Translated from Português (Brazil) • View original The OKR methodology has conquered a very important and indispensable space among companies present in the job market. One of the main reasons for this is the fact that the tool can help, and a lot, when it comes to maintaining the organization of all business goals. It is known to everyone that having clear objectives and keeping all activities working in full harmony are essential for the company to present good results. With this in mind, we decided to prepare a complete content on the OKR methodology and the ways to implement it in the day-to-day life of a company.
What is OKR?
OKR, or in translation, Objectives and Key Results, is a management system used by companies today. In a summarized and simplified way, it is possible to say that this is an ideal formula to define the goals of a business in the clearest possible way for everyone involved in that process. Such objectives can be achieved individually or collectively. The tool was invented by Andrew Grove, however, John Doerr is the great evangelist of the methodology. Nowadays, several large companies already have the help of this tool, such as: Nubank, VivaReal and Locaweb.
How does the OKR methodology work?
For the OKR methodology to be successful in your business, it will be necessary to establish clear and ambitious short-term goals and objectives, as they will be measured periodically. After a while after the emergence of the method, a formula was created to help Google set goals and it is: I will (Objectives) measured by (Key Results) In more detail, a good goal should indicate what the company will accomplish and the way it will measure its achievement. With this, companies started to mirror this formula, finding a new way to achieve their goals.
Meaning of each of the components of the OKR methodology
The OKR methodology has two very important components that make it present great results. They are:
Objectives
They are memorable qualitative descriptions of what you want to achieve in your business. Objectives should be short, engaging, and inspiring, and need to motivate and challenge the team in charge.
Key Results
Key Results are a set of 2 to 5 key results. All of them must be quantitative and measurable.
What are the levels of the OKR methodology?
There are three types of levels that can be achieved with the use of the OKR methodology. They are:
Organizational
The OKR, which is at the organizational level, will inform the entire company about the objectives that need to be achieved at the moment. It is very important that it is always very motivating and inspiring for all members involved in the process. In this way, the entire strategy of the company, as well as the priorities of the organization, must be included in the organizational OKR.
Departmental
The departmental one, on the other hand, has goals directed to the performance of each of the teams. These OKRs are the ones that can have more specific objectives, however, they must always be aligned with the organization's purpose.
Individual
Finally, there is the individual OKR methodology. It should be focused on the performance and deliveries expected of each of the company's employees.
What are the benefits of the OKR methodology?
Just like any other feature, the OKR methodology has several benefits when used correctly. For example:
More agility in processes
Using this type of tool, it will be possible to create shorter cycles of goals, which allow for quick adjustments and better adaptation to changes.
Employee engagement
In the OKR methodology, there is an approach called "top down", which connects employees with the company's main objectives, which increases engagement.
Reduced time to set goals
The simplicity of the method makes the goal-setting process much faster and easier, which drastically reduces the time spent on this development.
Keeps the team focused
With the smaller number of goals, it will be possible to create a more centered focus of all your team members.
Brings transparency
The use of shared OKRs helps improve collaboration between different teams, unifying initiatives easily.
Offers more autonomy and responsibility
Teams will be given a clearer direction to follow, as well as the option to choose how to achieve goals, becoming more accountable for their services.
How to implement the OKR methodology in my business?
Now that you know what the OKR methodology is and how it works, it's time to know how to implement it in your business. Check it out:
1- Short cycles
It is very important to set short deadlines to analyze and review OKRs periodically. This will allow for faster adjustments and your team will have time to put everything discussed into practice.
2- Review goals
The review of goals must be constant to ensure the proper functioning of the work of your employees and the tactics applied in the business. You can develop a weekly check-in scheme to keep all members of the company involved and allow for new adaptations.
3- Measure results regularly
To do this, you can use data to improve processes and offer good feedback to the teams involved. With this, you will be able to explain to your employees what data will be collected and its importance to measure results. This practice will be able to improve collective and individual performance to make goals the motivation of people during the routine.
4- Stay focused
Through the OKR methodology, the organization maintains the focus of employees and goals become even more plausible, with the help of periodic check-ins.
5- Create challenging goals
Set clear, objective, and ambitious goals so that your teams can achieve 100% of them. This is one of the OKR tactics, as you will motivate people through the objectives that have been set in the company.
How to rate OKRs?
In order for you to have a good organization of the OKR methodology used in your company, you will need to give grades to each of them during their evaluation. The simplest way to do this is by using the linear proportion of achievement of each Key Result. They will be evaluated from 10% to 100% according to the concepts applied in the method. Check out the grid to measure your OKRs:
- 100%: almost impossible to achieve;
- 60%: what we want to achieve (a challenging goal, but achievable);
- 40%: there is some progress, but not enough;
- 10%: there was no progress.
What are the most common mistakes made by companies that use the OKR methodology?
It is very common for some companies to end up making mistakes when implementing the OKR methodology in their daily lives. However, there are the main ones that need attention so that they are not made.
Create many OKRs
OKRs should not be a list of all the tasks that need to be done in the company, but an inventory of all the priority goals of the business.
Lack of alignment
It is very important never to determine OKRs alone. Talk to your team and other teams, so that everyone is always aligned on the methods that will be addressed in the company.
Easy-to-achieve goals
A motivated team is made with challenging and ambitious goals. Therefore, always think outside the box. If you are looking for a customized OKR methodology software, capable of managing all your processes, count on Colorkrew. Contact our team and get a quote today!