Creating the perfect mix whilst Balancing OKRs
Balancing OKRs is about getting your success measures truly aligned with the Objective at hand. How you measure success is a key determinant of how successful you will eventually get in your OKR planning & implementation.
Efficiency vs. Effectiveness
A company’s bottom line dictates how efficient it is with its spending and managing its costs of operations. Top line, on the other hand, indicates how effective a company is at generating sales and revenue and does not consider operating efficiencies which could have a dramatic impact on the bottom line.
Effectiveness Measures
Success measures to increase top line growth may include increase in sales & revenues, new products, new markets, mergers & acquisitions or increasing market share.
Efficiency Measures
Bottom line related success measures, alternatively, may include efforts to reduce expenses. This may be achieved by enhancing production, product improvement, decreasing cost of goods sold (COGS), reducing cost of raw materials, increasing return on advertising spends (ROAS), reducing cost of customer acquisition, improving return on assets (ROA) or improving employee productivity through learning & development.
Conclusion
Ergo, whilst measuring success, it’s critical that we maintain a healthy balance between Key Results that are both efficient and effective in nature. Too much skew towards any one dimension may render an undesirable outcome. This holds true for Key Results at a strategic level as well as tactical levels.
Example 1
Objective: Be a market leader in the product category
Key Result 1: Increase Net Sales from $20m to $45m (period may vary).
Key Result 2: Increase Market Share from 45% to 55%.
Key Result 3: Improve Operating Margins from 45% to 60%.
Note: How KRs 1 & 2 are focused on measuring success by improving top lines. And KR 3 is focused on balancing this by measuring success through improving the bottom-line.
Example 2
Objective: Be the number one app in the online food delivery industry.
Key Result 1: Increase Average Revenue Per User (ARPU) from $15 to $30 (period may vary).
Key Result 2: Grow Active Users from 25m to 50m.
Key Result 3: Reduce Churn Rate from 57% to 10%.
Key Result 4: Reduce Cost Per Acquisition from $3.5 to $1.5
Note: How KRs 1 & 2 are focused on measuring success by improving top lines. And KR 3 & 4 is focused on balancing this by measuring success through improving the bottom-line.
Author: Nikhil K Maini, Founder & MD – OKR International
девушки новосибирска хотящие секса без обязательств
видео интим знакомства бесплатно без регистрации девушки для секса на дому в спб секс интим знакомства гей проститутки
куркино выезд
Stephensed
I tried kosher cbd oils as a service to the in the first place mores pattern week, and I’m genuinely surprised by way of the results. I’ve struggled with eagerness and accessory sleeplessness, and CBD seemed to offer a arcane, yet efficient, have of stillness and relaxation. There was no ‘far up,’ perfectly a compassionate easing of my concern symptoms and a more tranquillizing unceasingly’s sleep. It tasted a fraction bawdy, but that’s a small trade-off looking for belief more at peace. I’m looking step up to seeing how it helps in the desire run.
Thomasgum
Distressing cannabis edibles instead of the first metre was an eye-opening experience. The fun and euphoria were unexpected but welcomed. It enhanced my sensory insight and sparked a newfound increase for music and art. Anyway, the intense hunger caught me mad guard. Inclusive, it was a historic introduction to a late life of sensations.