What are the requirements of OKRs and KPIs for the employees of the organization?

1. OKR definition.

OKR (Objectives and Key Results) is a simple and effective system for enterprise objective management, which can run through the management of objectives from top to bottom. The system, developed by Intel Corporation, was introduced to Google less than a year ago by investor John-Doerr and has been used ever since.

2. Develop the basic methods of OKR.

First, set an "objective" that doesn't have to be exact and measurable, such as "I want to make my ** better";

Then, set a number of quantifiable "key results" to help you achieve your goals, such as "30% faster" or "15% more engagement."

There are both annual and quarterly OKRs, and the annual OKRs dominate the whole year, but they are not fixed, but can be adjusted in a timely manner; Quarterly OKRs cannot be changed once they are confirmed. There are different levels of OKRs, from the company, teams, managers, to individuals, all of which work together to ensure that the company is operating as planned.

You can set 4 to 6 OKRs per quarter, and it can be overwhelming to have too many goals. At the end of the quarter, employees are required to rate their key results – a process that takes only a few minutes and ranges from 0 to 1, with the ideal score being between to. If you reach a score of 1, the goal is set too low; If the score is lower, there may be a problem with the working method.

3. Basic requirements for OKRs.

1. Up to 5 O's, each O up to 4 krs.

2. Everyone must work together, and there can be no form of command.

Fourth, OKR requirements for the organization's employees.

1. Everyone must work together, and there can be no form of command.

3. OKRS are not a tool for performance evaluation. For individuals, it serves as a good retrospective. I can quickly and clearly show myself what I have done and what my grades are.

4. A federation can be set up to ensure that everyone is moving towards the same goal. (In fact, it's interesting to get everyone's buy-in and help during the OKRS implementation).

Key Performance Indicators (KPIs) are "what the company wants us to do", while OKRs are "what we want to do".

It's not an either/or relationship, and businesses can use both sets of tools to achieve better management.

The goal is to set a qualitative goal within the time frame (usually a quarter). Key results are presented in the form of quantitative indicators that measure whether the target was met at the end of this period.

When working holistically, OKRs exist at the company (top-level vision), teams (inherited and generated by the team, not just as part of individual goals), and at the individual level (personal development and individual contributions).

Most goals are usually defined by management, but some are bottom-up rather than motivated to motivate the team.

An OKR presentation published by a company or a presentation or report containing a Q&A can ensure cross-functional alignment and agreement on dependencies before finalization.

At the end of the target period, special attention is paid to the evaluation of each key result for each objective. Different people have different expectations of having a purpose. Google and Uber recommend that employees should achieve about 70% of their "OKRs" each quarter, which is a key performance figure for each quarter, while Zynga expects employees to achieve 2 to 3 "OKRs" per quarter.

The production process of an enterprise is the process in which workers use labor tools to change the objects of labor. Among the three basic elements of enterprise production (labor, labor materials, and labor objects), labor force is the most important factor, and correct statistics, analysis, and labor productivity indicators are of great significance for enterprises to organize production in an orderly manner, fully develop and rationally utilize human resources.

The advantage of this approach is that the criteria are clearer and easier to evaluate. Its disadvantage is that it is more difficult to set standards for simple work; Lack of quantitativeness; The indicators of achievement were only some of the key indicators, and due attention should be paid to the lack of some assessment of other elements.

The KPI method is in line with an important management principle - the "28 principle". In the process of value creation of an enterprise, there is a law of "20 80", that is, 20% of the backbone personnel create 80% of the value of the enterprise; And the same applies to every employee, where 80% of work tasks are completed by 20% of key behaviors.

Therefore, it is important to capture, analyse and measure the key 20 per cent of the key behaviours so that the focus of performance evaluation can be captured.

OKR assessment: "what I want to do" and KPI assessment: "what I want to do", have different understandings, but both emphasize that there is a goal, and at the same time, it also needs to be executed.

The idea of OKR is to first set goals, then clarify the results of the goals, then quantify the results, and finally evaluate the completion. The idea of KPIs is also to first identify organizational goals, then break down the organizational goals to individual goals, and then quantify individual goals.

1. The different OKRs of management thinking belong to self-management, which comes from Drucker's "goal management and self-control". KPI is a performance appraisal tool and belongs to control management. From the principles of scientific management proposed by Taylor in the industrial era.

2. The meaning of "K" and "key" in different concepts of OKR and "K" and "key" in KPI is different, OKR requires us to clarify the most priority requirements within a certain period of time, select the most important bottleneck to complete the goal, and KPI requires us to select important indicators.

3. There are three links in the performance management of different organizations, including performance production, performance evaluation, reward and punishment mechanism, OKR plays a role in performance production, and KPI plays a role in performance evaluation.

4.Different types of business are applicable, OKR is more suitable for knowledge-intensive business, KPI is suitable for labor-intensive business, knowledge-intensive business is relatively inefficient through KPI management, KPI definition means that it is known how a business process works to achieve the expected results, but how knowledge-intensive business is successfully operated is not yet known, and the use of OKR will be more scientific.

5.Different ways to formulate OKRs are formulated through the management and the team from top to bottom, and then from the bottom up, so that the top and bottom are combined to achieve all-round alignment, while KPIs are determined by the company's management from top to bottom, emphasizing the decomposition of organizational goals and the measurement of key work indicators.

Objective and Key Results (OKRs) are management by objectivesIt motivates people to have an inner drive, "what am I going to do", and causes people to think more deeply about their work. OKRs encourage employees to set their own goals, often with a combination of top and bottom, and then communication alignment. OKRs are not performance reviews.

It is not linked to wages. OKR is an overarching objective management system that drives strategic projects.

