Number 171 – Develop and Manage

Develop and manage toward SMART goals.

Practitioners: tactical, integrative, and strategic

There will always be concepts that are shared across philosophical approaches. As I encounter them, my initial response is often to scoff. SMART goals did not originate in the Toyota Production System. I am not even sure where or when this common nomenclature came about. However, conceptually, SMART goals have clearly been part of the philosophy from the beginning. Did Taiichi Ohno develop and manage SMART goals with his teams?  Absolutely.  This is not in question. Goals and objectives are clearly part of the process. Then why is this idea important enough to make the list? He is my twenty cents.

Operational excellence is about process precision. Precision in both method and outcome. How can we expect to create the greatest level of improvement without clear and measurable outcomes? If our objectives are well defined and measured loosely, we can accept a wide range of performance and call it acceptable. The more precisely we define and measure the more opportunities to improve the methods to achieve it. The SMART acronym, if utilized well, can guide us to greater and greater precision in our definitions and measurements of every process. If our tactical objective is to remove waste, then we need precise definitions of outcomes to evaluate the presence of waste in our methods.

Develop and Manage

The practitioner list is all inclusive because the functional systems must work together. The easiest way I know to illustrate this is with these three questions:

1. Sponsor – What is important?
2. Process Owner – Are we paying appropriate attention to it?
3. Process Team – Can we change our processes to get it?

When the tactical, integrative, and strategic roles are working together we achieve the most efficient and effective system of operational excellence. If any of the practitioners is absent or negligent, the entire system suffers.  To develop and manage goals effectively, every practitioner must participate appropriate.   

Regular and frequent conversations take place over the course of implementation.  The sponsor’s attention communicates the importance of the objective, the process owner supports the pursuit and breaks down barriers, and the process team member conducts the work.  These are the activities associated with manage.  Develop and manage go hand in hand.  No manage, no outcome.  

Questions For Your Consideration

Where in your organization would the presence of SMART goals improve performance?

Are SMART goals part of your strategy deployment process?

How often are SMART goals reviewed and progress evaluated?

Where are your performance objectives unclear?

How well is the process team performing where they are missing?