Popularized by Google, the OKR methodology methodology has gained enormous traction in recent years as a process for setting goals. The transformation towards the OKR process can be challenging, as it requires changes in the culture and performance management of each area. This goal-setting process begins when the leadership defines Objectives, which should have a purpose and qualitative context in line with the company's values. Based on this context, teams and leadership define objectives and key results to contribute to the company's goal. For those just starting out on their goal management journey, the first level can be called Curious and is represented by teams or managers who are starting to get to grips with the methodology, but have little or no experience of implementing the processes.
At this level, management has begun to define goals and structure its processes, so we recommend reading our OKR Implementation Manual; Now, if the OKRs have been defined and written by each team, it is necessary to check that they are aligned with the company's goal, as they will improve performance during the quarter. By using goal management with a result-oriented focus, people are able to prioritize individual effort and understand how their work contributes to the company's overall result. Having annual targets is important, but dividing the targets into areas with a specific focus helps to maintain focus and agility.
Instead of using an individual KPI approach, by implementing target management and performance indicators it is possible to have data-driven results. For the company's management, this type of monitoring makes it possible to discuss with managers which major areas need improvement, what the problems are and where to allocate each team to solve these problems. This level of discussion helps directors and managers decide on the real results they can deliver within the quarter.
Difficulty in implementing OKRs
At the beginning of the journey, as with most frameworks, OKRs are simple to understand, but difficult to master and implement precisely. Leaders often fail to understand that company objectives don't always translate into individual or team objectives. For example, many employees carry out continuous or repetitive tasks linked to their position, performing many of the same actions, regardless of whether the activity is linked to the company's quarterly objectives. When managers fail to communicate the main objectives and purposes of each goal, it is unlikely that the team will be able to move forward and understand each goal. This kind of behavior can make people feel frustrated at the lack of alignment.
Another difficulty in implementing OKRs is that they have been written specifically on the basis of what the team believes it can achieve, but it doesn't change anything in the work to achieve the result. Leaders and employees should update the progress of the results regularly, in order to accurately assess each evolution and if necessary make any changes to achieve the result. Otherwise, at the end of the quarter, the evaluation will show that the results cannot be achieved. Without monitoring and integrating people, OKRs can become a quarterly "ritual" that adds no value to the company.
In large companies, it is possible to confuse company objectives with revenue targets. People often believe that the objective at company level should be "to increase revenue by X%" or "to reduce costs by y%". These are not objectives but KPI targets (performance levels you want to achieve). There are many specific things that a company can focus on and it can be difficult to prioritize, so remember that the corporate-level objective should be a focused statement for the quarter. If the company wants to increase a higher revenue number, a quarterly objective could focus on acquiring new partnerships, channels or expanding into a different market. Objectives also apply to improving brand reputation and customer satisfaction, among many others.
OKRs can solve a number of problems, but it depends a lot on how the process is implemented. To increase synergy and collaboration between teams, invest in interconnected strategies, working across departments. In this way, teams will be able to understand the importance of each area and encourage the pursuit of results, since both share the same goals. This dynamic breaks down the top-down versus bottom-up approach, bringing the OKR process into practice side by side.
OKR is not a list of activities
The results of each area have a direct impact on the overall goal, and it is necessary to constantly monitor progress to see if the results are going in the right direction. If there is a lot of work, a lot of effort and no effective results, it is possible that the team is working on a list of activities and not on OKRs. Basically, a task are actions that people need to carry out, being small tasks every day, a necessary "to do", and in some cases these activities (or projects) are part of achieving a result, but not necessarily something linked to the company's objective.
If you're just starting to write your OKRs, it's often difficult to make this separation. Remember that OKRs are about results, not activities! They are changes that need to be made in order to achieve a greater goal. Separating what people are working on from what changes need to be made avoids mixing up normal business-as-usual (BaU) activities with your OKRs.
Discovering the maturity of your OKR process
As with people, the process of maturing is associated with the concept of continuous improvement and perfecting results. The level of maturity will show how your goal management process is going and will act as a guide to help you implement it correctly. A Improvefy has developed the OKR Management Maturity Diagnosis so that leaders can easily identify how to optimize each process.
Now if you're just starting to write and define your OKRs, or have any questions about how the methodology works, we suggest you check out our OKRs Implementation Manual.
