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What are OKRs and how to formulate them correctly
How to correctly formulate and implement the OKR management method? The OKR work method refers to Objectives and Key Results. This article focuses on preparing for departure, creating effective OKR, OKR formulation process, combining OKR to drive the achievement of the battle path, using OKR for daily management, and making OKR feasible. Keep waiting for content points, everyone is welcome to learn.
編輯於2023-02-15 22:23:46
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OKR Work Method reading notes and manuscripts are the secret weapon to achieve goals! Reveal the power of OKR work method!
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Management by Objectives (A Guide to Management by Objectives for Middle-Level Managers)
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What are OKRs and how to formulate them correctly?
OKR
Introduction to OKRs
The origin of management by objectives
"MBO (management by objectives) management by objectives"
Focus on personal achievement
Not the overall corporate goal
Misunderstandings about management by objectives
top down
Establish goals on an annual basis
After being formulated, it was "shelved"
What is a successful MBO?
what is my goal
How do I pace myself to make sure I'm on track towards my goals?
Lead to KR (key results)
OKR definition
OKR is a set of rigorous thinking framework and continuous discipline requirements designed to ensure that employees work closely together and focus their energy on measurable contributions that can promote organizational growth.
What is a rigorous thinking framework
What are the ongoing disciplinary requirements?
Refresh OKP on a quarterly (or other pre-specified period) basis
Carefully confirm the results achieved
result-oriented
Ensure employees work closely together
focus
Make a measurable contribution
Promote organizational growth
what is goal
A succinct description of the qualitative pursuit that drives an organization in a desired direction - what to do
Time limit required
Encouraging
Can inspire the team to reach consensus
What are key results
Quantitative description, used to measure the achievement of set goals - what you want to do
Formulation method
digital quantification
Balance the difficulty of achieving KR with the potential to stimulate the relationship between the two
Issues to consider
At which level do you implement OKRs (company level or business unit level)
Who will sponsor this project?
What kr types are there to choose from?
How to ensure OKRs are aligned with company strategy and vision
How to deliver timely results to ensure rapid feedback and learning
Challenges facing organizations
Challenge 1: Strategy Execution
Myth 1: Strategy execution = strategic consistency
Myth 2: Execution = strictly following the plan
Myth 3: Repeated preaching = understanding
Myth 4: Performance culture drives strategy execution
Misunderstanding 5: Zhanyue execution should be from top to bottom
Challenge 2: Organizational restructuring under the new situation
Career development expectations of those born in the 1980s
A work environment that enables continuous learning
A meaningful and purposeful work experience
A dynamic and valuable career path
Challenge 3: Continued growth
Reasons why companies struggle to grow
Too complex (too many concepts for employees to understand)
Fear of making mistakes culture (overly focused on performance)
difficult to focus
Challenge 4: The threat of disruptive innovation
Disruptive innovation concept
The process of small players successfully challenging industry giants with fewer resources
Challenge 5: Employee Engagement
What Employee Engagement Is Not
Engagement does not mean employee happiness
Employees have an emotional commitment to the organization and its goals. This emotional commitment means that engaged employees really care about their work and the company. They are not just looking for a salary or a promotion, but work passionately towards organizational goals.
The benefits of OKR
Easy to understand, enhances acceptance and willingness to use
Faster pace of development, improved agility and ability to quickly respond to changes
Focus your energy on the most important things
Promote horizontal alignment across departments through openness and transparency
Be more responsible for goals from the bottom up
OKR promotes forward thinking
Ready to go
Why implement OKRs
benefit
Can implement leadership development programs
Can implement management by objectives
Can implement a performance management plan
A balanced scorecard can be implemented
Supervisor support: a crucial part of the OKR implementation process
Connect OKRs to something the manager cares about
Provide OKR training
Involve your supervisor in the OKR implementation process
Implement OKRs at that level
Implemented only at company level
Need support from company executives
Conducted both at corporate level and business unit/team level
Implement OKRs throughout the organization
Pilot only at business unit/team level
Implement OKRs in projects
OKR implementation plan
planning stage
Executive support for OKRs
Answer a question: Why should we implement OKRs and why should we implement them now?
