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Let’s Get Moving! Election Results, the Dow is up, and What’s Next for Production Homebuilding?

March 27, 2025
By Bill Gelbaugh

Introduction

Hello! I’m Bill Gelbaugh, one of the Partners here at Outhouse, LLC. This morning, as I wrapped up our Sales and Finance meetings, one message came through loud and clear: It’s time to move forward! The election is behind us, the Dow is up, and there’s a sense of renewed energy in the air. Now that we have more political clarity, the focus is shifting toward what’s next—and that’s especially important for us in the production homebuilding market.

With the recent boost in market optimism, now is a great time to look at how the industry can leverage this momentum. In this post, I’ll dive into what we can expect for the production homebuilding sector in the coming months, how post-election shifts might impact our industry, and why we believe now is the time to act decisively. So, let’s dig in and see where the opportunities lie.

A symbolic growth graph against a breathtaking sunset, representing economic success and growth in a beautiful natural setting.
Image Courtesy of Adobe Stock

Post-Election Economic Climate and Market Optimism

Historically, election outcomes tend to influence market sentiment—and the initial post-election reactions often set the tone for the months ahead. With the recent election behind us, we’re already seeing an upward tick in the Dow and other major indices. This surge reflects a sense of renewed investor confidence, as markets generally react favorably to political stability and clarity. For those of us in homebuilding, this optimism in the financial markets is a promising indicator that demand and capital may flow more steadily in our direction.

Beyond market indices, the now decided political environment can bring some welcomed consistency to economic policies impacting homebuilding, from mortgage rates to tax incentives for residential construction. With clear policy paths, businesses are more likely to invest and make bold moves, something that could directly benefit production homebuilders and our clients. This is a window of opportunity to embrace a proactive approach and align ourselves with the positive momentum shaping the market.

New Homes Under Construction
Image Courtesy of Adobe Stock

Implications for the Production Homebuilding Market

With the election wrapped up and market signals leaning positive, the production homebuilding market has an opportunity to gain ground. Here are a few key areas where the recent changes and optimism may impact our sector directly:

  1. Interest Rates and Financing
    A critical factor for both builders and buyers is access to financing, and with the market’s optimism, there may be greater stability in interest rates moving forward. If the Federal Reserve maintains a balanced approach, mortgage rates could stay at manageable levels, encouraging prospective buyers to make their move. For builders, favorable interest rates can mean better loan conditions and a greater willingness among lenders to fund new projects—particularly in areas experiencing housing shortages.
  2. Housing Demand and Policy Initiatives
    The election outcome could influence policies that either directly or indirectly affect the homebuilding industry. For instance, any new measures to support affordable housing initiatives or incentives for new construction could stimulate demand and support the overall growth of the sector. With policy stability, builders can better anticipate regulatory requirements and plan their projects accordingly, which is key to keeping up with buyer demand.
  3. Investor Confidence and Capital Availability
    As the Dow rallies, investors tend to gain confidence in placing their funds in high-demand sectors, and housing continues to be one of them. Real estate often sees capital flow when the market trends upward, meaning developers might find more opportunities to attract investors or partners. With growing interest from both individual and institutional investors, the production homebuilding sector is positioned to secure the capital needed to meet demand and scale up production.
  4. Consumer Confidence Through Enhanced Buyer Experiences
    In today’s market, homebuyers seek a visually immersive, engaging buying experience. Outhouse, LLC meets this need by offering Brilliance Award-winning, cutting-edge interactive floor plans and advanced product visualization tools that allow buyers to envision their future homes in vivid detail. With customizable interactive floor plans, buyers can explore design options, experiment with layouts, and personalize features, fostering a hands-on, immersive experience that builds excitement and confidence in their investment.
    Beyond digital solutions, professional printing and display services ensure impactful, high-quality visual materials for model homes, sales centers, and signage, enhancing every stage of the buying journey. By integrating Outhouse’s innovative visualization and display solutions, builders can elevate brand presence, attract discerning buyers, and deliver a seamless, tech-forward experience from first look to final sale.
  5. Integrating Technology in Construction for Faster, Cost-Effective Builds
    As the housing market gains momentum, now is an ideal time for builders to invest in innovative construction technologies. Advanced methods like modular construction and 3D-printed components can help address labor shortages, accelerate project timelines, and manage costs—all key factors for meeting today’s growing housing demand. To scale efficiently, builders need to integrate cutting-edge technology into their processes, making tech-driven project marketing and sales essential.
    Outhouse, LLC supports builders with high-quality drafting, rendering, and visualization services that offer precise, visually compelling representations of projects. These detailed renderings enable builders to present homes in the best light, capturing buyer interest and building trust.
    Overall, the production homebuilding industry is positioned to thrive in this period of optimism and opportunity. With clearer policy direction and market momentum post-election, builders can confidently move forward to meet strong housing demands nationwide.
Close-up of a clock face with 'NOW OR NEVER' slogan emphasizing urgency and the importance of timely action in a high-stakes moment
Image Courtesy of Adobe Stock

Conclusion: Let’s Get Moving—The Time is Now!

