SMART Goals vs. OKRs vs. NCTs: Which Framework is Right for You?

This article compares three popular goal-setting frameworks - SMART Goals, OKRs, and NCTs - to help organizations determine which one best fits their needs. 

SMART Goals are ideal for short-term, specific, and measurable goals, offering clarity and focus but can be narrow-focused, rigid, and limit innovation.

OKRs (Objectives and Key Results) encourage ambitious, stretch goals that align teams across an organization. However, they may be challenging to implement and track in dynamic environments and lack a clear breakdown of actionable work to meet objectives.

NCTs (Narratives, Commitments, and Tasks) present a flexible, modern approach, aligning daily tasks with a long-term vision through a narrative, and are adaptable to changing environmental conditions.

Each framework has its benefits and potential pitfalls, making the choice dependent on the company’s size, culture, and long-term objectives.

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Introduction 

According to an Economist survey, 59% of organizations struggle to bridge the gap between strategy development and its daily implementation, with 20% of objectives failing because of poor implementation and 53% stating that their weakness in delivering their strategy puts them at a competitive disadvantage.

Setting the right goals for your organization can make the difference between thriving or merely surviving. Founders, executives, and leaders constantly seek goal frameworks to align their teams, measure progress, and achieve meaningful outcomes. 

When researching frameworks to implement your strategies, it won't be long until you find yourself neck-deep in all the possible approaches and methods to choose from for your organization. With so many available to choose from, the question arises: Which one is right for your organization? 

Before long, you’ll discover that the most regurgitated and popular among them as the go-to choices for many individuals and organizations are SMART Goals and OKRs (Objectives and Key Results).  

The mere selection of a framework is not a foregone conclusion to success; both frameworks have their respective benefits and pitfalls and serve a specific type of organization, culture, and strategy. 

A relatively new and modern framework gaining traction is that of NCTs (Narratives, Commitments, and Tasks), designed to tackle many of the modern issues arising in dynamic business environments that SMART and OKRs can struggle to adapt to. 

In this article, we’ll compare these three frameworks to help you gain an understanding of their strengths and weaknesses. By the end, you'll have a clear idea of what framework and strategy may be best for your organization. 

First, we’ll briefly overview each framework and analyze some of its strengths and weaknesses. We’ll then move on to compare and contrast each against the other to provide some insight so you may be better informed before committing to a choice of framework. 

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What are SMART Goals?

SMART Goals refers to the acronym SMART and is one of the most widely used goal-setting frameworks. The SMART acronym stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. It is designed to bring clarity and focus to objectives to make them actionable.

The SMART goal-setting framework was created by George T Doran, a consultant and former Director of Corporate Planning for Washington Water Power Company. 

In his 1990 paper, ‘There's a S.M.A.R.T way to write management’s goals and objectives,’ he lays out the elements of the acronym and explains in more depth how they're to be applied. Let's take a look at each element; 

Specific: Goals should be clear and specific, without ambiguity about what needs to be accomplished.

Measurable: Each goal must include a way to measure progress, whether through quantitative metrics (e.g., revenue targets) or qualitative outcomes (e.g., customer satisfaction).

Achievable: The goals must be realistic and attainable, ensuring that teams feel empowered rather than overwhelmed.

Relevant: Goals must align with broader business objectives, ensuring they contribute to the company’s mission and strategy.

Time-bound: Each goal should have a deadline or timeframe, which helps prioritize tasks and creates urgency.

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The Benefits of SMART Goals 

The benefits of SMART Goals are their clarity and ability to keep teams focused on specific, actionable outcomes. They provide ‘What’ a goal is and guidance for ‘How’ goals should be set in and of themselves. The framework can work well for businesses that require precise, measurable objectives to be completed within a certain deadline. 

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The Pitfalls of Smart Goals 

However, SMART Goals also have limitations. SMART Goals tend to encourage short-term thinking since they focus on immediate, specific results rather than broader, long-term success. Additionally, the rigid nature of SMART Goals may make them less adaptable to fast-changing environments.

The SMART framework can limit aspirational or transformative changes for those looking to drive innovation by focusing strictly and narrowly on achievable, short-term goals. 

While providing an outline for how a goal should be set and measured, SMART Goals do not provide a roadmap for success. In other words, they do not break down goals into actionable work that indicates progress, instead leaving execution vaguely autonomous. 

These characteristics make SMART Goals best suited for smaller projects or individual tasks where teams have a great deal of slack regarding how work is to be executed, but they may fall short in dynamic industries where flexibility, long-term strategy, and ambitious thinking are essential.

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What are OKRs (Objectives and Key Results)?

OKRs (Objectives and Key Results) is a goal-setting framework designed to encourage ambitious, ‘stretch’ objectives while maintaining measurable accountability. First introduced by Intel’s Andy Grove and evangelized by John Doerr and its implementation at Google, the framework has since been adopted by numerous organizations. 

Objectives are the qualitative, overarching goals that a company, team, or individual aims to achieve. They should be ambitious, aspirational, and aligned with the company's vision.

