What is OKR Approach? Why Companies using OKR see Tremendous Results?
Objectives and Key Results (OKRs) is a widely used goal-setting strategy in an organization. The main aim of OKRs is to link personal goals and team goals to the company objectives. This way all team members and managers work together on the same goals. OKRs can be implemented with the help of an innovative performance management software.
Another main purpose of having OKRs in an organization is to create transparency in terms of clarifying what is expected out of employees at work. This transparency is required because then employees will realize that they are working towards the same goals and they will also be able to contribute to the goals that others are working on.
Introducing OKRs are one practice that every team or organization should adopt because it is considerably light-weight, and it does not take up too much of your time and resources. When companies implement OKRs the right way, they can see enormous results in terms of increased employee productivity, focus and improved company culture.
Thanks to Intel President Andy Grove for implementing the concept of OKRs in the 1970s, as a lot of well-known companies such as Google, LinkedIn and Twitter use OKRs and they love them.
The OKR framework is very simple to use:
The company begins by defining 3-5 objectives for the business, departments and individual employees. Under each objective you could define 3-5 key results. Key results are measurable and achievable. It can either be based on performance or engagement.
After creating the objectives and key results, the company cascades those OKRs to everyone, the teams and the employees. You need to streamline the OKRs in such a way that everybody has a clear understanding of them. Once your employees start working on those objectives, they regularly update their progress- monthly or quarterly basis.
OKRs must be reviewed regularly and the company must ensure that there is enough flexibility because your team goals and employee goals might change due to various circumstances, therefore, your OKRs change as well. At the end of the day, your employees and business matter the most, more than the structure.
What are the benefits of using OKRs?
There are numerous benefits of OKRs if implemented regularly and appropriately. Here are a few benefits of OKRs listed down below:
- They help your organization align employee goals with business objectives and employees will feel more connected to the goals of the organization.
- Since, OKRs foster transparency in the organization, employees and departments will be clear on what each one of them must do in terms of their goals. It gives them a sense of direction.
- Employees become more focused on their goals and it results in better performance productivity.
- Employees can monitor their progress regularly on those goals and try to find different solutions to their challenges.
- With the help of OKRs, employees can make informed decisions in terms of understanding what strategies work for them and what does not.
- OKRs help the company to attain transparency, and measure results easily. Moreover, it helps employees to take accountability for those goals.
- Since OKRs emphasize the need for regular updates on goals, employees gain new insights and vison in terms of fulfilling their goals.
- After constantly monitoring the progress of goals, employees get a better understanding in terms of how their goals align with the overall strategy, vision and mission of the business.
- More so than anything else, employees can create specific measurable goals for themselves aligning with the objectives of the business.
- OKRs stimulate better transparency and accountability, due to which employees can execute and achieve their targets on time.
- The goal-setting process in OKRs empowers employees to be self-sufficient, which fosters employee engagement and motivation.
- Speaking about transparency again, OKRs help top-level executives gain insights in terms of understanding the root causes of not being able to achieve certain objectives.
- OKRs help the company to plan the resources effectively and stimulate collaboration in cross-functional departments.
Make your workforce agile with OKRs offered by Synergita
OKR methodology aids in establishing achievable key results for employees to attain the common business objectives. Synergita assists employees understand their individual objectives and key results and monitor their progress regularly. Employee goals when cascaded create better alignment within teams, as well as across the organization. Synergita helps you connect your goals with your managers to increase alignment and bring together their focused efforts to attain the business objectives.