When we think of business goals, oftentimes departments like sales and marketing may come to mind. Yet, teams like HR and finance have their own goals too, which can be realized with the help of OKRs (Objectives and Key Results), a system by which clear, measurable goals are set and tracked. Since a recent survey from professional services firm EY states 80% of HR and Finance leaders believe they work better as a team, we’ll take a look at how both departments can collaborate to achieve a number of outcomes using OKRs.
Both HR and Finance have an acute understand of improving talent management strategies to increase ROI. Yet, if your aim is to increase the ROI of your talent management initiatives, you must use metrics to get there. Using OKRs, HR can set business goals that all departments and levels can understand. Finance, for instance, can work in alignment with HR to meet the talent management demands that will help the business achieve its most critical priorities.
Let’s use an example scenario: perhaps it’s discovered that a compensation review must be performed to grow the business. HR and finance can work together to identify factors like costs of training, attrition trends, and where certain employees are falling on the salary scale. They can then use this knowledge to set specific, measureable, actionable, relevant, and time-bound (SMART) goals using the OKR model: every Objective receives an accompanying set of measureable Key Results. They can identify business measures by revisiting company priorities. For instance, if increasing sales is a top company goal, then HR and finance can work together to determine how many more employees are needed to achieve it, as well as what drivers can be put in place to accelerate performance.
When Finance and HR team up by setting and tracking measurable business goals using OKRs, they can add significant value to the organization and become strategic partners with a powerful role in achieving business outcomes.
Do you manage a company or teams (either as a CEO, a senior executive, a middle manager or even a front-line manager)? Do you set and track objectives? Does aligning employee performance to business goals matter, and are you responsible for driving results? If so, please check out a live demo of Atiim OKR & Goals Management Software and we’d love to hear what you think about it. Thank you!