The Psychology and Benefits of OKR Framework
OKR or in length objective and key results is a framework for progress that multiple successful and well known corporations, like Google for instance, use to direct the plan of action in an efficient way to monitor outcome.
Over time the practice of OKR waters the humble roots of brands to significantly maneuver their bloom, labeling it as a go-to strategy in corporate dynamics.
OKR has become more prevalent after Google credited the technique as a prime contributor in accomplishing their mission of “organizing the world’s information.”
Shortly after, multiple big firms like Twitter and Uber have adopted the technology to track and define their progress.
It is evident the impact of OKR on firms and their expansion, and in the following article we’ll discuss the details of OKR.
OKR for product and marketing teams
Here’s why OKR is a secret recipe for growth: it lays out a vision and quantitatively measures the team’s effort towards attaining the objective.
OKR facilitates communication between managers and employees via forming a link of well-defined objectives. Both management and workforce can visualize progress, comprehend their value within the establishment, and assess the potential of their labour to map out plans in the future accordingly.
How OKR works
1- Set measurable goals
Unlike Kanban boards for instance, OKR is not a task management tool. On the contrary OKR is more a tracking tool for the bigger picture, a set of milestones for the entire team, instead of defining granular accomplishments.
Because the objectives are meant to stimulate creativity and boost the brand progress, they have to be high-level targets.
After brain storming with your team to set short-term objectives, you have to quantify them. In other words, say you are working to increase production, OKR needs numbers to operate. Therefore, the correct way to set targets would be to add specific values to measure progress. Example: 10% increase in production in the coming quarter
2- OKR Scoring system
The grading system for OKR is a numerical scale that gradates between 0.0 and 1.0, with 0.0 signifying absolute failure and 1.0 representing comprehensive success.
To follow up on the exams above, if you reach 2% production increase within the time limit, the OKR score will be 0.2. Which indicates a fault in both the goals set and the productivity of the team. Low values will help re-direct enterprises towards more realistic visions and guide the workforce towards efficient labour.
Typically corporations tend to sway away from a score of 1.0 because it translates to easy objectives that won’t challenge the firm enough for progress. It is better to keep an element of inspiration through demanding tasks to push the team towards success.
A better value to obtain would be a 0.7 which would resemble a balance between both the right intensity of challenge and efficient productivity exhibited by the team.
Benefits of Objectives and Key Results
1- Gives the team laser focus
OKR gives the team laser vision through clear instructions to drive in the direction the firm is attempting to move. It allows labour force to comprehend their impact in the process.
In other words, objective and key results creates a close-knit community in the workplace by allowing every individual to perceive the reality of their labour output and their significance in the organizational structure.
Together, each link within the team can operate efficiently to lift overall outcome to reach the targets set.
With the absence of OKR, employees can feel isolated from the team whereas workforce will lack harmony and direction. According to research, 40% of employees have no background on firm vision and 70% of employees report disengagement with work which adversely affects productivity.
2- Builds an environment of psychological safety
OKR requires the team to come together and brain storm for ideas and as a consequence give voice to employees. The ability to exchange ideas in a relaxed setting is what creates high performing teams.
For instance, workers can discuss goals and present how to best achieve them according to their unique abilities. Therefore, the ability for OKR to give workers a pedestal where they can voice their concerns will eliminate burn-out in the setting and empower workers.
Knitting a roof of psychological safety is all about freedom to express and speak, according to research. OKR being a communication framework can deliver.
OKR template by Workiom
Digital Objective and Key Results template at Workiom can bring together your workforce regardless of their geographical location. Digitalizing OKR will allow you to keep your remote talent while working with the same efficiency as in-office operations.
The template is built around flexibility where you have the option to easily modify it according your personal requirements.
Your team can access the template from any place and collectively work towards a particular objective in harmony.
OKR comes in clutch in managerial operations. It offers guidance and scope to employees to digest the potential and direction of the firm.
Additionally, OKR being a communication framework, creates a safe environment by establishing a sense of psychological safety which increases productivity and empowers workers.
It’s important to remember that as a manager, you have complete knowledge of your firm’s weak points, strong points, and a secure vision. However, your workforce lacks the insight and OKR helps you communicate to your team the requirement of the enterprise to unite labour and give employees a sense of direction.
Contact Workiom for a comprehensive tutorial on how utilize the OKR template for maximum efficiency in your workplace.