Studies reveal that employees are more engaged and productive when they possess a clear understanding of their organization’s goals, as well as the meaningful impact of their day-to-day tasks. However, current management processes often struggle to achieve alignment, accountability, and prioritize critical things that matter the most. This is where Objectives and Key Results (OKRs) come into play—a simple but powerful goal-setting method that fosters clarity, aligns everyone with shared organizational goals, and ultimately drives improved performance and results.

Performance management is one of the most critical aspects of people management. Modern organizations worldwide have recognized the inherent shortcomings of traditional, annual appraisal-based performance management. Given the considerable investment of time and resources involved, this approach is no longer sustainable. As a result, organizations are embracing agile or continuous performance management as an alternative. This shift aims to enhance employee engagement and cultivate a culture of high performance.

Traditional performance management practices are no longer delivering the expected results in spite of significant investments of thousands of hours and millions of dollars. They not only fail to improve performance but also lead to the departure of top performers. The staggering cost of wasteful time spent on traditional performance evaluations ranges from $2 million to $35 million per year, making it imperative for organizations to seek a more effective and purpose-driven approach.

In our professional lives, we often encounter the vision and mission statements of the organizations we belong to. These concepts are frequently discussed during onboarding, all-hands meetings, off-sites, or strategy sessions. However, it’s less common to hear about the organization’s purpose—its core reason for existence, its raison d’etre. Some organizations mistakenly interchange their mission and vision with their purpose. If you want your employees and customers to truly connect with your mission, it’s essential to effectively communicate why your organization exists, what it does, and how it creates value and makes a difference.