Objectives and key results are a popular strategy used by businesses of all types to achieve company wide success. Major companies, including Google and Spotify, have been known to use this strategy to achieve their own business goals. Because of the strategy’s positive reputation and success rate, many business owners want to know what the most effective examples of OKRs are and how to implement them into their own businesses.
Here we break down which objectives and key results companies use the most, great examples of OKRs and why this is the case.
Creating Customer Satisfaction
The first objective that major companies use is creating an exceptional customer experience. Ensuring that your customers are satisfied with their products and services is fundamental to a business’s success, which is why this objective is common. Objectives are qualitative because they refer to the specific goals and intentions that the company has for its success. However, the key results rely on numbers to indicate how successful the goal turns out. Regarding measuring the quality of customer experience, key results could include numerical measurements of aspects like the purchase rate and customer acquisition maintenance based on specific costs. Using the strategy is successful because it requires that businesses think carefully about how to measure customer satisfaction on a numerical level. Customer satisfaction can be measured through online activity as well as in-store sales. Determining the approach the company wants to use to measure customer satisfaction successfully will depend on the objectives and key results related to the matter.
Social Media Approaches
In terms of social media, increasing the quality of customer satisfaction could be measured using quantitative measurements of engagement with a social platform or digital service. The company could calculate the percentage of paid versus non-paid traffic to different social media platforms or weekly visits made by active users on the company’s website. By measuring these apparent and calculated factors, the company can tell on a more concise level how well the company is doing.
great examples of OKRs
The second objective that major companies use is creating ideal company branding. Company allure is based on the ability to convey a feeling that customers positively respond to. Key results for measuring how effective the company branding is could include counting the number of active users on the website after launching a new product line. Comparing the website’s activity from the new campaign to the action presented before the campaign was published, can provide numerical data about customer interest towards the new branding. Measurements could also include tracking the percentage of traffic flowing towards the website in both organic and paid ways. These numbers can be compared monthly to see how well customers are responding to various branding approaches.
Tracking Revenue Growth
Companies also track their revenue across quarters. Ensuring that the company is profiting in the right direction is essential. Hitting their goal requires that the company monitor their earnings on a quarterly basis and compare their results to the predicted outcomes. Calculating the difference between these two factors will accurately inform the company of how much harder they need to work in order to reach their goal. Revenue growth as a key result is a common goal for various styles of business. The pressure that is added to achieve this goal based on specific measurements allows for encouragement and greater work productivity for everyone in the company. When you set specific numerical intentions, you have to work much harder to ensure that these details are met. Keeping things vague allows for more error and may encourage less work productivity.
Using OKRS gives companies the ability to work independently and as a team. With each member assigned to different tasks the overall company goal is achieved in small steps. Having the division of various tasks established makes it possible for goals to be achieved at a faster rate. Another benefit of integrating the strategy is that everyone in the company feels as if they have a vital purpose within the company. The understanding that small parts make up the whole of the company gives employees the direction and satisfaction they need to get their work done and feel actively engaged in the process. The similarities across OKR goals are based on the idea that every company wants to grow and prosper financially and maintain their customer and employee satisfaction rates. By creating specific and measurable intentions, it is much more likely that workers will perform at their best and the company will benefit from the added efforts.
Customer experience, company branding, and revenue growth are the three most common components that successful companies track when integrating objectives and key results. There are many different ways to implement objectives and key results, but these are the primary areas of focus to consider for your business.