Data Hawke #6: Asking SMART Questions Will Make You a Better Analyst
Similar to SMART goals, SMART questions make the best data analysis
SMART goals have been a staple of management gurus for the last few decades - i.e. you make your goals very specific and actionable. SMART is an acronym that stands for:
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Time-bound
We can apply the same approach to anything personally and professionally and get meaningful results.
We can apply the same approach to data analysis and ML problem-solving and get the desired hyperspecific results.
1. Specific
The goal of any analysis is to be specific, rather hyper-specific, about any given topic. If our topic cannot be written out in a single sentence, the results will not be very useful. In the end, our goal is to deduce conclusions out of raw data - not make it more convoluted.
Some examples of how to define specific goals for your potential project can be as follows:
Which 2 (or 3 or any number of) parameters have the highest impact on revenue growth?
What is the traffic volume through this junction?
Who has the most “viewed” Twitter account in the world?
How much advertising budget should be allocated to increase conversion by 5% etc.
2. Measurable (metrics)
Anything that can be measured can be improved.
Note that in the last item, I specified “views” or “impressions” of a tweet. This is a specific parameter that can measure a meaningful metric i.e. the potential reach of the tweet.
We could have also measured “impact”, but this is a vague goal at best since people may define having “impact” differently.
Having an objective metric is the key to a good analysis.
The question should aim to produce an answer that can be quantified or assessed in some manner. This facilitates tracking and analysis. e.g;
Personal Goals
Weight Loss: Lose 20 pounds by December 31st.
Reading: Read 24 books in the next 12 months.
Savings: Save $5,000 for a vacation by July 2023.
Fitness: Run a 5K in under 25 minutes within the next six months.
Professional Goals
Sales: Increase quarterly sales revenue by 15%.
Customer Satisfaction: Achieve a customer satisfaction rate of at least 90% by year-end.
Skill Development: Become certified in a relevant skill (e.g., Python programming) within the next three months.
Productivity: Reduce project completion time by 20% in the next quarter.
Business Goals
Market Share: Increase market share by 10% in the next financial year.
Customer Retention: Reduce customer churn rate to under 5% in the next quarter.
Employee Engagement: Achieve an employee engagement score of 80% or above in the next employee survey.
Cost Reduction: Decrease operating costs by 15% within the next six months.
Each of these goals is measurable because it includes specific metrics (e.g., pounds, percentages, time frames) that can be tracked and validated. The aim is to have clarity on what success looks like and to be able to definitively say whether or not the goal has been achieved.
3. Achievable
Shooting for the moon doesn’t always work. We have to be realistic.
Achievable goals are realistic objectives that you can attain given your current resources, constraints, and timeframe. They align well with the SMART goal-setting framework, which advocates for goals to be Specific, Measurable, Achievable, Relevant, and Time-bound.
Here are examples of achievable goals in various domains:
Personal Goals
Diet: Replace sugary snacks with fruits for a month.
Exercise: Walk 10,000 steps a day for 30 days.
Skill Learning: Learn to cook five new recipes this month.
Time Management: Limit social media usage to 30 minutes per day for the next two weeks.
Professional Goals
Productivity: Complete two major project milestones by the end of the quarter.
Networking: Attend one industry conference or webinar each month for the next three months.
Skill Enhancement: Complete an online course in your field within the next 60 days.
Team Building: Organize a team-building activity once a quarter.
Business Goals
Customer Engagement: Increase email newsletter open rates by 5% in the next month.
Inventory Management: Reduce inventory carrying costs by 10% in the next six months.
Employee Training: Ensure all team members complete mandatory training by the end of the quarter.
Client Retention: Renew contracts with at least 80% of current clients.
Health Goals
Weight Management: Lose 5 pounds in the next two months.
Sleep: Get at least 7 hours of sleep per night for a month.
Hydration: Drink at least 64 ounces of water each day for two weeks.
Mental Health: Practice 10 minutes of mindfulness meditation daily for 21 days.
Note that what is achievable can vary greatly depending on individual circumstances, resources, and constraints. Always consider your own situation when setting goals.
4. Relevant
Relevance keeps the spark alive.
Relevant goals align with your broader objectives, values, or ambitions. They make sense within the context of your life stage, career path, or the strategic direction of your business or project.
Here are examples of relevant goals across various areas:
Personal Goals
Home Life: If you're a new parent, a relevant goal might be mastering a sleep training method to help your baby (and you) get more rest.
Hobbies: If you enjoy painting, a relevant goal could be to complete a painting every month to improve your skills.
Health: If you've been advised to lower your cholesterol, setting a goal to reduce saturated fats in your diet would be relevant.
Professional Goals
Career Progression: If you're an entry-level employee aiming for a managerial role, a relevant goal would be to take on small leadership roles in current projects.
Industry Relevance: If you're in tech and your company is focusing on AI, learning machine learning fundamentals could be a relevant goal.
Skill Enhancement: If your role involves a lot of data analysis, becoming proficient in Excel or learning a programming language like Python would be relevant.
Having a relevant goal doesn’t mean the project or your analysis will automatically be successful. Relevant goals only provide guardrails around your project where you have all the flexibility and freedom
5. Time-bound
The goals must be time-bound. There is no point in having a general, timeless goal.
Time-bound goals are objectives that have a specific timeframe by which they should be completed. These types of goals align well with the SMART goal-setting framework, which advocates for goals to be Specific, Measurable, Achievable, Relevant, and Time-bound. Here are some examples:
Personal Goals
Weight Loss: Lose 10 pounds by September 1, 2023.
Reading: Finish reading three new books by the end of this month.
Savings: Save $1,000 for holiday shopping by December 1, 2023.
Skill Development: Learn basic conversational Spanish before your trip to Spain next summer.
Professional Goals
Certification: Obtain a project management certification by the end of the year.
Skill Enhancement: Learn Python programming within the next three months.
Networking: Connect with at least 50 industry professionals on LinkedIn by the end of the quarter.
Job Search: Secure a new job offer within the next six months.
Business Goals
Revenue Increase: Achieve $500,000 in sales by Q4 of 2023.
Market Expansion: Launch in three new cities within the next 12 months.
Customer Retention: Reduce customer churn rates by 10% within the next six months.
Product Launch: Release the updated version of the product by October 15, 2023.
By setting a specific timeframe, you introduce a sense of urgency that can help you stay focused and organized, making it more likely that you'll achieve your goals.
Conclusion
Keeping the SMART framework in mind creates a good mental model for solving business problems and performing analytics.