How to Measure Non-financial Objectives

Ever think about objectives that go beyond just the money? We’re all about that at There Be Giants. We believe in setting goals that make work a better place, boost team spirit, and amp up communication. It’s not just about the financials, you know? So, why are these non-financial objectives a big deal? Well, they’re the secret for a fantastic employee experience and keeping everyone, from team members to stakeholders, happy. When you build a killer company culture and values, it sets the stage for financial success to follow.  Non-financial objectives are more about the feels – like making employees happy or giving your customers the best experience ever. They bring visibility and connection to organisations, creating an experience that goes beyond the numbers.  Now, let’s talk about how we measure these non-financial objectives. We’ve got two methods to speak to you about. 

OKRs (Objectives and Key Results)

These are like the superheroes of goal setting. They align teams, bring focus, and keep things transparent. Whether it’s the senior leadership or the team on the ground, OKRs give us a framework to measure goals that aren’t just about the financials.  We’ve shared how OKRs can help measure non-financial objectives:

Clear definition of objectives: Clearly define your non-financial objectives. For example, if your goal is to improve your employee engagement, you might set an objective like “We will enhance our employee satisfaction and collaboration.”

Quantifiable Key Results: Develop quantifiable key results that are measurable and specific. For the employee engagement example above, key results could include metrics such as survey scores, participation in company events, or team collaboration levels.

Alignment with organisational overall goals: Ensure that your non-financial objectives align with the overall mission and strategy of your organisation. This alignment helps maintain focus and ensures that efforts contribute to the company’s broader goals.

Regular check-ins and updates: Establish a regular cadence for check-ins and updates to review progress on the key results. This could be weekly, monthly, or quarterly, depending on the nature of the objectives.

Continuous learning and adaptation OKRs encourage a culture of continuous learning and adaptation. If certain key results aren’t being achieved, teams can adjust their strategies or tactics to better align with the objectives.

Feedback and recognition: OKRs provide a platform for feedback and recognition. Acknowledge and celebrate achievements when key results are met, fostering a positive work culture.

Data-driven decision making: For non-financial objectives, this might involve analysing employee surveys, customer feedback, or other relevant data sources to measure progress and identify areas for improvement.

Iterative improvement: Use the insights gained from the OKR process to iteratively improve your strategies and approaches for achieving non-financial objectives. By applying the principles of OKRs to non-financial objectives, organizations can foster a results-oriented and accountable culture, driving progress in areas beyond traditional financial metrics.

KPIs (Key Performance Indicators)

Think of KPIs as your business health check. They’re great for measuring non-financial goals and keeping tabs on how your business is doing overall. While OKRs are about growth and development on a larger scale, KPIs dive deep into metrics.   So, can these non-financial objectives really make a difference to your business? Absolutely. By picking the right metrics, you give your goals the spotlight they deserve. Take, for instance, the classic goal of enhancing the employee experience for your team. With KPIs, you can track things like employee attendance, survey results, and see if you’re hitting the sweet spot.  Remember, businesses aren’t just about the cash flow. It’s a whole operation with moving parts. Measuring success with frameworks like OKRs and KPIs ensures your company is ready to roll with the big plans.

Here’s the lowdown

KPIs are like the foundation, holding everything steady for the bigger goals. OKRs, on the other hand, are the maestros orchestrating the strategy and objectives from the top. The trick is finding the right measure for your non-financial objectives. 

Ready to set some ground-breaking non-financial objectives?  

Start by looking at the bigger company goals and ambitions. Sometimes, an outside perspective is golden, and that’s where we come in. Our team is all about defining success and crafting the strategy to make it happen.  Need a hand figuring out your goals or setting up the perfect measures? We’ve got you. Chat to our team, and together let’s create some amazing goals.