Goal-Setting Frameworks for Hospitality

A previous article on the lack of corporate purpose in hotels has made me reflect on one of the biggest challenges in hotel management today: the lack of clearly defined objectives, or, in many cases, misconceptions about how objectives should be set.

In hotel management, strategy is not merely a plan on paper, but a dynamic process that requires precision, alignment and commitment at every level of the organisation. Yet reality shows us that, far too often, objectives are set at the beginning of the year and then sidelined until the next performance review. The result? Teams disconnected from the overall vision, fragmented strategies and execution that becomes rigid and ineffective. The real challenge is not simply defining objectives, but ensuring they are ambitious, measurable and sufficiently flexible to adapt to a constantly changing environment. In this respect, the evolution from traditional SMART objectives to a more dynamic approach such as FAST objectives —Frequently discussed, Ambitious, Specific and Transparent— offers a new perspective on how to translate strategy into tangible results. Let us look at how this approach can transform the way hotels formulate and manage their goals, enabling them not only to improve individual performance, but also to strengthen coordination and strategic alignment across the entire organisation. To execute strategy, hotel leaders must set ambitious objectives, translate them into specific metrics and milestones, make them transparent throughout the organisation, and discuss progress frequently. This is followed by meetings (sometimes too many...) with the team to set annual targets, review performance against those objectives at year-end, and link the assessment to promotion and bonus decisions. Peter Drucker introduced “management by objectives”, an approach in which employees agreed with their manager on a set of objectives and worked towards achieving them throughout the year. This led to SMART objectives, or smart objectives, with SMART standing for:

• Specific (simple, sensible, significant).
• Measurable (meaningful, motivating).
• Achievable (agreed, attainable).
• Relevant (reasonable, realistic and resourced, results-based).
• Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).

In other words, objectives should be smart by ensuring they are specific, measurable, achievable, realistic and, of course, time-bound. It is important to have measurable objectives so that you can track your progress and stay motivated. Assessing progress helps you remain focused, achieve them and feel the excitement of getting closer to reaching your goal. Of course, they must also be realistic and achievable in order to succeed. In other words, they should stretch your capabilities while remaining possible. When you set an achievable objective, you may be able to identify opportunities or resources that had previously been overlooked and that can bring you closer to it. The relevance of the objectives proposed is fundamental. It is about ensuring that objectives are important to the hotel and aligned with other relevant objectives. We all need support and assistance to achieve our objectives, but it is important to retain ownership of them. Therefore, we must ensure that plans move everyone forward, while each person remains accountable for achieving their own objectives. A relevant objective can answer “yes” to these questions:

Does this seem valuable? Is this the right time to achieve it? Is this aligned with our other efforts / needs? Is this the right person to achieve this goal? Is it applicable in the current socio-economic environment?

However, this traditional approach to goals can actually stand in the way of the alignment, coordination and agility a hotel needs to execute its strategy. Let me explain: goals can drive strategy execution, but only when they are aligned with strategic priorities, account for critical interdependencies across silos, and allow for adjustments as circumstances change. If these conditions are not met, every employee may achieve their individual goals, yet the organisation as a whole may still be unable to execute its strategy. How can goals be set to better help a company translate its strategy into results? It is worth taking the time to develop individual, team and organisational goals that do not hinder the implementation of the overall strategy: SMART goals underestimate ambition, focus strictly on individual performance and overlook the importance of discussing goals throughout the year. To drive strategy execution, it may be far more advisable to set FAST goals: namely, Frequently discussed, Ambitious, Specific, and Transparent—in other words, frequently discussed, ambitious, specific and transparent. FAST goals help organisations improve across multiple dimensions at the same time. By making goals transparent, for example, companies enable employees to align their activities with corporate strategy and coordinate more effectively. Making goals public can improve performance by introducing peer pressure, showing employees what level of performance is possible, and helping them identify colleagues in similar situations who can offer advice on how to do better. Sharing company goals cannot guarantee that employees will align their own goals with the hotel’s strategy. However, transparency makes it easier for employees to compare the goals of their department or business unit with those of the company as a whole. When goals are public, it is easy to spot those that are out of line with the company’s overall strategy. In short, transparency can foster strategic alignment without resorting to a time-consuming process of cascading goals down the chain of command. Conversely, when goals are kept private, employees are often unaware of what people on other teams are doing and, ultimately, lose sight of the hotel’s overall strategy. To ensure that strategy translates into real results, it is not enough to set goals and review them at the end of the year. The key is to make them a living part of the hotel’s daily operation, discussing them frequently, adapting them to changes in the environment, and ensuring that every team member understands their role within the bigger picture. Transparency in these processes not only drives alignment, but also fosters engagement and shared accountability. FAST goals offer a more dynamic and effective alternative to traditional SMART goals. In an ever-evolving hotel environment, where demand, guest expectations and operational challenges change rapidly, teams need clear yet flexible guidance. This does not mean abandoning strategic planning, but rather continuously updating it, allowing for adjustments that safeguard competitiveness and operational excellence. Moreover, peer pressure and goal visibility can act as performance catalysts. When goals are public and discussed regularly, teams tend to coordinate their efforts more effectively, identify opportunities for improvement and draw inspiration from the achievements of others. Far from being a threat, transparency becomes a driver of performance and innovation within the organisation. For this methodology to work, it is essential for hotel leaders to lead by example. This means fostering an environment in which goals are not merely performance indicators, but tools for growth and learning. The organisational culture must encourage continuous improvement and learning from results, rather than using goals as a simple assessment mechanism. A hotel’s success lies not only in offering impeccable rooms or exceptional service, but in how its team aligns every effort with a clear strategic vision. Implementing FAST goals is not merely a management technique, but a mindset shift that turns strategic planning into an active and effective practice. When every employee understands how their actions contribute to the hotel’s overall success, strategy ceases to be an abstract concept and becomes a tangible reality that drives growth and operational excellence.