With the election behind us and positive market signals on the rise, there’s no better time for production homebuilders to take decisive steps forward. The stability we’re seeing now creates a window of opportunity to expand, innovate, and meet the growing demand in residential construction. By capitalizing on market optimism and embracing the right tools, builders can stay competitive and create lasting value for clients.

At Outhouse, LLC, we’re here to support this vision. Our industry-leading drafting and rendering services, award-winning interactive floor plans, product visualizations, and top-notch printing and displays make it easy for builders to deliver a polished, immersive buyer experience. With our solutions, you can showcase projects in their best light, connect with clients effectively, and set a high standard for quality and professionalism.

So, let’s get moving! The time is ripe to elevate your home building projects, and we’re ready to partner with you every step of the way. Reach out to us today to see how our technology and services can help you maximize this moment—and build a brighter future for your business.

Bill Gelbaugh

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.

Crafting Great OKRs Part One

October 18, 2024
By Bill Gelbaugh

Part 3 of our Unlocking Outhouse’s Potential with OKRs series

In our journey so far, we’ve explored why OKRs are valuable and how to prepare your organization for this powerful framework. Now, it’s time to roll up our sleeves and dive into the art of crafting OKRs that truly drive results. In this post, we’ll focus on what makes for an effective Objective and Key Result, ensuring they align with your company’s broader goals.

Characteristics of Effective Objectives

An Objective is a concise statement that outlines a broad, qualitative goal designed to propel your organization forward. For those new to OKRs, the challenge often lies in understanding what makes a good Objective. Let’s break it down:

Inspirational

A well-crafted Objective is more than just a collection of words describing a business goal. It should compel your team to strive for a higher standard of performance. The power of an Objective lies in its ability to challenge your team to think differently. For example, instead of aiming for a modest 10% improvement, an Objective that pushes for a 50% increase will force your team to solve tough problems and rethink their approach. That’s the essence of what OKRs are meant to achieve.

Qualitative

Objectives should represent what you hope to accomplish, expressed in words rather than numbers. While numbers are crucial, they belong in your Key Results. The Objective is about setting the direction and the ambition, not the metrics.

Attainable

Striking the right balance between inspiration and reality is crucial when crafting Objectives. While it’s important to push the limits of what your team believes is possible, you also need to be realistic. Encouraging your team to stretch their imaginations is key but remember that every Objective should still be within reach with the right effort.

Doable in a Quarter

Assuming you’re setting Objectives on a quarterly basis, they need to be achievable within that three-month period. If your team suspects that an Objective will take a year to accomplish, then it’s probably closer to a strategy or vision than a quarterly goal.

Controllable by the Team

Whoever drafts the Objective, whether it’s at the corporate, department, team, or individual level, must be able to control the outcome. If your Objective isn’t met by the end of the quarter, and your first thought is to blame external factors like “Sales didn’t deliver,” then you’re missing the spirit of OKRs. The Objective should be something your team can directly influence.

Provide Business Value

Your Objectives should be directly tied to your strategy and should create tangible value for the business if achieved. If there’s no clear business benefit at the end of the day, then it’s probably not worth the effort.

Tips for Creating Great Objectives

Avoid the Status Quo

When setting Objectives, aim to push the boundaries of what your team can achieve. Avoid Objectives that simply recite what you’re already doing, like “Maintain market share” or “Keep training employees.” If you can accomplish an Objective without changing how you work, it’s unlikely to drive significant progress.

Use Clarifying Questions

Sometimes, the best way to get to the heart of an Objective is by asking simple, clarifying questions. For example, if someone suggests that you should “Create value for our customers,” dig deeper. What do they mean by “value”? Are they referring to a specific segment of customers, or all customers? Escalating from abstractions to specifics will help you identify the true Objective that needs focus.

