Here is how you can set-up objectives in Finance
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You are a finance manager.
You need to define your team’s objectives.
Based on my experience, here are three examples based on the S.M.A.R.T method.
You are a finance manager.
You need to define your team’s objectives.
Based on my experience, here are three examples based on the S.M.A.R.T method.
2/11
S.M.A.R.T objectives stand for:
Smart
Measurable
Achievable
Relevant
Time-Bound
See how to apply this framework with 3 examples below.
Feel free to use these and tailor it to your needs.
S.M.A.R.T objectives stand for:
Smart
Measurable
Achievable
Relevant
Time-Bound
See how to apply this framework with 3 examples below.
Feel free to use these and tailor it to your needs.
3/11
1st Objective: Reduce structure costs
🎯Specific
Reduce structure costs by 10% for the current year vs the previous year
🔢Measurable
Track structure costs by function against last year on a monthly basis
1st Objective: Reduce structure costs
🎯Specific
Reduce structure costs by 10% for the current year vs the previous year
🔢Measurable
Track structure costs by function against last year on a monthly basis
4/11
📝Achievable
By identifying and eliminating inefficiencies, negotiating better deals with suppliers, and implementing cost-saving measures
📝Achievable
By identifying and eliminating inefficiencies, negotiating better deals with suppliers, and implementing cost-saving measures
5/11
🏭Relevant
Relevant to the overall business strategy and profitability objectives
⏰Time-bound
Achieve the cost reduction by the end of the year
🏭Relevant
Relevant to the overall business strategy and profitability objectives
⏰Time-bound
Achieve the cost reduction by the end of the year
6/11
2nd Objective: Improve cash flow
🎯Specific
Improve cash flow by increasing cash on hand by +5m$ in the next financial year
🔢Measurable
Track cash on hand on a monthly basis
2nd Objective: Improve cash flow
🎯Specific
Improve cash flow by increasing cash on hand by +5m$ in the next financial year
🔢Measurable
Track cash on hand on a monthly basis
7/11
📝Achievable
By implementing better financial forecasting and management, reducing outstanding receivable, and increasing collections
📝Achievable
By implementing better financial forecasting and management, reducing outstanding receivable, and increasing collections
8/11
🏭Relevant
Relevant to the financial objectives
⏰Time-bound
Achieve the improvement by end of the year
🏭Relevant
Relevant to the financial objectives
⏰Time-bound
Achieve the improvement by end of the year
9/11
3rd Objective: Enhance financial reporting
🎯Specific
Automate financial processes and reduce timing of reporting to 2 days
🔢Measurable
Track the number of financial processes automated and the time reduced compared to initial situation
3rd Objective: Enhance financial reporting
🎯Specific
Automate financial processes and reduce timing of reporting to 2 days
🔢Measurable
Track the number of financial processes automated and the time reduced compared to initial situation
10/11
📝Achievable
By standardizing processes, implementing automation, training team members, and reducing manual workarounds
📝Achievable
By standardizing processes, implementing automation, training team members, and reducing manual workarounds
11/11
🏭Relevant
Relevant to the finance function and long-term goals of improving value and reducing manual work
⏰Time-bound
Achieve it by 30 June 2023
🏭Relevant
Relevant to the finance function and long-term goals of improving value and reducing manual work
⏰Time-bound
Achieve it by 30 June 2023
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