Economics/Business

OKR definition/Objectives and key results/origin/making in 5 steps

With this method, it is possible to have a more aligned and engaged management of goals from strategic planning to the most operational part. That’s because OKR helps you understand where you want to go and measure the results of everything. In this article we will provide you the definition of OKR.

OKRs have gained prominence because they are used by large technology companies such as Google. Its concept spread mainly because it is an agile methodology model, with measurable parameters and adhering to the disruptive business context.

Check out in our article the main aspects of OKR, what it is, how it came about, its importance and how this methodology can transform your management. Also learn how to ensure a clear direction to achieve your goals, measure them and elevate your company’s results!

What is OKR

Objectives and Key Results (OKRs) is an English term for Objectives and Key Results . Its methodology helps in the deployment of goals , which starts from the definition of objectives that you want to achieve. And, based on these objectives, monitoring is carried out using measurable indicators to analyze the results obtained.

The main purpose of this method is to ensure that everyone is walking in the same direction. And that includes: clear priorities, consistency and constant frequency. The differential of OKRs is to define, measure and re-evaluate the goals , objectives and their results. Its frequency, normally, happens every quarter.

In addition, OKR makes companies more prepared to survive and prosper, as it focuses on solving problems. How: It helps with strategic alignment , communication between business areas, a sense of purpose, employee engagement and focus.  

Such indicators show how to meet the proposed objectives, functioning as checklists or verification of the achievement of objectives. The implementation of OKRs, in the performance management strategy , provides an improved focus on the objectives, greater transparency and alignment for the management of the company’s goals.

How did the OKR methodology come about?

The concept of OKRs came about through Intel founder Andy Grove. And the methodology ended up becoming a trend within Silicon Valley companies. Some companies, like Google, adopted the method in 1999. But it wasn’t just them, Twitter, Spotify and LinkedIn also use OKR’s.

Soon, this method became known worldwide and gained the profile of agile methodology due to the mostly bottom-up process , transparency for the entire company and with shorter cycles.

And OKR became what it is today by having this shortening of the follow-up cycle and goal strategy definition. And also because it is based on the idea that employees should propose their goals, or action plans , together with their manager.

That is, teams are encouraged to set their goals based on the company’s organizational objectives. So that there is also a calibration made by the direct managers, following the hierarchical structure.

Objectives and key results

After getting the definition of OKR let us look its objectives

In short, goals are often the desired deliverables you want to achieve, and key results are ways to measure whether you are on track to achieve your goals.

For example, if the company’s objective is to “Accelerate recurring revenue growth”, the key results could be: increase monthly revenue per subscriber, hire salespeople, deliver X value in subscription revenue, for example.

OKR is a methodology that adapts to any company, is very effective and brings surprising results. Due to the transparency of the method, the objectives and key results are exposed, so that everyone can follow the development of each one.

How to get more results with OKR

The tool is one of the most used worldwide. In fact, there are countless benefits that OKR brings to the business, as it is directly linked to the success and increase of better results for the team . In addition, it encourages employees by making them more engaged. Check out the main ones:

Simplicity in actions

The methodology is simple and facilitates the achievement of goals. The tool easily adapts to the peculiarities of each company, ensuring great results.

Focus on what really matters

The objectives and goals to be achieved are few. Therefore, the team is able to focus on what really matters, managing to work much better on each objective.

Involvement of the entire team

OKR encourages everyone to participate in the process to define key objectives and outcomes. As a result, the team feels part of the plan and stays engaged.

Practical measurement of results

The objectives are clear and consequently, it is much easier to measure the results. In fact, everyone knows when they are getting close to what was planned.

Increased productivity and well-being

With smaller goals, those involved are more dedicated. Therefore, there is greater involvement, without overloading the employee, making productivity and results greater and better.

learning cycle

For each goal not achieved, the justification can serve as a lesson for all involved. In addition, it can influence the creation of new goals, also increasing the company’s knowledge of the market.

In summary, the OKR methodology can make a huge difference to the success of the business. Because, it facilitates the creation of structured processes to achieve audacious goals, in addition to gaining scalability of the company .

Therefore, processes become simpler and more effective, facilitating the achievement of goals and employee engagement. In addition, the method can be understood as a management model with a total focus on objectives and results .

In fact, the tool requires transparency, collaboration and accountability from all those involved. Above all, any organization can use OKR, regardless of size or field of activity.

How to make OKRs in 5 steps

After grasping the definition of OKR now learn how to make it in steps

Understand now how to put the OKRs methodology in practice in the company. Check it out:

1. Short cycles of goal setting

Normally, the cycles are quarterly , unlike the rigid and static annual planning of the other models. Follow-up usually occurs weekly and monthly.

Goals can be either individual or collective, it depends on your business model. The important thing is to have a good strategy of goals, because, as said before, they need to be objective and realistic.

2. Simplicity for creating goals

The objectives must be simple, measurable and easy to understand so that they do not have future problems with their goals. In addition to not having conflicts also due to lack of alignment or lack of motivation for being a difficult goal to achieve.

3. Transparency in the unfolding of goals

OKRs should be created in a way that the entire organization knows about them. This enables engagement when people see that goals are related, both vertically and horizontally, and that the team is moving in a single direction.

4. Definition of Bottom-up and Top-Down

They are information processing and knowledge ordering strategies used in management and organization. This practice is usually 60% of OKRs set by the staff.

5. Track results frequently

It is fundamental to the entire strategy to constantly monitor results to monitor delivery times. Without summing, guaranteeing the consistency of all tasks and the high performance of the team.

In addition, it is crucial to evaluate the results obtained weekly to be able to make adjustments and improvements throughout the process, avoiding risks or compromises in the final work.

we hope that you have understood the definition of OKR.

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