Two common pitfalls in the business world are focusing too much on outputs and fixating on monetary goals. For example, a company might prioritize the number of features launched or units sold, neglecting the actual value these bring to the business and the customer. Or, they may aim for a certain revenue growth, overlooking long-term business objectives and customer value. Sure, you could launch a thousand unused features or inflate sales by offering discounts on inferior products, but these strategies are unlikely to foster sustainable success.
This is where OKRs step in. They help pivot the focus from mere outputs and financial figures to long-term value creation for both the business and its customers, emphasizing the importance of outcomes. When you set up OKRs, you're essentially answering four critical questions:
- Where do we want to go?
- Why do we want to go there?
- How will we get there?
- How will we know we've arrived?
By helping you focus on the bigger picture, OKRs ensure that your actions and strategies are not just productive, but also purposeful.