In every business, metrics and analytics are claiming center stage. Sales, marketing, performance and productivity are all measured through your Objectives and Key Results and your Key Performance Indicators. Keep in mind that OKRs and KPIs are not the same thing.
In a sense, OKRs lay out what your company wants to achieve, and KPIs measure how close it is to its goals.
But when was the last time you thought about your OKRs and KPIs? If it was before COVID-19, it is time to revisit and adjust these key performance measures so they reflect the journey to a new normal. For example, before COVID-19, businesses operated on a 9-to-5 timetable. Few, if any, employees worked from home on a regular basis. Most business relationships were nurtured at in-person meetings and events. Employees were expected to adhere to dress codes. Then the pandemic happened and everything was turned upside down.
Now that we are emerging from the worst of the upheaval, it is becoming clear that pre-COVID-19 business norms are not coming back. Here are some changes businesses are facing: For service businesses, this means a hybrid work week. For retail, it means maintaining a robust online presence. For manufacturers, it means finding new ways of sourcing materials, warehousing and distribution. No business has been left totally untouched.
So what does this mean for your company's new OKRs and KPIs? It means they need to be focused and realistic. Consider these examples:
Your company's strategic goals may not have changed, but the methods for achieving those goals need to be adjusted to reflect the uncertainties of the current business environment. Setting clear and achievable OKRs and KPIs and communicating them to everyone at the company is an excellent way of focusing on getting ready for the next new normal.
Travis Raml, CPA