The first advantage of OKRs is that they help you focus because the number of objectives you can set is limited. Multiple objectives may exist, but they must always be fewer than five. The thumb rule is that less is more when it comes to OKR. Each objective should be contained within a single line. You should only have five key results per objective when it comes to key results. An inherent requirement exists to limit the number of things to focus on, which necessitates upfront choice-making, which is why OKRs are so beneficial.
The first question in an OKR cycle should be, "What is most important for the next 3 (or 6, or 12) months?" This first question distinguishes OKRs from other goal-setting systems, as they highlight a few initiatives that make a real, immediate difference while postponing less urgent ones. By firmly committing to a few high-level OKRs, leaders provide a compass and a benchmark for assessment for their teams.
OKRs are critical to making sure everyone in the company knows what the company's objectives are and to guiding workers to help accomplish these objectives. Managers and employees can use OKRs to align their work and goals with the corporate vision. From the employee’s view, transparency is a necessity for effective alignment. With transparent workflows and operations, teams and individuals will therefore effectively connect. According to the Harvard Business Review, companies with highly-aligned employees are more than twice as likely to be top performers.
After focus and alignment come commitments. Commitments are agreed-upon objectives that will be met, with schedules and resources adjusted to ensure they are met. These commitments are transparently tracked. Each team member must send out clear signals to the rest of the team that they are working on their OKRs. Whether the tracking is done via a Google Sheet or through an OKR software tool like OKRPeople, you can share OKR progress every month using Slideshows, or print them out and post them all over the office's cabinet to make them know what you're looking forward to.
Autonomy and Accountability
Bottom-up goal setting enables businesses to improve by leveraging their frontline knowledge of problems. The top management only knows about 4% of the issues on the frontline. By using this methodology, we can melt this iceberg of ignorance. A good rule of thumb is that team members, not managers, should set at least 60% of the OKRs. With this approach, everyone is personally accountable for their goals and is more motivated to achieve them. The modern theory of motivation supports this strategy (Daniel Pink, "Drive").
Tracking OKRs from output to outcome is why management by objectives is so popular with top-tier companies. Every OKR should be able to be tracked via the metrics established when they were written. And while OKRs don’t require daily tracking, regular check-ups—preferably weekly—are essential to prevent slippage. Having these reference points to grade your current OKRs is the long term magic of them on the individual level. Are you on track to meet this objective or not? Why or why not?
OKRs are set quarterly. They aren't just something you do once a year at a retreat and then forget about. It's a process that is both live and active, and in which decisions and targets are made, and everyone is held accountable for their goals. And, because you create OKRs several times a year, you are up to date on industry innovations, disruptions, and shifts.
When an employee works in a good environment, and the company's managers trust them, letting them set their individual goals and those of their team in collaboration with the other members promotes innovation. Moreover, it makes them feel important to the company. So, it makes them work more and better.
In a company with many employees, inevitable crises or frustrations can happen. By using OKRPeople software, you can view, track, and manage your OKRs easily. This way, you can follow the progress of your employees and gather their feedback to prevent Issues.