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OKRs stand for Objectives - Key Results, a value measurement system linking internal departments by connecting company goals, departmental and personal goals to specific results.<h2 style="text-align:justify;">1. Structure of OKRs</h2>OKRs are based on two different questions.<ul><li style="text-align:justify;">Objective: Where do I want to go?</li><li style="text-align:justify;">Key Result: How do I get there?</li></ul>The objectives are the goal of the company, department or individual. Meanwhile, Key Results are the measuring steps to achieve the goal. This system is maintained from the top of the organization to each individual, creating a link between the layers of plans that affect each other and help everyone share a common goal.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/b0e8bdbc-af47-4a29-bd86-26e96a2d34a4" alt="OKR stands for Objectives and Key Results"><figcaption>OKR stands for Objectives and Key Results</figcaption></figure><h2 style="text-align:justify;">2. How OKRs work?</h2>What distinguishes OKRs from other management principles is their foundation on the following belief system:<ul><li style="text-align:justify;">Ambition: Objectives are always set above the ability threshold.</li><li style="text-align:justify;">Measurable: Key Results are tied to quantifiable milestones.</li><li style="text-align:justify;">Transparency: All members, from the CEO to the intern, clearly understand the organization's OKRs.</li><li style="text-align:justify;">Performance: OKRs are not used to measure employee performance.</li></ul>Andy Grove developed this unique approach at Intel Corporation; then, John Doer continued to inherit and popularize this method at Google. Today, OKRs are used by thousands of organizations, including Spotify and the US Navy.<h2 style="text-align:justify;">3. Benefits of OKR</h2>OKR will support corporate governance through 6 main benefits.<h3 class="indent-1" style="text-align:justify;">3.1 Tighten internal connections in an organization</h3>OKRs connect individual and departmental performance with the company's overall goals. From there, the management team can make sure everyone is on the same page.<h3 class="indent-1" style="text-align:justify;">3.2 Focus on the essentials</h3>The OKR model will provide 3 - 5 goals for each level in the organization, helping the company and employees prioritize the company's essential goals.<h3 class="indent-1" style="text-align:justify;">3.3 Increase transparency</h3>OKRs build a transparent culture for the company so that employees can understand the work and plans of each individual and department.<h3 class="indent-1" style="text-align:justify;">3.4 Empower employees</h3>Once the company has a clear understanding of the activities in the business, leaders can make accurate decisions and create opportunities for staff to monitor work results.<h3 class="indent-1" style="text-align:justify;">3.5 Measure progress towards goals</h3>Through indicators, OKRs reflect the extent to which individuals, departments, and the company are completing the target.<h3 class="indent-1" style="text-align:justify;">3.6 Achieve outstanding results</h3>OKRs allow managers to reveal their fullest potential at work, helping the corporation achieve impressive results.<h2 style="text-align:justify;">4. How to properly evaluate OKRs?</h2><figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/e29409a1-2f47-4ddc-8340-5bbb588df6dd" alt="OKR Grading Scale"><figcaption>OKR Grading Scale</figcaption></figure>OKRs grading scale ranges from 0.0 to 1.0.0 means you have not achieved any part of the goal. From 0.6 - 0.7 means you are on the right track to complete the plan, and if you get 1 point, congratulations, you have achieved your goal!Non-quantifiable activities such as launching a new website will be scored on a binary scale (0-not complete and 1-complete). Measurable activities such as contacting 10 journalists are achieved as a percentage of completion.0.6 – 0.7 is booming: a lower score means that the organization is not performing well, and a higher score means that OKRs are not set high enough. Adopting a high level of goals may be uncomfortable at first. Still, when applied correctly, it can help organizations achieve outstanding results.Below 0.4 doesn't mean failure: a low score may reflect too high goals or employees are underperforming. Either way, this is good data for employee grading and prioritizing the department's tasks and improving work in the next quarter.<h2 style="text-align:justify;">5. Common OKR mistakes with newbies</h2><ul><li style="text-align:justify;">Use OKRs as a to-do list: Use OKRs to measure value, not perform minor tasks. Therefore, you must understand the differences between Value-based and work-based key results.</li><li style="text-align:justify;">Setting too many OKRs: This error is a common consequence of the first one. Instead of a to-do list, OKRs make a list of your top priorities. OKRs are your definition of what matters. When using value-based vital results, you need to focus on your goals; HR may not remember your OKRs.</li><li style="text-align:justify;">Don't align your OKRs: OKRs are aligned with the whole organization, so you should never set individual OKRs. You have to talk to other teams.</li><li style="text-align:justify;">Set OKRs and forget them: OKRs are not New Year's resolutions. Without regular monitoring, you may not be able to achieve them.</li></ul>Like KPI, OKR is gradually becoming a familiar term for businesses. It is undeniable that OKRs help businesses set scientific, transparent and more effective goals for all employees.<h2 style="text-align:justify;">6. Estuary Task Management Platform - A comprehensive goal management solution for business</h2>An effective goal management system needs to ensure 4 criteria:<ul><li style="text-align:justify;">Consistency and close coherence between personal, departmental and company goals.</li><li style="text-align:justify;">Measure data accurately and be regularly updated.</li><li style="text-align:justify;">Each goal set needs to be owned and committed to completion. The system must be convenient for everyone to follow and easy to discuss.</li><li style="text-align:justify;">Focus on execution instead of just planning.</li></ul><a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/services/internal-working-system">Estuary Task Management Platform</a> is software that meets all four criteria above. It is a powerful tool to help businesses establish and track critical results through visual data that is updated daily. At the same time, it connects managers and employees with the common goals of the company.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/db3e9905-0d40-4f86-a5a4-ae3202664c65" alt="The monitoring interface of OKR/KPI on the Estuary system"><figcaption>The monitoring interface of OKR/KPI on the Estuary system</figcaption></figure><h3 style="text-align:justify;">What outstanding features does the Estuary Task Management Platform have?</h3><ul><li style="text-align:justify;">Measurability: Qualify employee's performance based on the task list, key results or KPIs that need to be done.</li><li style="text-align:justify;">Continually update the progress of goal completion: When an employee checks in (updating results) on the system, the individual's % of OKR/KPI completion will change. The overall progress of the team, department and business is also automatically updated.</li><li style="text-align:justify;">Evaluate employee's work results in a cycle: When the process ends, the Estuary system will calculate the % of completed OKR/KPI and allow managers to judge and re-score based on reality.</li><li style="text-align:justify;">Strong integration ability: The system easily integrates with other tools such as Email, CRM customer management software, etc. Integration aims to turn the common goal into directly assigned tasks to employees and automatically collect result information (revenue, debt) about the system.</li><li style="text-align:justify;">Automated report generation: The system analyzes and reports target and performance metrics according to visual charts.</li></ul>Estuary Task Management Platform is available on the mobile app, web app, and web page, making it easy to track goals and update results.&nbsp;<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/contact?msg=Request+Demo+Internal+Working+System&amp;service_id=3">EXPERIENCE THE ESTUARY WORK MANAGEMENT SOLUTION NOW</a>&nbsp;

What are OKRs? 5 Things you must know about Management by Objectives and Key Results

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Today, OKRs are applied to thousands of organizations, including Spotify and the US Navy.

What are OKRs? 5 Things you must know about Management by Objectives and Key Results

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