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Struggling with Business Goals? Throw SMART and PACT Methods into the Blender

Written by Sharon Harry | Jan 29, 2023 5:28:54 PM

Setting goals for your organization can have a powerful effect.  By declaring, in writing, what you hope to achieve, business goals not only provide motivation, but also define steps and clarity on how you will achieve your success.  

There are two primary methodologies to setting goals: the SMART method and the PACT method.  SMART stands for Specific, Measureable, Attainable, Relevant, and Timely.  It was developed in 1981 by George T. Doran when he noticed that goals were often too loosely defined to have any effect.  SMART is still considered the gold star goal-setting practice today.

The PACT method was created by BJ Fogg in 2011 in his ‘Tiny Habits’ approach for making lasting behavioral changes.  The method also has been used in response to criticism that the SMART technique for writing goals doesn’t work well for the long-term.  PACT stands for Purposeful, Actionable, Continuous, and Trackable. While this seems similar to SMART, there is a subtle difference in their purpose.

What's the difference?  

SMART goals focus on quantifiable outcome while PACT focuses on measurable output. To simplify, SMART measures what you want to achieve as your end goal while PACT measures the efforts you are taking toward your goals.  Still as clear as mud?  

Let’s look at some examples.  

If I want to increase revenue at my company, I might create the following SMART goal:
XYZ Widgets will increase revenue by 25% by the end of a 12-month period by implementing a systematic inbound marketing program. 

This same endeavor might be a little different as a PACT Goal:
XYZ Widgets will create five lead generation content pieces attached to five landing pages within the next three months.   

So, which method should you use for your business plan? I find both methods to be beneficial.  I prefer the specificity and vision a SMART goal provides and the urgency and the action PACT offers. As such, I recommend a blended model for my clients that uses SMART goals to define the outcome you hope to achieve, and objectives to outline the action needed to achieve that goal. Here is an example:

Short Term Goal:
XYZ Widgets will increase revenue by 25% by the end of a 12-month period by implementing a systematic inbound marketing and sales program.

  • Objective A:  XYZ Widgets will onboard a new CRM program within the next six months that automates lead capturing from their website and scores them based on automated criteria for the sales team.
  • Objective B:  XYZ Widgets will creae five lead generation content pieces to attached to five individual landing pages within the next three months.
  • Objective C:  XYZ Widgets will qualify, nurture, and convert at least 10% of the leads in their funnel to closed sales each quarter.

This blended goal and objective structure enables a deeper understanding of what the end goal is (an increase of revenue by 25%), but also how a business hopes to achieve it (objectives A-C).  It allows the company to see the clarity of what they hope their outcome will produce as well as define the actions they need to take to get there.