To properly implement Objectives and Key Results (OKRs), it is important to understand how this whole process works.
One of the most important skills that a modern leader can possess is the ability to align their entire workforce to the big vision of the company, that's why talking about objective and key results implementation is very important!
Remember that aligning your entire organisation is just a small skill set that you must possess in order to ADAPT your company to the digital era! If you are an executive leader looking to ADAPT your company to the digital era, check more about our approach by clicking the link: ADAPT Methodology™.
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The diagram below depicts how your organisational vision is connected to every team and individual contributors in your team from the annual down to the quarterly OKRs.
Vision
│
Mission Statement
│
Long-term Goals
│
Short-term Goals (done every year)
│
Objectives and Key Results (done every quarter)
Why Does the Vision of Your Company Matter?
For an organisation to get started on trying to achieve its goals, they should first determine the “Why”.
It is important for every team member to understand the purposes behind the company’s initiatives, processes and actions.
As the leader who has to ensure Objectives and Key Results implementation by setting them, you should begin by thinking about the “end” in mind ― like how you see your company a few years from now.
The way you set your goals should be guided by what your company vision is.
Your company vision must be easily stated in one sentence. It should describe what your organisation aspires to be. It’s basically your company’s ultimate dream ― the end-result of all your efforts.
Company vision statements are often mistaken for company taglines. While a vision statement can sound witty and unforgettable, it is meant for your team and culture, not to sell products.
Therefore, it is not necessary that you create a vision statement that is appealing to everyone. Just make it huge and ambitious.
It might take years for your organisation to achieve such vision, but it is the driving force that will motivate you and your employees to work hard.
How to Define a Company Mission Statement
Part of the steps involved in Objectives and Key Results implementation in your company is the definition of the mission statement. Your mission statement lays out the reason why your company exists.
For example, if an entertainment brand’s vision statement is “to make children happy,” their mission statement will be something like this:
“To be the world’s leading providers of entertainment and information for kids. Using our portfolio of brands to differentiate our content and services, we seek to develop the most creative, innovative and profitable entertainment experiences in the world.”
When creating your company vision and mission statement, consider these tips:
- Determine the things you are really passionate about.
- Envision what you intend to be at the end of the journey.
- Think about your skills, experience, talent and resources and how you can use them to contribute to the world.
- Determine the main economic denominator that is essential for your company. Understand what drives your economic engine.
How to Strategically Plan for Your OKRs
Creating your company vision and mission statement is one thing. Achieving them is another. Using the “Hedgehog Concept”, you can attain your mission statement through the following ways:
- Focusing on what you are passionate about should help you specialise in products or services that you have a drive for. Market research can guide you in identifying industry standards and developing strategies to ensure your products and services are in high demand.
- Focusing on what you do best. You should consider the resources of your company in thinking about this. That includes the skills, knowledge and experience of your employees. You have to know your organisation to determine what it is best at. It gives you an opportunity to establish efficient internal processes and strategies to attain your company vision.
- It is vital that you identify the economic metrics of your success. What level should you have reached in order to say that you achieved success?
Many companies utilise strategic planning systems that allow them to focus on the goals they set under each category.
However, these systems are not made to replace Objectives and Key Results as your goal-setting strategy, but should be considered as instrumental to the implementation of OKRs.
Annual OKRs
In some organisations, annual goals are created through OKRs. They are now divided into quarterly OKRs to allow team members to focus on implementation.
Take note that the key results of your company will show the main metrics that the leadership team supervises and are held accountable for.
Many companies confuse “tasks” with “key results”. These two are not the same. Tasks are activities that employees have to do as part of their roles, while key results are indicators of success.
OKRs do not promote micromanaging of teams. The framework helps companies determine what constitutes success and what teams and individuals need to do in order to attain their goals.
The high level key results are assigned either to the leadership team or CEO. The high level KRs can also be assigned to a specific department or team instead.
If Objectives and Key Results are too narrow from the top, by the time they have been cascaded to the team members, individual contributors might end up having a “to-do list” instead of OKRs, and therefore, be less empowered to set their own goals.
If you liked this article and you are looking for a way to align everyone in your organisation, we offer OKR consulting and OKR training inside of our ADAPT Methodology™ approach, contact us in case you are interested.
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