Frame Objectives in Positive Language

Your Objectives should be framed in a way that motivates and compels your team to take action. For instance, instead of saying “Reduce the amount of junk food I eat,” you might frame the Objective as “Eat more calories from healthy food.” The latter encourages proactive behavior and has a higher likelihood of success.

Start with a Verb

Every Objective should start with a strong action verb that drives the intended direction. Do you want to “maximize loyalty,” “build loyalty,” or “leverage loyalty”? The choice of verb shapes the actions that follow, so it’s essential to be deliberate in your wording.

Identify What’s Holding You Back

A powerful way to create meaningful Objectives is to identify the barriers that are preventing your team from executing your strategy effectively. What challenges are holding you back? Taking an unvarnished look at these obstacles can help you set Objectives that address critical issues and drive progress.

Use Plain Language

While it’s important to be precise, your Objectives should be written in plain language that everyone in the organization can understand. Avoid jargon and acronyms whenever possible, or if you must use them, ensure that everyone knows what they mean. Clear communication is key to ensuring everyone is aligned and understands the importance of the Objective.

Characteristics of Effective
Key Results

If Objectives set the direction, Key Results are the benchmarks that measure your progress along the way. They answer the question, “How will we know if we’ve met our Objective?” While it might seem straightforward, creating effective Key Results that accurately gauge progress can be challenging. Here’s what to keep in mind:

Challenging

Research has shown that setting high goals leads to better performance and greater satisfaction at work. When drafting Key Results, aim high. Challenge your team to push their limits and think differently. However, ensure that the goals are still within reach, so your team stays motivated to achieve them.

Measurable

Key Results should always be qualitative and measurable. Whether it’s a raw number, a dollar amount, or a percentage, your Key Results need to be tied to clear metrics. Progress should never be a matter of opinion—numbers provide the clarity needed to gauge success.

Specific

When writing Key Results, clarity is crucial. Ensure that everyone involved understands exactly what the Key Result means and what success looks like. This shared understanding prevents miscommunication and ensures that everyone is working towards the same goal.

Owned

Those responsible for delivering Key Results should be actively involved in their creation. When team members help shape the Key Results, they’re more likely to be committed to achieving them. Ownership drives accountability and engagement.

Progress-Based

According to Harvard Professor Teresa Amabile, the most important factor in boosting motivation and creativity is making progress in meaningful work. Your Key Results should reflect this principle, allowing your team to see and celebrate progress as they work towards the Objective.

Vertically and Horizontally Aligned

Your Key Results should align both vertically with your team’s broader goals and horizontally with the objectives of other teams. Regularly reviewing and sharing Key Results ensures alignment across the organization, fostering collaboration and coherence.

Drive the Right Behavior

The saying “You get what you measure” holds true. Once you focus on a specific metric, you’re naturally drawn to improving it. Think carefully about the behaviors each Key Result might encourage and ensure they align with your broader objectives.

Tips for Creating Key Results

Focus on the Key, Not All Results

This exercise isn’t about listing every possible outcome—it’s about identifying the most critical results that will drive progress on your Objective. Focus on what truly matters and avoid the temptation to track every potential action.

Describe Results, Not Tasks

Key Results should focus on outcomes, not activities. For example, “Add twenty-five qualified opportunities to the pipeline” is a Key Result, while “Email a prospect” is a task. The former measures progress, while the latter is just one step along the way. Focus on the results that signify true progress.

Use Positive Language

Just as with Objectives, framing your Key Results positively can have a powerful impact. For example, instead of “Lower error rate to 10%,” try “Increase accuracy to 90%.” The positive framing can boost motivation and commitment.

Keep Them Simple and Clear

While Key Results should be robust, they should also be easy to understand. Complexity can lead to confusion and misalignment, so keep your Key Results straightforward.

Assign an Owner

Key Results need a clear owner—someone who is accountable for their achievement. Without an owner, responsibility can become diffused, leading to inaction. Make sure someone is clearly responsible for driving each Key Result to completion.

By following these principles and tips, you’ll be well on your way to crafting OKRs that not only inspire your team but also drive meaningful progress. Remember, the power of OKRs lies in their ability to align your organization’s efforts, ensuring that everyone is working towards the same ambitious goals.

Next up… Crafting Great OKRs – Part 2.

Bill Gelbaugh

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.

