Most contractors already have more than enough to manage. There are schedules to keep up with, materials to purchase, crews to lead, and customers to keep informed. They do not need another complicated management system layered on top of everything else.
Objectives and Key Results (OKRs) are an approach that can work for companies of any size and in any industry. What started as a concept in the tech industry has since spread across many different sectors. What matters is that any contracting business can use OKRs to improve how it operates and make progress on what matters most. It is about being clear on where you want to go and how you will get there, while still giving yourself the flexibility to adjust along the way.
What makes OKRs useful for contracting businesses is that they work for companies of all sizes. The most important aspect is that they are straightforward and relevant to field crews, admin teams, and management. This is not a method that is heavy on jargon or overly complicated to track progress. The idea is to keep it simple and help the company make progress on what it wants to achieve. In essence, it is about pushing a business to think differently and achieve more while keeping the focus on what matters most.
An objective is the thing you want to accomplish. It should be something that feels slightly difficult to achieve. How do you want to change? Where do you want your contracting business to go in the next three to six months? These are the kinds of questions that help form your objective. It needs to be something that makes you a little uncomfortable. Say you want to offer a new service that your business does not have much experience in. It may require new equipment or hiring new employees. Maybe you want to significantly reduce rework by 50 percent. Are your callbacks for rework out of step with your goal of delivering high customer satisfaction? That could be a strong place to start.
It may help to start with a single objective and add more over time. However, as a word of caution, do not have more than five at once. In fact, three is the sweet spot. That makes the process more sustainable because, ultimately, the objectives should be challenging yet realistic. You want to create a sense of accomplishment, not resentment from your admin teams and field crews because the goals were too far out of reach.
The next step is defining your key results. These are the actions you need to take to achieve that objective within a certain period of time. They should be specific enough that your employees understand what needs to be accomplished. However, they do not need to be so specific that they read like a task list for one person. Think more in terms of what the team needs to accomplish collectively. Perhaps you want to move into larger commercial projects where bigger equipment is needed. A key result could be to have half of your field crews trained on that equipment within 90 days. Another option is to schedule introductory meetings with at least 20 commercial developers within the next 60 days. Both would support the objective of moving further into commercial projects.
If you are looking to reduce overall material costs, consider implementing better materials management systems. For instance, one key result could be moving to a formal inventory management system within 60 days. Another option is to have 50 percent of your inventory entered into the system within the same period. Or it could be hiring an inventory manager within the next 60 days.
DEVELOP A PLAN
There are several things to consider when developing your Objectives and Key Results. One, as already mentioned, is to make them difficult but achievable. This is subjective, but if you feel a little uneasy because it seems hard, that is usually a good sign. They should also be time-bound. They do not need exact dates, but they should be tied to a quarter or a month. Keeping them within a three- to six-month window helps maintain momentum.
Another important consideration is not to go overboard with too many. In fact, it is better to start with a small number rather than too many. Share them with your administrative teams and field crews so they can provide input and identify any items you may have missed. This also helps build buy-in, rather than dropping a new system on them and having them reject it.
Make sure to document the progress as well. It does not need to be complicated. A simple Word document or Excel spreadsheet will work. Just use something that does not get lost along the way. Whatever format you use, make them visible so employees can access them and see progress as it happens. Then set up regular team check-ins to track progress and highlight accomplishments.
Once you hit the target date for completing your objectives, evaluate how well you did. You can use a simple rating scale, such as 1 to 5, or color-code results in green, yellow, and red. Basically, you are answering: Did you accomplish it? Did you almost get there? Or did you not get close? Reds are perfectly fine. This is not punitive. It is simply a way to assess performance and identify where you may need to adjust the objectives or key results.
FORWARD PROGRESS
Lastly, keep the goals simple. This is not an exercise in making your contracting business more complex. It is about helping make your business better. It is also expected that you will not hit 100 percent of your goals. In fact, if you do, they were probably too easy to begin with. What you are trying to do is push yourself and your teams to stay focused on the top priorities.
Even if you completely miss the mark and do not accomplish an objective, that is still an opportunity to evaluate why it happened and make corrections. It’s an iterative process that will continuously get better as you keep using the approach. So, gather your team and start with a conversation around aligning your top priorities. Then, write out some possible OKRs. The plan doesn’t have to be perfect, just make meaningful forward momentum on improving your business.
about the author
Kevin Saboori has over 10 years of professional experience helping businesses improve their operations. He brings his knowledge from the military, construction, manufacturing, logistics, project management, business advising, and consulting to help clients solve their greatest operational challenges. If you have questions or want to connect, he can be reached at ksaboori@optimaworkflow.com.