you base your goals on your values it will be easier for you to stick to them even when challenges raise.
Time-bound: Goals should have a specific timeline or deadline for completion, which creates a sense of urgency and helps to keep people focused on achieving them.
In practice, using the SMART framework involves setting goals that meet each of these criteria. For example, instead of setting a goal to "get in shape," a SMART goal would be "to lose 10 pounds in 2 months by going to the gym 3 times a week and following a healthy diet." This goal is specific, measurable, achievable, relevant, and time-bound, making it more likely to be achieved.
And here's an example of a SMART goal for completing a 5K race:
Not a SMART goal: "I want to complete a 5K race."
SMART goal: "I will run a 5K race on July 31st, 2023, at the local park by following a 10-week training plan, increasing my running distance 3 times a week, eating a healthy diet, and tracking my progress in order to improve my physical fitness and achieve my goal on time."
How did we arrive at this goal?
Specific: "I will run a 5K race."
Measurable/Achievable: "I will follow a 10-week training plan, increasing my running distance 3 times a week, and eating a healthy diet, in order to prepare myself physically for the race."
Relevant: "Running a 5K race is relevant to my goal/core value of improving my physical fitness."
Time-bound: "I will run a 5K race on July 31st, 2023, at the local park by following a 10-week training plan, increasing my running distance 3 times a week, eating a healthy diet, and tracking my progress in order to improve my physical fitness and achieve my goal on time."
Overview of OKRs: Defining the OKR Framework and Explaining How It Works.
OKR stands for "Objectives and Key Results". It is a framework used for goal-setting and tracking progress in organizations. The framework was first developed by Andy Grove, former CEO of Intel, and has been adopted by many successful companies, including Google, LinkedIn, and Twitter.
The OKR framework involves setting Objectives, which are specific, measurable, and time-bound goals that align with the company's overall mission and vision. Objectives should be challenging but achievable, and should inspire and motivate employees to work towards achieving them.
Once Objectives have been set, Key Results are identified. Key Results are specific, measurable outcomes that are used to track progress towards achieving the Objective. They should be quantifiable and should provide evidence of progress towards achieving the Objective.
OKRs are typically set on a quarterly basis, with progress towards the goals reviewed and updated regularly. They are intended to be a flexible framework, with Objectives and Key Results updated and revised as needed based on changing circumstances and feedback.
The OKR framework works by providing a clear and structured way for organizations to set and track progress towards achieving their goals. It encourages alignment between individual and team goals with the overall company mission and vision, and helps to motivate and inspire employees to work towards achieving challenging but achievable goals. By regularly reviewing progress towards the goals, the framework allows for course correction and adjustment as needed, and ensures that the company remains focused on achieving its most important objectives.
And here are some examples of OKRs:
Objective: Increase monthly revenue
Key Results:
Increase website traffic by 20%
Increase conversion rate by 10%
Launch two new products by the end of the quarter
Objective: Improve customer satisfaction
Key Results:
Conduct a survey and achieve a 90% satisfaction rate
Reduce customer complaints by 50%
Improve response time to customer inquiries by 30%
How would our 5k race goal look like in OKRs?
Objective: Successfully complete a 5K race by July 31st, 2023
Key Results:
Complete a 10-week training plan, including running 3 times a week, strength training twice a week, and rest days on the remaining days
Increase running distance by 10% each week to build endurance
Maintain a healthy and balanced diet, with a focus on fueling for performance
Track progress by logging runs, monitoring heart rate, and taking body measurements, in order to continuously improve and stay on track
Comparison of SMART Goals and OKRs: Their Strengths and Weaknesses.
We know now that SMART goals and OKRs are both goal-setting frameworks that can be used to set and achieve objectives. However, they differ in their approach and focus.
SMART goals are specific, measurable, achievable, relevant, and time-bound. This means that goals set using this framework are well-defined, can be quantified, are realistically attainable, have a direct connection to the larger picture, and have a set deadline.
On the other hand, OKRs (Objectives and Key Results) are a goal-setting framework that focuses on setting ambitious, qualitative objectives, and then breaking them down into smaller, measurable key results. The objective should be aspirational and push individuals or teams to think creatively, while the key results should be measurable and provide a clear understanding of progress towards the objective.
