Most of the executives and managers with whom we come into contact already have a pretty good idea about where improvements need to be made, or could be made, in their operations and their supply chains.
Typically, we hear about areas like
- Better customer service levels
- Reduced inventory
- More accurate demand planning
- Increased transportation efficiency
- Improved visibility
- Enhanced procurement processes
Setting goals for improvement projects
By now, almost all our readers have probably heard the popular acronym for goal-setting. Using S.M.A.R.T., these state that all goals should be
- Specific
- Measurable
- Achievable/Attainable
- Realistic
- Time-bound
There is often confusion between the "Achievable" and "Realistic" portions of this acronym but the distinction is important to note. Attainability focuses on whether the goal is conceptually achievable—"I want to run a marathon in under 4 hours next year". Could you conceivably train yourself to run 26.2 miles in 4 hours? Of course, the average marathon finishing time is about 4:45 and finishing under 4 hour mark is a goal for many experienced marathoners.
When we look at whether a goal is realistic, we're taking a more specific look at the person or organization setting the goal. So is running a marathon in 4 hours attainable? Yes. If you work long hours in a sedentary job and have never run more than a 5K then is it realistic for you? Probably not.
Our approach is to help the supply chain's (or, company's) cross-functional team come to an indisputably clear understanding of their current situation and its bottlenecks by helping them apply the Thinking Processes originating with Eliyahu Goldratt (Theory of Constraints). By constructing and refining a Current Reality Tree (CRT), the team comes to find real clarity about the causes of their current situation and the fundamental changes that need to be made.
Building on this understanding as a solid foundation, they are then able to extrapolate to the clear and concise strides that are needed to carry out step-by-step improvements necessary to actually achieve the targeted 98 percent customer service levels.
In the absence of this clarity and detail, there is no "achievable/attainable" or "realistic," there are only wishes and desires. Smart cannot be spelled without the 'A' and the 'R.' Proceeding without these two elements makes your team only 'S.M.T.', not S.M.A.R.T.
If you're ready to start setting your own SMART goals, download our guide with SMART Goal examples, advice on creating SMART goals and a worksheet to guide you as you create your own SMART goals with your organization.
GUIDE
How to Set SMART Goals
About RKL eSolutions
Founded in 2001, RKL eSolutions provides business software and IT/Networking solutions for our clients. Our headquarters is in Lancaster, PA but we have a national presence and support clients coast-to-coast from several offices throughout the U.S.
But we’re more than just a technology company, as a sister company of RKL LLP – one of the largest and most well-respected accounting firms in Pennsylvania – we leverage our relationship to deliver a wide range of Business Consulting Services including Risk Management, Small Business Consulting, and more for our customers.
