Objective Setting Done Right
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1. The document provides 5 concrete ways to effectively set objectives for an organization: 1) make objective setting a team effort, 2) set aspirational long-term focus areas, 3) use OKRs to make objectives measurable, 4) quantify objectives with key results, and 5) celebrate achieving objectives. 2. It recommends setting long-term aspirational focus areas like culture, shared vision, and purpose, and ensuring 80% of objectives support these areas. 3. OKRs should separate leading and lagging indicators, with objectives as lagging goals and key results as leading metrics to track progress.
Objective Setting Done Right
- 1. 5 concrete ways to make it work Objective Setting Done Right Product Pricing Partners Resources About us
- 2. 1. Objective setting is teamwork 2. Set aspiring long term focus domains 3. Use OKR (objectives & key results) 4. Make everything measurable 5. Celebrate success 5 concrete ways to make it work Table of content 4 6 8 9 10
- 3. Make your strategy clearer with objective setting Executive Summary Create clarity and direction inside and outside your organization. Do one of the following statements feel familiar? • Our objectives are too vague. • Our strategic plan is mostly focused on short term goals. • Most of our objectives come from the top. • We almost never celebrate success. If so, this book might help you to: • Build a more motivated and committed team. • Not only focus on the "what" but also on the "how". • Clarity throughout your organization. Follow us
- 4. Objective setting is teamwork 1 Board Board Middle management & sales partners Middle management & sales partners Team members Team members Bottom-Up Approach Top-Down Approach Top management decides on the overall company and sales targets. Why? Because this will help teams to provide a vision and a framework. Sales and marketing teams make a budget, set goals and define the "how". Why? Team members have the best feel of the market and customers. To create commitment and motivation you need a process of iterating from top to bottom. OBJECTIVE SETTING DONE RIGHT 4
- 5. A bottom-up approach creates involvement & commitment. It also stimulates creativity in the process. Top-Down Approach Bottom-Up Approach • Define a long term strategy with the board. • Make a budget. • Set overall targets. • Brief middle management/sales partners to come up with a plan to reach these targets. • Let the team describe their own ‘dream’ for the company. • Let the team set their own targets. • Make the team present their plans with other teams and ask them to adjust accordingly. Blend both outcomes 5 OBJECTIVE SETTING DONE RIGHT
- 6. Bottom-up process Teams challenge each other Bottom-up process Aspiring Focus Domains Set aspiring long term focus domains 2 Culture Challenge Respect Shared Vision The Why • How the company plan is constantly challenging us • Continous learning opportunities • Company DNA based on respect • Recognition • Rewards • How we can change the world • How we can make a positive impact • Our story • Clear objective metrics • Our deeper purpose • What we stand for • Why we exist • Why customers love us Culture: Shared Vision: The Why: Challenge: Respect: • The culture of sharing: share everything Take these 5 elements into considaration to create long term commitment and engagement. 6 OBJECTIVE SETTING DONE RIGHT
- 7. Make sure 80% of your objectives are linked to your long term focus domains. Accelerators Detractors Accelerators: Detractors • Ecosystem helping you in the same direction (e.g.: partners, shareholders, etc..) • Internal unity ( team alignment) • Competitors • Short term trends Objectives & Key Re s u l t s ( O K R ) 80% of your objectives 7 OBJECTIVE SETTING DONE RIGHT
- 8. Use OKR (Objectives & Key Results) 3 OKR stands for Objectives and Key Results. It's a methodology that makes sure your strategy becomes measurable, tangible and executable in teams. Separate leading indicators from lagging indicators. Key Results Next Year's Objective Long Term Aspiring Focus Domain Key Results LEADING INDICATORS Objectives LAGGING INDICATORS Go to the gym Drink more water Eat healthier Lose pounds End top 3 at the London Marathon How? What? Where are we going? OKR translates the what into the how. What: Lagging indicators How: Leading indicators = 8 OBJECTIVE SETTING DONE RIGHT
- 9. Make everything measurable 4 Challenge: Sometimes objectives are too vague. Key Results Going to the gym Going to the gym 2x a week Drink more water Drink 2L water per day Eat healthier Cut down sugar Eg. “Next year we want to grow.” Challenge yourself and your team to be specific about the end goal and about how to achieve that goal. Do we want to grow top line or bottom line? Do we want to grow in all market segments? What are the most important initatives that will lead to growth and do we have a system in place to measure it? Spend time in making leading AND lagging indicators measurable and use the right tools to measure. 9 OBJECTIVE SETTING DONE RIGHT
- 10. Celebrate Success 5 Here are three reasons why celebrating success is important. 1. It changes the mental state and the self-esteem of the team. 2. Celebrating with colleagues makes relationships stronger in a team. 3. Everybody likes a winning team, this will attract more winners in your organization. You're on a long journey, celebrate every moment you get closer to your objectives. Eg. email, Slack, in team,... In team meetings: Wins of the week In team meetings: Wins of the month In team meetings: "Quarterly awards, incentives,... In team meeting: Yearly awards, incentives,... Daily Monthly Weekly Quarterly Yearly 10 OBJECTIVE SETTING DONE RIGHT
- 11. IT’S FINE TO CELEBRATE SUCCESS BUT IT IS FAR MORE IMPORTANT TO HEED THE LESSONS OF FAILURE - BILL GATES - Don’t forget... OBJECTIVE SETTING DONE RIGHT 11
- 12. Qollabi helps you to build stronger relationships with your business partners. We call our software BRM: Business Relationship Management Software. We especially developed it for professionals managing indirect sales channels like agents, branches, distributors, dealers, brokers, resellers etc. Our customers choose Qollabi BRM because of increased commitment and accountability. Both, within their own organization as between them and their business partners. Want to know more? Discover what Qollabi can do for you. About us Features Ask a Demo Follow us