What are OKRs and Why Do You Need Them?
You’re a department manager looking to increase sales goals. Your team normally achieves 50 sales per month. But the higher-ups increased the quota to 75. Sweating bullets, you only hit 45 sales for the month. Worst of all, you only have two weeks to meet your sales goal. Not meeting your sales goal could result in cutbacks in your department.
What do you do?
While there is nothing you can do for the current month, an OKR can establish far-reaching goals for the next month. What are OKRs? It stands for Objectives and Key Results. The system fosters goals and company objectives that all team members must adhere to. An example of an OKR includes the numerical breakdown of goals. In addition, you can monitor individual performance in the workplace.
It also highlights the strengths and weaknesses of the overall team. This article will show you why OKRs are the best way forward for small businesses. Read on if you wish to learn more.
You can measure OKR goals numerically. The numerical system simplifies the process when it comes to goal assessment.
- Example: You will quantify each object on a scale between 3 to 5. Within each result, you can measure progress between 0 to 100%. A good range is usually in the seventies, with 100% being the worst. A 100% score means the team reached all objectives, meaning that the goal wasn’t high enough.
It’s one of the best tools that help teams reach goals that might seem unattainable. Further, it’s a great way for small businesses to reach important goals. Regardless of the objective, ensure that the OKR is festive and easily readable to everyone.
- Note: For best results, create between two to five OKRs for each objective.
It’s also useful for startups, where meeting goals create an important foundation that determines success or failure. With that, an okr is not as rigid as it seems. It is quite flexible in terms of customization.
Change with the Current
You can also tweak the system based on fluctuating goals or changing company objectives.
- Example: Instead of focusing on a monthly sales goal, you wish to break down each sale per week. You can also track performance on a daily, weekly, or monthly schedule. Or, you can create whichever schedule of your choosing.
The current business climate might also dictate increasing the number of visitors weekly on the company website. Further, you can change how team members engage with customers in case bad customer reviews start coming in.
- Note: Objectives don’t need to be unyielding in nature. Change goals as necessary to conform to a current climate.
If team members are working in an unstable situation, the software can provide useful guidance to maintain unison. It’s the perfect vehicle for high-paced or stressful work atmospheres. OKRs are among the best tools that help your organization meet objectives during unstable conditions.
What are OKRs? The Best Organizational Method at Your Disposal
You still might be asking yourself what are OKRs? But just know that it will give your company clear guidance on objectives and results. It also helps each team member adhere to company standards and overarching objectives.
When crafting an objective, always make a separation between initiatives and Key Results. The initiative is the vessel that determines the end result. The software is an important tool that helps small businesses and startups reach desired objectives to remain afloat.