OKR has been adopted by many global companies such as Google and Facebook, so what is the difference between OKR and conventional systems?
Basic information about OKRs
OKR is a way for companies to set and manage goals. Due to the shortening of product life cycles and the diversification of consumer needs, companies are faced with the need to resolve issues in a speedy manner. To do so, smooth communication within the company is indispensable.
OKR has been attracting attention from many companies in recent years as a method that can enhance collaboration among employees.
What is OKR?
OKR stands for “Objectives and Key Result” and is a management method that clarifies the overall direction of a company by setting Key Results to achieve the organization’s stated goals (Objectives).
This framework, which started at Intel Corporation in the 1970s, has been attracting a lot of attention in recent years since it has been adopted by global companies such as Google and Facebook.
How OKRs work
OKR is a structure in which one Objective is accompanied by several Key Results, and the number of Objectives should be around 4 to 5, neither too many nor too few.
Objectives in OKR should be simple. The number of Objectives should be no more than three, and no more than six at most. They should be ambitious enough to motivate the entire team, and they should be achievable in a short period of time (one to three months).
There are three main benefits of OKRs
OKRs have been adopted by many world-famous companies, but what are the advantages of using OKRs? There are three main advantages.
1. Share the company’s goals
Some managers may think that their employees are only doing what they are told by the company or their superiors.
In a sense, it is inevitable that employees only do what they are told to do by their superiors. This is because in many companies, the direction and goals of the company are not shared with the employees. As long as employees don’t know the direction the company is heading, they have no choice but to do the job at hand.
The introduction of OKRs can be a catalyst to improve the situation where employees are just doing what they are ordered to do because they don’t know what their goals are, because OKRs link individual employee goals to team goals and company goals.
By linking one’s own goals to the company’s goals, the direction of the company becomes clearer and the decision-making ability of individual employees improves. This will also help to increase the creativity and motivation of employees.
In this way, the first benefit of adopting OKRs is that by sharing the company’s goals, employees’ awareness of the company can be changed in a positive direction.
2. Revitalization of internal communication
When you adopt OKRs, it is easy to share individual tasks with the whole team. This is because each goal is connected to the goals of the team and the company.
In order to get closer to the team’s and company’s goals, it is necessary to accumulate the achievement of each individual’s goals, so the more tasks are shared, the closer the goals can be achieved.
Sharing tasks for the sake of goals means that communication among members will also increase. There will be more opportunities to discuss and exchange opinions through work, and teamwork will be promoted.
If we can build solidarity across positions and departments through OKR, we will be able to make great progress in achieving our high goals.
3. Improving work efficiency
By adopting OKRs, you can clarify your own role in the company. You will be able to understand where you stand and thus reduce waste in your work.
The reason for this is that OKRs make it clear what priorities need to be prioritized in order to achieve goals. One of the benefits of adopting OKRs is that you can focus on the work that needs to be done by understanding your priorities.
Furthermore, OKR is a goal management method that is suitable for short-term goal setting. By keeping up to date with the company’s policies and individual tasks, employees are less likely to fall behind the flow of business. Another advantage is that it makes it easier for employees to be flexible in setting goals when the company changes its policies.
Translated with www.DeepL.com/Translator (free version)
Key points for setting OKRs
For Objectives, set high values, but not too high values that will reduce productivity. For Key Results, set a specific number that is difficult to achieve but is likely to be achieved if you work hard. 60-70% achievement of the goal is considered a success.
To set OKRs, it is important to use SMART Objectives (Goal Achievement).
SMART is an acronym that stands for Specific, Measurable, Assignable, Realistic, and Time-related, and it is a method of increasing the likelihood of achieving goals through these five success factors.
The goal should be a number that the entire organization can work toward and achieve, with a desirable achievement rate of about 70%. Also, always set a deadline, and reset the Objectives and Key Results each time.
If you set too many Objectives, there will be inconsistencies among them and they will become a skeleton. Especially for companies that have just introduced OKRs, it is better to set fewer objectives in the beginning.
Key Results should be specific numbers so that they can be measured and appropriate decisions can be made. There should be no more than five Key Results per Objectives. If there are too many, it may interfere with communication within the organization.
In addition, OKRs are designed to improve communication throughout the organization, and it is not the original purpose to reflect the achievement rate of Key Results in personnel evaluation.
However, there are many Japanese companies that use OKRs as an indicator for employee evaluation, and when considering the introduction of OKRs, it is necessary to ensure that personnel evaluation is considered separately.
GKA, an evolution of OKRs
The OKRs have been adopted by many famous companies and are producing results, but there are some problems with them. Many companies that use OKRs have a proven track record, so there is no denying the possibility that OKRs are working just fine.
Therefore, a new system based on the OKR concept has been devised: GKA adopted by Goal-KR (Goalous).
GKA stands for Goal-KR(Key Result)-Action, and the decisive difference from OKR is that it does not set organizational goals. GKA is different from OKR in that it does not set organizational goals, but instead uses only a “vision” as a higher-level concept, and allows for a range of individual interpretation by providing an abstract direction.
GKA can eliminate this waste and motivate employees to make their own decisions.
We are holding a webinar about GKA, so please come and join us.
OKRs are a way to clarify the results of achieving goals, which helps the organization understand its direction and helps employees to have a positive sense of purpose in their work. However, if the goals are not shared well throughout the organization, they may not function well.
Therefore, there is a way to introduce GKA, where each employee makes various decisions regarding the goals by presenting a vision without setting goals.
GKA has been adopted Goalous allows everyone to share a single goal, and everyone can complement each other’s abilities and collaborate to achieve the goal.
Because the system is set up with a high degree of freedom, it is not only exciting to work with, but also flexible enough to accommodate sudden changes. If you are thinking of improving communication between organizations, I highly recommend that you consider it.