What are OKRs and why are they essential for your business?
An OKR framework can help to improve the focus of your staff, boost productivity and encourage transparency.
As a business, you need to be sure that every member of the team is pulling their weight and moving in the same direction, but that’s not easy task. OKRs can make the process easier, securing a single direction for the business to move in and producing measurable results for your company. But what are OKRs and how do you implement them in an effective way? What are OKRs?
OKR stands for Objectives and Key Results – it’s a goal-setting methodology designed to track your progress and keep your team aligned by using measurable goals and targets. The OKR framework can help to improve the focus of your staff, boost productivity and encourage transparency within your company.
So, how do they work? The OKR method works within a set of rules that prioritize different outcomes and measure the impact they have. OKRs comprise an Objective, Key results and Initiatives.
Ultimately, Objectives define what your business is setting out to achieve, and they’re designed to be inspiring, time-bound and challenging. The reason for this is that OKRs are meant to drive innovation and increase your profits. To achieve that, you need to be pushing yourself and making progress.
Key Results measure the progress made towards your Objectives. If the Objective is the destination, the Key Results show you how you’re getting there and Initiatives explain what could be done to reach it more effectively. Keeping track of your Key Results is essential in helping your business understand whether your actions are moving you in the right direction and whether your Initiatives are delivering the results you’re hoping for. With that in mind, what can OKRs do for your business and how do you implement them?
The benefits of OKRs
There are several reasons to consider OKRs for your business. One of the primary reasons businesses implement OKRs is that they improve direction within your company. The ability to adapt course direction makes it easier to implement corporate changes from the top down. OKRs are also effective in creating cohesive teams that can collaborate more efficiently as everyone is aligned to the same strategy and goals.
OKR frameworks create greater motivation within teams, as everyone understands what they’re working towards and the role they have to play in the wider strategy. Likewise, it improves accountability since the goals are tracked and assessed regularly on an individual level. This level of goal management creates a cultural shift in your organization, from output to outcomes, and creates focus, transparency and engagement.
OKRs can help staff to be more effective at their jobs, which not only results in better performance across the board but also increases sales. It’s a method that, when implemented properly, can provide excellent ROI for your business.
Commit to a curated selection of OKRs
When you’re implementing the OKR framework, it’s as important to be clear on what you’re not going to do, just as much as what you’re aiming for. It’s easy to get carried away when you’re creating objectives, but keep your list small. This makes it easier to stay focused and also means you’re not going to end up doing work that doesn’t achieve anything for your business. Curate your list of objectives that are going to make a difference and get your business where you want it to be.
Be specific
When you’re setting objectives, draw up an action plan and be incredibly specific on how you’re going to achieve those goals. The more specific you can be, the easier it will be to set expectations and achieve those goals, since you’ll know precisely what’s required to complete your goals.
Take a top-down approach
One of the issues that many businesses can face when setting objectives is that employees can struggle to see how they contribute unless it’s outlined clearly. How does someone in accounting implement change to reach the wider business? But cascading your objectives is the way to avoid this issue. Start from the top organizational level, move down to each department and finally end on the individual.
Break larger goals down
Once you’ve determined the larger goals you’re working towards, it can be helpful to break it down into manageable mini-goals. These smaller steps serve as milestones within your bigger objectives and are stepping stones that showcase your progress. If goals are too broad, it can be overwhelming and you can struggle to stay focused. Mini milestones keep you and your team on track.
Recognize progress and achievements
Strategic goals are meant to push your business and be challenging, so it pays to recognize your achievements as you go and reward your team for the milestones they’ve reached. Don’t wait until the end to recognize effort, as each step you take towards those final results is just as important as the finished product. Encourage your team to share their OKRs publicly and to reward successes within the organization, which fosters a better company culture and makes the process of working towards those goals more enjoyable.
The most effective way to build progress
An Objectives and Key Results framework is a highly effective way of encouraging success and alignment within your business, and it’s a method that many companies have used to great effect. It has the potential to not only boost profits and drive growth but also encourage collaboration and engagement among your staff, which in turn can help to increase productivity.
Dakota Murphey has a wealth of experience in business management, with over 10 years of experience she’s worked on a number of successful campaigns. She now enjoys sharing her knowledge through her writing and connecting with like-minded professionals.
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