From SMART to WOW: The Innovative Strategy of SMART Goals and OKRs

From SMART to WOW: The Innovative Strategy of SMART Goals and OKRs

In the fast-paced world of business, the need for a clear strategy to achieve what we want is undeniable. But have you ever wondered what the most powerful methodology is that can propel your company to new levels of achievement? In one corner, we have the classic top-down SMART Goals, and in the other, the agile and popular bottom-up OKRs (Objectives and Key Results). However, what you are about to discover is that this is not a competition between methodologies, but a strategic alliance with the potential to lead your company to victory. Ready to explore a new perspective?

The Strategic Alliance of SMART Goals and OKRs

Imagine your organization as a sports team competing in an exciting championship. In this scenario, 'SMART Goals' are comparable to the tournament title that the team aims to achieve. However, to aspire to win the title, the organization must win a series of 'matches' to secure victory. These 'matches' are the OKRs, and here lies the beauty of this strategic alliance.

SMART Goal Transformation into OKRs

Let's take a goal as an example:

Increase online sales of our electronic devices by 15% from January 1st to June 30th through the implementation of digital marketing and improvements in website navigation.

Now, let's break it down to ensure that the SMART criteria are met.

Verification of SMART criteria

This goal is not only an appealing statement but also fulfills all the SMART criteria. In fact, in my experience, most business goals lack detailed key strategies, meaning they omit the 'HOW' and consequently become 'unattainable.' Some, like the provided example, offer mere outlines of how to achieve them.

Seen in this light, SMART Goals often lack a clear roadmap necessary to ensure success. This is where OKRs play an essential role, transforming these vague strategies into concrete actions, creating a strong link between vision and execution.

Transforming Strategies into OKRs

To fully grasp the value of OKRs, let's consider an example where we transform the two previously mentioned strategies, 'implementation of digital marketing' and 'improvements in website navigation,' into specific OKRs.

Transforming Strategies into OKRs

In the language of OKRs, the 'O' represents the objective statement, i.e., what is to be achieved. The 'KR' (Key Result) becomes the crucial indicator measuring progress toward the objective.

Objective: Implementation of digital marketing strategies

• KR1: Increase website traffic by 30% in 3 months.

• KR2: Gain an additional 5,000 followers on our social media platforms in 3 months.

• KR3: Increase online conversions by 20% in 3 months.

Objective: Enhance navigation on our website

• KR1: Decrease the website bounce rate by 15% in 3 months.

• KR2: Increase the average visit duration on the site by 25% in 3 months.

This is a clear example of how SMART Goals become even more effective when combined with OKRs. Each Key Result is a clear indicator that progress is being made toward the ultimate objective.

The Strategic Alliance in Action

Imagine a scenario where annual business objectives become powerful guiding beacons, steering the entire organization toward its goals. In this vision, these objectives are scarce, ranging from 3 to 5, carefully and precisely selected by leaders to set the annual course for the company.

Now, visualize OKRs taking the stage, but this time, in the hands of every collaborator. Agile, flexible, and short-term, typically designed for a 3-month period. If each person sets 3 OKRs, in an organization of 100 collaborators, we would have 300 OKRs driving the 5 key business objectives. Can you feel the synergy and power behind this strategy?

This strategic alliance not only propels the organization towards success but also fosters a greater sense of engagement among the collaborators. OKRs encourage active participation, empowering each team member to contribute meaningfully to the overall outcome of the company.

SMART Goals and OKRs

Why OKRs are Breaking Paradigms

While objectives are tied to bonuses and compensations, and are measured in terms of achieved or not achieved, OKRs, on the contrary, are not linked to compensations. Therefore, they don't intimidate people, and even if they are not fully accomplished, they always yield results because they are aggressive.

Larry Page of Google says: 'I'd rather have the goal to go to Mars, and if we fall short, we'll reach the Moon.

Let's consider a practical example to understand this effect. Suppose you want to improve the quality of the time you spend with your family. To achieve this, you set two key indicators:

• KR1. Arrive home for dinner 20 times a month.

• KR2. Avoid any phone calls during dinner.

Now, let's evaluate the results: you achieved an 80% completion rate for Key Result 1 and a 75% completion rate for Key Result 2. This means that out of the 20 times you were supposed to have dinner at home, you did so promptly 16 times, and out of those 16 times, there were only 12 occasions without phone interruptions.

This example demonstrates that even if we don't achieve 100% completion of KRs, we significantly improve the quality of family time by focusing on everyday aspects that truly matter.

The difference between success and stagnation lies in your strategic approach 🎯. Embrace SMART Goals and OKRs in your 2024 planning. Challenge the conventional. Inspire your team and achieve victory!

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Mariela Paredes, Dr. in Industrial Psychology, Master in Business Administration, and Specialist in Human Factors and Crisis Management. With a distinguished career spanning 25 years in the field of Human Resources, she has delivered over 10,000 hours of training to more than 20,000 individuals. Her expertise and passion for education make her a reference in the field, leaving a positive impact on the lives of many individuals.