OKRs are a way for startups to establish a strong corporate culture and team alignment. OKRs were developed by Andy Grove, the famous CEO of Intel. They first started to gain traction in 1999, when John Doerr, a venture capitalist, successfully helped Google establish OKRs to govern a fast-growing team of executives. In both instances, the business leaders had a need to communicate objectives clearly and establish a way for each department to contribute. In doing so, they also had to ensure that all employees knew their place in the pecking order.
Achieving clear objectives and goals is critical to organizational health and performance. Clear goals allow managers to define clear work objectives. In fact, a goal is usually nothing more than a list of things that have to be done. The first step is to write down these objectives and compare them to your company’s organizational goals. This is important for two reasons.
First of all, it will help managers determine if a given task meets the OKR (key objective statement). Second, OKR and KPIs provide a framework for managing work processes and project management. OKR describe the purpose, scope, and expected results of a task, while this describes what people will do and how. OKR and KPIs are a good model for measuring and designing OKR/ KPIs.
Before you can set the OKR and KPIs, you need to identify your company’s objectives. These should be quantifiable, measurable, relevant, and time-specific. Once these objectives are identified, write them down on paper or in a document somewhere outside of Google. You can also use charts, graphs, or other visual tools to display your company’s objectives in a meaningful way. Once these are in place, you’re ready to measure your objectives against your OKR and determine whether they are measurable or not.
OKR and KPIs are not enough by themselves though. To have clear goals, you must also have a measurement process. There are many ways to measure the quality of your product or your service. Some popular choices include customer satisfaction surveys, internal studies, and surveys done by customers and other teams inside and outside of your company. Other measurement methods include asking your customers for their thoughts on your products and services, tracking user behaviour, or conducting interviews with employees. All of these techniques have different strengths and weaknesses, depending on what you wish to measure.
When you have your list of objectives and your OKR/ KPIs, you have two ways to measure them: internal/external and customer-based/ external. Internal/external measurement is a great tool to use when you don’t need to measure every key result for every keyword in every market area, but rather want to track how things are going in a singular area. By measuring how customers are reacting to your products and services, you will be able to better optimize your online marketing so that you get the greatest amount of traffic and the best conversions. Customer-based measurement, however, is great if you know beforehand what your ideal customer response should be so that you can design your website and campaigns in such a manner that increases your chances of attracting this type of customer. For example, if you sell shoes online and your goal is to attract women customers, you’ll want to focus on issues that women care about, such as fashion, makeup, and shopping.
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