Our 5 key takeouts are below:
#1 - Objectives and Key Results are the yin and yang of goal setting:
Objectives = the stuff of inspiration / vision
Key Results = earth bound & metric driven
#2 - A limit of 3-5 OKRs per cycle leads companies, teams and individuals to choose what matters most.
It ensures everyone is focused on the same priorities.
#3 - OKRs allow businesses to set Big Hairy Ass Goals (BHAGs) by cutting it down into bite size pieces
Objective = BHAG
Key Results = Bite size pieces
#4 - Annual performance reviews aren’t very effective for businesses who set monthly or quarterly OKRs
Instead, it’s important to implement Continuous Performance Management (CPM) which focuses on ensuring employees are set up to achieve their OKRs:
“An effective goal management system - an OKR system - links goals to a team's broader mission. It respects targets and deadlines whilst adapting to circumstances. It promotes feedback and celebrates wins, large and small”
#5 - OKR setting should be a bidirectional approach (not top down).
Leaders should set the context, ask the big questions, furnish the relevant data and allow employees to innovate.
#6 (BONUS) - Without frequent status updates on how OKRs are progressing, they become irrelevant.
Without any accountability or status updates, there is a risk that OKRs will be the business equivalent of New Years Resolutions..
The Bearded Man