Have you ever heard of the OKR management method? Born in the 1950s in the United States, it was popularized by large companies in Silicon Valley. If you do not yet know all the secrets of this method, you are in the right place: here we are going to show you its origin, its advantages and especially how to apply it within your company.
What is the OKR method?
The principles of OKR
OKR is a method of managing projects by objectives. It is based on two pillars: goals and key results that measure success. These two elements gave this method their name: Objectives and Key Results.
In this method, the company sets an overall course and goals, and then develops a strategy to achieve them. Team OKRs can then be defined, with a smaller field of action, but always in the interest of the company's goals. The OKRs of the various teams are therefore complementary.
A method used by large companies
The OKR method was invented by the American Peter Drucker, then democratized by Andrew Grove, the head of Intel. Thanks to this radical strategic change, small business has become a major player in Silicon Valley.
The method was then taken up in the 90s by Larry Page and Sergey Brin at Google, where it is still used today. We can also mention other very successful companies that use OKR: LinkedIn, Spotify, Netflix, Oracle, etc.
Why use the OKR method in business?
Giving more meaning to work
The OKR method brings together all employees of a company around a common objective, which makes sense. In this way, they better understand the purposes of their tasks and the interest they have in the overall mission of the organization.
Employees are increasingly looking for meaning in their work: the OKR method is a very good way to involve and motivate them on a daily basis.
Increase productivity
Understanding the overall strategy of the company and its objectives allows employees to be more effective, to better understand the purpose of their tasks and to find the best possible solutions. With more motivated employees, engagement is naturally higher, which leads to greater productivity.
The fact that everyone is talking about a common direction also promotes mutual aid and collective intelligence. It is beneficial for the functioning of teams.
Do not deviate from your goals
In an OKR, the goals set are generally ambitious, so this encourages employees to surpass themselves and be creative to achieve them. Following a well-defined course allows you not to deviate from your initial objective, even when the company's growth is very important.
How to apply the OKR method in business?
1 — Define your rules and objectives
Defining business goals is a priority for applying the OKR method. But before you get started, you need to choose a few rules:
- The pace, or frequency at which you are going to set your goals. Businesses tend to prefer annual goals, but for a fast-growing organization, bi-annual goals may be more appropriate.
- The follow-up. Set a schedule to assess and update your progress.
- The model. It can be top-down, ascending (Bottom-up) or hybrid. It's up to you to see if you want your employees to be involved in defining goals or key results. Keep in mind that this may allow them to become more involved in the business.
Once the rules are established, define the essential mission of the company, the course you decide to follow. It must be both ambitious and achievable. You can then formulate sub-goals at the team level.
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2 — Define key results
Once the goals are clear, you need to associate them with key results. This is quantitative data (numerical), which makes it possible to determine whether the objectives are being achieved or not.
Do not lack ambition when defining the key results: if you are certain of achieving them, it is because you are not setting the bar high enough!
3 — Implement initiatives
OKR initiatives are all the concrete actions that you will implement to achieve your goal. They need to be organized, planned, and scheduled.
4 — Track and measure OKRs
It is important to take the time necessary to assess your results on a regular basis, by setting deadlines. This makes it possible to identify your successes and failures. These are an integral part of the OKR method because they allow you to learn.
5 — Improve your processes
If your goals were really ambitious, it's perfectly normal not to reach them. To make progress, it is important to identify the blocking points. Each member of the team can therefore try to find improvement points for each objective that has not been 100% fulfilled.
The OKR method encourages teams to focus on the positives in order to strengthen themselves, while clearly identifying the gaps that need to be filled. This allows for continuous progress.
Contrary to some preconceived ideas, the OKR method is not only for large multinational companies, quite the opposite! SMEs, start-ups or NGOs can also benefit from it. By setting clear goals and key results, organizations integrate more meaning into the work of their employees. This leads to moreinvolvement, creativity and productivity, all while maintaining a specific focus. It can be set up relatively easily by following a few steps. So did that make you want to try it?
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