The OKR Model
THE OKR MODEL - LEADING WITH OBJECTIVES
AND KEY RESULTS (OKRS)
The OKR model refers to an innovative leadership method for agile businesses. Among others, Google, Twitter and LinkedIn use Objectives (O) and Key Results (KR). As a management consultancy, OKR Academy has developed an extremely efficient process for the implementation of the OKR model.
OKRs: THE AGILE MANAGEMENT METHOD USED BY GOOGLE, LINKEDIN AND CO.
The OKR model is a management method, which interconnects the goals of a company with those of each and every employee and establishes a clear focus on goal setting for the next three months.
OKRs help a business to:
- Clarify the critical tasks for the company
- Find the right focus for the next three months
- Decide on the proper utilization of scarce resources
- Achieve transparency for employees allowing them to focus on the right tasks
- Establish better communication
- Implement success tracking indicators
- Connect vision, mission and strategy with short term operational planning
THE TWO CORE ELEMENTS OF THE MODEL:
OBJECTIVES (GOALS) AND KEY RESULTS (MILESTONES)
The objectives (O's) are motivational, challenging and for the most part, not fully achievable. Key Results (KR's) describe very concrete and measurable steps on the way to reaching the objectives. You decide how progress in reaching the goals is measured and how the results are evaluated.
THE FUTURE CORE ELEMENTS OF MANAGEMENT ARE DEPICTED TRANSPARENTLY.
Future generations of managers will focus first and foremost on clarity, transparency and feedback. Unlike before, outcome becomes the focal point of analysis. OKRs offer the ideal system not only for clear communication of goals, progress and results, but also of assistance needs and lessons learned.
A STRUCTURED GOAL SETTING PROCESS IS THE KEYSTONE OF AN EFFECTIVE MANAGEMENT SYSTEM.
Identifying and formulating the right goals are the alpha and omega of modern management. The OKR method collects 60% of the objectives from the operational level, and harmonizes them with the remaining 40% of objectives from management. This process ensures that no important aspects for the near future are forgotten.
PROGRESS MEANS: AN AGILE MODE OF OPERATION COMBINED WITH RAPID IMPLEMENTATION.
Adapting to constantly changing conditions is one of the main challenges of modern companies. Therefore, businesses need a model that leaves enough room for the creativity and pressure for change of modern markets while guaranteeing a disciplined implementation of the next steps at the same time. Objectives are set, achieved and evaluated in three-month cycles.
OPERATIONAL EXCELLENCE IS ALL THAT COUNTS DURING IMPLEMENTATION.
In the world of OKRs, decisions about the allocation of resources and the next major issues to be addressed are taken in quarterly goal setting meetings. After that, it's time for implementation - no time to lose! Operational excellence leads to an improved cohesiveness of team and employee goals, an increase in the interconnectivity of goal systems and a significant improvement of the ability to quantify progress.
THE ORK MODEL WILL BECOME A PIECE OF THE COMPANY'S DNA.
Management systems only work when they are executed unconditionally. The entire management team must wholeheartedly back the implementation, and the OKRs must fuse into every part of the businesses' bloodstream. Goals are handled transparently and find their way into the systems used on a daily basis. They provide an on-going agenda for meetings and set the framework for assessment of progress and success.
OKR GUIDANCE: AN OUTSIDE PERSPECTIVE HELPS IN THE SUCCESSFUL IMPLEMENTATION OF OKRs.
In order to maximize the potential of Objectives and Key Results, it is advisable to gather all outstanding goals, projects and tasks and assess their importance. That way you can pinpoint, which goals are truly important and which are not. In this measure, it is often best to have a neutral outside perspective. Once all issues are on the table it really just boils down to separating the important ones from the unimportant ones and to find the right focus. An experienced OKR Champion supports an efficient and successful implementation of OKRs. For the process, it is important that the OKR Champion is fully integrated in the business during the first OKR period.