Goals may be short term or long term. A short-term goal is something the organization wishes to accomplish in a short time period, usually less than a year. An example of a short-term goal is a plan to increase the advertising budget for the next three months. Short-term goals are the steps necessary to achieve long-term goals. A long-term goal is something an organization hopes to accomplish in a timeframe that exceeds one year. Long-term goals are broader than short-term goals and usually focus on the organization as a whole. Examples include developing a new product line, expanding business operations into another country, and paying off company debt. For a goal to be effective, it should be a SMART goal. A SMART goal is one that is specific, measurable, attainable, realistic, and timely, as shown in Figure 3-1. • Specific. A goal should be specific and straightforward. “Our company will increase sales by five percent” is a specific goal. • Measurable. Progress toward a goal should be measurable. “We will measure progress by using five percent increase as a benchmark.” • Attainable. A goal needs to be attainable. “Based on historical performance, five percent increase can be accomplished if we hire two additional salespeople.” • Realistic. A goal must be realistic. “It is realistic to increase sales by five percent by the end of the year based on our five-year history of four percent increase per year.” • Timely. A goal should be accomplished by a definite date. “Our company will increase sales by five percent by the end of the fiscal year.” The purpose of a goal is to reach a desired outcome and establish direction. By setting SMART goals, managers can plan ways to meet them. LO LO 3.1-3 3 . 1 - 3 Types of Plans Organizations depend on management to create and execute plans for the organization. A plan is an outline of actions needed to accomplish a goal. Three types of plans typically created include a strategic plan, tactical plan, and operational plan, as summarized in Figure 3-2. Goodheart-Willcox Publisher Figure 3-1 A SMART goal is one that is specific, measurable, attainable, realistic, and timely. S Are the short- and long-term goals specific? Exactly what do we want to achieve? Are the goals measurable? How will we know when a goal is achieved? Are the goals attainable? Can the goals be achieved? Are the goals realistic? Are the goals practical? Are the goals timely? Are the dates for achieving the goals appropriate? M A R T Smart Goals Goodheart-Willcox Publisher Figure 3-2 Three types of plans that managers typically create include strategic, tactical, and operational plans. Types of Plans Strategic • Long-term goals • Used to plan projects for entire organization • Developed by senior management Tactical • Short-term goals • Used to implement strategic plans • Developed by middle management Operational • Day-to-day goals • Used to meet tactical plans • Executed by supervisory management Chapter 3 Planning 41 Copyright Goodheart-Willcox Co., Inc.