OKR stands for Objective and Key Results, a goal management and alignment framework used by leading silicon valley companies and growing startups to implement strategies for growth.
It streamlines the focus of employees towards a unified goal while increasing transparency, accountability, and discipline.
OKR is a strategic management system to make your company’s goal a buzz in this advancing business environment.
Only 55% of middle managers know about their company’s one of the top five priorities, according to a survey by Harvard business review.
With the complexity of competition and a quest to do something with changing trends, organization’s values fade in the Farsight. To monitor your company’s core values and objectives, it is important to have a time-linked OKRs.
Initially pioneered by Intel, this goal setting framework was recognized globally after John Doerr introduced the concept in Google in 1999.
Now, it is accustomed by SMBs to Fortune 500 companies.
How to start with OKR
Any management system works better if it is idealized according to your company goals. Writing an OKR is an easy task if you have a clear conscience about your company’s objectives and vision.
OKR is a strategic execution of your stretched goals and nothing short of a communication channel for the individuals.
To start with an OKR, you need to define two factors - Objectives and Key Results.
John Doerr, the VC who introduced Google to OKR, have a specific formula for setting goals
"I will (Objective) as measured by (Key Result)"
An OKR is a way to give your goal with measurable achievements, here the keyword “as measured by” sets the course for your company’s objective.
If a strategy doesn’t fit well in the norms of Doerr’s formula, there are chances it might hit the trash. Hence it is important to understand the two major components of this formula - Objectives and Key Results.
Objectives
The objective in simple terms is where you want to go. It is your company’s list of goals that they wish to achieve in the given duration.
Traits of Objectives
Simple
Keep it minimal and memorable, if an objective is too long it becomes a burden to remember.
Cascading
An organization might have a set of objectives to accomplish, but involving everyone onboard for a single objective might turn it all into confusion. Hence, cascade your objective on company, department, team and individual level to have a clear line of sight for the company’s vision.
Qualitative
Objectives are qualitative goals which align with your company’s vision. These goals define the core values of your company rather than heavy numbers.
Aligned
Your objective should have a unified direction of working towards your company’s vision. These objectives might contribute to the upcoming OKRs or current challenges. Eventually, everything should be aligned with your company’s core objectives.
Time-Bound
Make sure your OKRs have a time-limit to analyze its progress. Usually, OKRs are set quarterly or monthly, to accustom the employees with the conventional business cycle.
Key Results
Key results are a set of achievable metrics that define the success of an objective.
Traits of Key Results
Measurable
You need numbers to define progress, Key Results should have ambitious metrics.
If a Key result states, “Increase Engagement” it would be ambiguous to analyze the growth. A measurable key result communicates how much of an objective is achieved.
Challenging
OKRs are meant to push the perceivable limits of your teams. Keep your Key Results
inspiring to motivate your employees to step out of their comfort zone, and take the company to heights
Limited
Any objective should have around 3-4 key results which provide value to your stretched goals. If there are numerous in a single objective, it makes the process cumbersome and difficult to track.
Start drafting your OKRs now, and make sure they are monitored regularly. In this fast-paced environment, sometimes your KRs might become outdated.
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