OKR stands for Objectives and Key Result. It’s an old idea based on Peter Drucker’s Management by Objectives (MBO), with a new approach: a goal-oriented managerial framework driven by stretch measurable milestones to align the employees’ and leadership practices to company-level aims and mission. OKR strongly focuses on desirable institutional outcomes and change management. Intel and Google do business this way.
The key elements of OKR
Mission
The organisation needs a transparent and understandable general purpose that supports all the objectives. Question: Why do we want to do things this way?
Objectives
Claims that state what we want in a qualitative fashion. They are well-formulated when we can say done/not done in a clear way.
Key results
Traditional KPIs metric rephrased. Objectives are quantified with measurable indicators. They help us to determine how we progress and how good we accomplish an objective when the deadline is met.
Tasks
Set of activities under objectives. The key here is to focus not on routines but on those particular activities that trigger people to get close to the objectives.
Superpowers
The most important element in my opinion is knowing your team and their assets and potential. Setting objectives based on non-realistic teams is risky. Superpowers should be a kick-off point to elevate employees’ performance.
CFR (Conversation, Feedback and Recognition)
The human factor side of the framework. Social and positive interaction are key for managers. No good motivation is gained via technicalities. Workers need regular conversations, information on their performance and acknowledgement when things are well done.
Culture
Shared values and the distribution of power (formal and non-formal roles) are key to succeed in implementing the OKR framework. Pay attention to the level of cultural formality, attention to norms and team industriousness before you bet on OKR.
Leaders and their personalities
OKR is mainly based on collaborative leadership. This does not mean the absence of top-down guidance, but to gain momentum on OKR, as a leader, start bottom-up. Allow imperfections and avoid being idealistic. It is important to create a middle management level familiar with the OKRs and quantitative management.
Transparency
No trust, no important innovation is obtained in an obscure working atmosphere. Resolve conflicts, explain objectives, support people and follow them up regularly.
In Education, an example
Objective: improve the level of English in KS4.
Key results: a +5% on average on internal assessments each academic year. till May 2025.
Tasks:
- Refresh teachers’ methodologies.
- Create Grammar sheets, English prizes, Movies discussion labs.
- Plan a international travel to UK for a week.
- Ask editorials, book dealers and external partners for supporting technologies in language learning.
- Re-group students classes for speaking sessions.
References
- Doerr, J. (2018). Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs. Portfolio/Penguin.
- Grove, A. S. (1983). High Output Management. Vintage.
- Niven, P. R., & Lamorte, B. (2016). Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs. Wiley.
- Wodtke, C. (2016). Radical Focus: Achieving Your Most Important Goals with Objectives and Key Results. Christina R Wodtke.
- Mankins, M., & Steele, R. (2005). Turning great strategy into great performance. Harvard Business Review, 83(7), 64-72.
- Sull, D., & Sull, C. (2018). With goals, FAST beats SMART. MIT Sloan Management Review, 59(4), 1-5.
- O’Neil, M., & Martin, J. (2016). Agile Performance Improvement: The New Synergy of Agile and Human Performance Technology. Berrett-Koehler Publishers.
- Lee, T. (2017). OKRs for the individual: A guide to achieving your personal goals. Journal of Personal Development, 12(3), 202-211.
- Murphy, T. J. (2019). Beyond OKRs: Mastering Continuous Improvement. Bloomsbury Publishing.