Although this might be one of the worst recessions in terms of its impact on the global economy,
ALL IS NOT LOST!
There are ways to bypass the incoming recession and make sure that your business stays afloat despite these hard times.
A Recap of What Are OKRs
Since we’re talking about bypassing an incoming recession, it’s important to have a clear understanding of what OKRs are and how they can help your business.
Objectives and key results (OKRs) are a popular management technique that can be used in businesses of all sizes.
The idea is simple: You set objectives (or goals) for your business and then identify key results that will help you achieve those objectives.
Strategy #1 - Value is Exponential
VALUE is not LINEAR it’s EXPONENTIAL.
You can create more value by doing less work and focusing on high-leverage activities. To do this, you need to know your priorities and what will have the biggest impact. You also need to be efficient with your time and resources.
The best way to do this is by using OKRs’.
They are a way of setting goals for yourself that are measurable. It tells you exactly how much progress you made towards each goal, so if one goal is not progressing as quickly as another, then your team knows to focus their efforts there instead.
Strategy #2 - Use SMART Goals
One way to avoid being affected by an economic recession is to use SMART goals.
SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
- A goal that is specific has a much higher chance of being accomplished than a general goal.
- Likewise, a measurable goal can be tracked and therefore show progress.
- If a goal is achievable, it is more likely to be completed.
- Setting SMART goals ensures that they are worthwhile and not just busy work.
- Finally, time-bound goals create a sense of urgency and keep you motivated.
Strategy #3 - The Pareto Principle
The Pareto Principle, also known as the 80/20 rule, states that for many events, roughly 80% of the effects come from 20% of the causes.
The principle was named after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population.
How can you apply this rule to your company?
For example, if you have a hundred ideas, 80% of them will be generated by 20% of your team. Don’t waste time on ideas that won’t help your company grow or improve its success rate. Put all your resources and efforts into supporting the top twenty percent instead.
Strategy #4 - Collaborate with your Co-workers
If you’re worried about the incoming recession, one of the best things you can do is collaborate with your co-workers. Brainstorm ways to cut costs and increase efficiency.
Together, you can come up with creative solutions that will help your company weather the storm. Plus, working together will help build team morale and make everyone feel more invested in the company’s success.
Strategy #5 - Start ASAP
The best way to avoid being caught off-guard by a recession is to start preparing as soon as possible.
Here are 6 ways you can get started using OKRs today to plan for your company’s future:
- Conduct regular training on how to use and understand them, and on what other employees think about them.
- Understand that it may take more time at first before you see an improvement.
- Know when your team should be held accountable for their performance.
- Communicate with stakeholders about progress. Look at what work has been completed.
- Know when there are signs of concern.
- Use metrics from your past success: If there have been previous goals that were successfully achieved, those metrics could be used as a benchmark for future successes.
Conclusion:
Although an economic recession can bring financial hardship, there are ways that you can use OKRs to help your business weather the storm.
By setting and working towards specific, measurable goals, you can maintain focus and continue to progress even when times are tough.
Additionally, keeping your team motivated and on track with regular check-ins and reviews will help ensure that everyone is still working towards the same objectives.
By following the above steps, you can help your business bypass the incoming recession and come out stronger on the other side.