Hi Managers, do your employees have signs of low motivation?
OKRs—Key Results and Objectives—present a surprisingly simple and powerful OKR management tool. As the concept of OKRs and their initial implementation gained traction, an increasing number of companies are embracing this tool due to its effectiveness in establishing a sustainable goal management system. When employed with the proper methodology, OKRs can furnish a wealth of valuable information for organizations.
Businesses of varying sizes and operating in diverse industries are consistently in search of innovative approaches to enhance their performance. While the practice of setting organizational, departmental, and individual objectives to chart a path forward is widely recognized, numerous organizations adopt a top-down goal-setting framework. Unfortunately, this approach often becomes entangled in the process of determining which goals to set, hindering progress towards actually achieving those goals.
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About Shone Fone
Shone Fone is a Serial Entrepreneur for 10 SMEs since 1997, businesses ranging from equipment supply, manufacturing, equipment maintenance and ISO 17025 calibration service, HRM software development and training. He also an award winning entrepreneur of Asia Pacific Top Excellence Brand – Book of The TOP Recognition.
Hi Managers, do your employees have signs of low motivation?
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Hey, I’m Shone Fone Ng. I’m determined to make a business grow. My only question is, will it be yours?
Organizations of all sizes and across all industries are constantly seeking for new methods to improve performance. Setting organisational, departmental, and individual objectives to plan where you want to go is a generally acknowledged practise, but many organisations use a top-down goal-setting framework that frequently gets stuck in the phase of deciding what goals to establish rather than going on to accomplishing those goals.
OKRs—Key Results and Objectives—present a surprisingly simple and powerful management tool. Since the first article on the concept and first practice of OKRs, more and more companies are adopting the tool because it provides a sustainable system for managing goals. With the right approach, the use of OKRs can provide a wealth of information.
Company OKRs are strategic goals that are set by your CEO or equivalent. You can then set your team’s OKR which is a subset of the company’s. Your company’s OKRs are directional, which means you’ll have a time span of 1 to 3 years. The company OKRs define the company’s direction. They define the what, the why, the how, and the when. For an example of what is OKR for company:
Objective: Achieve target annual revenue/profit record
Key Result 1: Hit quarterly revenue of over __
Key Result 2: Increase gross profit from __% to __%
Key Result 3: Expand company’s market to __ countries / areas
Leadership team plays a critical role in building and sustaining a successful OKR program for their organization. Incorporating key results in a leadership team’s daily decision making grants a valuable insight into how well the team is going to meet the key company objectives. A well-developed key results system is key to unlocking success in a company’s key objectives. Below are the examples of what is okr for leadership team:
Objective: Able to raise new capital for company growth
Key Result 1: To get at least 1 minute calls meeting
Key Result 2: Outreach of 50 VCs and seeds funds in email
Key Result 3: To close an investment round with the minimum of __
Objective: Improve annual budgeting and business planning
Key Result 1: To identify 50 potential prospects
Key Result 2: Analyze 5 possible touch point through personalized messages
Key Result 3: Identify at least 10 insights of customer experience through communicate and link with prospects
Objective: Launch a new version of the main product
Key Result 1: At least of __ news signup users
Key Result 2: Sign-up ratio at over __%
Key Result 3: Sign-up ratio of trial version over __ %
Team OKRs specify the strategies that will be used and the outcomes that must be achieved in order for the company to accomplish its long-term objectives. Everyone has a hectic schedule, and unexpected events may arise, but whatever is expressed in your OKRs should take precedence over anything else. Below are examples of what is okr for each team in an organization:
Objective: Make the information of the product and presentation content clear and concise
Key Result 1: Check and test the information several times to confirm user able to understand
Key Result 2: Prepare & plan well for every presentation
Key Result 3: Receive 100 survey answers annually about product users experience
Objective: Improve annual budgeting
Key Result 1: To have close communicate with each division manager
Key Result 2: Have a daily/weekly planning session
Key Result 3: To close every final budget on every last day of each month
Objective: Implement 360-degree product development system
Key Result 1: Assign respective responsibility to sales, marketing, and R & D departments
Key Result 2: Establish input/output management process for sales, marketing and R & D
Key Result 3: Integrate user testing into all activities during product R & D
Key Result 4: Integrate user Beta testing into first 3 month of pre-launch period
Objective: Define and promote company culture and values
Key Result 1: Survey all employees on company values with min 80% response rate
Key Result 2: With 6 well mixed teams, to brainstorm and to redefine company culture
Key Result 3: Promote company values in the office
Objective: Improve internal document management
Key Result 1: Implement Google Drive as new document sharing platform
Key Result 2: 6 teams are to create directory structure for documents respectively
Key Result 3: Move 60% of existing documents from file servers to Google Drive
Objective: Keep our customers up to date with product updates
Key Result 1: Sending 3 product update newsletters to customers
Key Result 2: Write 4 blog articles/month on new product features
Key Result 3: Review 100% product user experience once every quarter
Objective: Promote company as the best employer for design team
Key Result 1: Joining 1 external design competitions quarterly
Key Result 2: Publish 1 open source design quarterly and reward the team
Key Result 3: Organize 1 designer meet-ups party in the office quarterly
Objective: Review and improve data security system
Key Result 1: Ensure 100% Implementation of application and data backup policies
Key Result 2: Research and review security policies of 3 leading companies in the industry
Key Result 3: Deploy in Microsoft Azure to help guarantee 99.9% uptime
Objective: Create an academy of the internal employee
Key Result 1: Understand the need and gaps in between all team leaders through survey
Key Result 2: Analyze at least __ training modules and come out with creative content of each
Key Result 3: Research and understand how the other companies educate their internal employee
An individual’s OKR entails setting goals for an employee or manager, assessing success through metrics that hold significance and relevance to the individual. Before incorporating OKRs, it’s essential for each company to ascertain the suitability of individual OKRs for their teams. These objectives for individuals need to be precise, time-bound, attainable, and grounded in the business impact of their contributions. The following serves as an illustration of what constitutes an individual’s OKR:
Objective: Increase my work pace
Key Result 1: Reach 70% of the goals set for the month
Key Result 2: Work twice as much as the previous month
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