KPI (Key Performance Indicator) is a key performance management methodGenerally, the superior sets the target, and then the employee only needs to implement it, which is a passive management method.

That is, "what do you want me to do". KPIs are a measurable part of the execution of goals that drive business as usual. The final score of the KPI is linked to the salary, and if the standard is not met, the salary will be deducted.

Difference Between OKR and KPI:

Goal setting: KPI is top-down, OKR is a combination of bottom-up and top-down;

In the assessment process: KPI is to assume that the business and results can be improved, while OKR is to assume that the business is dynamically changing, sometimes it cannot be done, and it needs to be verified;

In terms of assessment indicators: KPIs focus on assessment and evaluation, and the index values are not very challenging; OKRs focus on the challenge of metric values.

(1) KPIs are linked to performance; OKRs, on the other hand, are separated from performance appraisals.

2) KPIs are set by superiors and controlled from top to bottom; OKRs have a lot of innovation, evaluation, experimentation, negotiation, and are the product of iteration.

3) KPI is to have a goal first, and then think of a method; OKR is to have a way first, and do it based on merit. This is determined by the previous article.

4) KPIs are constrained by restrictive rules specified by superiors; OKRs are constraints implemented by the Objective itself.

5) The data of the KPI is the goal itself, and there is no other path description except for restrictive rules; OKR data is an evaluation tool, and we can do something to achieve the objective, and in order to prove that our judgment is correct, we set quantitative data.

6) KPIs are to drive employees; OKR is to ensure that employees are self-driven in the right direction and produce better results.

7) The implementation cost of KPIs is low, easy to understand, and even if it is a pure implementation unit; OKR, on the other hand, requires employees to have a certain degree of self-motivation, understand the meaning of data, and have the ability to decompose and solve problems, which is more difficult to implement.

What is the essence of OKR? What is the difference between KPIs and KPIs?

KPIs can not be linked to assessments, and OKRs are absolutely not linked to assessments. In other words, using OKRs emphasizes goals while isolating as much of a reward-and-punishment-driven distraction as possible.

OKR is to allow employees to fully understand the specific process required to achieve the company's overall goals, this process is the key results, in the key results can create specific tasks to complete the key results, and then complete the company's overall goals, emphasizing the process, in the TITA software can be well reflected, and in the OKR created in the target tasks can be included in the assessment items, as a periodic assessment, and TITA is mainly based on target management, project management, plan management, With the reporting summary and assessment as the core, KPIs focus on whether the goals set by the company can be achieved, emphasizing the results.

OKR is the goal, KPI is the result, OKR O&M focuses on the process, and KPI focuses on the result.

Now it is difficult to implement OKR without tools, and TITA is recommended to help enterprises achieve their goals.

OKR is an upgraded version of KPI, more user-friendly, can be implemented with software in the early stage, TITA is good recommended.

Tomorrow's beautiful rain has been explained very clearly.

But I think the two are micro-iterative. OKR is a working method that can be linked to performance-based pay, and if it is not linked to the formula, it is the best incentive means. If you want to find a professional person to help you, you can go to a consulting company, or you can take a look at the OKR Work Method.

Using professional tools is also a solution, and I think someone recommended Tita just looked at it and did it more in line with the management by objectives theory. Decent.

KPI is what the company asks you to do, OKR is what you want to do, OKR can essentially motivate employees, increase the subjective initiative of employees, our company is using TITA to do OKR management, and the implementation is not bad.

OKR pays more attention to the results, KPIs focus on the gradual improvement of the guidance process, OKR can be more clear about the goal is more conducive to the achievement of the goal, KPI is easy to ignore the goal, or deviate from the ultimate goal, because KPI allows compromise, allows not to achieve 100%, 90% can also have a score, but KPI is suitable for coaching, guiding employees to improve slowly, so if it is to achieve the goal to do goal management OKR, if it is for coaching employees, you can use KPI, we are now giving up KPI, In using TITA software for OKRs, the management is still very satisfied, because it really promotes the achievement of goals.

The connection between OKR and KPI is the difference between OKR and KPI: different essence, different core principles, different practical processes, different confidentiality, and different interest associations.

1. The essence is different

The essence of KPI is performance appraisal, which is generally an assessment method directly reflected by quantifiable data, which is not only a management tool for goal achievement, but also an implicit or assessment evaluation tool for employees. The essence of OKR is to focus on the results and improvement of goal achievement. In addition, KPIs pay more attention to how individual goals are completed with quality and quantity, and OKRs pay more attention to the realization of company or team goals.

2. The core principles are different

The core principle of OKR lies in "goal alignment", which advocates that subordinates align with the goals of superiors, and promote the achievement of superiors' goals through the achievement of subordinate goals. However, the core principle of KPI lies in "indicator decomposition", KPI is based on the indicators of the superiors, and gradually decomposes them to the subordinates, that is, let the subordinates "memorize" the indicators of the superiors.

3. The practical operation process is different

In the actual operation process, OKR is to encourage employees to set their own goals, which can stimulate their subjective initiative, while KPIs are leaders to set indicators, employees to accept tasks, and there will inevitably be a "bargaining" process in the middle.

4. Confidentiality is different

OKRs are open and transparent, everyone can participate, and if the employee wants to, they can even urge the boss to get the job done. Most KPIs are confidential, and the performance of another role is largely unknown, which may involve sensitive topics such as compensation.

5. The relevance of interests is different

OKRs emphasize that they are not related to compensation or promotion, encourage innovation and challenge goals, and employees have no worries. However, KPIs are often linked to salary or promotions, which can constrain employees. If the KPI is not met, it may affect the promotion or direct deduction of performance.