OKR (Objectives and Key Results) is a system to define objectives and help us achieve them, both in the professional, work and personal spheres.

They arise from a constant search and evolution in management systems to generate better results.

This system has been giving good results to leading companies in the technological and not so technological sectors for years.

It was invented by Andy Grove, CEO of Intel in the 70s and has been implemented in Google, Adobe, Amazon, Oracle, Samsung, (among others).

John Doerr, who worked at Intel, and learned all about OKRs directly from Grove; became one of Google's early mentors and investors; In 1999, while still operating out of a garage, Doerr approached Sergey Brin and Larry Page about using OKRs.

This system can be implemented to replace theKPI (indicator-based system), and changes are being noticed in the formulation when conducting interviews, developments, receiving notifications and waiting for feedback.

OKRs are not KPIs (Key Performance Indicators), they are not SMART (Specific, Measurable, Achievable (or Attainable), Realistic, and Timeliness) or MBO (Management By Objectives).

An OKR objective answers WHAT needs to be achieved. Call to action and inspire.

OKR Objectives:

• Meaningful and inspiring.
• Concrete and action-oriented.
• Annual and quarterly.
• 3 to 5 maximum objectives per cycle.
• Of company, team and person.
• Public (transparency).
• 100% compliance.
• It is not linked to remuneration.

Yes, it is not linked to remuneration:  An objective has to be moved by values, the internal culture of each individual, without material motivations.

What are the objectives like

• OKR and productivity: work better and get better results.
• OKR and metrics: work and strategy focused on results.
• OKR and focus: focus on important issues to perform better.
• OKR and visibility: helps leaders better understand what the organization is like.

Objectives are not the goal, they are the path.

What is bottom-up OKR?

 This term refers to the fact that OKRs are not imposed from above, but rather the person themselves is the one who establishes their objectives and key results, from the bottom up, but always trying to align with the OKRs of the team and the organization.

People are more motivated to meet our goals if we have set them than if they are imposed on us.

What are Key Results (KR)

They are a reference marker and monitor HOW we reach that goal. 

Effective key results have to be specific and set in a time frame, they must be aggressive and, at the same time, realistic. And above all they must be measurable and verifiable. If you don't include a figure, it's not a key result. A key result is met or not met.

 

Objectives are the (What) Key Results the (How)

OKR example

Objective: improve the customer experience on our website.

Key Result 1: reduce website loading time by 10%.

Key Result 2: reduce the number of website errors by 50%.

Key Result 3: increase web usage time by 10%.

Initiative 1: conduct a survey of web users to get to know them better.

Initiative 2: perform a bug test of the website and fix the errors.

Initiative 3: optimize website images to reduce loading time.

There is an example of Google with Chrome, in which in 2008 they aimed to develop a next-generation client platform for web applications.

The measurement was carried out through the key result of reaching 20 million active users seven days a week. They didn't reach them.

In the next cycle, 50 million were marked, which were not reached either.

But in the next cycle 100 million were marked and that was when they far exceeded it, reaching 111 million users.

Google's idea in implementing OKR of setting goals that are ambitious enough to not meet them 100% is interesting.

In fact, it is said that a good compliance percentage is 70-80%, although this is a matter of debate and personal implementation.

 OKR and the CFR are great allies

The way in which the organization helps the people who make it up to meet their objectives.

CFR

• Conversations: an authentic and nuanced exchange between the boss and the collaborator, with the intention of boosting performance.
• Feedback: a two-way or networked communication between colleagues to evaluate progress and lead to future improvements.
• Recognition: expressions of appreciation towards deserving people for their contributions, regardless of their magnitude.

CFRs are as priority as OKRs to lead transparency, responsibility, empowerment and teamwork. As stimuli for communication, CFRs launch OKRs and then launch them into the stratosphere.

John Doerr

 

PPP

Weekly status report.

• Plans: What are you planning? (Future)
• Progress: What have you done? (Past)
• Problems: What problems are you facing? (Present)

Each week, employees briefly answer these questions and managers can get an overview of what is happening.

The superpowers or summary:

1. OKR and focus. Focus and commit to priorities.
2. OKR and teamwork. Coordination: connect to work as a team. One of the pillars of transparency that OKR promotes is that everyone's objectives are openly shared. In this way, coordination, linkage between objectives, interdependencies between teams are facilitated and, most importantly, the motivation of each team member is increased, who can easily see the meaning of their work.
3. OKR and responsibility. Track accountability OKRs promote accountability: OKRs are data-driven. You can see when a Key Result or target is at risk and can take action to review, update, or replace it. OKRs should be uncomfortable and possibly unattainable.
4. OKR and demand. Demand: demanding the impossible to achieve excellence. OKRs motivate us to go beyond what we believe is possible to achieve. The freedom that this system allows encourages everyone to take risks in order to advance and improve: this is one of the reasons why OKR is not linked to each individual's bonuses.

If you want to know more, and know how you can apply this system in your business, contact us for advice.