Merge pull request #8630 from MicrosoftDocs/main

Publish main to live 09/27/2024, 3:30 PM

Viva/goals/viva-goals-healthy-okr-program/write-annual-top-level-okrs.md

@@ -1,6 +1,6 @@
 ---
-ms.date: 06/26/2023
-title: "Write annual, organizational goals using the 5 Ps"
+ms.date: 09/27/2024
+title: "Write annual organizational goals using the 5 Ps"
 ms.reviewer: 
 ms.author: daisyfeller
 author: daisyfell
@@ -23,170 +23,168 @@ description: "Learn how to write annual goals at the top level of your organizat
 
 # How to write annual, organizational goals using the “5 Ps”
 
-When implementing a goal-setting program, one of the most common approaches is to begin with the senior leadership team. Their first mission is to map out annual, organizational objectives, dictating the most important 3-5 goals that the company wants to achieve in the coming year. 
+When implementing a goal-setting program, one of the most common approaches is to begin with the senior leadership team. Their first mission is to map out annual, organizational objectives, dictating the most important three to five goals that the company wants to achieve in the coming year. 
 
 > [!NOTE]
-> Throughout this article, we will use the term “objectives” to represent top-level goals.
+> Throughout this article, the term “objectives” represents top-level goals.
 
-Senior leaders should set aside enough time to give these goals serious thought. After all, you're mapping the future direction of the company, below which every team member will align. This meeting isn't just another 11am meeting squeezed in on a Thursday before running to lunch. Companies often set aside a full day or more, including hosting the planning session outside the traditional office environment, at a team offsite. If the team is working remote, give executives plenty of notice to block off several hours for an interruption-free online meeting. 
+Senior leaders need to set aside enough time to give these goals proper consideration, as they map the direction of the organization, to which every team member will align. Companies often set aside a full day or more, including hosting the planning session outside the traditional office environment, at a team offsite. If the team is working remotely, give executives plenty of notice to block off several hours for an interruption-free online meeting.
 
 > [!TIP]
-> Mindset: To paint a picture of the mindset needed for these goals, imagine hosting a lavish New Year’s Eve party for all of your employees, and all the departments are celebrating the massive success you’ve had this year. The clock is winding down, and in the 5 minutes you have before the end of the year, you’re going to address the crowd and summarize the goals you’ve achieved. 
-> 
-> What is the story you want to tell? 
-> 
-> In other words, if you could look back at the end of the year and only accomplish 3-5 things, what would make the most dramatic impact on your business? These are your annual, Organizational Objectives.
+> Mindset exercise: Imagine hosting a lavish New Year’s Eve party for all of your employees, and all the departments are celebrating the massive success you’ve had this year. The clock is winding down, and in the 5 minutes you have before the end of the year, you’re going to address the crowd and summarize the goals you’ve achieved. What is the story you want to tell?
+>
+>If you could look back at the end of the year and highlight three to five major things, what would make the most dramatic impact on your business? These are your annual, organizational objectives.
 
-Remember the ground rules for your Objectives: 
+Recommended best practices for objectives:
 
-- They should be actionable 
-- They should be aspirational 
-- They should be meaningful 
-- They should be “sticky” and easy to remember 
+- They should be actionable.
+- They should be aspirational.
+- They should be meaningful.
+- They should be easy to remember.
 
-Ideally, they should also cover not just "the what," but also "the why". That’s why we like the formula: **verb + What you’re going to do + “so that” or “in order to”**
+Ideally, they should also cover not just "the what," but also "the why". Try using the following formula: **verb + What you’re going to do + “so that” or “in order to”**
 
 If this is your first time implementing goals, or if you’re looking for some structure to build best practices, there are five broad categories to consider.
 
-We call these "the 5 Ps:" 
+We call these "the 5 Ps:"
 
-- Profit 
-- Product or Service 
-- People 
-- Promotion 
-- Progress 
+- Profit
+- Product or Service
+- People
+- Promotion
+- Progress
 
 ## Profit (How you make money)
 
-This first Objective is a financial one. We’re not saying money always comes first, but this category can be a good place to start, since it often fuels the growth of other areas of the company. 
+This first Objective is a financial one. This category can be a good place to start, since it often fuels the growth of other areas of the company.
 
-Depending on your organization, this objective could be attributed to the sales team, the finance team, or simply revenue generated from your product or service if you don’t have salespeople. 
+Depending on your organization, this objective could be attributed to the sales team, the finance team, or simply revenue generated from your product or service if you don’t have salespeople.
 
 Let’s look at some bad examples first:
 
 > [!CAUTION]
-> 
-> - **Objective**: Make more money 
-> - **Objective**: Make $10 million dollars 
+>
+> - **Objective**: Make more money.
+> - **Objective**: Make $10 million dollars.
 
