Doing business well is always a challenge. The demands of running the day-to-day operations, understanding trends, pivoting when necessary, and having a clear roadmap, is essential to having a successful business. That’s where Objectives and Key Results (OKR) come into play.
What is OKR?
As mentioned above, OKR is Objectives and Key Results, and it is a framework within the business leadership to formulate, communicate, and monitor targeted milestones with a concerted effort to implement teams and personal objectives. Visit site.
Having an organization within the organization increases the efficiency and transparency that are needed to achieve those goals. The OKR framework allows for group dynamics and encourages personal responsibility to give everyone a sense of ownership toward the greater goal of making the business a success.
Three Reasons to Utilize OKRs
There are three main items in the OKR framework: Objectives, Key Results, and Initiatives. As a business owner, these things are usually laid out in the business plan so let’s discuss how to make it happen.
When it comes to setting attainable goals, OKR encourages the use of weekly and bi-weekly objectives and evaluations over the quarterly or annual assessments. By discussing the goals and achievements, it allows everyone to remain focused on the goals.
This also allows the business an opportunity to pivot when it needs to, especially when trends and markets change. It’s best for a successful business to also remain true to its standards but flexible enough to move with the market.
- A Ground-Up Approach
Most business objectives plans take a top-down approach to their plans however, OKR begins with a ground-up approach. Individuals are free to set their objectives while managers create an open-door policy for anyone to come forward with new ideas from the people who are working on the ground. It makes sense to listen to this sector of your business because they are often the front-line workers. When they are hands-on every day, they will likely come up with efficiencies to save time or make the environment safer. This gives them a sense of ownership to achieve goals and strive toward making the business a success.
- Quantitative Successes
Quantitative successes are measurable through statistics or metrics. These metrics are established by setting clear goals and understanding what tasks need to be done to achieve those goals.
By tracking everyone’s progress according to the OKR recommendations, everyone should be well aware of the “big picture” when it comes to business goals. Employees who have the freedom to express their ideas and goals often stay engaged and focused. They can prioritize their workflow better. And when employees are happy, generally production increases as well.
Something that business owners hate is failure however, with OKRs, it is easier to track down what is not working and make changes immediately. Each team is tasked with troubleshooting, or at least participating in the conversation to prevent another issue.
In the long run, OKRs help to define the direction where you want to take your business. Frequent assessments allow everyone to pivot. Clearly defined tasks and objectives allow the employees to stay focused, and an open-door policy grants everyone a voice to make improvements and give them a sense of ownership and pride in the work they do.