Turn business strategy into measurable goals with objectives and key results.
Objectives and Key Results. OKR is a goal management system used by many large, fast-moving organisations together with an increasing number of smaller ambitious companies. By aligning teams, departments and individuals with measurable strategic outcomes to stretch and motivate, improved performance is tracked and realised in a regular, repeated cycle of target and achievement.
This approach successfully turns business strategy into measurable goals which focus employees, teams and the entire organisation on the outcomes needed to deliver the greatest measurable business impact. This helps build a culture of transparency and shared achievement helping everyone follow and support the contributions of others in the quest for the organisation’s success.
How it all started
When in June 2018 John Doerr’s definitive “Measure what Matters” reached No.1 on the New York Times monthly chart OKRs moved from the darling methodology of Silicon Valley’s tech companies into the mainstream. This highly effective business management technique has a lineage dating back to Peter Drucker’s 1954 seminal work on Management by Objectives. The impact of OKRs (a term coined at Intel by Andy Grove and introduced to Google in 1999 by John Doerr) is credited as one of the factors helping the nascent search engine business grow to a company of 70,000 employees valued at $700billion.
What are OKRs and why are they unique?
OKRs’ point of difference lies in their inherent simplicity as a tool for providing alignment and buy-in to a company’s stated business goals. Cutting through layers of management, the method ensures every employee has a clear line of sight as to the direction of the business. In addition to providing clear focus and alignment, well-constructed objectives and key results will stretch employees with ambitious deliverables tracked in a regular weekly cadence. These OKRs are revised and re-calibrated at least on a quarterly basis in a motivating rhythm, promoting accountability of team and individual. Key results to measure the successful outcomes of effort rather than quantity of output ensure that meaningless or unaligned work is soon dispensed with.
By cross-cutting through business silos, OKRs also promote collaborative working and ensure that business conversations at all levels revolve around the three to five annual company key results which will help deliver the corporate goal. Quarterly OKRs ensure the more granular and immediate aligned priorities are attended to.
Auxin’s team of experienced business directors will help you navigate through some of the challenges of identifying moon-shot and roof-top goals, measurable “needle moving” key results while ensuring whole company buy-in and liberating the ideas and energy created through top down and bottom up goal setting. By helping you identify the most appropriate key results, you can avoid conflicting and muddled objectives, results and tasks, one of the most common early pitfalls.
Once you are up and running, we can provide on-site and remote coaching, train on-site advocates and even help you identify suitable software should you choose to use one of the many off the shelf subscription packages now available to streamline and publish OKRs throughout your business. If you feel you need it, we’re happy to engage in a long-term support project, but in reality (and especially if you identify a senior manager to drive this) you’ll soon be confidently running your own quarterly sessions. Common sense, as well as numerous academic studies, suggest that informed employees who understand and share their employer’s business vision, the why what and how of business strategy will retain their talented staff longer and are consistently more likely to succeed in the mid to long-term.
Every company faces its own unique set of circumstances and challenges. John Doerr and Andy Grove faced theirs at Intel and the more recent case studies cited in “Measure what Matters” (including successful tech start-ups like Remind, Nuna and MyFitnessPal). These all attest to the power of the OKR in building strong businesses which solve customer problems. While facing down competitors with a compelling strategy known and executed by every employee and at all levels. OKRs are of the moment, a powerful and unifying business tool suitable for a start-up to a world-leading enterprise in any sector. At Auxin we’re 100% converts to the power of OKR; we look forward to helping you drive business growth with bespoke support when you need it most.
At Auxin we will help you set and introduce OKRs or reboot them after your first attempt with an OKR health check (most companies struggle initially, only the most assured can make things look that easy). We’ve many years of business management and mentoring experience ourselves and have now adopted OKR as the cornerstone of all our consultancy assignments, not to mention using it for Auxin’s own business planning. And yes, we struggled first and second time around and are happy to share those experiences with you if it helps. Along the way, we’ve created our own unique resources for helping prioritise the things that really matter and will share these with you too as soon as we formally engage.