Any company looking to improve itself needs a system to set and achieve goals. OKRs are one of the best options for structure company improvement, as evidenced by the many notable companies that use them, most famously Google. (peytonsplaceanimalrescue.org)
OKR stands for Objectives and Key Results. Objectives in this system should be ambitious, broad, qualitative goals. They can be set for a company, a team, or an individual. Key Results are the quantitative measures by which companies and employees will achieve their objectives.
One way to begin using this management methodology is with Profit.co OKR Software.
So, how do OKRs improve company culture and boost profits?
- Focus on What Matters
OKR software will focus an organization on today’s essential priorities. A long list of disconnected goals leaves employees all over the place. In contrast, a small handful of objectives (typically three to five) broken down into just a few key results (typically three to five) will pull teams together.
2. Flexibility and Adjustment
OKRs can be set annually, quarterly, and monthly. Most businesses will want a superstructure of annual OKRs, and a few exceptionally dynamic companies may want to do monthly ones, but most set OKRs every quarter. Teams can assess progress weekly and try new strategies if their current ones are moving them forward. Empowering employees to take control boosts morale and improves productivity.
3. Full-Spectrum Alignment & Integration
OKR management is all about connection. Bringing employees into the process of goal setting ensures that they will be personally invested in the success or failure of those goals and that upper levels of management will remain connected to the on-the-ground challenges and thinking of their employees. At the top is the overarching objective for the company, and everything in OKR flows from there, keeping the company aligned top to bottom, from departments to teams to individual employees.
4. Active Daily Motivation
OKRs begin with the big picture–the objectives–but they break that picture down into easy to grasp, quantifiable goals–the key results–and even further into tasks designed to achieve them. Because employees can see the connection from their daily tasks to the key developments and thus to the objectives, daily motivation remains strong. OKR is results-oriented, avoiding the reality or perception that employees are merely engaged in busy work.
5. Structured Ambition–Heads in the Clouds, Feet on the Ground
Objectives are meant to inspire and, therefore, involve stretching and even sometimes failing. A success rate of 100% indicates the company is not setting high enough goals; shooting for a 70% success rate gives you the space to try to do the impossible, where a company can soar.
That being said, there needs to be some connection to the ground. OKR software helps map a path to ambitious goals, and it also brings everyone into the process with transparent, bidirectional communication that helps teams and managers believe in each other.
Benefits of OKR software
OKR works when everyone in a company is clued in throughout the process. OKR software can facilitate communication, making this method an effective way to keep everyone in the company pulling in the same direction.
