By Peter Kerr, Managing Director of AuxinOKR
There are no quick fixes for businesses trying to manage their way through a pandemic or the economic downturn we find ourselves in. But there are tools and an approach that can make a business stronger and more resilient.
The better companies may already have agile management systems that can be quickly adjusted to respond to a crisis and the economic jolt caused by the coronavirus outbreak.
But for many others, the pandemic has forced directors and owner-managers to urgently look at organisational structures and processes. Our team at AuxinOKR is seeing a surge in demand from corporates that recognise they need to alter the way they do business to build greater resilience across their organisations.
Companies that embrace change to ensure continued growth and greater operational resilience will be the winners in the forthcoming downturn.
We believe the OKR system will be the salvation of many companies during the coming years. It’s a practical management process that turns business strategy into measurable goals. Already, this approach has been embraced by high growth companies like Intel, Google, Microsoft, Amazon, Facebook, Siemens, and Netflix
OKRs – which stand for objectives and key results – provide a management team and its workforce with focus by setting specific goals which are then achieved through specific tasks. Objectives can be very fresh and based on the latest information at a point in time, allowing you to align teams and shift efforts, perfect when the economic world has been turned on its head.
Innovative thinking will be needed to reimagine what we believe will be important in a post pandemic world. Are the KPIs and KRs we were tracking before the world went into lockdown still relevant and appropriate. Do we need to think of new measures that can support a different strategy?
Business as usual is over. This is the time to really focus on the OKRs that are most important – park the others for now. All strategic thinking needs to be directed at protecting customers and employees from the long-term repercussions of the economic crisis triggered by the pandemic.
Management teams need to identify their company’s long-term goals that will not change as a result of the virus. This might be digital transformation strategies aimed at improving online services, online capacity, improved user experiences, better data availability etc.
In a time of such uncertainty setting ambitious targets for a future we cannot predict is just guesswork. Instead, use an OKR based system to explore the assumptions about what the world will look like in future and how the company can continue to be relevant to clients by adding value and improving long term sustainability.
Effective goal-setting and consistent implementation of OKRs will encourage all sorts of behavioral changes across an organisation and its people. Typically, benefits would include:
• Generate a sense of urgency – everyone understands the need for change
• Provide clear accountability – a visible team of people to lead the change
• Create a vision for change – a need to change that goes beyond facts and figures and aligns with the company’s values
• See blockages quickly – identify and remove things that will get in the way of change
• Create momentum – use conversations, feedback and recognition to celebrate progress and learn from successes and failures
• Embed a commitment to continuous improvement
Companies who can leverage the lessons learned from the changes forced on us by the Covid-19 lockdown will thrive. Key issues including staff well-being, flexibility, focus alignment and effective communication of strategy will be more important now than ever.
• AuxinOKR is a leading UK specialist management consultancy, based in Newcastle upon Tyne, helping companies deliver the OKR system. National and international clients include Legal & General, Which? Rolls-Royce, and South African banking group Absa. For more information please visit www.auxinokr.com
