SMART Goals - Please read before creating your company's SMART Goals Many of you when asked what are SMART goals you jump and say goals that are specific, measureable, achievable, realistic and timely, but are you able to actually to create them. At the end of your presentation you have been asked to provide five SMART goals for your company. These goals are seen as extremely important to be successful in running your company and these will provide you with an easier time in completing your final report later in the course. History has demonstrated that students have a hard time to actually create these goals for their company. For example here is a goal that has been seen a number of times. We will increase spending in marketing by 25% in each period for the next 6 periods. This is NOT a goal, but is a promise. Your company is promising to increase this expense over the next 6 periods whether it makes sense or not, whether you have the sales to sustain it or not. This is not a goal. We will increase customer satisfaction This is NOT a goal, it is not timely, measurable or even specific enough. In making your goals you want to use things that you can measure within the simulation easily. For example We want to reduce employee turnover to 5% by Period 8 and maintain those levels going forward This is a great goal and meets all the parameters, IF the simulation you are using provides turnover rates, I do not believe this one does. Goals should push you to try and make it, not simple ones like we will sell 10 more goods by Period 10 than we did in Period 1. Not achieving goals is not necessarily a bad thing. When trying to create your goals ask yourself what is the first thing your eyes go to when you open the simulation to see results. What are the first things you look at? These are the ones you want to set SMART goals on. I trust this helps to explain it and what you should be attempting to do.

• Operations
• Pricing
• Marketing
• Staffing
• Finance
• Special Decisions
• Decision Summary
• Decision Rationale
• Forecast

Quarter

• Start
• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12

Decisions / Forecast

THIS IS THIRD QUARTER

Current Cash		$2,000
Projected Tops Sales	$21	$44,499
Projected Pants Sales	$32	$56,640
Interest and Other Income		$0
Projected Cash Available		$103,139
Purchase Tops	2,150 $10	$21,500
Purchase Pants	2,200 $15	$33,000
Equipment Purchase		$0
Marketing Expense		$7,605
Staffing Expense		$30,964
Est. Operating Expense (less shrinkage and depreciation)		$11,570
Other Expense		$0
Estimated Tax (30% of profits)	$1,956 0.3	$587
Payment on Loan Principal		$2,500
Dividend Paid		$0
Projected Cash Required		$107,726
Projected Ending Cash		$(4,587)