OKRs and the Org Chart
When each role in your organization has well defined OKRs, it can streamline management.
It provides clarity about what conversations need to happen between each layer of your org chart.
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Hi, I'm Burton. I'm the founder and CEO of Sutro Li. We provide accounting for great causes. The objectives and key results or OKR framework can streamline management in a company by providing clarity on what each team member needs to achieve and how much time they have to achieve it. When each role has a well defined set of goals that are specific and time bound.
It brings clarity to conversations between layers in the organization. Let's check this out in a simple example, here's an organization with three reporting layers, we could call them managers, directors and executives. Let's just focus on one branch for this example, let's say the financial OKRS are two achieve annual gross revenue of $5 million reduce annual overhead cost by 5% and end the year with a net profit of $500,000.
These goals are measurable and they are time specific because they know where they need to get to and how much time they have. The accounting manager and marketing and communications department are clear on what they need to report to the CFO as they move through the year. This is a very simple example of how OKRs can be used to get everyone on your team working together towards common goals.
When each role in your organization has well defined OKRs it can streamline management by providing clarity about what conversations need to happen between each layer of your org chart. Next week, I'll be talking a little bit more about goal setting if you'd like to hear more, give us a follow and we'll see you next week.