As a business owner, you know you have good employees and that everyone in the company is performing well. But from time to time, you need something that will motivate employees to go the extra mile and achieve something out of the ordinary.
A good salary, perks, rewards, or the possibility of promotion are motivating factors but on a personal level. If you want to enhance team performance, you must be able to give everyone common objectives that they can work towards. The results of the efforts must be quantifiable and measured in shorter time scales as well.
This keeps everyone on their toes and company performance goes up as a whole.
The approach mentioned here is the Objectives and Key Results concept that many organizations use, in order to track and measure their progress. Want to know more about OKRs? See examples here.
How do OKRs benefit your company?
Traditionally, large companies set organizational goals at the beginning of each financial year. But as these are long term goals with no proper method of gauging the success or achievement rate of the set goals; employees and managers eventually forget they exist; or probably do not work hard towards achieving them soon.
a) OKRs are time-bound
This means that team members have a specific period to complete certain tasks. They can also check what work has been undertaken and completed in how much time. The entire process is transparent and hence, everyone knows how much they are putting in or where they may be lacking.
b) OKRs are ambitious
It is said that if everyone doesn’t find the Objectives at least slightly hard to achieve, then they aren’t set correctly. Goals that require everybody to stretch themselves and work hard, create a charged and motivated atmosphere at the office. Everyone works diligently towards a common goal that seems hard to reach but Key Results help in checking everyone’s progress at the same time.
c) OKRs help pin-point problems
Key results are quantifiable. If company performance is not up to the mark, OKRs can help decipher what is going wrong. Things can be checked and corrected at the macro as well as micro level, so that any wastage of resources can be avoided.
How can you set goals for your company using the OKR approach?
a) The timeline is important
OKRs may be of two types- annual and quarterly. Usually, the organizational Objectives of a company are set annually, while the departmental goals or those at an individual level are set and measured quarterly.
b) Everybody’s opinion matters
Team members will feel enthusiastic about working towards the set Objectives only if they have also been a part of the decision-making process. When employees have themselves suggested or agreed to short term goals, they are more motivated to see them through and check whether they are able to achieve the Key Results.
c) Keep it transparent
OKRs are different from employee performance evaluation. OKRs are to be transparent, communicated to all, and everyone must have access to the progress and results when they wish to see them.