Nurturing Emotional Motivators in Homebuyer Engagement

October 10, 2024
By Stuart Platt

Man looking at interactive floor plan with multiple homebuilder browsers open

Human emotions are a powerful force, especially when it comes to purchasing a home. While homebuyers may believe their decisions are primarily driven by logic, the truth is, how they feel plays a significant—often subconscious—role. And in today’s digital-first world, that emotional connection begins long before the first in-person meeting; it starts online, the moment they visit your website.

Production home builders across the country offer similar baseline information on their websites—square footage, pricing, number of bedrooms, garage options. These metrics are essential, but they don’t differentiate you from competitors. To stand out in a crowded marketplace, your website must engage potential buyers on an emotional level. The builders who succeed will be those that move beyond data points and create an experience that resonates deeply with the emotions that drive purchasing decisions.

Breaking Through the Research-Only Mindset

Every homebuyer begins their journey in research mode, focused on gathering data to compare builders. They have a checklist—square footage, budget, number of rooms—and they visit one builder website after another, reviewing their options. The challenge for your marketing team is to disrupt that research-driven mindset and inspire potential buyers to linger, explore, and imagine themselves living in one of your homes.

This shift happens when your website transcends utility and starts tapping into the emotional motivators that drive decisions. Features like interactive floor plans (IFPs), 3D visualizations, and space planning tools can evoke creativity and excitement, encouraging users to move beyond simple data collection. The longer they stay engaged, the more likely they are to envision their future in one of your homes—and ultimately, to contact you.

The Power of Emotional Motivators

Emotional motivators are the psychological triggers that influence buyer behavior. According to Harvard Business Review, over 300 emotional motivators impact purchasing decisions, from choosing a brand of gum to selecting a home. For the homebuilding industry, the following five motivators are critical in shifting homebuyers from a research mindset to one of creativity and emotional investment:

  • Freedom: Buyers want to feel empowered. Websites that restrict access to information—whether through mandatory registration or withholding key details—stifle this sense of freedom. Open access to pricing, floor plan options, and even premium lot fees makes buyers feel in control. When buyers can freely explore, they are more likely to create emotional connections.

Freedom encourages creativity… Creativity encourages fantasy…
Fantasy encourages emotions… and emotions encourage purchases”.

  • Excitement: Excitement heightens emotions and accelerates decision-making. Tools like virtual walkthroughs and interactive site plans allow buyers to visualize their future, creating an emotional response that drives action. By fostering excitement early in the process—before they even speak with a salesperson—you increase the likelihood of a conversion.
  • Ownership: Empowering buyers to customize their future home—choosing finishes, adjusting floor plans, selecting options—instills a sense of ownership. This emotional attachment strengthens their commitment and increases their willingness to move forward with a purchase.
  • Security: Homebuyers are naturally anxious. They want to know the details: costs, layouts, school districts, and lot availability. The fewer questions a buyer has to ask, the more secure they feel. Your website should anticipate and answer these questions, reducing uncertainty and building trust.
  • Confidence: Confidence is the culmination of effectively nurturing all the previous motivators. When a homebuyer feels secure, excited, and in control, their confidence in both the decision and the builder solidifies. A website that fosters this confidence will convert visitors into buyers before they’ve even stepped foot in a model home.

Create an experience that inspires people to believe, “I CAN DO IT”
…and they will.

Interactive Floor Plans: The Cornerstone of Emotional Engagement

Of all the tools available to home builders, interactive floor plans (IFPs) are the most powerful for engaging emotional motivators across all demographics. While other features like virtual tours and 3D renderings are valuable, IFPs provide a unique opportunity for buyers to personalize their future home, creating a sense of freedom, ownership, and security—all in one experience.

However, not all IFPs are created equal. To truly leverage their potential, your IFPs must include:

  1. Accessibility on All Devices: Buyers should be able to explore floor plans on their phone, tablet, or desktop, seamlessly. If the experience is clunky or limited to certain devices, you risk losing valuable engagement.
  2. Dynamic Pricing: The best IFPs show live pricing that adjusts based on selected options and upgrades. This transparency enhances feelings of freedom and security, as buyers can immediately understand how their choices impact the final price.
  3. Advanced Space Planning: An IFP should allow buyers to visualize their own furniture and fixtures in the space, giving them the freedom to design their home as they see fit. The more detailed and customizable this feature is, the stronger the sense of ownership and emotional connection. The best space planners will even have a library of electrical components (lights, outlets, security cameras, etc.).
  4. Lead Generation Integration: Buyers who invest time customizing their dream home are prequalified leads. The IFP should seamlessly collect contact information and feed it into your CRM, ensuring your sales team can follow up with engaged, motivated buyers. If you do not utilize CRM, make sure the IFP platform has an integrated lead management system.

