How do you establish clear and measurable goals for each contract?

1 Define SMART goals

SMART is a widely used acronym for Specific, Measurable, Achievable, Relevant, and Time-bound. These criteria help you create goals that are clear, realistic, and aligned with your expectations and priorities. For example, a SMART goal for a contract could be: Reduce the average delivery time of goods by 10% within six months by implementing a new logistics system. This goal is specific (what, how, and when), measurable (10%), achievable (within the scope and resources of the contract), relevant (to the customer satisfaction and efficiency), and time-bound (six months).

3 Track and evaluate goals

After you have communicated your goals to your stakeholders, you need to track and evaluate them throughout the contract lifecycle. Tracking and evaluating your goals helps you measure your progress and performance, identify any issues or risks, and adjust your actions and strategies accordingly. You can use various metrics and indicators to track and evaluate your goals, such as key performance indicators (KPIs), service level agreements (SLAs), benchmarks, audits, surveys, and reviews. You should also document and report your results and achievements regularly and transparently to your stakeholders.

4 Align goals with contract changes

Contracts are dynamic and often need to be modified or updated due to changes in the business environment, customer needs, supplier capabilities, or regulatory requirements. When you make any changes to your contract, you need to align your goals with the new terms and conditions. This means that you need to review and revise your goals to reflect the changes, communicate the revised goals to your stakeholders, and track and evaluate them accordingly. By aligning your goals with contract changes, you ensure that your contract remains relevant, effective, and compliant.

5 Review goals at contract end

At the end of the contract lifecycle, you need to review your goals and assess how well you achieved them. This is an opportunity to evaluate your overall contract performance, identify your strengths and weaknesses, and learn from your successes and failures. You can use various methods and tools to review your goals, such as feedback forms, interviews, focus groups, lessons learned reports, and best practices guides. You should also share your findings and recommendations with your stakeholders and use them to improve your future contracts.

6 Celebrate goals achievement

Finally, you should celebrate your goals achievement with your stakeholders. Celebrating your goals achievement is a way to recognize and appreciate your efforts and achievements, motivate and reward your team and partners, and strengthen your relationships and trust. You can celebrate your goals achievement in various ways, such as sending thank-you notes, giving certificates or awards, hosting events or parties, or offering incentives or bonuses. By celebrating your goals achievement, you foster a positive and collaborative contract culture.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?