1st Issue: Strategy // Challenge 4
“Setting goals is the first step in turning the invisible into the visible.“
— Tony Robbins
Having chosen the right strategy, you have to turn the theory into action.
Goals are the core of each company and set the overall course of direction.
Whether they realise it or not and whether goals are clearly defined or “unwritten laws“ that everyone agrees on, organisations need goals to build a basis for all their actions. Goals provide orientation and get your company going. Effective goals that lead to success must be transparent across the entire company and aligned with the organisation’s vision. They need to be formulated in a way that they get your employees committed and focused on contributing to the company’s success.
Having defined clear goals, you finally have to implement them.
There are different possibilites for making your strategy reality — one very promising way is setting OKR’s.
Objectives and Key Results
Objectives and Key Results (OKRs) is a goal-setting framework developed by technology leaders of Intel and Oracle in the 1970s. Around 20 years later John Doerr, introduced OKRs to Google whereby the methodology gained popularity.
OKRs enable managers and employees to define, track and measure goals in conformance with their organisation’s overall vision. Firstly, OKRs are defined from top-down so that team and individual goals can be aligned with company objectives. However, individual and team results, ideas and feedback may then influence the company’s OKRs reactively from bottom up. Thus, the methodology makes goals transparent and visible within the entire company which stimulates alignment, cross-functional collaboration and gets organisations into a strategic flow.
Objectives define what shall be achieved and, hence, describe the desired outputs. They shall be qualitative, motivational and ambitious. Thus, objectives are generally not measurable and only provide a generic description of required actions. Applying the OKR method, objectives should be set quarterly,
Key Results show how the objectives shall be realised through specific actions. Being quantitative and specific, key results can be measured through key performance indicators (KPIs). Such indicators can be referred to as the organisation’s heart beat as they measure how your company is performing. Setting and measuring key results quarterly helps to analyse the effectiveness of goals.
Set up objectives and key results on each company level. Start with one objective plus three key results on the corporate level. Then, ask each team to define one objective and again three key results in alignment with the corporate objective and key results. In the last step, each individual shall do the same to define what he or she needs to do to contribute to the achievement of team and corporate OKRs in the best possible way.
After two weeks, get your entire team together to review the performance of each individual and team as well as the whole organisation.
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