Process: Objectives and Key Results
Studies have shown that committing to a goal can help improve employee performance. But more specifically, research reveals that setting challenging and specific goals can further enhance employee engagement in attaining those goals.
Market Leaders use Objectives and Key Results to manage objectives, set goals, and track results across the organization.
OKRs at a Glance
- Objectives are ambitious and may feel somewhat uncomfortable
- Key results are measurable and should be easy to grade with a number (Google uses a scale of 0 – 1.0)
- OKRs are public so that everyone in the organization can see what others are working on
- The “sweet spot” for an OKR grade is 60% – 70%; if someone consistently fully attains their objectives, their OKRs aren’t ambitious enough and they need to think bigger
OKRs were created by Andy Grove at Intel and popularized when John Doerr introduced them to Google. Since then top companies have used ORKs to manage growth bny aligning strategy with goals throughout their organizations.
“Contributors are most engaged when they can actually see how their work contributes to the company’s success. Quarter to quarter, day to day, they look for tangible measures of their achievement. OKRs speak to something more powerful than extrinsic rewards, the intrinsic value of the work itself.”
― John Doerr, Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs
All business initiatives have objectives. OKRs can be used to set goals and track performance, in addition to profit, Purpose-Driven people and planet performance, Continuous Innovation Activity, Portfolio, and Productivity metrics, the Validated Learning, Innovation Accounting, and Lean Analytics of Lean Startup, Customer Experiencemetrics like Net Promoter Score, Velocity of Product Developmentand, and other key business metrics.
Benefits of OKRs
- Setting stretch goals
- Promoting accountability
- Aligning the organization