Nowadays, there is so much competition among businesses as they seek to become profitable and continual growth. Because of this, businesses are employing various strategies to promote growth. One of the strategies that have become reliable and is now being used by all kinds of businesses is setting objectives and key results. Initially, the framework was used by popular companies such as Google but has now spread to all kinds of businesses.
The Objective and Key Results has its acronym as OKRs and has become popular among businesses. The idea is to come up with top strategic priorities, breaking down the priorities into strategies and then execution of the strategies. You will simply set a goal and then define how to achieve the goal. This has become a huge benefit for organizations since it allows them to work smarter not harder.
Traditionally, companies would set their high-level goal every year but employees would forget about them within a short time. It also results in passive management since managers cannot measure or track progress and achievements by employees. It, therefore, becomes difficult to know the teams or individuals who are overachieving, achieving or underachieving. Aligning individuals and teams to topmost goals has also become difficult.
Today, however, such challenges are being eliminated by the use of software applications such as Workboard software that allows companies to set their OKRs for growth. With OKRs, you are able to promote efficacy and engagement since managers will be able to know the team members who achieving and those underachieving.
A company will, however, enjoy a number of benefits by setting OKRs. Some of the benefits include the following.
1. Easier to set ambitious goals.
Unlike in traditional objectives frameworks, OKR does not involve setting safe goals and expecting to achieve 100%. Instead, OKRs encourage setting ambitious goals that are tough but not impossible. Therefore, it might not be possible to achieve 100% of such goals. However, getting close to achieving the goals will represent great strides in performance. OKRs inspire people to push harder and aim higher instead of playing safe.
2. Regular reviews.
Traditionally, annual objectives are set at the beginning of the year and the performance is reviewed when the year ends. With OKRs, however, the goals are reviewed quarterly and monthly in some cases. This becomes a suitable way, especially in today’s fast-paced world. This is because there are constant transformation and new developments coming up every other day.
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