Introduction of OKR management system

Basic framework of OKR management system

1. What is the OKR system?

The full name of OKR system is Objectives &；; Key results, that is, goals and key results. The so-called OKR, O = Objective can be understood as the enterprise goal, while KR =Key Results can be understood as the key result. What unites us is "decomposing and implementing key achievements to ensure the realization of enterprise goals".

OKR is a simple and effective enterprise target management system, which can run through the grassroots from top to bottom. For a project, setting goals is very important, because it determines how to do it and to what extent.

1, OKR is first and foremost a communication tool: everyone in the team should write OKR, and all these OKRs will be put in one document. Any employee can see what is the most important goal of everyone this quarter and what is the goal of the team this quarter.

2.OKR is the direction and goal of efforts: OKR represents where you want to go, not where you want to go.

3.OKR must be quantifiable (time &; Quantity). For example, setting an exercise goal during fitness is definitely not a good OKR if it is only defined as "we should strive to improve our physical fitness", because it is impossible to measure a good OKR as "the running time this year has doubled compared with last year".

4. Goals must be consistent: the goals of the developers and executors are the same, and the goals of the team and individuals are the same. First, make OKR；; Corporate; Secondly, each team has its own OKR；; ; Third, every engineer or designer writes his own OKR. These three steps are completed independently, and then the OKR of these three steps is coordinated. OKR has nothing to do with personal performance, because the results of OKR system are not directly linked to everyone.

5. If the goal is ambitious, there are some challenges and some make you uncomfortable. Generally speaking, the "best" OKR score is between 0.6 and 0.7. If someone only gets 65,438+0, then his OKR goal is obviously not ambitious enough. However, the person with low score should not be blamed, but should help him improve his OKR target for the next quarter by looking at his work data.

6. Follow up OKR from time to time through monthly meeting review: This is a process to help achieve goals by determining how to achieve them at monthly meetings.

7. Adjust OKR in time through quarterly meeting evaluation: The Internet changes very quickly, and OKR will be evaluated every quarter. The principle of adjustment is that the goal remains unchanged and only the key results can be adjusted.

To better understand how to make an OKR system, let's look at an example:

Objective: To establish an implementable model for OKRs organizational evaluation system.

Main results:

Finish the presentation of OKR on time.

Complete the three-month OKRs case

Let the management agree and establish a 3-month testing mechanism.

Second, the difference between OKR and KPI

OKR stands for goals and key results, that is, goals and key results. OKR is a set of management tools and methods to define and track goals and their completion. KPI stands for Key Performance Indicators, which is an important indicator system that can be quantified and identified in advance to reflect the degree of realization of organizational goals. It is also a practical and effective tool in the process of enterprise performance management, and it is also an important content in the process of performance management realization. The essence of KPI is a management tool, which mainly examines performance from the results, ignores the process and speaks with indicators.

The main purpose of OKR is to accomplish the goals and tasks more effectively, and it is a method to evaluate the progress of the project. Its main process is such a cycle.

1, define the project objectives.

2. Define the key results quantitatively and specify the measures to achieve the goals/unfinished goals.

3.* * * Strive to achieve the goal.

4. Evaluate according to the progress of the project.

For China, what he is more familiar with is actually KPI (Key Performance Indicator), and the process of KPI is like this.

1, personnel organization.

2. Determine the key factors affecting the results and establish key performance indicators.

3. Test key performance indicators and conduct real-time supervision.

Supervise those who have made mistakes, and even fire them.

By comparing the two, we can see that OKR mainly emphasizes the promotion of projects, while KPI mainly emphasizes the efficient organization of personnel. The former requires how to complete an ambitious project more efficiently, while the latter emphasizes how to complete the predetermined goal with good quality and quantity. Compared with KPI, OKR is not an evaluation tool, but a more instructive tool. To put it bluntly, this is a cycle of planning-implementation-review. The main purpose of his existence is not to evaluate a team or employees, but to remind everyone what the current task is. Everyone has their own OKR, and every team has their own OKR. Regardless of the level or scale of the team, it is necessary to formulate and obey OKR. This OKR will be graded at the end of each quarter. Scores do not directly determine the promotion and treatment of employees, but remind employees how the work was completed this quarter, why they did not finish the unfinished work, and what the focus of the next stage is. Theoretically, KPI must be formulated in strict accordance with SMART standards, and whether it reaches or even reaches the proportion (less than 100% or more than 100%) must be measurable. But this leads to a problem. Some things are worth doing, but you can't measure them before you do them, so you can't set goals. At this time, they fell into the problem of chicken or egg first. There is a more serious problem with KPI, that is, in order to achieve a measurable goal, it is possible that the actual means of implementation are just the opposite of the vision to be achieved by this goal. For example, we hope that users prefer to use our products, because they like unmeasurability, so PV is written into KPI. However, in the actual implementation process, we can divide what users can do on one page into several pages. Therefore, PV has achieved the goal specified by KPI, but users actually hate our products more. People deal with KPI so frequently because KPI is linked to performance appraisal. If the KPI is not reached, it will affect the bonus, so even if it is against the interests of the company and users, you should complete your own KPI and the KPI of the department.