The right Interactive Floor Plans will nurture all Emotional Motivators.

Conclusion

In today’s competitive homebuilding market, it’s not enough to simply meet the needs of your buyers—you have to connect with them on an emotional level. By harnessing the power of emotional motivators and incorporating the right digital tools into your website, you’ll not only engage potential buyers, but inspire them to envision a future in one of your homes. After all, when you create an online experience that fosters freedom, excitement, ownership, security, and confidence, the decision to choose you becomes

Stuart Platt

Stuart Platt is Managing Partner at Outhouse LLC, an industry leader dedicated to providing an extensive and integrated menu of products and services to production home builders across the world. These services include but are not limited to Architectural Drafting, 3D Renderings, Virtual Tours, Animations, Interactive Floor Plans, Interactive Site Plans, Interactive Sales Office Displays, Interior and Exterior Visualizers, Graphic Design, Commercial Printing, and more. Outhouse is the ONLY company in the nation providing all of these services in house.

Join Stuart Platt at the Home Builder Digital Marketing Summit this October 23-24th! He’ll be diving deep into the strategies discussed in this blog, sharing insights on how to create an online experience that resonates with potential buyers on an emotional level. Don’t miss this opportunity to connect with Stuart and other industry leaders to elevate your digital marketing game.

Join us back here at OutThink in November for Part 3 of Bill Gelbaugh’s Unlocking Outhouse’s Potential with OKRs .

Unlocking Outhouse’s Potential with OKRs 

October 2, 2024
By Bill Gelbaugh

Courtesy of Adobe Stock By Kattika

2. Preparing for the OKR Journey 

In our first post, we explored why your company might want to adopt OKRs. Now, as we move forward, it’s time to focus on preparation. Just like building a home, laying a solid foundation is crucial before you start raising the walls. The same holds true for OKRs. A little preparation goes a long way in ensuring a successful implementation. And remember, OKRs are a journey, not a one-time event. 

This guide is tailored to help home builders, trade contractors, suppliers, architects, engineers, and others in the housing industry adapt OKRs to your unique company culture. Most of us don’t have a Silicon Valley mindset, so adaptation is key. However, there are some basic questions every company should address to get started on the right path: 

The Planning Phase 

Who Will Champion OKRs? 

Every successful OKR implementation starts with a passionate champion. This person, often a senior executive, must be deeply committed to rolling out the OKR strategy. Without this sponsorship, no initiative will survive. Who in your company has the drive and influence to lead this charge? Identify your champion, and make sure they have the backing they need to succeed. 

What Is the Most Critical First Step? 

Before diving into the nuts and bolts of OKRs, it’s essential to secure buy-in from your team. Everyone needs to be on board with the OKR program. This step isn’t just about understanding the framework, philosophy, and goals—it’s about fostering a collective commitment to the process. By the end of this series, you should feel confident in reviewing OKRs with your team and ready to get them excited about the journey ahead. 

What Matters Most? 

OKRs aren’t about doing everything; they’re about focusing on what’s most important. The beauty of OKRs lies in their ability to help you isolate the most critical business issues and dedicate your efforts to solving them. What are the fundamental priorities for your company right now? Your OKRs should zero in on these key areas, driving your business forward with purpose. 

How Will We Create Transparency? 

One of the greatest strengths of OKRs is their transparency. Ideally, OKRs should be visible throughout the organization, allowing everyone to see what’s being measured and provide feedback. This openness not only fuels collaboration but also ensures alignment and strategy execution across all levels of the company. 

How Will We Live Our OKRs? 

The real magic of OKRs comes from integrating them into the daily life of your company. They aren’t just set and forgotten—they should be part of your daily, weekly, and quarterly routines. From initial planning meetings to status updates and dashboards, OKRs need to be lived and breathed by your entire team. 

