The end of 2021 financial year has arrived. Happy New Year!
This time of year allows for us to set up fresh financial goals and organise ourselves and our teams for the next twelve months ahead. The way to put measures of success in place is to introduce a goal-setting framework.
As a leader are you using a framework and regularly checking in on how you are tracking against this?
The OKR method is the answer to your goal setting
The goal-setting framework that I find is most effective is OKR’s. This allows an organisation to set a strategy, align it through their organisation and then implement the strategy to achieve an outcome. Then individuals in the team can determine how they can contribute towards the overarching goals.
OKR’s were invented by Intel and used as Google’s secret sauce to their success since 1999.
I’m not sure if you have heard of Google? But they are kind of a big deal....
OKR’s stand for Objectives and Key Results.
OKR‘s represents aspirational goals that are determined by a qualitative “objective’ and define the measurable "key results" that define the achievement of each objective. OKR’s are set, tracked and re-evaluated frequently, usually quarterly.
Once you have set your OKR’s then you will determine the Initiatives that you believe will reach your objective.
Preparing yourself
OKR is a framework, but it’s also a learning process and will involve a mindset with how your team think and measure the work they do. It is about moving away from the focus on output and move towards a focus on outcomes.
Before you start using the model, it’s important to have a clear understanding of the challenge you want to solve and what benefits you expect this to bring. OKR’s ensure you implement and execute strategy in a way that is clear to all the team, transparent and measurable.
Having one person manage the OKR is a great place to start. This person will ensure everyone who is using the OKR is properly trained, engaged and has ongoing support as they need it.
The checklist to keep you on track
Setting Objectives
ALIGN your team with broader company objectives
If achieved, this OKR will have a HIGH IMPACT on the entire organisation
Short and specific TIME frames encourage focus and allows you to review them regularly
Use verbs such as 'improve' or 'increase' (less specific than the initiative)
On average, the implementation will take 1-2 quarters. These two quarters will allow you to identify what to keep or change and what might not be aligned with company objectives.
Creating your Key Results
Make OUTCOME-BASED, instead of output-based
Keep it SPECIFIC. It needs to be quantitative and measurable
Provide 2-5 key results for each objective
Things you measure that you don’t do, but you can influence
Company objectives and results may be broader, but for teams, we need this to be more granular to drive results.
Building Initiatives (Tasks, projects or similar activities)
More specific than the objective. It will be clearly DEFINED
Ensure you have full CONTROL to complete them. You will be held accountable
Use verbs such as launch, visit, release.
Are you ready to start the new financial year with a plan and a framework to help your team be focussed, aligned and engaged in your business?
Goal setting and specifically using the OKR framework, are part of my Thriving Leaders Program. This leadership course focuses on empowering first-time leaders to support a high-performing team. Over 8-weeks, I run 2-hour group sessions in the format of virtual group coaching. It is interactive, collaborative and provides a space to share experiences and learn. Between sessions participants, complete activities, curated readings, and videos to embed learnings.
Join the Thriving Leaders Program
For more information, check out Thriving Leaders Program OR Book a 15-minute call