What do OKRs bring to the table for CEOs
“80% of leaders feel their company is good at crafting strategy but only 44% at its implementation”
Most CEOs already know they need a structured framework for developing corporate strategy and
execution because they’ve felt the pain of not having one. At this point in the game, you probably have already tried once,
maybe twice, to implement a process, but it didn’t stick (or else why look into OKRs?).
Instead of looking at the benefits of having a strategic execution framework, such as OKRs,
let us review specifically what OKRs bring to the table for CEOs. While the benefits are almost limitless,
we’ve found it easiest to describe them along four core benefits: focus, alignment, rhythm, and agility.
OKRs bring tremendous focus to organizations by forcing
leaders to determine their top 2-4 goals every quarter and having a relentless pursuit of achieving those goals.
“OKRs help us focus as much on what we do, as what we decide we will NOT do, which tends to be the bigger problem for CEOs looking to make enormous gains”
Focus also helps solves the problem of employee engagement because it provides a real purpose for every employee, empowering them to see how their work results in company performance.
“Highly aligned companies have 36% higher growth than poorly aligned companies”
The beauty of OKRs is that they create a standard by which EVERYONE will operate. Everyone in the organization defines and measures performance in the exact same way.
Everyone in the organization has complete visibility to everyone else’s goals, allowing them to collaborate as a team to hit their goals, instead of disparate teams chasing the same goal.
With everyone in the company operating on the same playbook, it leaves very little room for confusion.
Probably the hardest benefit for CEOs to realize within OKRs,
but also the most powerful, is rhythm. OKRs have a sense of rhythm built into them (quarterly goals) which gives the company
an immediate win. It forces companies to re-evaluate their strategy and goals every quarter.
However, what is harder to achieve is developing the rhythm of your company around OKRs. Instead of making them a quarterly exercise, using OKRs as the tool in which your company lives and breathes.
All-important meetings start with reviewing progress of OKRs and helping people who are lagging behind.
This rhythm takes years and tremendous executive sponsorship because it is changing the culture of the organization to
focus less on outputs, and more on outcomes.
We’ve seen first-hand the benefits of being agile enough to
leverage the volatility of our environment. OKRs bring tremendous agility in organizations naturally through the review
cycles built within the framework. And,like magic, you can change the duration of the review cycles to accomplish time-sensitive goals.
However, just putting due dates on things doesn’t make people magically hit timelines. The real
power of OKRs comes from how quickly and easily CEOs can take a strategic goal and translate that throughout the organization.
While this doesn’t happen overnight, it is one of the most powerful benefits of implementing OKRs.
This is nowhere near an exhaustive list of reasons you should implement OKRs, but it should be compelling enough to get your started.
If not, we encourage you to talk with us. We can get you in touch with other like-minded CEOs who were in a
similar position and would be more than willing to share their advice.
“Highly aligned companies grow revenue 58% faster and are 72% more profitable than their misaligned counterparts.”