Ahoy developers!
Leaving 2022 behind and having the next two weeks to reflect on the new beginning. It could be the ideal time to apply a new way of progress tracking and goal planning.
A question needs to be answered: "Do you need Objectives and Key Results (OKR), or is it just a current fancy?"
What are Objectives and Key Results?
Andy Grove, who helped start Intel and was its CEO for many years, was the first person to use OKRs. He did this in his book High Output Management. He stressed the need for companies to transform strategic thinking into attainable goals and benchmarks.
OKRs are a way for businesses to set goals and track progress. They are used to encourage growth, innovation, and creativity by setting goals that can be measured and keeping track of progress.
When you want to accomplish something, your ambitions are based on the desired outcome. Even if the idea is simple, the real world has many moving parts and is always changing.
At that point, OKRs may be helpful.
Objectives and Key Results is a management technique for defining targets and monitoring performance. It promotes cooperation and involvement around quantifiable goals.
OKRs have two crucial components:
- The objectives - memorable, high-quality terms of what you want to achieve; should be short, inspirational, and engaging.
- The key results - a set of measurements that track how close you are to the goal; a maximum of two to five key findings for each target.
A man who introduced OKR to Google
John Doerr is most famous for having introduced OKRs to Google.
They use OKRs to track progress on specific projects, such as developing new products or services. Additionally, OKRs have been used to set deadlines and increase team accountability.
John says once the company uses the OKR approach, it should engage an OKR commander who will help train the team, monitor and grade implementation progress, and make the required adjustments.
It is essential to choose an OKR leader who will give the implementation top priority.
Companies should incorporate OKRs into their business language, culture, and DNA.
In relation to the above, OKRs should be clear to everyone in the organization, whether they work at the corporate level or as individual contributors.
The OKRs should be formally introduced to new hires, and it's the only way the system can become successful and sustainable.
To quote Edison "Vision without execution is a hallucination"
Setting goals is crucial for many reasons, and using the OKR approach is one way to do it.
Firstly, it assists the organization in concentrating on the top 5 objectives essential to achieving the goals.
OKRs also aid in team coordination and responsibility. Regarding that, employers are aware of what needs to be done, when it needs to be done, who will be responsible for it, and how they will collaborate to complete it.
It's a highly effective tool when used correctly. Knowing that their work directly affects the company's success, every team member can connect personal objectives to corporate ones.
Several characteristics of using the OKR method are listed below:
- Focus – An OKR empowers you to focus on specific goals and make outstanding progress in those areas.
- Alignment - Strategically aligned OKRs get everyone on the identical page right away, driving for more productivity, lower costs for the business and increased efficiency.
- Commitment - Imagine going on holiday without deciding where to go, what to avoid, etc. It can turn out badly. The same is accurate in the context of the OKRs.
- Tracking - it's also crucial to ensure everyone maintains their weekly OKR goals.
- Stretching – Businesses usually establish ambitious objectives. Such objectives lie just on the edge of what seems feasible.
What to/not to do
When setting OKRs, it is essential to ensure they are realistic and achievable. It is also important to ensure that the objectives are measurable and that the key results are specific and quantifiable.
Additionally, it is vital to ensure that the objectives align with the company's overall strategy and goals.
For instance, most businesses may get away with stating the goal of "becoming profitable", but since it's so vague, a team may struggle to figure out how to achieve it.
Teams can concentrate their efforts into tiny steps which enable regular reflection and activity realignment by framing objectives in terms of "what can we accomplish in the next quarter to assist us to reach our long-term goals."
"Key results" are the intended result of a series of acts. Conflating desired results with activities taken to achieve objectives is a typical error when engaging the OKRs.
Make sure to distinguish the steps taken to accomplish a target with the primary outcome.
A few practical examples are listed below:
Example of what not to do:
Objective: Decrease the system's data error rate.
Key result: Installation of the vendor package's release 10.0.
Examples of what to do:
Objective: Drive quality for features in new releases.
Key Results:
- Detecting 30 bugs by the end of Q2;
- Use the new QA automation procedures;
Objective: Release a top-notch product beta.
Key Results:
- 10% of current consumers have tried it;
- Achieve an NPS score of 7.
Objective: Drive quality for features in new releases.
Key Results:
- Detecting 30 bugs by the end of Q2;
- Use the new QA automation procedures.
Finally, monitoring progress regularly and adjusting the OKRs as needed is important.
Agility requires OKRs
Setting OKRs is only one aspect of the process. Making sure your team members carry them out is another aspect.
OKRs provide your workers with a sense of obligation and purpose. For them to be effective, team goals must reflect and support the corporate vision.
Studies show when members understand what the team is aiming to accomplish and what is the importance of the task, they are more motivated to work and more productive. Therefore, the focus of a quarterly review may change from "Did we provide what we promised?" to "Did we achieve the goals we set out to achieve?"
OKRs and agile development intertwine with each other.
Agile development is supposed to lower the costs associated with changing your mind. This is because agile planning requires a regular, planned cycle of monitoring development progress, assessing the organizational context, and implementing changes based on this knowledge.
Your objectives should closely connect with both your short and long-term aims while also supporting the company's mission and core values.
Remember to track the results, too!
5 steps on how to start with OKR:
- Set realistic and achievable objectives aligned with the company's overall strategy and goals.
- Make sure the key results are specific and quantifiable.
- Communicate the objectives and key results to all stakeholders.
- Set deadlines for each OKR so that progress can be tracked.
- Review progress regularly and adjust the OKRs as needed.
Reposted to Blog