The Development Phase 

Once you’ve answered these foundational questions, it’s time to roll up your sleeves and start developing your first set of OKRs. Here’s how to approach this next phase: 

  1. Mission, Vision, and Strategy: Your OKRs should be deeply rooted in your company’s mission, vision, and strategy. These elements are the bedrock of your OKRs, driving the achievement of your long-term goals. Make sure they’re solid before moving forward. 
  2. Corporate-Level OKRs: Start at the top by creating OKRs at the corporate level. You might involve a small team, gather input from employees through surveys, or conduct executive interviews. However you approach it, the key is to ensure that these OKRs align with your broader strategy and are communicated clearly to the entire organization. 
  3. Presenting OKRs: Don’t just send out an email and call it a day. Use multiple channels to communicate your OKRs—share them electronically, post them on your intranet, and most importantly, discuss them in person. An all-hands meeting, for example, can be a great way to facilitate dialogue and ensure everyone understands the OKRs and the reasons behind them. 
  4. OKR Education: While OKRs are simple in theory, they require proper education to implement effectively. Take the time to educate your team not just on the fundamentals, but on why you’re choosing to use OKRs now, success stories from other firms, and what they can expect along the journey. 
  5. Monitoring OKRs: OKRs are not a “set it and forget it” tool. You need to monitor them regularly, using an OKR Scorecard and following a quarterly, monthly, or weekly schedule—whatever cadence works best for your organization. 
  6. Reporting Results: At the end of each quarter, score your OKRs and communicate the results across the organization. This isn’t just about accountability; it’s about learning and improving as you move forward. 
Courtesy of Adobe Stock By SakdaSong

The Strategy Alignment Phase 

OKRs should never exist in isolation—they need to reflect your company’s broader purpose, long-term goals, and strategy. Here’s how to ensure alignment: 

  • Company Mission: Your mission statement defines your core purpose—why your company exists. It’s your organization’s guiding light, constantly pursued but never fully achieved. Aligning your OKRs with this mission ensures that the work you do today contributes to your long-term purpose. 
    Your mission isn’t just a lofty ideal—it’s the compass that guides every decision your company makes. It reflects why your employees show up every day and serves as a reminder of the bigger picture, the greater good your company is striving to achieve. Whether it’s building homes that stand the test of time or creating communities where families thrive, your mission should be the foundation upon which your OKRs are built. 
    Unlike a vision or a strategy that may evolve over time, your mission remains a constant. It’s the steady north star that ensures every OKR you set is aligned with the core purpose of your organization. When your mission is clear and compelling, it’s much easier to steer the company in the right direction, keeping your OKRs in sync with the ultimate goal. 
  • Long-Term Vision: While your mission defines your company’s purpose, your vision paints a picture of where you want to be in the future. This vision is the bridge between your mission and your strategy—it’s the destination on the horizon that everyone in your organization is working toward. 
    Your vision statement should be a vivid, concrete picture of your desired future state, whether it’s five, ten, or fifteen years down the line. It’s not just about imagining a better tomorrow; it’s about providing a clear, tangible target that informs your strategy and your OKRs. Without this vision, your team might work hard, but without a clear direction, their efforts could be scattered and less impactful. 
    When your vision is well-defined, it fuels motivation and aligns your team’s efforts. Every OKR should serve as a stepping stone towards achieving this vision, ensuring that your short-term actions contribute to long-term success. It’s this alignment that transforms a collection of individual goals into a cohesive, strategic push towards a shared future. 
  • Annual Strategy: Your strategy is your game plan for achieving your vision. It’s about making tough decisions—choosing which markets to target, which customers to serve, and which opportunities to pursue or pass on. This is where the power of “No” becomes critical. Not every opportunity is worth chasing, and your strategy helps you focus on what matters most. 
    An effective strategy clarifies your priorities and sets the stage for your OKRs. It answers the critical questions: What are our preferred markets? Who are our optimal customers? What are their most pressing needs? By addressing these, your strategy guides the creation of OKRs that not only align with your vision but also address the real-world challenges and opportunities your company faces. 
    When your OKRs are directly tied to your annual strategy, they become a powerful tool for executing that strategy. They provide clarity, focus, and a roadmap for achieving your strategic goals, ensuring that every part of the organization is working in harmony towards the same objectives. 
    Finally, remember that a great strategy isn’t static—it evolves as your market changes, as new challenges arise, and as you learn from your successes and setbacks. Your OKRs should reflect this dynamism, allowing your company to remain agile and responsive while staying true to your mission and vision. 

Ready to start developing your OKRs? With a clear understanding of your most critical objectives and how to adapt OKRs to fit your company’s culture, you’re now ready to take action! 

Next up… Crafting Great OKRs – Part 1. 

Bill Gelbaugh Outhouse Senior Partner

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.