Create an implementation plan
Implementation phase
Provide OKR training
Create company-level OKRs
Several ways to create small teams
Collect employee feedback through questionnaires and use them in subsequent exclusive seminars
Executive interviews
Explain OKRs company-wide
Track OKRs
Report results at the end of quarter
OKR framework
mission
What is the meaning of our existence
effective mission statement
easy to understand
inspire desire for change
long term
Easy to understand and communicate
Tool template
Vision
Use words to outline a blueprint for the future
effective vision statement
Quantitative and time-constrained
concise
Aligned with mission
Verifiable
feasible
Encouraging
strategy
Focus and priorities
manpower
what we sell
technology
Who are our customers
finance
how we sell
society/culture
what drives us forward
Target
Focus on recent achievements
key results
How to know how far we are towards our goals
Create effective OKRs
The difference between OKRs and health metrics
How to Score OKRs
OKR setting frequency
How many OKRs are appropriate?
How to formulate OKR specifically
Create a good goal
step
Have commercial value
inspiring
Quarterly cycle
achievable
Within the team’s control
qualitative
Most successful is a qualitative description
Skill
avoid standing still
Clarify questions promptly
Use positive language to express goals
Provide simple guidance
Start with action verbs
what's holding you back
Use plain language
Goal description
(what we want to do)
Why goals are important
How it relates to company goals and what specific dependencies it has
What internal customers does it support or rely on?
Essential characteristics of a good KR
(How do we know if we have achieved our goal)
Quantitative
challenging
specific
Customized
progress based
Consistent with it up, down, left, and right
Drive the right behavior
Tips for formulating KR
Only write key items instead of listing them all
Based on results, not tasks
Use positive language to describe
keep it simple and clear
consider all possibilities
Be sure to designate a responsible person
Types of KR
baseline type
There is no previous metric data related to wooden plaques
For example: Obtain baseline data of electronic volume redemption rate
Positive metric
When you need to set up a more-the-better metric
For example: Revenue per email increased by 10%
negative metric
When you need to set up a less-is-more metric
Example: Reduce invoice processing time from 5 weeks to 2 weeks
range type
When you need to set a range for a measurement item
For example: Maintain consultant utilization between 70% and 80%
Milestone
When the result cannot be expressed by a metric value
For example: publish push notification function
OKR scoring
KR rating
0.3 points: The extent to which we know it can definitely be achieved, with little or no help.
1 point: The result far exceeds expectations and is almost impossible to achieve.
0.7 points: This is the level we hope to achieve. Although it is difficult, it can be achieved.
0 points: No progress
Mid-quarter review
What an OKR score should ideally look like
Whether goals should be scored and rated
OKR setting frequency
fixed period
OKR development process
CRAFT
create
Draft 1-3 challenging key results for 1-3 goals
Tip: Work as a small team, such as a "dynamic duo"
Analyze your competitive environment
Take a closer look at your strategy
Determine your core competencies
refine
Submit the OKR draft to the entire team and refresh it through workshops
Skills: operate in a large team and determine the KR scoring method
align
Identify the relationship and jointly define KR
Skills, discuss face-to-face with other teams and agree on dependencies, and refresh KR accordingly
finalize
Submit OKR to superior for approval
Tip: Explain the OKR process and output during the superior review
How did you get this OKR?
Your efforts in drafting OKRs
Cooperation agreements you reach with other dependent teams
transmit
Communicate and publish OKRs
Tips: Put OKRs in a centralized location and communicate OKRs in all-staff and team meetings
Combine OKR to drive strategy achievement
Case study of division of labor to repair roof
What happens when people fail to see how they can contribute to an overall goal. Good intentions do not always lead to good deeds. There is no overall strategy to know what we are working towards. This leads to chaotic actions and therefore inefficiency in achieving the goal. As a result Not good
What are Connected OKRs
Create a set of OKRs within the company and align them with the highest-level OKRs (the highest level can be the company or the business unit, depending on which level you implement OKRs), thereby highlighting the uniqueness of the enterprise from team to individual contribute
How to connect OKRs
Whether to implement quickly
Do leaders support OKRs?
Do company-level OKRs reflect clear and unambiguous strategic demands?
Regardless of initial results, will we stick with OKRs to manage our business?
