How OKRs Can Potentially Boost Your Company’s Profits
As a business owner and/or operator, it’s likely that you set goals on something of a regular basis, but what do you do to keep track of those goals and make sure that you meet the sorts of ambitious objectives you set for yourself and your company?
OKRs represent a framework for identifying, defining, and tracking objectives and key results, not to mention their outcomes and what those outcomes mean for your business. OKRs can potentially help businesses set sky-high goals in less time, which gives businesses more time to focus on achieving those lofty goals.
But maybe you’re wondering if OKRs can actually help with one all-important word: Profit.
A Little OKR History
OKR is a concept that has been in existence since the 1970s and was created by Intel CEO, Andy Grove. OKR was later popularized by one of the earliest investors in Google, John Doerr. As a result, OKR took off quickly and was adopted by Google and later used by big names like AirBnB, Dropbox, Twitter, LinkedIn, Spotify, and Uber.
Doerr developed an OKR formula that helped users set an objective. The objective part of the equation has to do with “What I want to accomplish,” which is combined with another question, which is “How I’m going to accomplish this accomplishment.”
As a result, OKR is designed to help businesses define goals, yes, but effective OKR must also include one or more ways to measure the progress and execution of said achievement. Tech companies across the globe have embraced OKR as a way to stay on track, especially while operating in a fast-paced, ever-evolving industry.
Quality OKR execution and management will help support a goal or an objective and should always be measurable. An OKR should also be flexible yet aspirational, not to mention 100% transparent.
OKRs should be set by company leadership who have their hand on the pulse of the business and the industry as a whole. OKRs should not necessarily be binded to compensation or even performance reviews. OKRs should be established to help businesses set goals and simultaneously focus on executing the sorts of outcomes over a defined period of time that help your business meet and/or exceed its goals.
Will OKRs Guarantee That You Boost Your Company’s Profits?
OKRs help companies establish different percentages of certainty in their key result findings that help them define which goals have the highest percentage of certainty and which have lower percentages of certainty, which help companies focus on what is most likely to work.
It’s the consistent day-to-day actions that help your business grow. With OKRs, your staff can more effectively see a goal through to its full completion since goals are broken down (usually into specific individual tasks categorized by sector). This means that larger goals can now be accomplished in a shorter period of time, helping boost profits company-wide.
At the end of the day, the world of business has no guarantees, but OKRs are a highly effective way to set (and set actionable plans to achieve) your goals. Ideally, the goals you set will help grow your business, and OKRs can help!