Unlocking Outhouse’s Potential with OKRs 

October 2, 2024
By admin-outhouse

Prologue

A few years ago, I found myself at a crossroads. As a partner at Outhouse, I had always prided myself on being a hands-on leader who could inspire creativity and innovation. But despite our successes, I started to feel like we were missing something—a clear, cohesive strategy that could unite our diverse teams around common goals. We were a group of talented individuals, but without a consistent framework to guide our efforts, we often struggled with direction, focus, and accountability. 

Meetings would drag on without concrete outcomes, projects would lose momentum, and our best ideas sometimes got lost in the shuffle. It was frustrating, and I knew we needed a change—a way to harness the full potential of our team and drive Outhouse forward. 

That’s when I discovered OKRs—Objectives and Key Results. I came across them while reading about how companies like Google and Intel had used this framework to achieve remarkable success. The concept was simple but powerful: set clear, ambitious objectives, define measurable key results to track progress, and align everyone around these goals. 

The idea sparked something in me. I saw OKRs as the path forward—a way to bring clarity and purpose to every level of our organization, from leadership to management, product development, and our creative teams. 

Implementing OKRs wasn’t without its challenges. It required a shift in how we thought about goals and accountability. But once we committed to the process, the transformation was undeniable. Suddenly, we had a shared language for success. Our objectives were no longer vague aspirations—they were clear, actionable targets that everyone understood and could rally around. 

OKRs didn’t just help us set goals; they changed how we worked together. Our teams became more focused, our meetings more productive, and our projects more impactful. We were no longer pulled in a hundred different directions—instead, we moved forward with purpose and confidence. 

In this series of blog posts, I’ll share the journey we took at Outhouse to implement OKRs and how they helped us thrive in a competitive market. If you’ve ever felt like your team could achieve more but just needed the right framework, then this series is for you. 

Let’s explore how OKRs can make a real difference—not just in theory, but in the day-to-day realities of running a successful business. 

1. Introducing OKRs: Understanding Why You Should Adopt Them 

Why write a series of blog posts about Objectives and Key Results, or OKRs? At first glance, OKRs might seem like just another goal-setting methodology. But let me tell you, they are so much more. OKRs are a powerful tool that can transform how you execute your business strategy, driving focus, alignment, contribution, and velocity within your team. 

When Silicon Valley startups realized that OKRs were behind the meteoric rise of companies like Google, LinkedIn, and Amazon, a wave of businesses rushed to adopt them, hoping to capture even a fraction of that success. And here at Outhouse, we’ve experienced firsthand the impact OKRs can have, especially in the competitive home-building market. 

In this first post, we’ll explore how the best companies use OKRs to harness that magic. We’ll start with the basics: the OKR framework, the philosophy behind it, the four goals of OKRs, and the incredible benefits you might be missing out on by not adopting them in your organization. 

Let’s Start with a Question—or Four! 

As Ken Coleman wisely said, “Good questions inform. Great questions transform.” Throughout our OKR journey at Outhouse, we’ve discovered four key questions that help us set successful OKRs: 

  1. What do we most want to achieve?
    What’s the right objective for our current goals and challenges? 
  2. How do we want to measure success?  
    What metrics will best show our progress and success? 
  3. What initiatives will get us there?  
    Are we working on the right initiatives to achieve this objective? 
  4. What’s the most efficient way to accomplish this?  
    Are we completing these initiatives as efficiently as possible?   

Is your objective to create a thriving business? What does “thriving” mean to you? Is it growing your user base? By how much? Is it increasing revenue? By what percentage? Is it improving retention? For how long? Combining an aspirational objective with quantitative results and focused initiatives allows you to set inspiring, measurable, and achievable goals. 

But setting a great goal is only half the battle. As a leader, your challenge is ensuring that your organization lives that goal every day. The real power of the OKR system lies in figuring out how to embed those goals into the daily, weekly, and quarterly rhythm of your company—into everything from planning meetings and status updates to celebrating achievements along the way. 

Are you ready to start implementing OKRs in your business? Let’s dive into the basics! 

The OKR Framework 

OKRs are built around three core elements: 

  1. Objective: Where do we want to go? 
  2. Key Results: What are the measurable outcomes we need to get there? 
  3. Initiatives: What do we need to do to achieve those results? 

The Objective is the goal of the company, team, or individual. Key Results are the measurable benchmarks that indicate progress toward the Objective. Initiatives are the tasks you need to perform to achieve those results—essentially, your “to-do list.” This framework is applied from the top of the organization down. Starting with an overall company Objective, each group or team sets their OKRs, and individual employees often have OKRs as well. This cascading interplay of goals keeps everyone aligned and moving in the same direction. 

