What is OKR?
OKR or’ Objective and Key Results‘ is one of the best goal management frameworks modern businesses incorporate into their system. It helps companies implement an efficient business strategy to achieve a team target rather than an individual one.
OKR is based upon two different principles : Objective and Key Results. Objective refers to a goal that an organization wants to achieve shortly. It should be aspirational, designed to give direction, and challenge the entire team of employees.
And Key Results are some metrics that pre-define to measure the progress made to complete an Objective. So for every Objective, you should have 2 to 5 Key Results. And you can judge the progress on which result you’re on.
They give a boost to efficiency inside any company and provide more engagement. OKRs make all the data on how to do it easier to access. The managers can identify which employees are achieving their goals and check-in processes.
Here are some benefits of OKR:
Alignment of a team
The most ambitious goal of OKRs is to align the entire team with one pinpoint goal in mind. They build a bridge between individual goals and the target for the company.
The best managers set company-wide OKRs. When the whole team works for one particular set of targets, with proper collaboration and synchronization, nothing is impossible.
Based on the company-wide OKR, each team or department sets certain OKRs to help achieve the greater goals. Even individuals can set their own set of Objectives and make sure that they’re moving in the right direction.
You can take professional help for better planning in terms of OKRs. Many websites and companies offer OKR services like https://www.skillfire.com.au/ that you can consult with for intuitive and customized OKRs.
Traditional strategic business planning is mainly based upon long-term facilities and targets. Meanwhile, OKRs prefer shorter goal cycles, allowing a much bigger scope for immediate adjustment and adaptation to shake up the thought process.
It reduces risks and sheer waste of time. Strategic OKRs normally last for one year, and tactical OKRs are planned to keep only a quarter of a year in mind.
When each cycle reaches its conclusion, everyone can analyze the results and re-adjust the OKRs if needed. For new or upcoming companies, it’s not a bad idea to break up the cycles even further. They can easily start with 6-8 weeks in mind.
This regularity between short effective cycles reduces the amount of planning, and even if it fails, it doesn’t derail the whole company or the entire year. Instead, you can quickly start afresh.
Autonomous and getting accountable
Any kind of bottom-up target in businesses allows the organizations to use their frontline expertise to get better in every facet.
Providing autonomy to each individual gives them a license to do things their own way, and enforcing accountability always makes sure that they always remain motivated and interested in their own betterment and the company.
At least 60% of OKRs are assigned by individuals, which they put on themselves to achieve. This approach keeps the inspiration factor always on top, and the modern theories of motivation building naturally support it.
Achieving beyond expectation
They say, ‘Go Big or go home.’ That’s exactly what OKRs can provide: setting ridiculous or unimaginable targets and pushing everybody to go for it.
These kinds of ‘Moonshot Objectives’ encourage people to venture into the unknown, dare to dream bigger, and along the way, achieve much more than expected.
Many innovative ideas and creative solutions emerge when every team member tries their best to go beyond the usual boundaries.
But you should never overestimate. It’ll be more than enough if you can attain 80% of it. So, take the positives in your stride and make new plans to improve.
Considering the benefits of OKRs, it’s almost impossible to leave them alone.
Just try it, and most would love the freedom it provides. And you’ll benefit too from a much higher quality of work and identifying who is not capable of taking part in this evolving process.
It would take much effort to get it right. But once it does, you’ll fly off out of the reach of your competitors.