Objectives and Key Results (OKR):
This OKR methodology, popularized by John Doerr by his book “Measure What Matters” helps for a cultural shift at your organization to an environment that is a goal-oriented, with your Objectives driving day-to-day work. For this to happen, leadership must be bought-in to the program and drive decisions and execute with goals top of mind. To know more about objectives and key results (OKRs) visit our website.
Find samples: https://okrstars.com/resources-okr-examples
Objectives are memorable qualitative descriptions of what you want to achieve. They should inspire and challenge. For example: “Double the revenue to create a profitable and sustainable organization”.
The metrics that measure progress towards the objective, and tell us if we’re getting there. For example. “Increase revenue from 10m to 20m USD”.
Refer our other article related to this topic: article
Type can be organization, team or individual ones. Type indicates the level at which the goal and key results (metrics) are at priority.
They are timebound. Time periods help you plan, check-in and review the goals and its metrics at the right cadence. The goals and metrics (KR / KPI) have 4 Quarters time periods in a year and followed with Annual overall employee performance cycle.
Owner is the person accountable for the success of the objectives. It is good to have a clear owner even for a team or organization level objective.
You can measure progress as a percentage (0 to 100%) or as a KPI. Select KPI, if you are looking to move a metric from a starting to target number. For example, increase revenue from 10m to 20m USD.
When the the goals are closed at the end of the quarter and the score is generated. Those un-closed Objectives and Key Results can be cloned and cascaded to next quarter based on the decisions.
Alignment is one of the most powerful features of OKRStars. By aligning your Objectives at an individual, team and organization level, strategically aligned Objectives and Key Results rapidly get everyone on the same page, working towards results that matter.
An employee can see the goals of anyone in the system, including the CEO, managers, and peers. Transparency promotes openness and eliminates work conflicts and redundancies. Employees can see how their work connects to the organization’s overall strategic goals.
The summary of the over all goals appear on the OKR tool as shown below. We will write more details in coming blogs about it.
How can I ensure OKR (Objectives and Key Results) success at MY company?
- OKR Champions: Quite often, it’s the effort of one key person in an organization (it could be you!) that takes initial ownership of a project and ensures its success. It could be a Chief of Staff, operations lead, or the most organized person in a given department. We love our OKR Champions and strive to give them all the support they need.
- Leadership Support: While the energy of the OKR Champion is key, we’ve found that most successful rollouts also gain support from upper management / CEO. Thus, it’s critical that senior leaders educate their organization on the value of OKRs, explain why they are being implemented, reflect on their current culture, and identify key stakeholders.
- Use the right SaaS tools: We believe OKRs are the best way to set goals, and that OKR Stars™ is the best tool to manage your OKRs. Why? Unlike spreadsheets or manual processes that quickly become unwieldy, Ally scales with your business and provides transparency across your organization.
Why have OKRs lead to success at so many companies?
Modern business moves at breakneck speed, and entire industries are being disrupted through new customer behaviors, aggressive competition, and changing market dynamics.
OKRs provide a framework to allow companies large and small to set goals, stay agile, and make sure employees are on board with the latest strategy through the 5 superpowers mentioned in this video.
- Focus: Because OKRs focus on just 3-5 goals per quarter, it forces organizations to focus on only the work that matters — and make hard choices to eliminate the tasks that don’t matter.
- Alignment: Research shows that only 7% of employees understand their company strategy. OKRs help align company goals from top to bottom so that everyone is rowing in the same direction.
- Tracking: OKRs are driven by data. Gone are the days when a manager and employee would set an annual performance goal. Today, agile companies use data to inform action and guide strategic decisions.
- Transparency: A core tenant of OKRs is that anyone can view the goals and progress at any level of the company, from CEO to individual contributor, fostering accountability and collaboration.
- Stretch: When employees are encouraged to set stretch goals to achieve what might not seem possible — and receive support when things fall short — amazing things happen.
Integration steps and summary of OKR framework implementation:
- O and KRs (OKRs) setting with time periods (example: quarterly plans: Q1, Q2, Q3 & Q4)
- CFR Automation (integration with Microsoft Teams, Slack tools & mobile apps) for instant goal updates visibility on team collaboration channels
- Manual or Automatic Check-ins through KPI data source software integrations (example: Jira Software). You can update progress of an O and KRs automatically by Jira as a data source or via rollup from children.
- Continuous Performance Management options: Private & Public CFR automation, Check-in activity trends (goal status & metric)