-While the intention is right here, the phrase “Make more money” is too vague, and a bit too crass to be aspirational to your team. “Make $10 million dollars” also lacks the context necessary to be a great goal. 
+While the intention is right here, the phrase “Make more money” is too vague. “Make $10 million dollars” also lacks the context necessary to be a great goal.
 
 Better example: 
 
 > [!IMPORTANT]
-> 
-> - **Objective**: Create a profitable and sustainable company in order to increase annual revenue 
+>
+> - **Objective**: Create a profitable and sustainable company in order to increase annual revenue.
 
-This phrasing is better and more meaningful for employees because it includes the “why” ... you’re not just pursuing money at the expense of everything else, but including the “counterbalance” measure of profitability and sustainability for the long run. 
+This phrasing is better and more meaningful for employees because it includes the “why” by including measures of profitability and sustainability.
 
-## Product or Service (What you sell or do) 
+## Product or Service (What you sell or do)
 
-The second Objective is around your product or service. These are the goals you have for what you sell, whether that’s accounting software or yoga clothing, or the service you provide, such tax preparation or fitness classes.
+The second Objective centers around your product or service. These are the goals you have for what you sell, whether that’s accounting software or exercise clothing, or the service you provide, such tax preparation or fitness classes.
 
-Bad examples might include: 
+Bad examples might include:
 
 > [!CAUTION]
-> 
-> - **Objective**: Ship new product 
-> - **Objective**: Get more high end clients 
+>
+> - **Objective**: Ship a new product.
+> - **Objective**: Get more high-end clients.
 
-Once again, these options are too vague and not aspirational, so we’ll edit them. 
+Once again, these options are too vague and not aspirational, so we’ll edit them.
 
 Better example:
 
 > [!IMPORTANT]
-> 
-> - **Objective**: Deliver a "must have" product in order to delight customers and grow our user base
+>
+> - **Objective**: Deliver a "must have" product in order to delight customers and grow our user base.
 
-This phrasing is better because it's aspirational and frames the product as something that people can’t do without, and highlights the outcome you want to achieve … happy customers and more users. 
+This phrasing is better because it's aspirational and frames the product as something that people can’t do without, and highlights the outcome you want to achieve - happy customers and more users.
 
-## People (Who your team is) 
+## People (Who your team is)
 
-The third Objective is around your people. Your internal team of employees are one of your most valuable (and expensive) assets, so use this category to set goals around hiring, employee engagement, company culture, or business operations. 
+The third objective focuses on your people. Your internal team are one of your most valuable, and often most expensive, assets, so use this category to set goals around hiring, employee engagement, company culture, or business operations. 
 
-Sometimes writing these goals can be a challenge, because they often have less tangible metrics versus those in engineering or sales groups. 
+Sometimes writing these goals can be a challenge, because they often have less tangible metrics versus those in engineering or sales groups.
 
-A bad example might be: 
+A bad example might be:
 
 > [!CAUTION]
-> 
-> - **Objective**: Expand team size
+>
+> - **Objective**: Expand team size.
 
-This example falls into the same trap as “Make more money.” Simply “getting bigger” for the sake of getting bigger isn't an inspiring goal and lacks clarity. 
+This example falls into the same trap as “Make more money.” Simply “getting bigger” for the sake of getting bigger isn't an inspiring goal and lacks clarity.
 
 Better example: 
 
 > [!IMPORTANT]
-> 
-> - **Objective**: Build a world class company culture in order to attract and retain the best employees 
+>
+> - **Objective**: Build a world-class company culture in order to attract and retain the best employees.
 
-This phrasing is better because it communicates three important things in one sentence: 
+This phrasing is better because it communicates three important things in one sentence:
 
-1. Building a great culture 
-1. Attracting new employees 
-1. Retaining current employees 
+1. Building a great culture
+1. Attracting new employees
+1. Retaining current employees
 
-## Promotion (How you get out the word) 
+## Promotion (How you get out the word)
 
-The fourth Objective is around promotion. What good is building a great company if nobody knows about it? This category can be used for buckets such as marketing, advertising, branding, content, public relations, and other ways that you get out the word about what you do. 
+The fourth objective focuses on promotion. What good is building a great company if nobody knows about it? This category can be used for buckets such as marketing, advertising, branding, content, public relations, and other ways that you get out the word about what you do.
 
-A bad example might be: 
+A bad example might be:
 
 > [!CAUTION]
-> 
+>
 > - **Objective**: Gain 1 million followers on social media
 
-Having a million followers on the latest and greatest platform might not be a bad thing if you’re a worldwide fashion influencer, but for most businesses, this is a tactic that would appear lower in the goal-setting hierarchy--if at all. 
+Having a million followers on the latest popular platform may increase your organization's visibility, but lacks the context and reasoning to be a successful goal. 
 
