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OKRs: Objectives and Key Results II

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OKRs: Objectives and Key Results II

First revision: Jun.21, 2024
Last change: Sep.10, 2024
Searched, Gathered, Rearranged, Translated, and Compiled by Apirak Kanchanakongkha.

page 1

Our desired future takes the form of objectives—aspirational and qualitative statements designed to move the organization forward in a desired direction. Each objective is then translated into an underpinning set of measurable key results.
If the objective asks, "What do we want to do?" the key result asks, "How will we know if we've met our objective?"
Business always contains a confusing mix of key pillars (corporate priorities), core values, and business metrics, so we must translate the key pillars into objectives and assign key results to each.

Contents:
       I. An overview of OKRs' many benefits. Before we can implement OKRs, we must ensure our organization is ready to embark on the journey ahead.
       II. We explore how to prepare for the creation and use of OKRs.
      III. Outlines how to create effective OKRs. Types of key results are examined, followed by a discussion of health metrics and the scoring of OKRs. Review of our CRAFT (create, refine, align, finalize, and transmit) process for creating OKRs.
       IV. Connecting OKRs = created OKRs throughout the organization in order to drive engagement, accountability, and focus. Connecting OKRs both vertically and horizontally across the organization are explored.
       V. Exploring the cycle of OKRs reviews and how software can enable OKR success. The OKR review cycle consists of three primary mechanisms, each of which is discussed: Monday meetings, mid-quarter check-ins, and quarterly reviews. The second half of the chapter examines the use of software in the implementation and management of OKRs. To ensure the long-term success of OKRs. To ensure the long-term success of OKRs, they must be ingrained into the culture of the organization.
       VI. Examines how to make OKRs sustainable. OKRs is not a "project".
       VII. Case sharing.

THE HISTORY OF OKRs

The Scientific Management Stories. From Frederick Winslow Taylor to the Hawthorne Effect to the work of Peter F. Drucker.
The MBO's Drucker (Management by Objectives) in the 1950s.
Drucker went on to suggest that objectives be keyed to both short—and long-range considerations and contain both tangible business goals and intangible objectives for organizational development, worker performance, attitude, and public responsibility.
MBO is one of the corporate Intangible assets included in a Corporate Performance Management System (The Balanced Scorecard).
When MBO came to objective setting, most companies chose the "Set it and forget it" pattern we still see in organizations.
Andy Grove (Former Intel's CEO), plus MBO system with just two fundamental questions: (1) Where do I want to go (the objective) and (2) How will I pace myself to see if I am getting there? Grove modified the Drucker model in a number of important ways.

Andy Grove, source: www.13newsnow.com, access date: July 5, 2024.

Grove suggested setting objectives and key results more frequently, and he ensured OKR creation with a mix of top-down and bottom-up involvement. Finally, Andy Grove crystallized the OKR concept: "When the need to stretch is not spontaneous, management needs to create an environment to foster it. In an MBO system, for example, objectives should be set at a point high enough so that even if the individual (or organization) pushes himself hard, he will still only have a 50-50 chance of making them. Output will tend to be greater when everybody strives for a level of achievement beyond his immediate grasp, even though trying means failure half the time. Such goal-setting is extremely important if what you want is peak performance from yourself and your subordinates."

page 2

OKRs is a critical thinking framework and ongoing discipline that seeks to ensure employees work together, focusing their efforts to make measurable contributions that drive the company forward (The Six t-shirts).
1. Critical-thinking framework:
2. Ongoing discipline:
3. Ensure employees work together:
4. Focusing their efforts:
5. Make measurable contributions:...avoid subjectivity...!!!
6. Drive the company forward:

Objectives: An objective is a concise statement outlining a broad qualitative goal designed to propel the organization forward in a desired direction. Basically, it asks, "What do we want to do?" A well worded objective is time-bound (doable in a quarter) and should inspire and capture the shared imagination of your team.
Key Results: A quantitative statement that measures the achievement of a given objective. if the objective asks, "What do we want to do?" the key result aks, "How will we know if we've met our objective?"
Most objectives will have between two and five key results.
- 20 percent of visitors return to the site in one week.
- 10 percent of visitors inquire about our training and consulting services.
ORGANIZATIONAL CHALLENGES, AND WHY YOU NEED OKRs
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References:
⁰¹. from. Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs, written by Paul R. Niven and Ben Lamorte, published by John Wiley & Sons, Inc, ISBN 978-1-119-25239-9 (Hardcover) New Jersey, United States, 2016

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