Did you know that only about five percent of businesses reach all of the goals that they set during a given year? That’s an alarming statistic when you sit back and think about it.
The good news is that about 65 percent of businesses meet more than half of the goals that they put into place. But even still, the fact that so few of them meet all of them should concern you. It should also make you want to use an OKR system to increase your chances of hitting your company’s goals.
So, what is an OKR system? Well, OKRs are objectives and key results, and the OKR methodology calls for companies to both set and track their goals over time. Many big companies, including Google and Netflix, are using OKRs to establish and meet their business goals.
Here are the seven biggest benefits of OKRs and the OKR system.
1. The OKR System Makes It Simple to Set Goals
You’re probably well aware of the fact that your company should be setting goals each year and striving to achieve them. But it can be more challenging to come up with goals than you might think.
The OKR system makes it super simple to set goals from the start. All you’ll need to do to follow the OKR methodology is generate somewhere between one and seven objectives and somewhere between one and five key results to go along with each of them.
You should be able to create goals for your company like this in no time at all. The OKR system will give some structure to your goal-setting strategy.
2. It Ensures Goals Are Easy to Understand
When companies come up with goals, they sometimes overcomplicate things by making the goals really lengthy. You will not do this when you use the OKR system.
The OKR system is supposed to be used to make a company’s goals as simple and straightforward as possible. Each objective should be about one sentence long. The same should also go for key results.
Once you have a list of objectives and key results, you can then dig a little deeper into each one. But generally speaking, companies should make sure their goals are very easy to understand from the start.
3. It Keeps a Company Focused On Its Goals
Some companies struggle to reach all of their goals each year simply because they have too many of them. This can be avoided when you use the OKR system.
Since the OKR system encourages companies to come up with just seven objectives at most, it makes it possible for them to focus on their goals and nothing else. Companies don’t have to worry about getting overwhelmed by more goals than they can possibly reach in a single year.
4. It Gets Everyone at a Company on the Same Page With Goals
In order for companies to reach their goals, everyone at a company needs to be on the same page as far as these goals are concerned. This goes for CEOs, middle managers, entry-level workers, and all those who work at a company.
The OKR system is designed to get everyone at a company on the same page when it comes to goals. It’ll also make everyone at a company feel like they’re playing a very important part in helping to reach goals.
5. It Creates a Stronger Commitment to Meeting Goals at a Company
When companies first set goals through the use of the OKR system, they’re going to commit to doing everything in their power to meet them. This strong sense of commitment will light a fire up under the employees at companies and begin moving them in the right direction.
It’ll also carry them right up through the very end when companies are eventually able to meet their goals. Companies can’t always achieve this level of commitment without something like the OKR system keeping them motivated at all times.
6. It Lets a Company Track Its Goals
One of the key aspects of the OKR system is that it requires companies to track their progress as they work towards their goals. This is a huge motivating factor for many of these companies.
The employees at companies that use the OKR system don’t want to be the reasons why these companies aren’t able to reach their goals. They tend to work harder than they would otherwise when they know that their progress is being tracked every so often.
7. It Encourages a Company to Create Lofty Goals
As we alluded to earlier, the OKR system is something that’s often employed at large companies like Google and Netflix. The employees at these companies are always pushing the boundaries and trying to make their mark on the world with big ideas.
Your company might not be anywhere close to the size of these kinds of companies. But you’ll still find that the OKR system will make you want to create the loftiest goals possible.
And even if you aren’t able to achieve these goals, you might be surprised to see how much progress you’re able to make while working towards them. It’ll definitively prove that the OKR system can work effectively for almost any company.
Discover more here about how this type of system could benefit your business.
Start Utilizing an OKR System at Your Company Today
Now that you know a little bit more about the OKR system and the benefits of using it, why not give it a try? It has worked for so many other companies out there, and it could work for yours, too.
You and your employees will be more excited to set goals for yourselves from now on when you use the OKR system. You’ll also take pride in your ability to track and reach those goals over time.
Get more tips on running your business more efficiently by browsing through our other blog articles.