Defects in key performance indicators:

1, no one is responsible for the final result, and everyone is only responsible for their own process.

2. People's subjective initiative is restrained.

3. The results are highly dependent on the instructions of machines and managers.

OKR solves these defects of KPI. First, it is separated from the performance appraisal, and the performance appraisal is handed over to peer review (equivalent to the 360-degree evaluation of China Company). Then it emphasizes that the key results must obey objectivity, so if you write objectively to make users like our products, but your actual implementation of the key results violates this point, everyone can see it. Since key results are only used for service objectives, there is no need to make them in advance and then enforce them like KPI. In this process, you can change the key results at will, as long as they still meet the original goals.

The most important function of OKR is to help you "stay focused", which can help you "make an impact". Generally speaking, the core of performance appraisal is influence (Google's influence culture. It measures how much influence employees have brought to Google, not whether employees have worked hard, nor whether employees have listened to the boss and completed the tasks assigned by the boss. ), the measurement method is peer review. In fact, in the absence of OKR, this performance appraisal mechanism is still completely effective, but due to the lack of guidance, participants cannot exert their greatest influence. OKR is to let you think about what is worth doing from the perspective of impact and what you want to do before the start of each quarter, and then choose an intersection and list some methods that have a certain probability (usually 2/3 is recommended) to achieve the goal. In addition to creating influence, OKR can also be used to guide you to focus on other things. If we want to say the difference between OKR and KPI, it is that KPI can only make the donkey walk hard, while OKR is used to ensure that the donkey's head is facing the right direction. Some donkeys desperately want to move forward and don't want to fall behind others. At this time, OKR is used to help donkeys avoid detours. Some donkeys don't want to walk, so they need KPI as a whip. Whether a company can use OKR depends first on whether there are suitable donkeys.

OKR evaluation: "What do I want to do" and KPI evaluation: "What do I want to do" have different understandings, but they both emphasize the goal and need to be implemented. The concept of OKR is to set the goal first, then define the result of the goal, then quantify the result, and finally evaluate the completion. The idea of KPI is to determine the organizational goal first, then decompose the organizational goal until the personal goal, and then quantify the personal goal.

Neither OKR nor KPI can really replace each other, so it doesn't matter who replaces whom. It is important to find a suitable performance evaluation method. For example, for sales, it is more concerned about how to maintain a stable income, so it needs stricter standards to constrain sales personnel to complete tasks, so it needs KPI instead of OKR. For the marketing team, what they need most is how to maximize the impact, and the rigid KPI limits the flexibility of the marketing team, so it is more suitable for OKR than KPI.

Third, how to implement OKR?

Basic requirements:

1. Up to 5 O's, and each O has up to 4 kr's.

2.60% oxygen comes from the bottom. The voices of the people below should be heard, so that everyone will be more motivated to work.

Everyone must cooperate, and no orders can appear.

4. One page is the best, and two pages is the maximum.

5.OKRs is not a tool for performance evaluation. For individuals, it plays a very good retrospective role. I can quickly and clearly show myself what I have done and how my grades are.

A score of 6.0.6-0.7 is a good performance, so 0.6-0.7 will be your goal. If the score is below 0.4, you should think about whether the project should continue. It should be noted that below 0.4 does not mean failure, but the method of identifying unimportant content and finding problems. Scores are never the most important, except as direct guidance. OKR is not a weapon for performance evaluation! Evaluate key achievements at the end of each quarter, and it is good to complete 60-70%. If 100% is completed, your goal setting is too simple.

