By Mashum Mollah
The purpose of any corporation or business is to serve its customers and make a profit. While this seems like it is quite simple to do, many companies know it is challenging to accomplish.
Many obstacles get in the way of this objective. These could include disagreements among partners, lack of resources, distractions over focus, and other factors that hold businesses back from serving their customers well.
Now, assuming that you have a good team, and a few business resources in place, you want to ensure that you are optimizing for leaps and bounds instead of incremental growth. If you focus on the former instead of the latter, you can increase your business’s profit gains.
Recall that keeping your organization lean, driven, focused, and data-driven can help you get to the next level that matters. Here is how you can use OKRs to increase the overall value of your business.
OKRs are Purpose and Profit-Driven:
A firm with direction and focus can quickly win over a firm that does not possess a robust compelling vision and people who will focus intensely to ensure to reach the objectives at hand.
Recall that the right team will find it harder to respond to smaller initiatives. See, the right team will want to tackle significant challenges and transform an organization for the better.
If your team members can see that you are connecting your purpose to profits, you can establish a baseline of expectations. It can also drive your team to pursue the right actions that make a difference within your organization.
This initial phase is quite crucial because it makes you look at the world in a specific way, understand where it is, where it may go, and how you would position your organization to obtain particular success.
Only once you establish these fundamental principles of your organization and why it has staying power with the skills you currently possess can you genuinely plan for the long-term and regularly generate continual profits.
A few examples of this can be seen in Netflix, Google, Yahoo, and even Facebook.
Netflix saw that it would be better to provide customers with convenience and build a business model on charging for the service instead of earning from excessive customer fees. It would deliver movies by mailbox first, give the customer substantial time to watch it, and then take it back. It switched to streaming over time and became the leader, putting competitors out of business.
Google saw an opportunity to provide a cleaner search engine service that helped people navigate quickly and easily.
These firms knew where the world was going, focused on the customer, and still thrive.
Proceed to Establish Objectives and Key Results:
Once an organization can establish its vision, it can move forward with overall objectives and implement key results. These key results are deliverables that must take place regularly so that the firm can make progress.
As you can see, vision, objectives, and key results come together to transform organizations and aggregate more earnings over time. In essence, the profits come from focus, direction, and continuous activity.
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