Setting objectives has been around for a number of years and called "The Balanced Scorecard" and is the strategic management framework used by many companies when agreeing objectives. Recently companies like Google have started using OKR (Objectives & Key Results). The difference is a subtle one and basically is one where Balanced Scorecards tend to be for one year whereas OKR can be for each quarter (90 days).
Whatever approach fits your business need we can support you with the identification, implementation and also the training of your managers to land objectives into your business. In addition we can also support identify and implement an OKR or Objectives software solution with our HR Project Management and HR System Services. As HR Practitioners and HR Consultants we have knowledge of managing people and setting and training for Performance Related Reviews (PRR's).
Objective Setting - Objectives and Key Results (OKR) . OKR achieves this by organising employees and the work they do around achieving common objectives. An OKR consists of an Objective, which defines a goal to be achieved, and up to 5 Key Results, which measure progress towards the Objective. Each OKR can also have Initiatives, which describe the work required to drive progress on the Key Results. The framework includes several rules which help employees prioritise, align, focus and measure the outcome of the work they do. OKR helps you communicate you companies strategy to your employees in an actionable, measurable way. It also helps you move from an output an outcome-based approach to work.
What is an Objective? An Objective is a description of a goal to be achieved in the future. An Objective sets a clear direction and provides motivation. An Objective can be thought of like a destination on a map. “Where do I want to go?”
What is a Key Result? A Key Result is a metric with a starting value and a target value that measures progress towards an Objective. A Key Result is like a signpost with a distance that shows how close you are to your Objective. “How do I know if I’m getting there?”
What is an Initiative? An Initiative is a description of the work you’ll do to influence a Key Result. If an Objective is your destination and a Key Result shows the distance to go, an Initiative describes what you’ll do to get there, (take a car, row a boat, etc.).
The Benefits of OKR to the Business Impacts. Current research shows that when comparing groups of employees who used OKR against those that don’t, those that used it proved much more effective at their jobs, resulting in better performance and increased sales. In fact, the group who didn’t use OKR actively asked to be involved in the process in future cycles. A full rundown of the ROI of Goal Management can be found here. Cultural Benefits -The biggest impact of using OKR in most organisations without goal management already in place, or those who focus purely on metrics and KPIs, is a cultural shift from output to outcomes. OKR creates focus, transparency, and alignment for all the work in an organization. These three factors combine and lead to increased employee engagement.