If I cannot make the goal measurable, I have only formulated a wish. Only the defined results make the goal understandable and tangible.
The two components of the OKR can be characterized as follows:Goals are catchy qualitative descriptions of what should be achieved. The goals should be short, inspiring and engaging. One goal should motivate and challenge the team.
Key results are a set of metrics that measure progress toward the goal. Each goal should have a set of 2 to 5 key results. If there are too many key figures, the overview is lost and the focus suffers.
The key points at OKR are:
Shorter time horizon: Agile targets with a shorter time horizon allow the reaction to external influences. It is possible to make adjustments after each cycle.
Simplicity: OKR are very simple in structure. In this way, companies invest their resources in achieving their goals and not in setting them.
Transparency: The main purpose of OKR is to create an orientation in the organization. For this purpose, OKR are publicly accessible at all company levels.
Rhythm: OKR work with different rhythms according to the requirements:
- Annual focus on large strategic projects
- Quarterly focus on tactical implementation
- Weekly review of the current status
Ambition: The goals are set so ambitiously that they carry you out of the comfort zone without overwhelming you. This is how common growth can arise.
No bonus: there is no connection to financial incentives. This is the only way to create a sustainable basis for growth.