Do you want a high growth business?
The answer is undoubtedly yes. But in order to achieve growth for your company, you need to inspire change and set the tone for pushing towards new heights. This is more qualitative than many business leaders are used to.
There’s only one way to accomplish this lofty goal; your whole organization needs to be moving in the same direction with complete alignment and clarity. This is easier said than done. That’s where OKRs come in.
What are OKRs?
OKRs– or, Objectives and Key Results are a revolutionary strategy-execution framework that help leaders define the top company priorities and get their entire team aligned towards their most important goals. OKRs help you figure out where your company is going, and how you’ll know when you get there.
If you are facing any of these problems, then you might not be setting your growth OKRs effectively:
- You struggle to identify your areas of improvement
- You’re not hitting your milestones on time, as a team
- You are feeling ineffective and off-balance
How to Set Effective OKRs
Well-written OKRs are essential for improving team performance and growing your organization. However, before getting into growth-specific OKRs, let’s review the basic framework for OKRs in general.
Objectives are your big, ambitious goals. Once you have written your objectives, ask yourself the following questions:
- Do they inspire?
- Do they move your company forward?
- Are they time-bound? Annually or quarterly?
Here are some OKR red flags to watch out for after writing your Objectives:
- The Objective is too general
- The Objective can be accomplished in a single task
- The Objective is easy. Expect to achieve only 2/3rds of your goal in a quarter; otherwise, you’re not thinking big enough
Here’s an ineffective objective: “Grow our customer base over the next few months.” It’s too general and doesn’t point towards an inspiring target.
Instead, set a more inspiring, specific, time-bound goal: “Achieve record Q3 customer engagement.”
Key Results measure the achievement of your objectives. While objectives are usually more qualitative and difficult to measure by themselves, key results offer quantitative parameters that let the team know their progress on their OKR. For effective key results, you can follow SMART goals.
SMART is an acronym. This stands for:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
By following these parameters, you can create high-quality key results.
Here’s what key results are NOT:
- They aren’t binary. They’re numeric and regularly updated
- They aren’t tasks to be achieved
An ineffective key result might be: “Increase customer awareness.”
Instead, aim for quantifiable, specific results: “Achieve 20 mentions in business press articles.”
Now that we’re caught up on setting effective OKRs, let’s look at some examples specific to boosting growth.
Do’s and Don’ts of Setting Growth OKRs
Do make sure that you are setting appropriate timelines, keeping your OKRs limited to one or two quarters. Growth teams are metrics-driven and need to report their progress regularly. Be sure that you are using KPIs when writing your OKRs.
Do aim to achieve between 3-5 key results per objective.
Don’t take on too many OKRs at once. Aim for 3-4 per quarter, or you risk becoming spread too thin and might face unbalanced OKR progress.
Don’t forget to invest in supporting the proper infrastructure for your team. Growth teams must work in tandem with other groups and be a facilitator, not a hindrance.
5 Growth OKRs Examples
Here are some examples of OKRs broken down into different areas targeting growth. Customize them according to your team’s needs, and you’ll be on your way to achieving record growth.
Sales & Marketing
Growth in marketing can be easy to assess by the numbers, but it’s essential to set appropriate OKRs that are as ambitious as they are achievable in the desired time frame. Keep your objectives aspirational and your key results attainable.
Here are some helpful metrics that you can use to assess growth in online marketing:
- Backlinks
- Keyword Ranking
- Domain Authority Score (DAS)
- Content Shares
- Cost Per Acquisition (CPA)
- Engagement Rate
- Overall Traffic
- Conversion Rate
Customer Acquisition
Acquiring new customers is one of the primary tasks when it comes to growing your organization. Set OKRs that focus on achieving a realistic ratio of costs to customer value.
Operations
Setting growth OKRs for HR and Operations ensures that your company stays at the front of the field. Set OKRs that establish a positive work culture so that you continue to attract high-caliber applicants and keep employees from leaving your company.
Setting growth goals for each team member guarantees that personal career goals and organizational goals are aligned. This way, everyone benefits.
Use OKRs to Boost Growth
Make sure to keep your team focused on OKRs by giving them regular reminders. No OKR can help you achieve your goals if they’re left on a notepad without continuous engagement. Manage your OKRs by introducing a method or cycle such as Profit.co’s PEEL Cycle, which designates time within a quarter to plan, execute, engage, and learn with OKRs.
Try setting up a specific time each week or month to review your OKRs so that you can monitor trends and know when you’re headed off track.
As a growth manager, your team is a catalyst for growth within your organization. OKRs give you the right framework to build on your collective ambition and keep striving towards the next big thing.