Key Results are the quantitative outcomes that measure the success of the objective. Each objective typically has 3-5 key results, which are clear, measurable, and focused on results rather than actionable tasks.

For example, an objective to “Increase brand awareness in the US market” could have the following Key Results; 

• Achieve 20% growth in social media followers across all platforms by the end of Q4.
• Secure 15 media mentions in high-traffic publications within the quarter.
• Increase website traffic from organic search by 25% compared to the previous quarter.
• Launch a new brand awareness campaign with at least 500,000 impressions by the end of the quarter.

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The Benefits of OKRs

Some of the benefits of OKRs are that they facilitate focus by limiting the number of objectives and key results. Teams typically set no more than three objectives per cycle, with each objective having 3 to 5 measurable key results. This can assist with prioritizing initiatives that can make an immediate impact.

OKRs help align team efforts with organizational goals. Once top-line ambitious objectives are set, teams link their work to attempting to achieve them. They provide a ‘What’ through their objectives and track ‘How’ through measurable Key Results. 

In stretching their goals, OKRs can potentially drive innovation and help organizations reach beyond what they initially thought was possible.​

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The Pitfalls of OKRs 

This framework can be complex to implement, especially in larger organizations where aligning multiple teams requires additional effort and oversight. Additionally, setting overly ambitious goals has the potential equally to lead teams toward burnout or missed objectives if not managed properly​.

Finally, OKRs again do not provide a roadmap for actionable work; the measurement of a result as a key indicator of progress does not translate to ‘How’ the results are to be achieved. This can potentially impact and hinder cross-functional alignment by making objectives overly vague and lacking clarity on how actionable work aligns with actual progress. 

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What are NCTs (Narrative, Commitments, and Tasks)?

NCT (Narrative, Commitments, and Tasks) is a modern goal-setting framework introduced by Ravi Mehta that provides a flexible yet structured approach to aligning vision with execution. NCTs focus on the importance of a clear Narrative to guide direction, paired with Commitments and actionable Tasks to drive day-to-day progress. Unlike other frameworks, NCTs emphasize the ‘Why’ behind objectives, ensuring that each task and commitment ties into a broader organizational strategy and fosters alignment throughout an organization. 

Narrative: This overarching vision provides context and purpose, helping teams understand the ‘why’ behind their work. A strong Narrative ensures alignment with the company's long-term vision.

Commitments: Similar to OKR Objectives, they outline the key measurable outcomes or promises that must be achieved to fulfill the Narrative. Unlike OKRs, however, they focus on what's achievable while remaining ambitious but not overly rigid about metrics. 

Tasks: These are the specific, actionable Tasks that indicate actual day-to-day progress toward the commitments. They are flexible and adaptable to respond to changing environmental conditions. 

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The Benefits of NCTs 

The NCT framework offers a balanced structure that connects long-term strategic vision with short-term execution, making it a flexible yet committed goal-oriented framework​.

The Narrative element of NCTs ensures that all actions align with the company’s broader vision. In offering teams a ‘Why’ behind their objectives, this purpose-driven approach keeps teams engaged and focused on long-term goals.​ Commitments offer a ‘What’ is to be achieved, and the Tasks provide a ‘How’ roadmap towards goal attainment. 

NCTs allow teams to adjust Tasks and Commitments in response to changes in the organizational or market environment without losing sight of the overall narrative. 

This framework is particularly useful for organizations in dynamic product-led industries where flexibility is crucial. A company with a Narrative targeted at leading innovation in renewable energy might have Commitments to launch two new green products and Tasks focused on product design and supply chain improvements.

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Challenges of NCTs

Optimal success with this framework will require strong leadership, and leaders must have a hands-on approach to craft compelling Narratives that inspire and communicate them clearly. If the Narrative is unclear or weak, teams may struggle to align with the organization's vision. 

Now that we’ve familiarised ourselves with the three frameworks and developed an understanding of some of their respective benefits and pitfalls, let's compare and contrast them to assist you in finding the right fit for your organization. 

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Key Differences Between SMART Goals, OKRs, and NCTs 

When evaluating SMART Goals, OKRs, and NCTs, it's essential to understand how each framework uniquely serves different organizational needs and contexts. Below, we’ll compare and contrast each framework. 

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SMART Goals vs. OKRs

SMART Goals prioritize clarity and achievability, making them perfect for situations where teams need to meet specific, well-defined targets. For instance, if a marketing team sets a SMART Goal to "increase email open rates by 15% in the next quarter," the objective is clear, measurable, and achievable within a short time frame. SMART Goals are often favored by teams working on incremental improvements or routine tasks that need focused, short-term efforts.

In contrast, OKRs push teams to aim higher and stretch beyond immediate goals. OKRs encourage setting ambitious objectives that might not be 100% achievable but inspire creativity and innovation. OKRs typically follow a quarterly or semi-annual cycle, and the focus is not necessarily on fully completing all key results but on making significant progress. For example, in a tech company, an OKR could be: "Increase product adoption by 50%," with key results that reflect challenging but inspiring milestones (e.g., acquiring 30,000 new users or reducing churn by 10%).

