When considering the introduction of OKR, one of the most important factors to consider is the period and cycle of operation.
In order to get the most out of OKRs, it is important to set an appropriate period of time, so it is a good idea to check this before introducing them.
In this article, we will introduce the guideline for the period and cycle of OKR operation and the advantages of setting a regular period.
What is the period and cycle of OKR operation?
What are the guidelines for the duration and cycle of OKRs? Here, we will introduce the characteristics of OKRs and how they differ from KPIs and MBOs.
Feature of setting the period in a short span
OKRs have the characteristic of setting the period in a short span of time like a daily hedge, about once a month to once a quarter.
Since it sets simple goals that can be achieved in a short period of time, it is ideal for company-wide implementation. Since there are many opportunities to experience a sense of accomplishment, it has the advantage of helping to improve employee motivation.
It also has the advantage of defining the direction of goals, as it breaks down the company’s goals into smaller pieces, such as departments, teams, and even individual employees.
For more information on what OKRs are, please refer to the following page.
What is OKR?
How it differs from KPI/MBO
The difference between OKR and KPI or MBO is in the setting of the cycle and period for evaluation and feedback.
The difference between OKR and KPI is the setting of the cycle and period for evaluation and feedback. It is important to note that OKR is conducted once a month to once a quarter, while MBO is conducted once a year and KPI is conducted sequentially.
OKRs focus on the process and approach to achieving goals and are intended to increase employee motivation.
On the other hand, MBO is often used as an evaluation index in human resources, and KPI is used to manage progress to see how much is being achieved against goals.
Another difference is that OKR requires all employees to work on it and share the progress status and achievement rate, while MBO and KPI have a limited scope of application.
If the entire company is involved in the process, it would be preferable to introduce OKRs.
Reasons for setting a regular OKR period
There is a reason why the period of OKRs should be set periodically. Let’s take a look at the reasons and benefits of setting an operational period for OKRs.
To make it easier to respond to any changes
Setting a regular period for the OKRs has the advantage of making it easier to set goals and provide feedback.
Another advantage is that it is easy to respond to changes because it is flexible to review the direction and target values.
It is easy to provide feedback in the form of concrete figures such as what percentage of the current achievement level is and what percentage can be expected to be achieved during the period.
However, the optimal period varies depending on the management phase, organizational size, and situation of the company operating OKR.
It is important to note that if you set the period too frequently, it will be easy to focus only on trying to achieve the goal and confusion will result.
It is important to set a time frame that suits your company
The most important thing to keep in mind when implementing OKRs is to evaluate them based on the results.
It is preferable to evaluate the degree of achievement and contribution, rather than evaluating the contents of the OKR goal setting individually.
The optimal rate of achievement for setting OKR goals is about 70%, and a rate of achievement exceeding 100% is considered to be a poor goal setting.
This is because the purpose of setting “goals that seem unattainable” is to maximize motivation and bring out high performance.
You should be aware of managing the rate of progress and reviewing the goal setting through regular feedback.
Examples of OKR Period Aware Operation
The Flow as a Model for OKR OperationGoalous, a tool for flat use.
A goal management tool based on Goal Key Results (GKA), which was developed based on the concept of OKR, is “ Goalous .
The “open goal function” has the advantage of making the goals, achievement rates, and actions of all employees immediately visible, making them easy to manage.
Since it makes it easy to manage the overall progress, there is no need to check the progress in advance or prepare materials during meetings.
It also has a chat function, which eliminates the need for standardized text when sharing information within a team, and allows for speedy information transmission.
It is a combination of goal and progress management and communication tool Goalous, which combines goal and progress management with communication tools, to further upgrade OKR. to further upgrade your OKR.
Setting a period of time for OKRs is one of the most important indicators of how the process will act during that period.
To prevent employees from becoming isolated, we want to build a system that allows them to work with high motivation by providing regular feedback and follow-up.
Click here to apply for the monthly free web seminar.