An OKR structure creates replicable excellence in execution at scale.
When implemented properly as part of a company’s structure, OKRs offer benefits that create value.
Positive Company Culture
OKRs promote a positive culture through transparency (and thereby helps entrepreneurs avoid accidentally creating a counter-productive or damaging company culture). When every employee’s goals are visible to every other employee (including upper management):
- measurable impact is rewarded rather than subjective performance
- contribution is rewarded more than favoritism and politics
- collaboration is rewarded more than conflict
- people focus on how to get results rather than just staying busy at work
Managers in an OKR structure learn to bring a coaching attitude to their team. In coaching, there is no failure and no negative feedback, only learning and achievement.
A positive company culture helps you attract, engage, and retain better employees. When your employees are putting their best efforts forward and are recognized for their contributions, the whole company benefits.
OKRs are Data Driven, Scalable, and Promote Alignment
OKRs help quantify what everyone is trying to achieve, what they are achieving, and what they are learning. They promote a data mindset driven for each employee, helping employees figure out how to make a measurable contribution.
When you implement OKRs, you can promote excellence, growth, and learning at scale. By aligning objectives, you get everyone working together. Teams and individuals know what their purpose is within the wider organization mission.
Continuous feedback and recognition in the OKR cycle helps identify achievement and offer recognition. Managers at every level understand and support their direct reports better and recognize achievement more quickly.
Investors like them.
Companies using OKRs leave a transparent data trail for investors, like VCs, private equity or individual investors, and bank loan officers.
Increase Business Agility
Because transparency is bi-directional up and down the organization in an OKR system, problems at the front line can be efficiently communicated and dealt with by upper management for a quicker response.
When upper management communicates high level strategies, they cascade down the company quickly.
Problematic people become visible quickly and can be dealt with more efficiently. There is no place for incompetence, micromanaging, undermining, and other problems to hide (at least not for long).