Why sticking to SMART goals may be a big mistake

When it comes to strategy

When it comes to strategy

Setting strategic goals in accordance with the SMART principle has become a golden management standard. But SMART goals have their “dark side”, and leaders should take it into account.

“Great resignation” is a global notion that hit America and some other economies after COVID-19. A record number of employees voluntarily quit their jobs for various reasons, but mostly because they disagreed with some of their employers’ policies. But sometimes a local “great resignation” takes place — when a CEO and a team leave the company simultaneously, which is always very painful for the business. And I have seen a couple of times that it happened because the board members insisted on sticking to long-term SMART goals, whatever happens.

The dark side of the SMART goals

Commitment to long-term goals is worshipped as the highest virtue in the business world. Investors, stock analysts, and shareholders make crucial decisions based on them. LTI, long-term incentives are often fr…