The COVID-19 crisis may have caused so much pain and grief. But it opened numerous opportunities for the brave. The New York Times published an article stating that the pandemic is the best time to start a business. The Wall Street Journal agreed to this assertion.
Whether you agree to this or not, you must establish Objectives and Key Results (OKR). This technique will help you set goals and keep track of your progress. Whether you have a new or old company, having one will ensure your business’ success.
Considering what is at stake here, you should pay close attention to this article. It will determine whether your company can survive this pandemic.
What Are Objectives and Key Results?
John Doerr created the OKR. His Objective was to develop a process that matches the goals and the Key Results that you will use to measure your progress. It will become your company’s guide throughout its lifespan.
Most organisations set Objectives. Sadly, less than 20% of the staff are aware of them. Establishing an OKR will increase employee engagement. It also has a flexible template, which can fit both commercial and personal use.
I will [Objective] as measured by [Key Result].
In the statement, the Objective is your goal. It may be to increase brand awareness or to lessen the carbon footprint. On the other hand, the Key Result is what you will use to measure your progress toward your objective.
In the case of increasing brand awareness, your Key Result might be having one million web visitors. As for the goal of lessening your company’s carbon footprint, it might be to ensure that a quarter of your packaging is compostable.
What Is the Difference Between OKR and KPI?
Key Performance Indicators (KPI) are ways for teams to track their performance within projects and initiatives. On the other hand, the OKR is the framework for setting and achieving goals. The latter is a more holistic way to determine your success because of the relationship between the objectives and key results.
This assertion does not mean that the exclusivity of these two concepts. On the contrary, the KPIs are excellent KRs. Let us make a more concrete example.
Your company’s KR can be quantitative – increase web traffic to 2M users per month. It can also be qualitative, such as assessing and documenting users’ key pain points. You can measure the latter through polls, NPS surveys, or direct feedback.
On the other hand, the KPIs are quantifiable to measure your efforts against the results. If you have a quantitative KR (increase headcount to fifteen people by Q3), you could use the KPI to check the initiative. This connection is possible for as long as your endeavors align with the objectives.
John Doerr’s OKR revolutionised Silicon Valley during the 1980s. While working under the mentorship of Andy Grove, he learned about the latter’s revolutionary system. You can utilise their radical management process to ensure your company’s success. What is even better about his brainchild is that you can apply it to your personal life too.
If you want to establish OKR in your own company – whether it is newly created or not – you should ask for the help of SKILLFIRE. Together, we will work toward your business’ success, so make that leap of faith! Call us now for more information!