Introduction
At the start of each year, I encourage leaders to dedicate time to strategic planning. The annual strategic planning process is an exercise that will chart a course for success in the new year. For many teams and organizations, the strategic plan will become an integral part of their business operations and serve as a roadmap for employees at all levels. If prepared and executed successfully, the strategic plan will also outline specific actions that will ensure attainment of strategic goals. In this article, we’ll explore four key elements of the planning process.
Establish OKRs
At the heart of strategic planning lies the formulation of clear Objectives and Key Results (OKRs). These serve as the guiding lights, providing direction and purpose to the organization. By establishing OKRs, leaders create a framework for setting ambitious goals and measurable outcomes, aligning the entire team towards a common purpose.
So, what is an OKR? The concept of OKR’s has been around since the 1970’s but didn’t make a significant splash until 2010 and beyond when Google adopted them (and an avalanche of other companies jumped on the bandwagon). Within the landscape of goals, OKRs sit somewhere between Key Performance Indicator (KPIs) and S.M.A.R.T goals.
The formula for OKR creation is straight forward:
Outcome = what we’re going to do or achieve.
Key Result = how we’re going to measure it and identify achievement.
It’s important to note that for each outcome in the OKR, you might have more than one key result:
Objective: create a highly engaged workforce.
Key result 1: increase Y-o-Y eNPS by 25%
Key result 2: increase Y-o-Y ESS by 25%
Key result 3: 95% completion rate of quarterly eNPS surveys
Key result 4: decrease employee turnover by 10%
Creating clear, concise, and compelling OKRs is an essential component of the strategic planning process. It’s equally important to set realistic goals with a dose of aspiration built into them which will require the team/organization to “stretch” a bit in the process.
Break Down OKRs into Quarterly & Monthly Goals
Transforming broad objectives into smaller micro-goals is paramount for effective execution. Breaking down OKRs into quarterly and monthly goals provides a manageable approach and it also establishes a tangible timeline for achieving success incrementally. This structured breakdown ensures continuous progress and adaptability in a dynamic business environment. If the team/organization begins veering off-track, leaders can quickly course correct to ensure success. I find it’s helpful to visualize how impactful it can be to break down large goals into smaller “chunks:”
Establishing “micro-OKRs” is a mixture of mathematics and pragmatism. You might be tempted to simply divide your annual metrics by four or twelve, but this is likely wrong. Most teams and organizations start strong then fizzle out or take time to ramp up production toward the OKR. There are also business cycles, seasonal considerations, competing OKRs, and other factors that must be accounted for.
When determining quarterly and monthly goals, it’s also important to note that you will most likely need to adjust these OKRs throughout the year. If an OKR is missed, subsequent OKRs will need to be adjusted to make up the difference. Alternatively, if an OKR is surpassed consider increasing future OKRs to prevent complacency.
Define Key Activities
Identifying the key activities necessary to accomplish each OKR is a critical step in the strategic planning process. This involves a meticulous examination of the tasks and initiatives that will contribute most effectively to the realization of objectives. Clear definition, understanding, and assignment of key activities streamline the execution of the strategic plan, enhancing efficiency and effectiveness.
There is no substitute for disciplined action. Consistent tracking and execution of key tasks will drive OKR achievement. The incredible cumulative impact of daily, weekly, and monthly activities cannot be overstated. Failing to identify and systematize your key activities will lead to a miss at the end of the year.
Ensure Each Employee Understands Their Role
A cohesive strategic plan is only as strong as its execution by the team. Effective communication and engagement strategies are necessary to ensure each employee comprehends how their contributions fit into the broader strategic vision. This alignment fosters a collaborative environment, where every member understands their significance in achieving organizational goals.
It’s incumbent upon leaders to cast a vision for their team. Annual OKR planning is no exception. Leaders must assess each OKR and determine the following:
How does achieving this OKR help my team?
What is my team’s role in OKR achievement?
What specific daily, weekly, monthly actions will move is closer to OKR achievement?
How can I help each team member understand their part in this “bigger picture?”
How do I keep this OKR top-of-mind throughout the year?
Summary
In conclusion, strategic planning is the cornerstone of organizational success in the new year. By establishing clear OKRs, breaking them down into achievable goals, defining key activities, and ensuring alignment across the workforce, teams/organizations set the stage for growth and achievement.
Action Steps
Identify opportunities within your business and establish OKRs.
Break OKRs into quarterly and monthly “micro-OKRs.”
Systematize key activities that support OKR achievement.
Schedule regular check-ins to review progress.
Communicate consistently with your team.
Adjust OKRs as needed.
Ensure team members understand how their work contributes to the organization's overarching success.
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