OKRs, which respond to the acronym Objective Key Results, represent not only a new way of setting objectives, but also of managing organizations. Because? In addition to allowing us to reach our objectives more effectively, they help us give meaning to what we do, align teams and generate commitments.
The OKRs methodology focuses on setting transformative objectives and proposing the necessary actions to achieve them. Companies like Google, Spotify, Linkedin, Walmart, The Guardian or ING are some of those that use it. Do you want to know what OKRs are and how you can implement them in your organization? Keep reading.
This new direct and simple way to set goals and measure focuses on two aspects: the objectives (What do you want to achieve) and what are the key steps you need to get them (The how). Larry Page, Co-founder of Google, said that "when good ideas are combined with good execution, magic emerges."
In this process, the leadership courses They can be a valuable tool to develop the skills necessary to close that Gap and successfully achieve your goals. To achieve these results, The first key is that the OKRs are motivating. This is achieved by combining purpose and ambitious but tangible change. In order to achieve the transformation, it is also important that you detect what the Gap is: that is, that you become aware of what your initial situation is and what separates you from your objective.
Now that we have explained the theory, where can you start to set your goals? Before set OKRs, must ask why.
The objectives you define for Your OKRs should be meaningful, concrete, action-oriented and inspiring. These are objectives that awaken inner motivation, creativity and the desire of your team to strive: they make us feel useful to society.
Also, within the OKRs, also The concept that the objectives are “Stretch” is very important. With stretching, reference is made to the “tightness” involved in stretching: when you stretch a muscle, it takes you out of your comfort zone and it may hurt, but then you feel better and, if you continue working your muscle often, You stretch yourself further and further until you reach much further than you thought you would. We must also keep in mind that we should not stretch too far, as we could hurt ourselves: we must go step by step.
To create these goals, you have to start from a more idealistic base How realistic: only then can we achieve truly transformative changes! For example, it's okay to ask yourself these types of questions:
Once you have the answer, take a step back from the answer you have arrived at: like this, you will set a bold but realistic goal. Above all, the objective has to be credible and possible because, if not, it will demotivate the team.
In order to create effective key results, these have to meet the following characteristics:
John Doer, the creator of OKRs methodology, committed to establishing 3 to 5 aspects with which you can measure that you are improving and getting closer to your goal.
For example: if your goal is to turn your company into the one that offers the best customer service in the sector, a Key Result could be «Reduce waiting time of customers" or "achieve best grades in surveys of satisfaction".
But, for these Key Results to be powerful, should include more concrete and specific data, such as:
For Key Results to be efficient, it is key that they are of quality and include quantity and quality: If you notice, the first two examples refer to quantity and the last two to quality. If, for example, we propose reducing waiting times but there is no improvement in the quality of the process or in the reasons why queries occur, the measure will not be sustainable or will not contribute as expected for the final objective, because we will reduce waiting times but service will not improve.
Another guide that you can use to creating these Key Results is the SMART method:
To carry out a correct implementation of OKRs, whether weekly, monthly or quarterly, you must check if they are being fulfilled. For that, use the traffic light technique, with which you will rate the level of success in achieving them with green, yellow or red.
When observing results, The ideal is to have a mix of green and yellow traffic lights. If you see a lot of red colors, it is likely that your Key Results be unrealistic or they do not serve you to achieve your purpose.
If you get yellow, you should continue improving, but there are changes that you must apply in your strategy.
If, on the other hand, they are all green, it is not a good sign either: this may mean that you are setting the bar too low. There always has to be challenges and room for improvement!
1. OKRs are ideal for connecting the organization's purpose and/or strategy with the objectives of all areas.
2. On the other hand, OKRs help organizations give meaning to what they do, align teams and generate commitment among his people. QFor this, in addition to connecting with the purpose (why) and the defined strategy (how), it also It is important that they are transparent to everyone and co-created in a bidirectional way: that is, although the company sets the strategic direction, each area and team can participate in the definition of their specific OKRs to achieve the stated objectives and how they contribute to the achievement of the strategy that brings them closer to the aspirational purpose.
3. The periodic monitoring of the Key Results proposes a more agile approach which marks a turning point with respect to traditional objectives and enhances the mindset of continuous improvement. The fact that these Key Results are challenging is also vital so that they always force us to go one step further, to constantly improve ourselves.
On the other hand, it is also important that these objectives are separated from bonuses or increases and also from performance evaluation: the team needs to know that it will not lose money if it sets very ambitious objectives.
Now, as practical exercise to start creating your OKRs, we encourage you to answer two questions:
We hope this post has helped you learn in depth what OKRs are and how you can create and implement them. If you would also like to know more about the topic or carry out some development experience for your team related to OKRs, Ready for People We have an interactive workshop called “OKRs: objectives at the service of the purpose” which is specially designed to help you create your OKRs and put them into action.