The strengths of the SMART goal-setting framework include its simplicity and specificity. The framework provides clear guidelines for setting achievable goals, and its structure allows for easy tracking of progress towards those goals. However, its focus on attainability may limit the ambition of the goals being set.
In contrast, the OKR framework's strength lies in its ability to push individuals or teams towards ambitious objectives while still providing a clear path to measuring progress. The framework encourages creative thinking and innovation, allowing for goals to be set beyond what may seem initially attainable. However, the framework's qualitative nature may make it difficult to track progress and quantify success.
Overall, both frameworks have their strengths and weaknesses and can be effective in achieving goals depending on the situation and individual preferences. SMART goals may be more suitable for individuals looking to achieve specific, attainable objectives, while OKRs may be more suitable for those looking to push the limits and set ambitious, qualitative objectives.
The OKR framework is generally considered more flexible than the SMART goals framework because OKRs allow for more adaptability and agility in goal-setting.
What All This Means?
SMART is more straightforward in its approach, while OKRs are more flexible and adaptable to changing circumstances. Additionally, OKRs emphasize the importance of aligning individual and team goals with larger organizational objectives, while SMART is more focused on individual goals.
Think of your goal as a race you want to win. To win this race, you need to set targets that will help you reach the finish line.
The SMART framework helps you set these targets by giving you specific instructions on how to make them. For example, it tells you to set very specific, measurable, and time-bound targets.
Now, imagine that you have a coach who is helping you win this race. Your coach wants to make sure that you not only reach the finish line but also become a better runner overall. This is where the OKR framework comes in.
The OKR framework helps you set targets that are not only specific and time-bound but also challenging and ambitious.
So, in the game of goal-setting, SMART and OKRs overlap because they both help you set specific, measurable, and time-bound targets. However, OKRs take it a step further by helping you set more challenging and ambitious targets that push you to become a better runner overall.
How Do You Select the Right Framework for Your Specific Goals and Circumstances?
As PlanMyLife primarily focuses on personal goal setting, I will discuss the use of these two frameworks for personal use. I believe that the best approach for personal goal setting is not to choose between the two, but to blend them.
When planning your goals for a quarter, year, or longer, you will likely have some vision goals. These goals may not necessarily be specific, measurable, achievable, relevant, or time-bound (SMART), such as "Improve my health." There are various ways to approach these goals, which will lead you to make a list of sub-goals. In essence, you will set your "Key Results" (KRs), and these goals will be more specific and SMART.
However, if your health is already good and you want to improve a specific aspect, such as your weight lifting to XXkg, you will set just one very specific, SMART goal.
In the end, you will probably have a mixture of OKRs and SMART goals, and both frameworks will be closely linked to provide the best performance.
SMART goals can be quite rigid and inflexible as they are designed to be very specific. Once a SMART goal is set, it can be challenging to modify or adjust it without potentially disrupting the entire plan, requiring the creation of a new SMART goal.
In contrast, OKRs are more flexible and adaptable. Because the objective can be quite broad, it can have different key results.
A good way how to think about it is: The Objective in an OKR is the overarching goal or category that you want to achieve, and the Key Results are the measurable outcomes that will help you determine whether you're making progress towards that goal. Each Key Result can be thought of as a sub-goal that is specific, measurable, achievable, relevant, and time-bound (SMART), and can be broken down into smaller tasks or initiatives that will help you achieve it. By setting clear Objectives and Key Results, and breaking them down into smaller tasks, you can create a roadmap that will help you achieve your larger goals more effectively.
That's why OKRs are successful in organizational environments. They allow for multiple levels of goals to be set within an organization, providing greater flexibility in setting and tracking goals at different levels of the company and between departments while committed to one broad vision.
If you are only starting with goal setting and want to build some habits, SMART framework might be easier to start with. If you have some bigger, long-term plans with multiple possible approaches and outcomes you might want to work with OKRs.
Or, you will end up with the mixture of both. In the end the most important thing is to write your goals down and take action every day towards achieving them.
You will be living a life without regrets from knowing you have made the most of your time and resources, and have pursued your goals and passions with purpose and intention.
