Importance of OKRs and Benefits to Businesses
If you create a team or corporate goals regularly, you’ve probably heard the phrase OKRs bandied about. OKRs, or ‘objectives and key outcomes,’ are a goal-setting process that can assist teams in developing quantifiable objectives. While most businesses create objectives, just 16% of knowledge employees believe their organization is good at developing and communicating corporate goals. Set OKRs to boost employee participation in goal setting and to assist your teams in creating and achieving ambitious goals.
What is an OKR?
Objectives and key results (OKRs) are a collection of quantitative techniques to achieve company goals. OKRs can be used for almost any reason, such as a long-term professional objective, a quarterly team goal, or a personal goal. Objectives are any goals you desire to achieve, whether they are simple or complex. An aim may contain items such as:
- Increase customer retention
- Boost your website’s conversion rate
- Acquire qualified leads
Key results are the measurable ways you intend to attain your goal, and each aim might have several key results. Key results, unlike KPIs, do not have to be quantitative. As an example of a significant outcome, consider the following:
- Set up a loyalty rewards program
- Boost the content quality on your website
- Improve your CRM software
The Benefits of OKRs
Teams become more motivated and push themselves to do more when they understand how their work contributes to top-level goals, why some items were prioritized over others, and, ultimately, why those goals matter.
Those advantages do not apply just to the particular employee. Rather, they complement and build on one another to greatly increase organizational performance. According to Gallup, highly engaged business units generate 21% more profit than their less-involved counterparts.
When psychologists studied the effects of several motivational approaches on group performance, they discovered that goal setting was one of the most successful. Setting a few clear, ambitious goals was enough to push the participants’ performance into the 80th percentile. Another group of researchers investigated what happens when teams were given a way to measure their performance versus their goals. As a consequence, performance increased once more, this time reaching the 88th percentile.
OKRs benefit more than simply people with their feet on the ground. Having your objectives and tasks in one place provides leaders with clear insights into where, when, and how they should act based on progress reports.
The greatest advantage of OKRs is when you can relate your everyday work to your team’s strategic goals. OKRs already achieve this by linking the goal to the essential results that contribute to it. To get the most out of OKRs, go one step further and use an OKR tool that links your everyday work and regular tasks to your company and business goals.
Why Does Your Company Need OKRs?
When you make goals, you shouldn’t only be concerned with whether or not you check the box after the goal cycle. Rather, by establishing OKRs, you’re creating a framework for thinking about goals, connecting your work with corporate objectives, and, eventually, aligning and executing your most ambitious initiatives. Setting objectives might assist your team in prioritizing tasks. Your organization needs wide alignment and clear direction, especially when it comes to distributed and remote operations. For this, prepare your organization for success with Asana’s step-by-step methodology that includes goal setting, execution, monitoring, and rating.
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