 Better example: 
 
 > [!IMPORTANT]
-> 
-> - **Objective**: Elevate our brand presence in order to attract new prospects and create a fiercely loyal customer following 
+>
+> - **Objective**: Elevate our brand presence in order to attract new prospects and create a fiercely loyal customer following.
 
-This example is one that is sustainable throughout the year … a continued focus on branding that will lead to a loyal customer base. 
+This example focuses on the larger goal of elevating your brand presence and focuses on deep customer loyalty.
 
-## Progress (What will dramatically move the business forward?) 
+## Progress (What will dramatically move the business forward?)
 
-The fifth and final Objective is Progress, and this category is a bit unique. What you want to consider is a goal that will dramatically move your business forward. 
+The fifth and final Objective is Progress. What you want to consider is a goal that will dramatically move your business forward.
 
-As you can guess by now, some bad examples might be something like: 
+Some bad examples might be something like:
 
 > [!CAUTION]
-> 
-> - **Objective**: Increase sales by 5%
-> - **Objective**: Reduce customer service response time by 3 hours 
-> - **Objective**: Update all marketing materials to new brand colors 
+>
+> - **Objective**: Increase sales by 5%.
+> - **Objective**: Reduce customer service response time by 3 hours.
+> - **Objective**: Update all marketing materials to new brand colors.
 
-These may be important initiatives, but they won’t dramatically affect the business. 
+These may be important initiatives, but they're unlikely to dramatically affect your organization.
 
-Let’s look at a real world case study. Automaker Porsche was founded in 1931, and over the span of 70 years, became known for their legendary sports cars. Yet in 2002 the company introduced their first SUV, the Cayenne, and another in 2014, the Macan. 
+Example case study: Automobile manufacturer Contoso Cars was founded in 1950 and became known for their sports cars. In the 1990s the company introduced their first SUV, and introduced a larger model in the 2000s. 
 
-The decision to launch that vehicle wasn’t improving business as usual or refreshing their logo. It was aspirational and ambitious and dramatically changed the trajectory of the company. Many people certainly thought, “An SUV? Porsche is completely tarnishing their historic brand!” 
+The decision to launch that vehicle wasn’t improving business as usual or refreshing their logo. It was aspirational and ambitious and dramatically changed the trajectory of the company.
 
-And it’s true. One of the core benefits of setting great goals is Focus. The risk is that you’ll be distracted from your core mission. But the payoff for moon shots can be dramatic. Each year since 2015, Porsche sold as many SUVs as all their other sports cars combined in the US.  
+Although one of th benefits of setting great goals is increasing focus on your organization's core objectives. However, you might decide that changing market or operating conditions require a dramatic change. 
 
-Let’s see a few more business examples, and paint the before and after picture for each: 
+Let’s see a few more business examples, and paint the before and after picture for each:
 
 > [!IMPORTANT]
-> 
-> **Goals**: Expand into the Latin American market in order to capture 15% market share from competitors </br>
-> **Desired result**: A stagnant company with lagging US sales boldly enters a brand new market and disrupts their competition 
-> 
-> **Goal**: Migrate our entire financial system to a modern, cloud-based platform to enable real-time data reporting </br>
-> **Desired result**: An old-school manufacturing company with outdated technology updates their IT systems to create efficiencies that will scale output and lead to faster decision-making 
-> 
-> **Goal**: Launch financial planning services in order to diversify away from the core business of tax preparation </br>
-> **Desired result**: A medium-sized tax preparation company reliant on seasonal boom-or-bust revenue diversifies to offer high-margin financial planning services that provide recurring revenue 
+>
+> **Goals**: Expand into the Latin American market in order to capture 15% market share from competitors. </br>
+> **Desired result**: A stagnant company with lagging US sales boldly enters a brand new market and disrupts their competition.
+>
+> **Goal**: Migrate our entire financial system to a modern, cloud-based platform to enable real-time data reporting. </br>
+> **Desired result**: A manufacturing company with outdated technology updates their IT systems to create efficiencies that will scale output and lead to faster decision-making.
+>
+> **Goal**: Launch financial planning services in order to diversify away from the core business of tax preparation. </br>
+> **Desired result**: A medium-sized tax preparation company reliant on seasonal revenue diversifies to offer high-margin financial planning services that provide recurring revenue.
 
 ## Summary
 
 Writing annual, Organization-level Objectives is a crucial part of the goal setting process. Objectives should be actionable, aspirational, and meaningful, and should outline the story you wish to describe your accomplishments for the year.
 
-As a guide, consider the following five areas to focus your Objectives: 
+As a guide, consider the following five areas to focus your Objectives:
 
-- Profit 
-- Product or Service 
-- People 
-- Promotion 
-- Progress 
+- Profit
+- Product or Service
+- People
+- Promotion
+- Progress