So, what are corporate objectives?
Corporate objectives relate to the business as a whole and are usually set by the top management of the business. This could include departmental heads, the board of directors, CEOs, CFOs and more. So how can you use OKRs to define your corporate objectives? We’ll answer that question here…
The benefits of setting business objectives
Outlining the corporate objectives of a company can aid the strategic planning process. With a clear objective in mind, developing a strategic plan to achieve the objective becomes much simpler. Corporate objectives can also be a useful tool for motivating everyone within your organisation.
Setting corporate objectives creates an environment within which corporate success can be measured. When looking at three or five-year plans for your business, you can see beyond the minor day-to-day activities and instead, adopt a more macroeconomic approach. This allows you to see the company from a competitive, or economic perspective and helps you better prepare for any external influences.
By setting and sharing company objectives, you can ensure everyone is on the same page. This ensures that all employees have an understanding of how their activities impact the business as a whole.
The OKR framework is a straightforward system that helps businesses set objectives and goals in an organised manner. The OKR framework helps to crystallise your priorities, promote strategic alignment and drive business growth. This process involves outlining:
- Objectives (O)
- Key results (KR)
Using OKRs to define corporate objectives
The OKR method can help you to define corporate objectives in a way that will drive real results. It will provide measurement variables (key results and KPIs) so that you can easily see how close or far away you are from achieving your objectives. The OKR process also involves regular reviews to help your teams stay on top of your progress.
We’ve outlined the main steps below, to show you how your OKRs and corporate objectives will interact:
Step 1 – Discover
This involves an in-depth discovery discussion to ensure the service provided will have the highest possible impact on you and your organisation. Senior management and owners can get involved to ensure everyone is on the same page when it comes to your overall company goals.
Step 2 – Design
We’ll design an approach to OKR implementation that is going to gain real traction within your business. This means it won’t be based on management best-sellers, but it will interpret the practices and principles of the OKR framework in the most impactful way for your business.
Step 3 – Train
OKR training can help your team get their head around OKR best practices. Training internal OKR champions also ensures you have a sustainable OKR framework in place.
Step 4 – Craft
Craft a network of OKRs with your vision, mission and long term corporate objectives at the core. It’s important not to take a cookie-cutter approach when it comes to defining your corporate objectives. For example, the corporate objectives of a company like Spotify will differ significantly from those set by a company like Google.
After this, you’ll then outline your 12-month OKR framework (objectives and key results) and your supporting 3-month OKRs should be aligned into those.
Step 5 – Support
Whilst your coaches will have been trained to the highest standard, it is important to provide regular support for your internal OKR Champions. Through the first cycle, conduct regular reviews and feedback loops to ensure your OKRs gain maximum traction. This will also help your OKR team overcome any stumbling blocks along the way.
Step 6 – Review
Evolution is a vital principle of a successful OKR programme and it is an integral part of the process. It’s important to take the learnings from the first OKR cycle and design how you can apply these learnings to the next OKR cycle and beyond.
How do you measure results?
OKRs are all about measurement, which is what makes them so powerful. The “KR” (key result) should be quantifiable. If there is no measure (or KPI) in place yet, then perhaps your first KR should be to create one. Doing so will establish a baseline from which you can measure progress. Otherwise, there is no real way of knowing if you’ve achieved what you need to achieve.
How can TBG help?
We can support you as you define your corporate objectives and implement the OKR methodology in a way that works for your organisation.
The corporate objectives of a company should reflect its overall ethos. When you add OKRs into the mix, you’ll have a powerful tool to spear your company ahead of the competition and achieve your long-term vision for the company.
Ready to get started? Speak to a giant today!