2 reasons why OKR goal setting is better than any other approach

2 reasons why OKR goal setting is better than any other approach

There are many approaches to setting business goals, but few have the power of OKRs (objectives and key results). OKRs are built upon two incredibly effective goal setting methods, SMART goals and MBO, but they are tailored to meet the needs of today’s fast-growing businesses and fast-paced work environments. They also center goal setting, measuring, and tracking around the thing that matters most for your business: results.

What is it specifically that makes OKRs far more effective than any other approach to goal setting? There are two factors:

1. Cascading alignment

Consider your most important business priorities. Maybe your goals are to grow revenue or build your customer base. These are the most essential goals that you as an executive aim for, but when everyone in the organization has a list of priorities that don’t match yours, your goals can seem out of reach.

OKRs solve this problem through cascading goal alignment. Here’s how it works:

2. Smaller steps

The key results portion of OKRs is what makes them so effective, because they break down objectives into smaller steps. They are also clearly defined, making it easier for employees and their managers to track progress.

To maximize effectiveness, each smaller step or KR should also be: