Kramer and Newman Get SMART

SMART is a method individuals and project teams can use to craft effective goal statements for their continuous improvement and problem-solving activities. SMART is an acronym that stands for:

Specific

• Who will drive the improvement?

• What are the main actions?

• Where?

• Who will be impacted?

Measurable

• What metrics will you use?

• Can we accurately measure it?

Attainable

• Can you actually do this?

• Stretch goals are encouraged as long as they are reasonably attainable with existing resources.

Relevant

• Does this goal help the business?

• Align with our long-term vision? How?

Time-bound

• When will you start?

• What are the major milestones?

• When will we see results?

There are a few different variations of the five words; some people use assignable rather than attainable, and others select realistic versus relevant. It doesn’t really matter which variation of the acronym you select, as long as it is aligns with your organization’s goal setting objectives.

Individuals and project teams can leverage SMART goal statements for:

• Personal goals

• Project management

• Project charters

• Problem statements

• A3 target conditions

• Rapid improvement events (kaizens)

 SMART goal statements offer several benefits:

• Communicates purpose

• Provides clear ownership

• Complement DMAIC and PDCA processes

• Creates sense of urgency/motivation

• Seeks to eliminate gap between current and future state

• Shows tangible benefits within the company’s key result areas (Alignment)

  Let’s explore the SMART approach by analyzing a classic episode of Seinfeld:

Upon returning from trip a to the Price Club with an abundance of Mellow Yellow in tow, Newman tries to convince his buddy Kramer to resurrect his Michigan bottle scam. Kramer dismisses Newman’s request because of the exorbitant overhead costs.

Newman then experiences a eureka moment while crunching the numbers and is able to win Kramer over with his ingenious plan.

Cue montage of bottle collection and Newman guzzling enough soda to internally drown!

Lo and behold, the scammers crafted the following goal statement for their project:

Newman and Kramer’s company, Michigan Bottle Scam, is looking for a way to cut costs and increase their profits. The company can achieve this by:

1. Collecting 9,999 discarded bottles (Kramer and Newman)

2. Procuring a “free” mail truck (Newman)

3. Driving from NYC to Saginaw, Michigan the week leading up to the mother of all mail days (Kramer and Newman)

4. Mooching off Jerry for food (Kramer), and

5. Earning $.10 per bottle (Kramer and Newman):

   Michigan Bottle Scam will cut costs by 70% and make a profit of $1,000 by June 1.

Let’s take a look at each word:

Specific

• Kramer and Newman will collect and deliver 9,999 bottles from NYC to Saginaw, Michigan via a “free” mail truck. Kramer and Newman each have clear and defined roles and responsibilities.

Measurable

• Collect 9,999 soda bottles at $.10 per bottle equals $1,000; using free mail truck and mooching off Jerry will save the company $700 (no expenses on gas, renting a truck, or ordering food. )

Attainable

• Newman crunched the numbers and it all checks out. But researching Michigan’s recycling laws probably would have stopped. More on that later.

Relevant

• The company is looking for a way to cut costs and increase their profits. This project satisfies both metrics.

Time-bound

• Delivery will occur during the week leading up to the “mother of all mail days); the company will make $1,000 in profits by June 1.

Pretty good, right? Okay, those who saw part II of this episode know that this scam blew up in Kramer and Newman's faces in hilarious fashion, while also negatively impacting Jerry, Elaine, Tony the mechanic, the farmer, the farmer’s daughter, and J. Peterman. Using the mail truck and traveling across state lines for this scheme is definitely a federal crime. (I know, I’m a lawyer and this was either a question on the Bar exam or the plot of a fever dream I had after a marathon studying session.)

The duo almost created a successful SMART goal statement through their brainstorming method, yet the scheme was never really attainable. Much like Homer Simpson, Newman and Kramer are S-M-R-T. Where are Bob Sacamano and Jay Riemenschneider when you need them?

I hope this timely television reference makes you think about how the SMART process will help you and your teams construct effective goal statements. This approach is easily teachable, repeatable, and effective. Teams that use this approach are more likely to align their improvement efforts with organizational priorities, make sound decisions, be transparent, stay disciplined to deadlines, and deliver impactful results.

Though, if your idea seems too good to be true (not realistic), is of questionable ethics, or recommended by a mailman who doesn’t work when it rains— please reference your state’s laws, federal statutes, and common sense before embarking on your improvement journey.