When FAST Beats SMART: The Strategic Method to Goal Setting

Editor's Note: Take a look at our featured best practice, Strategic Planning: Hoshin Kanri (Hoshin Planning) (153-slide PowerPoint presentation). [NOTE: Our Hoshin Kanri presentation has been trusted by an array of prestigious organizations, including industry leaders such as Apple, Facebook, Boeing, Shell, Goodyear, Cummins, Johnson Controls, Hanes, Telefónica, Chubb, Discover, Stryker, [read more]

Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Goal Setting used to be done in a conventional way. Managers hold one-on-one meetings with their subordinates to set goals. Performances are reviewed against objectives and these are linked to promotion and bonus decisions. The same managers aspire their goals to be SMART – specific, measurable, achievable, realistic, and time-bound. But this conventional wisdom of goal setting rarely asks the fundamental question – does it work? The traditional approach to goals cannot ensure successful strategy execution. An alternative is necessary.

Bullseye! In executing a strategy, leaders must set ambitious targets. This must be translated into specific metrics and milestones. It must be made transparent throughout the organization and progress are discussed frequently. SMART is what it used to be. FAST is what is today — the FAST Method to Goal Setting.

SMART vs. FAST

SMART means Specific, Measurable, Achievable, Realistic, and Time-bound.  It is a key underlying concept to Peter Drucker’s Management by Objectives (MBO) framework.

The SMART Method is conventional wisdom of goal setting that undervalues ambition, focus narrowly on individual performance, and ignores the importance of discussing goals throughout the year.

To drive strategy execution, leaders should set goals that are FAST – Frequently discussed, Ambitious, Specific, and Transparent.

The Fast Method to Goal Setting

Goals can drive strategy execution. But this is only possible when goals are aligned with strategic priorities, account for critical interdependence across silos, and enable course corrections as circumstances change. A new approach has been pioneered that has 4 core principles for effective goals system. This is the FAST Method.

1.  Frequently discussed
   Frequently discussed goals are focused and aligned with the strategic vision of our organization.
2.  Ambitious
   The critical role of Ambition is to set effective goals. Ambitious goals boost the performance of individuals and teams.
3. Specific
   Specific goals can help identify what is not working and is quickly corrected. It clarifies what employees are expected to deliver.
4.  Transparent
   When there is transparency, goals and current performance are made public for all employees to see. This makes use of peer pressure to make everyone perform on goals.

In the spectrum, the FAST Method is here to stay. Companies in dynamic sectors are now setting goals more frequently. Setting and reviewing goals on a quarterly basis provide organizations more opportunities to make course corrections throughout the year. The world of business has become highly volatile. Dynamic sectors such as Media, Information Technology, and Financial sectors are pressured to regularly review and update their goals to be attuned with the changing environment and keep themselves on top of the race. While SMART is good, FAST is better.

The FAST Method to Goal Setting keeps companies always on the go and in control of their environment. They have set their goal on a winning streak on a fast lane where competition is at its stiffest. When things get rough, the FAST Method to Goal Setting is the way to go. It works!

Interested in gaining more understanding of the FAST Method to Goal Setting? You can learn more and download an editable PowerPoint about FAST Method to Goal Setting  here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”

– Omar Hernán Montes Parra, CEO at Quantum SFE

Want to Achieve Excellence in Strategy Development?

Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.