When your organization is looking to set goals, you may want to consider the OKR (Objectives and Key Results) process that Google, Twitter, LinkedIn, and other high-achieving companies use. It is a simple management framework that helps everyone in the organization see progress towards common goals.
Organizations of all sizes and representing all industries are always looking for ways to drive performance. It is widely accepted that setting organizational, departmental, and individual goals for planning where you want to go is widely accepted, but many organizations that practice a top-down goal setting framework often make it difficult for them to get there. difficulty in figuring out what goals to set instead of moving on to achieving them. The Goals and Key Results (OKR) framework provides a powerful alternative that is used in practice by Google, Spotify, Uber, Twitter, Airbnb and more. So what are OKRs? Let's find out with Giaiphapdonggoi.net!
1. What are OKRs?
OKR stands for Objectives and Key Results, is a simple tool that helps an organization achieve its goals by formulating specific and measurable actions as well. such as communicating and monitoring progress towards them.
What are OKRs?
Goals define where you want to go. They are short and inspiring. Companies typically create three to five high-level goals each quarter. Goals should also be ambitious. While choosing the right goal is one of the most challenging aspects of this practice, when you get it right, you'll be able to tell if you've achieved your goal.
Example Goal: Increase profits by 20%
Key results are deliverables that you define for each goal so that you can measure progress toward that goal. Each goal should have two to five key results. And all key results need to be measurable.
Example key results: Reduced production costs by 10%. New shipping software implementation in August 2018.
The OKR concept was first developed by Andy Grove in the 1970s when he was president of Intel. The idea became popular when John Doerr, who also worked with Andy Grove at Intel and later became a venture capitalist and early investor at Google, introduced the concept to Google in the 1990s. , making it a popular approach for tech companies in Silicon Valley and beyond. Today, companies and nonprofits across all sectors are using this tool.
John Doerr's formula for OKRs is:
I will (Goal) be measured by (set of Key Results).
2. Key principles of OKR
There are several key principles of the OKR goal management framework, including:
Key principles of OKR
Simplicity and agility: OKRs are typically set monthly or quarterly so that an organization is agile enough to respond to changing conditions. This framework is simple and straightforward and easy to use which leads organizations to invest time and resources in achieving their goals rather than the process of defining them and communicating them to everyone in the organization. Who is.
Create clarity and alignment within an organization: OKRs are public. Because they are transparent, it helps to ensure alignment across all levels and departments in achieving goals and making sure everyone is moving in the same direction.
Two-way: OKRs are not stratified from top to bottom. Strategic OKRs are established and then each team and individual develops tactical OKRs that align with strategic OKRs simultaneously. This creates a much more efficient and effective process than tiered goal setting models.
Encourage collaboration: OKRs make it easy to understand how important every employee in the organization is in achieving strategic OKRs. Since everyone is working towards a common goal, it is clear that no one can accomplish the ultimate goals alone.
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3. Benefits of OKR
OKRs offer many benefits, including clarity, enhanced communication, and a coherent, transparent organization-wide strategy. John Doerr always talks about F.A.C.T.S. when describing the benefits of OKRs. F.A.C.T.S. stands for:
Benefits of OKR
Focus: OKRs allow a group to gather after a small set of carefully selected priorities.
Alignment: OKRs provide a method for the entire organization to align its goals at every level with its top-level priorities and with its bottom line.
Commitment: OKRs require a collective level of commitment from stakeholders to select and follow through on agreed priorities.
Tracking: OKRs allow a team or organization to track their progress toward a goal and know sooner when it's time to change tactics.
Stretching: OKRs empower teams to set goals beyond the BAU - or "business as usual" - and implement significant, meaningful change.
4. Common OKR Mistakes
Writing OKRs is a skill
Skills take practice and time to develop. Each set of OKRs should incorporate feedback from within the organization and go through multiple checks and drafts.
Common OKR Mistakes
There are some common mistakes to avoid when writing OKRs:
Avoid Doing Business As Usual: OKRs should aim for change over maintaining the status quo.
OKRs vs KPIs: OKRs are more than just KPIs (Key Performance Indicators). They are a measure of change, while KPIs are a measure of health.
Sandbagging: OKRs are meant to last a team and their success should not be taken for granted.
5. Tips for Writing Good OKRs
Tips for Writing Good OKRs
For goals:
First of all, Goals should be simple, short, and easy to remember. If you have to stop to catch your breath while reading your Goals, you're doing it wrong.
Second, Goals shouldn't be boring. They can fit into the organizational culture, being informal and fun. You can use slang, insider jokes - whatever fits your culture.
For key results:
Separate indicators from initiatives
Order a few of them. Usually 2 to 5 per target.
You can also use some OKR tools to help you understand the target system.
Like KPI, OKR has become a familiar term in management. It is undeniable that this model helps businesses build a more unified and scientific goal system as well as deploy them more transparently and effectively across all personnel. Hopefully, the article is a useful map to help you quickly approach and realize the Goals and Key Results Management model of your business.
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