7. Only when KRs is still important will we continue to work hard for it.

8. There is an alliance organization to ensure that everyone is moving towards the same goal. (In fact, in the process of implementing OKRs, you can get everyone's approval and help, which is very interesting. )

Basic process:

1. Set the target. (Determine annual and quarterly goals from a strategic perspective) Goals must be specific and measurable. For example, you can't say "I want to make my website better" in general, but put forward specific goals, such as "the website speed will increase by 30%" or "the integration rate will increase 15%". You can't say "make gmail a success", but "launch gmail in September and have 1 1 10,000 users in1October".

If the goal is ambitious, there will be some challenges and some will make you uncomfortable. Generally speaking, 1 is the total score, and it is better to reach 0.6-0.7, so that you will continue to work hard for your goal and there will be no situation of completing your goal before the deadline. Employees usually set four to six goals every quarter, and too many goals may be unbearable.

The goal must be * * * knowledge, and the goal must be * * * knowledge after direct and full communication between managers and employees. The goal of failing to achieve * * * knowledge cannot be regarded as a goal, and the goal is set to achieve * * * knowledge as the end point.

Key process of implementation: from top to bottom, the order of setting goals should be from company to department to team to individual. What an individual wants to do is usually not exactly the same as what the manager wants him to do. Then he can consult the upper-level goals first, find the part that is beneficial to the company's goals within the scope he wants to do, and take him out to discuss with his manager and make a choice. In some cases, it is very likely that what you want to do will become the future development direction of the company.

2. Define the key objectives of each goal (from quarterly objectives to "key achievements"). What must we do to achieve this goal? KR is an action that must have the following characteristics:

Must be able to achieve the goal directly;

What must be enterprising and innovative can be unconventional;

Must be based on output or results, measurable, and set scoring standards;

Not too much. Generally, each target does not exceed 4kr；;

It must be related to time.

The target should be annual KRs and quarterly KRs: annual KRs dominates the whole year, but it is not fixed, but can be adjusted in time, and the adjustment must be approved; Once the quarterly kr is determined, it cannot be changed. Remember, it is KRs that can be adjusted, not the target. Goals cannot be adjusted, and measures and methods (kr) can be continuously improved. Similarly, the setting of KRs must be the knowledge of managers and employees after direct and full communication.

3. Promote implementation (from key results to "action plan")

When you have the key result (expected result), you should break down the task around this specific goal. Therefore, a series of tasks will be derived from each key achievement and handed over to different colleagues. The person in charge of key achievements becomes a veritable project manager to organize and coordinate everyone. Therefore, the key achievement project manager should be a very important member of the team, who can schedule and influence enterprise resources. If he doesn't have this ability, give him this power. At the very least, there should be absolutely smooth communication between the project manager and the enterprise decision makers.

4. Review regularly.

Review once every quarter. By the end of this quarter, employees need to rate the completion and quality of their own KRs-this rating process only takes a few minutes, with the rating range from 0 to 1, and the ideal score is between 0.6 and 0.7. If it reaches 1, the goal is set too low; If it is lower than 0.4, there may be a problem.

At the beginning of each quarter, every employee needs to determine the OKR of this quarter, and after each quarter, he needs to score OKR according to the work completion of this quarter. The company will conduct a performance appraisal every six months, mainly to assess the performance of employees in the past six months, and change the job ladder and salary according to the results of the performance appraisal. It is worth mentioning that all the achievements and levels of individual performance appraisal are made public by the whole company. This is unimaginable for many companies, because on the one hand, it can be more fair and transparent, on the other hand, it also provides a better sample for each colleague to learn and grow, and encourages everyone to challenge and demand themselves with higher quality in product research and development.

The key to implementation:

1.OKRs exists every quarter and every year, and keeps this rhythm. Score every quarter. The annual OKRs can't be completed at once. For example, in June+February, 5438, you worked out the okr for the next quarter and the next year, and then concentrated on implementing the quarterly okr. After all, this is the immediate goal. After a while, you can verify whether the annual OKRs is correct and constantly modify it. The annual OKRs is instructive, not binding.

2. Quantifiable. The difference between O and KR: If O is challenging, it is not enough if it is a sure thing; KRs can well support the completion of O, and it should be obviously quantifiable and easy to score.

3. At the level of individuals, groups and companies, there are differences among individuals, groups and companies: personal OKRs is what you personally indicate you will do; The OKRs of the Group is not a personal package, but a priority of the Group; The company OKRs is the high-level prospect of the whole company.

Finally, what are the benefits of OKR?

1. Standardize thinking and highlight core objectives;

2. Communicate more accurately and let everyone know what is most important to them;

3. Establish indicators to measure the process and always know how far we are from the goal;

4. Make the work of the organization more focused.

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