Thomas Youngerman

An Introduction to OKRs We constantly read about the latest patented ingredients, their clinical studies, non-GMO products, and Organics. But, what about the business of running your business? A majority of CPG companies and retailers still adhere to the Peter Drucker systems of MBO’s and KPI’s. We talk about Human Resources and annual performance reviews. Meanwhile, our counterparts in the digital world have leaped forward. Their business jargon speaks of continuous performance improvement, people resources, alignment and transparency, cadence, check-ins, cross-functional collaboration, and moonshots. The framework that facilitates this new approach to business is OKRs, Objectives and Key Results, a management methodology that helps to ensure that the company focuses efforts on the same essential issues throughout the organization. In his instant New York Times bestseller, “Measure What Matters, How Google, Bono, and the Gates Foundation Rock the World with OKRs,” John Doerr, the disciple of OKRs details their history. From their precursor, Peter Drucker’s Management by Objectives, through his initial exposure at the hands of the OKR master, Andy Grove at Intel, to his introduction of the process to Google, The Gates Foundation, and a myriad of other high-performing companies. Doerr refers to OKRs (Objectives and Key Results) as a “Swiss Army knife, suited to any environment.” Yes, most of the early adopters have been from the tech world, but as John relates in his book, companies from other industries are discovering this new management system with great success, such as Anheuser-Busch, BMW, Samsung, and Disney. Regardless of the size of your company or its life-stage, through the implementation of OKRs, you can begin the continuous management improvement process. As Larry Page of Google says of OKRs, “take them as a blueprint and make them yours.” • Founder of a start-up needing to harness and focus your limited resources? OKRs may be critical to your survival and provide the necessary detail required by investors, • Through start-up and onto the scaling phase? OKRs help you to integrate new people resources, and to keep everyone aligned both vertically and horizontally; • From the C-Suite of a major corporation? OKRs will help ensure employee alignment with your corporate mission, values, and critical initiatives. Silos will come down, and cross-functional collaboration will increase. At its core, the OKR system is a collaborative goal-setting protocol for companies, teams, and individuals. An Objective is “What” is to be achieved. Objectives address your primary goals for the organization. They need to be significant to the enterprise, action-oriented, and inspirational. Key Results benchmark and monitor “How” you achieve the Objective. Effective KRs are measurable and verifiable over a set period of time. Also, key to the process are CFRs, Conversations, Feedback, and Recognition. These tend to address the people side of the business, replacing archaic annual performance reviews. Only 12% of HR professionals deem annual reviews as “highly effective” in driving business value. And, even fewer, only 6% believe they are worth the time they consume. By contrast, CFRs’ are structured to ensure alignment, and engagement, resulting in improved morale and retention. OKRs and CFRs will help you cultivate a culture where achievement is more important than credentials and where merit trumps seniority. An OKR system is very possibly the single most cost-effective tool available to you, and one that will generate the highest ROI. If you are a seasoned CEO/COO, VP of HR, or entrepreneur in the start-up phase, and would like to know more about OKRs contact Atiim, Inc. for a free copy or our E-Book “New 2018 OKR Best Practices Guide: 30 Brilliant Insights on OKR Goals”.