OKR goals create company-wide alignment, which is one of the many reasons why the goal setting approach is so powerful. Effective alignment starts at the top, and even a slight misalignment between the CEO’s and executive team’s Objectives can create problems with far-reaching impacts. Let’s see how the alignment of business objectives plays such an important role in your organization’s ability to achieve goals.
Why You Must Align Your Business Objectives
When your teams, resources, and processes are all aligned with shared measurable business objectives, you’ll minimize wasted time and efforts since everyone will be working in sync. Misalignment leads to redundancies, loss of focus, and an abundance of “busy work” without any real measurable progress. In fact, it’s one of the most common reasons businesses fail.
Why Executive Team & CEO Objective Alignment is So Critical
Many organizations face the following business challenge: the CEO understands the company priorities and sets Objectives to reflect those priorities, but as the Objectives begin to mutate as they’re passed down through layers of management. As a result, they lose clarity at every level.
The first level of cascading Objectives takes place between the CEO and the executive team. If clarity is lost in this critical step, there’s no chance of lower levels of management – and certainly not teams or individual contributors – having clear, measurable goals that support top company priorities.
How OKR Goals Help
OKR goals are SMART goals, meaning they’re clear and specific, but also measurable. These critical features help to ensure all goals – from the executive team all the way down to the individual employee – are aligned with the most important measureable business Objectives that the CEO has established. Top-level OKRs are set first, then passed down to the executive level using the same SMART goal setting approach to ensure relevancy and alignment.
The same process continues through lower levels, ensuring that all teams are connected with the company priorities and mission. With the clear, measureable aspects of OKRs, teams also know exactly what’s expected of them to help them achieve those priorities.
What else? How do you ensure clarity isn’t lost when you set goals at different levels in your organization?
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!