Advantages when OKRs are linked to individuals
Enhance OKR awareness
Increase acceptance and support
Drive everyone in the company to have an in-depth understanding of OKR
Improve engagement
The connection between employee efforts and company goals
develop skills
Disadvantages when OKRs are linked to individuals
weaken engagement
Confusion about various incentive mechanisms
lack of teamwork
Make OKR into a to-do list
No added value
Determine the number of OKRs
Principle: Less is more, be as focused as possible
Get your team ready to connect
Make sure everyone understands the top-level OKRs
Pass the microphone game
Understand the how and why of company OKRs
The key to connection is influence
Subtopic 1
You need to study the company OKR and answer the following questions
What OKRs can we influence in the company?
and how it affects
What OKRs can we help advance?
Crowdfunding
Number of people: 2-4 people
Definition: Bringing all teams together at one time to coordinate OKRs
standard agenda
Leaders briefly describe your OKRs
OKR knowledge review
Demo Company OKRs
Draft OKRs
Publish OKRs
Communicate ideas horizontally
OKR rework
Post again
Subtopic 3
Aligned
(Those who share the same desires will win)
vertical alignment
The goal is indeed to be implemented from top to bottom, but in the process of vertical connection, knowledge and experience flow back from the bottom to the top, forming a never-ending cycle.
Horizontal alignment
Subtopic 1
Avoid independence from each other and do their own thing
Confirm consistency of linked OKRs
OKR value to the company
Let the company be more focused and focus on what really matters
By connecting OKRs, all participants can demonstrate their contribution to the company's overall bigger picture.
Target coverage
Vertical alignment vs. horizontal alignment
Reasonable indicator scoring standards
strategic impact
Follow any rules you have established
Use OKR for daily management
Case introduction (Praying to buy lottery tickets, but never taking action)
You must review your OKR execution results regularly and regularly
key action
weekly meeting
Purpose
suggestion
Mid-quarter review
The theme is consistent with the weekly meeting
status confirmation
quarterly evaluation
To what extent
How to achieve this level
How to plan and run a quarterly review
Refresh OKRs at the end of the quarter
Subtopic 1
At the end of the quarter, score OKRs for the quarter and formulate OKRs for the next quarter.
Subtopic 3
OKR related software
Determine your needs for software solutions
How many people use OKR tools?
Do you want the OKR tool to be designed primarily for executives, teams, or individuals?
Do you score OKRs based on predictive data or latest progress information?
Do you want gaming elements in your software?
Should your OKR solutions be reviewed on a weekly basis?
20 questions about OKR software
1. Does the software book support bottom-up formulation of OKRs and top-down connection of OKRs?
2.Does OKR support cross-team horizontal alignment? Can cross-team dependencies be identified? In other words, can OKR only be connected with its upper-level OKR in the system?
3-20
Make OKRs sustainable
Don’t treat OKR as a one-time project
The difference between projects and OKRs
OKRs have no end date
Who should be responsible for driving OKRs
Senior sponsors are most important
OKR and performance evaluation
Poor performance evaluation
Performance reviews only focus on the past
Reviews are susceptible to bias
Performance reviews are a waste of time
After evaluation is bound to OKR, it will become a heavy burden for it
How to follow up on your performance achievements
What are the company’s OKRs?
Which OKR did you contribute the most to?
how did you do it
Which OKRs on your team did you help develop?
You contributed to the team’s OKRs
how you contributed
How did you apply what you learned from last quarter’s OKRs to this progress?
OKR and incentives
Should incentives be linked to KR indicators?
benefit
Honor perception is more fair
Focus on target with laser-like precision
Simple
Disadvantages
heavy baggage
Reduce the likelihood of proactively taking on more long-term work
May not match current business realities
Ten key considerations for OKR (before formulation)
Help everyone understand why OKR should be implemented
Get executive sponsorship
Provide OKR training
Make sure there is a clear strategy
OBJECTIVE should be qualitative rather than quantitative
Avoid all OKRs being formulated from the top down
Solve a series of problems on KR
Too many items
low quality
KR are all milestone types
Use a consistent scoring system
Ten key considerations for OKR (after formulation)
Avoid the phenomenon of shelving it after it is formulated
Joint OKR to ensure consistency with upper-level organizations
Misunderstandings in OKR development and the help consultants can bring you
The shortcomings of team leaders setting OKRs unilaterally
Roles quickly blur
We all fall victim to unconscious bias
As a leader and arbiter of key decisions, your team receives a lot of valuable input
Providing experience and consultation as a consultant
OKR experience
Confirm the availability of a range of skills
Knowledge inheritance
cultural fit