In order to know where your teams must focus their efforts so you can achieve your company’s biggest priorities, you need to set goals. Without a specific goal setting method, however, you’re likely to fail. Traditional business goal setting allows too many unknown variables to get in the way of achievement, which is why OKRs (Objective and Key Results) are the new, better version of setting goals.
OKR goal setting is the most modern approach to setting company-wide goals.
What has changed since MBOs launched in 1967? Why transition from using MBOs to OKRs?
- OKRs are ALIGNED, not just a stand-alone objective handed to an individual
- Company-wide TRANSPARENCY, visible to all and not just by one individual
- An Objective can be set with SEVERAL KPIs, not just one KPI
- Allows for CROSS-FUNCTIONAL alignment, not just isolated in a silo
- Set QUARTERLY (with ongoing check-ins), not just once a year
- Progress updated with a WEEKLY 5-min “check-in”, not a few times a year
- Taps into the COLLECTIVE wisdom of the team, not just handed down
OKRs drive results by ensuring all efforts are aligned to support the top, overarching business goals that are most important to your company each quarter. As a result, everyone becomes connected to your top company goals. When you implement this new goal setting framework, you can expect to see improved business outcomes, better performance, and more engaged teams. This method is the process that Google has used to achieve ongoing success for more than a decade.
Because OKR goals inform everyone of what’s truly important to the organization, everyone knows precisely where to focus their efforts, which is much more effective than traditional goal setting. It also connects everyone to top company goals, fostering alignment in a way that regular goal-setting could never achieve. Additionally, OKRs ensure that outcomes are being achieved because managers check in with employees briefly once per week to discuss progress and make sure that all parties are on track.
With traditional corporate goal setting, it was easy for employees to become demotivated. With OKR goals, however, that’s not the case. With this framework, employees have a distinct role in setting their own goals which support your top company objectives, and they are also encouraged to set and achieve their own tasks and tactics in a way that allows them to use their strengths to accomplish each goal.
Are you still using traditional approaches to corporate goal-setting? If so, consider if it’s time for your organization to check out OKRs and get better clarity and alignment for accelerated results. Upgrade your process to Business Goal-Setting 2.0: OKRs, the modern, powerful approach to goals.
Here are the 7 Key Reasons Why High-Growth and Successful Companies Are Now Using OKRs
- Clear and Accurate Communication: inform everyone about what is truly important.
- Focus: focus (and re-focuses) all effort on the key priorities that are the most important.
- Alignment: align everyone at your company to work on the top objectives; break down silos.
- Connect Employees: connect your employees’ work to your company’s mission – this impacts your employees’ performance and your company’s results.
- Improve Continuous Learning: OKRs offer your company faster learning and improvement that drive better results.
- Create Transparency and Accountability: OKRs bring transparency to your company and everyone can see what others are working on and this drives more collaboration and better performances.
- Establish Measurable Progress Indicators that Drive Results: by establishing key progress indicators towards measurable results everyone in your organization can be clear on how to accelerate performance and driver results.
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!