The OKR Philosophy 

OKRs aren’t just about setting goals—they embody a unique belief system that sets them apart from other goal-setting methodologies: 

  • Ambitious: Objectives are meant to inspire, set just beyond what seems possible. Achieving 70-80% of a stretch goal is considered a success, not a failure. The idea is to push boundaries and aim high. 
  • Measurable: Key Results are tied to tangible milestones and outcomes. They remove ambiguity, providing a clear picture of progress. 
  • Transparent: OKRs are visible across the organization, from the CEO down to the newest intern. This openness fosters accountability and alignment, ensuring everyone is pulling in the same direction. 

This approach to goal setting was pioneered by Andy Grove at Intel and was later popularized by John Doerr, who introduced OKRs to Google. Today, thousands of organizations—from Spotify to the United States Navy—use OKRs as a central part of their management strategy. 

The Goals of OKRs 

When setting OKRs, it’s not just about listing tasks—it’s about strategic focus and collaboration: 

  • Focusing Efforts: OKRs are designed to be strategic rather than a mere checklist of tasks. They help identify the most critical business objectives, ensuring that your team’s efforts are concentrated on what truly matters. Strategy, as they say, is as much about deciding what not to do as it is about deciding what to do. With OKRs, discipline is key—only the most essential objectives should make the cut. 
  • Ensuring Team Collaboration: OKRs are structured to maximize teamwork, driving focused collaboration across the organization. The transparency inherent in OKRs, where everyone can see each other’s objectives and key results, fosters a culture of openness and alignment. It’s about everyone rowing in the same direction. 
  • Making Measurable Contributions: Key Results should be quantitative, providing clear evidence of progress. This removes subjectivity, allowing your team to see exactly how they’re advancing toward their goals. 
  • Driving the Company Forward: Ultimately, the success of your company hinges on achieving your goals. OKRs are the roadmap that keeps you moving forward, ensuring that every step you take is in the right direction. 

The Benefits of OKRs 

There’s a saying that “the simpler, the better,” and OKRs embody this philosophy, bringing tremendous benefits to those who implement them: 

  • OKRs Are Easy to Understand: Their simplicity is one of the biggest advantages. With just three elements—Objectives, Key Results, and Initiatives—OKRs cut through the noise. Unlike other performance management frameworks bogged down by jargon, OKRs are straightforward, making them easy to grasp and adopt. 
  • OKRs Demand Focus on What Matters Most: OKRs help you zero in on the most crucial priorities, guiding your team’s energy toward what truly matters. This focus not only drives performance but also empowers you to say no to tempting distractions that don’t align with your strategic goals. 
  • OKRs Foster Agility and Readiness for Change: OKRs typically operate on a quarterly cycle, allowing for frequent reassessment of priorities. In a fast-changing world, this shorter cadence ensures that your business remains agile, able to adapt quickly to new information and evolving circumstances. 
  • OKRs Promote Transparency and Alignment: With OKRs, transparency is key. Corporate-level objectives are visible to everyone, and team or departmental OKRs are shared across the organization. This openness encourages cross-functional collaboration and alignment, ensuring synchronization of every team’s efforts. 
  • OKRs Facilitate Conversation and Drive Engagement: OKRs aren’t just handed down from the top—they involve input from all levels of the organization. This inclusive approach fosters engagement, as team members feel ownership over their goals. When it comes time to review results, these conversations can boost morale and reveal opportunities for growth and development. 
  • OKRs Encourage Visionary Thinking and a Growth Mindset: At Outhouse, we believe in the power of a growth mindset—a belief that success comes from hard work, learning from failure, and continuously striving for improvement. OKRs embody this philosophy, encouraging audacious goal-setting and a willingness to step out of comfort zones. This mindset is crucial for thriving in today’s competitive environment. 

In Summary 

At Outhouse, we’re fortunate to have a team full of visionary, intelligent, and creative people. But over time, we realized that great ideas alone weren’t enough—we needed a better way to organize and prioritize our efforts. It’s easy to fall into the trap of starting too many projects at once, spreading ourselves too thin. OKRs have allowed us to continue pushing the envelope on innovation while forcing us to focus on the ideas that will have the greatest impact on our company and our clients. 

We believe your business can benefit from implementing OKRs as well. With the right focus, alignment, and execution, you can achieve extraordinary results. 

Next up… Preparing for Our OKR Journey! 

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.

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