Mar 15, 2021
How do we set goals? How do we break those goals up to
SPECIFIC, MEASURABLE, TIMEBOUND, smaller actions? How do we assess
whether we've met our goals and, if we fail to meet them, if we
moved in the right direction and made progress? Enter the OKR.
Objectives & Key Results (OKR) is a process for setting goals &
breaking those goals up. An objective is just another word for a
goal. Key Results are actions to move toward the goal. Key Results
need to be timebound, and whether they were completed or not MUST
be a yes or no answer.
To add to this process, organizations need a way to assess
progress. Enter KPIs, or Key Performance Indicators. The feed into
key results and objectives and provide information as to whether we
are moving toward our key results and--more
importantly--objectives.
This system comes from Andy Grove and Measure What
Matters. His clarity and effectiveness at management ended up
creating this system.
Coming from this system is the importance of how managers, leaders,
and CEOs refine, revise, or replace existing routines and habits.
While efficiency at tasks is important, we're ultimately getting
better or getting worse. Objectives, then, need to be achieved with
action--with change--not goals that would be achieved by continuing
to do the same things the same way.
Another key aspect of OKRs is the timeframe. It must not be too
long nor too short. A week, for example, is not enough time to make
large changes and too often to make these large evaluations of
processes and routines. 5 years or 10 years, however, is so long
that it deflates any sense of urgency and too many unknowns exist:
there will be unforeseen opportunities that not only do you not
foresee but you cannot foresee.
Crucially, saying yes to certain objectives means saying NO to
others. Not everything can be a priority, and too many objectives
decreases the chance of getting any of them done. Difficult
decisions must be made regarding what is essential versus important
versus nice-to-have. Fewer objectives also helps employees know
what the objectives are: employees should be able to cite key
objectives.
Key results need to be specific not only regarding what will
occur but by whom - an individual needs to have his or her name
next to the key result. This provides ownership.
Another note on setting objectives is that
aggressiveness--audacity--should not be discouraged. If an employee
establishes audacious goals but works hard to meet them and fails
while advancing the company and providing value to the company,
ultimately it's a win. It's a balancing act setting objectives and
key results. Too many people set objectives that are too easy. A
smaller group goes the other direction and sets unrealistic goals.
Ultimately, managers and subordinates need to discuss objectives
and refine them over time. Good employees and organizations will
fail to meet objectives sometimes.
Another element of OKRs is specificity. Wishy-washy thinking and
inability to prioritize will prevent progress and limit the
organizations effectiveness.
Ultimately, it's all about output: what have you accomplished?
Business and hard work are great, but if you have nothing to show
for it then processes and time management need to be
evaluated.
Finally, this applies to all organizations and individuals:
government and military organizations, couples and families,
individuals and employees can go through this process and better
direct themselves to pursuing and achieving the things they want to
accomplish.
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