You have to wonder if we ever live without the fear of inflation or recession. But, on the other hand, isn’t it a way of being prepared in case the worst happens? One of the most unpredictable things did occur by way of the COVID-19 pandemic. It sent a whirlwind of changes to the economic climate, and most organizations are still feeling the pinch. One clear thing is that you can’t always predict the unpredictable. What you can do, however, is anticipate a turn and arm your organization with the necessary strategies and tools that will help you transition with minimal upheavals.  

When it comes to the topic of recession, there are a lot of different opinions out there. Some people believe that we are currently in a recession, while others think we are on the brink of one. And then some believe we are not currently in a recession but could be headed for one soon. The truth is, it’s difficult to say for sure whether or not we are currently in a recession.

However, a few indicators suggest we may be headed for one. For example,  

• We are seeing inflationary pressures building in recent months, as the cost of living has been rising at a faster pace than wages. It is a classic sign of an impending recession. 
• Businesses have been cutting back on their spending in recent months. It is another sign that a recession may be on the horizon. When companies start cutting back on their spending, it often means they expect a slowdown in economic activity.  

Of course, it’s important to remember that a recession is not a certainty. Many factors can prevent a recession, even if all the signs point to one. Nevertheless, it’s something to be aware of and to keep an eye on in the coming months. If a recession does occur, remember that it is not the end of the world. Yes, it can be challenging to weather a recession, but it is not impossible. 

Many businesses and individuals have survived and even thrived during previous recessions. One of the tried, tested, and proven methods to counter the recession and fear of inflation with the strength of purpose is to bring OKRs into your organization.

How to leverage OKRs to mitigate the fears of inflation and recession

Regardless of the ongoing debate on recession, the wisest move is to prepare for such an eventuality. Invariably, cutting costs is the first thing that crosses our minds, leading directly to making the workforce lean, agile, and highly efficient. It is another way of saying that you need to tighten your belt. But is it enough to cut costs, stop hiring, or reduce business expenses? That will only solve one part of the problem. Instead, a better solution is to use OKRs, which will bring in these benefits, even as they ensure organizational efficiency. 

1) Identify areas where costs can be cut 

OKRs can help to identify areas where costs can be cut by setting specific goals and objectives for cost-cutting initiatives and then measuring the results against those goals. This process can help to pinpoint areas where costs are high and can be reduced without adversely affecting the company’s overall performance. 

2) Improve organizational efficiency  

OKRs can improve organizational efficiency by providing a clear and concise framework for setting goals and measuring progress. OKRs compel organizations to focus on what is essential and measure progress towards specific goals. As a result, it can help to eliminate wasted time and effort on activities that don’t contribute to the organization’s goals. Additionally, OKRs can help ensure that everyone in the organization is working towards the same objectives and that resources are being allocated effectively. 

3) Measure and track progress towards goals  

It is one of the vital elements of OKRs that help ensure the organization is on track, and everyone is focused on the goals. It is aided by the flexibility that allows you to review and revise if you find the teams are veering off track. 

Implementing an OKR software can further help organizations alleviate, if not avoid, the impact of the recession by setting and measuring progress towards specific objectives easily. You will find that OKRs help ensures that your resources are used effectively and efficiently and those goals are met. Additionally, OKRs can help identify areas of potential cost savings. Finally, by tracking OKRs over time, organizations can identify trends and make necessary adjustments to stay ahead of an impending recession. 

OKRs can help increase transparency and communication between different levels of an organization. It can help ensure that everyone is working towards the same goals and can help to avoid stagnation and the potential for recession. Additionally, OKRs can help track progress and identify areas where improvement is needed, which can help allay inflation fears. You can also maintain a strong and healthy economy by creating jobs and spur economic growth by investing in infrastructure and education. As a healthy organization during the lean times, you must focus on: 

• Improving communication and transparency with employees about the company’s financial situation and what measures are being taken to improve things  
• Developing and implementing cost-saving initiatives across all departments 
• Increasing sales and revenue through creative marketing and sales strategies 
• Focusing on retaining key employees and reducing attrition  
• Improving customer satisfaction and loyalty rates 

Examples of OKRs to ward off the doom and gloom of inflation/recession

The first focus area of improving communication and transparency with employees about the company’s financial situation and what measures are being taken to improve things can be translated to OKRs:

O : To improve communication and transparency with employees about the company’s financial situation.

KR1: Improve employee understanding of the company’s financial situation and the measures taken to improve things.

KR2: Improve employee engagement and buy-in to the company’s efforts to improve its financial situation.

If your objective is to develop and implement cost-saving initiatives across all departments, your OKRs would be: 

O: Develop and implement cost-saving initiatives.

KR1: Collaborate with department heads to identify areas where spending can be reduced.

KR2: Develop and implement of cost-saving initiatives in areas identified.

KR3: Evaluate the effectiveness of cost-savings initiatives and make adjustments as necessary.

Final Words

Using OKRs can help avoid recession and remove fears of inflation by providing a clear and concise way to measure progress and objectives, allowing you to see what is working and what is not. You can make the necessary changes to stay afloat. Additionally, you can keep costs down by tracking and measuring spending. 

Furthermore, by setting SMART goals and measuring their progress, OKRs can help you avoid making decisions that could lead to financial trouble. Moreover, with the clarity and alignment of OKRs, you can keep your finances in check and adjust to handle recession if and when it becomes a reality. 

Also Read :

12 Reasons why OKRs work