Before we start talking about OKR, let’s talk about such modern companies. How did the big corporations of the 1980s lose space to the giant of the 2020s? Who has never heard the famous Kodak case that lost space for digital media and saw its market run by Instagram? Modern companies with 10, 15, or 20 years are dominating markets while traditional companies, 70, 100 years old, are losing space and customers day after day due to the low agility of change. The rapidity of the small became a fundamental characteristic so that they could dominate markets, solving the gaps that many times the big ones did not want or could not answer.

 And that’s how we got to the OKRs. How do modern companies use OKRs to dominate markets previously unimaginable for companies that had no tradition?

OKRs

There are two main characteristics responsible for this phenomenon: focus and flexibility. Flexibility is a natural characteristic of modern companies; they are incredibly agile and can transform entirely in a few weeks, which in traditional companies is extremely difficult to happen. But a crucial point was missing for modern companies: the focus. Because they are very attentive to the slight changes in the market and receive a lot of information, these companies were always lost, “shooting everywhere”.

When agile companies meet agile methodologies, we have modern companies dominating the market. Google, Facebook, LinkedIn… among others.

The same phenomenon applies to traditional companies, which are always focused on specific strategies and do not have the flexibility to make significant changes in the short and medium-term. However, when the meeting of companies focused on agile methodologies takes place, we also have large corporations that are transformed and remain stable in the market. Intel and Microsoft are examples of this.

It is at this point that OKRs were essential for all companies mentioned! OKR brings focus and flexibility to companies that use the methodology!

You must be wondering how this happens.

Well, well-defined OKRs will give an exact direction as to which path the company will take in that period (month, quarter, semester or year). In other words, you direct all your teams, your entire company to a single direction (focus). 

With the OKR check-in meetings, which take place in short periods (weekly, monthly, bimonthly or quarterly), you have a follow-up on whether the teams’ actions are moving towards the planned objective, if there was a change in the market that makes it impossible to company to reach that goal, if there was an internal problem in the team … in an agile way you discover the points for improvement and likewise, make decisions to solve them. This is how the methodology brings flexibility to your company since you no longer have to wait for the 3 years planning to end to change the company’s course.

Do you want to have your company agile, attentive to changes, and focused on what matters to your customers? Time to start implementing OKRs. We made this e-book, so you know how to implement OKR in your company.

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