OKRs, in contrast to SMART Goals, foster a sense of company-wide alignment, providing transparency and focus across departments. This framework is designed to align everyone’s work with the company’s top priorities, encouraging collaboration and accountability.

Both frameworks offer a ‘What’ and ‘How’ for their goals in their own measurable ways yet both lack a ‘Why’, and their ‘How’ leaves much to be desired when it comes to providing clarity.

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OKRs vs. NCTs

While OKRs focus heavily on measurable key results, NCTs utilize the power of storytelling through the Narrative element. The Narrative provides context and purpose for why certain objectives are set, which can help to deeply engage employees and give meaning to their work. NCTs are especially effective in mission-driven organizations or companies navigating transformation, where aligning daily work with the broader mission or long-term vision is crucial.

OKRs often emphasize numeric success metrics, such as sales targets or product growth, but NCTs can work better for organizations that require more flexibility in achieving success. For example, in a company undergoing major market changes, having a clear Narrative ensures that the overall vision remains intact even if specific Tasks or Commitments need to shift. NCTs allow organizations to adapt more readily while maintaining alignment with their broader mission.

While OKRs help to foster organizational alignment toward objectives, they lack the depth of cross-functional team alignment that NCTs deliver. The Narrative element again provides more clarity to this end, albeit still allowing teams room to adapt as necessary through Commitments and Tasks to achieve goals. 

OKRs also lack the flexibility to adapt that NCTs have when market changes present themselves, often taking leaders ‘back to the drawing board’ to re-evaluate and set new targets. Among time and cost factors, this can break down alignment and mystify clarity for teams toward the organization's vision and direction in response.  

In contrast to OKRs, NCTs offer an inspirational ‘Why’ behind the goals to help foster additional alignment and engagement. While both offer a ‘What’ through respective Objectives and Commitments, Tasks offer a clearer roadmap as to ‘How’ objectives will be achieved over the mere measurable indicators of progress offered by Key Results. 

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SMART Goals vs. NCTs

While SMART Goals are excellent for precise, short-term objectives, they lack the flexibility to handle complex, evolving goals that require adaptation. In contrast, NCTs are well-suited for organizations that balance long-term vision with tactical execution. For example, a nonprofit organization focused on sustainability might use an NCT framework with a narrative focused on championing renewable energy adoption worldwide. The Commitments could include developing partnerships and launching initiatives, while the Tasks would involve specific actions like meeting with policymakers or developing educational materials.

Additionally, SMART Goals lack the ‘Why’ element behind a goal offered by the Narrative of NCTs to foster alignment toward strategic vision. Cross-functional alignment isn't inherently considered within the SMART framework. With its narrow focus, it requires leaders to find creative ways to adapt the framework in a way that potentially defeats its own purpose of simple precision. 

The focus on ‘How’ objectives are to actionably be achieved also pales in contrast. 

Now that we’ve compared and contrasted the frameworks against one another, let's conclude our focus on the suitability of each framework for your strategy and organization.

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Choosing the Right Framework

Choosing the right framework depends on your company’s size, culture, and objectives.

SMART Goals are a great fit for short-term, well-defined projects. If your team needs precise, measurable outcomes on a smaller scale - like completing a project or hitting specific sales numbers - SMART Goals offer a clear and structured approach. They work best when immediate clarity is more important than long-term flexibility.

OKRs are suited for organizations looking to align large teams around ambitious, long-term goals. If your company needs to push for innovation and stretch its objectives, OKRs provide a balance of focus and accountability. Regular check-ins can help keep progress on track but are not inherently built into the framework. 

OKRs can be an excellent fit for seasoned leaders of large organizations who know how to optimize their use in order to drive progress. Still, any leader seeking to implement them would be wise to familiarize themselves with their pitfalls before committing to the framework.   

NCTs are designed for organizations that need daily tasks to align with strategic vision and are able to adapt to agile systems. The Narrative helps align teams with the company’s mission, while Commitments and Tasks offer flexibility in execution. 

NCTs are perfect for companies in fast-paced environments, particularly product-led organizations where adaptability is key. They allow teams to adjust tasks without losing sight of the larger goal, making them ideal for businesses undergoing rapid change or those that prioritize engagement through purpose-driven work.

For organizations seeking long-term flexibility, alignment, and engagement, NCTs offer a balanced approach that can outperform more rigid frameworks like SMART and OKRs. 

NCTs are modern and have been designed to remedy many of the headaches that present themselves through other popular goal frameworks. Leaders struggling with other frameworks or seeking to commit to one for their strategy should read more into the benefits of NCTs for this purpose. 

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Conclusion

When deciding between SMART Goals, OKRs, and NCTs for your organization, it's important to select a framework that aligns your long-term strategy with your immediate reality.

While each framework offers a ‘What’ and a ‘How,’ NCT is the only framework to offer a ‘Why’ behind objectives and facilitate deeper clarity into the ‘How’ by providing a roadmap for actionable tasks. 

NCTs are the ideal choice for modern businesses seeking high team engagement in fast-paced, product-led organizations where adaptability is crucial to success. If you want to learn more about implementing it into your organization, please check out our complete guide to NCTs.