If you currently own a smartphone then you are probably familiar with the term OS, which stands for operating system. Whether you have an iPhone, Android, Huawei, or something else, each one of these devices runs on a framework that helps every other app communicate and execute on tasks.
In a similar vein, many companies incorporate an operating system to guide decisions and prioritize work to be done. These operating systems can also be referred to as goal setting frameworks. There are many different frameworks that exist, but each one helps companies establish their vision and plan to execute on growth. They serve as tools to ensure employees are aligned on company goals and transparent about results.
In this article, we will break down a few of the most common frameworks that company’s incorporate today to execute on growth. Let’s get right to it.
Objective and Key Results (OKRs)
The OKR framework is designed for incredibly high growth companies and was made popular by Google in the early 2000s. Since Google came out publicly and stated that OKRs were critical in their growth path, tens of thousands of companies have adopted this framework to set and cascade goals across their organization.
OKRs are known as an effective way to stretch your company by identifying a few key areas to focus on. By helping companies clearly state WHY a goal is important and then boiling down a few key areas of focus, they serve as an incredibly effective method to achieve monumental results.
Vision, Values, Methods, Obstacles, and Measures (V2MOM)
The V2MOM framework was created by Marc Benioff and the team at Salesforce in the early 2000s. Similar to OKRs, the V2MOM framework is a popular methodology used by software companies to cast their vision for growth and lay out a path to get there.
V2MOM serves as a mark of clarity not just for executives, but for every employee of the company. For instance, at Salesforce, each employee rights their own V2MOM and these are made visible to every other employee across the organization.
Entrepreneurial Operating System (EOS)
The EOS framework is another methodology that’s been used by many Midwest companies that are outside of software and range from 10-250 employees. Within EOS, there are six components, People, Vision, Data, Process, Traction, and Issues, that help leaders break down their business into separate categories.
A unique element about the EOS framework is that it also includes a specific structure that helps companies stop wasting time by running more efficient meetings. If a company chooses to use the EOS model, typically they will also bring on an EOS implementer to help guide them.
Management by Objectives (MBO)
The MBO framework was first made popular by Peter Drucker in the 1950s, and was largely a precursor to the OKR framework. When introduced to the world, MBOs spread quickly to many companies as a key component of the process was tying MBO execution to employee performance reviews and incentive plans.
While MBOs are still used by companies today, the emphasis placed on a direct correlation of MBOs to compensation and incentive plans can have negative implications to performance. Through practice, some companies have found that tying performance reviews and incentive plans closely to goals that have been set, leads employees to create easier goals that don’t stretch for growth.
The Four Disciplines of Execution (4DX)
The 4DX framework is the newest framework that has quickly gained steam after Sean Covey and others published The 4 Disciplines of Execution in 2012. The key components within the 4DX methodology include focus, leverage, engagement, and accountability.
Though the 4DX framework is the most recent to have been created of the frameworks we have detailed, many successful companies have grown to love it. This is in large part thanks to it’s simple calculations to determine whether a goal was successful or not.
No matter what framework you think works best for your business, there are a few common threads between all of them. You have to track the goals you’re measuring, and you should try to do it as efficiently as possible. The good news? Our team at Elate has worked with each of these frameworks and has been proven to drive meaningful results for each one.
Want to learn more? Speak to a member of our team today.