Key Points
- OKR is a tool for managing goals, driving execution, and promoting collaboration.
- O stands for Objectives, and KR is a set of measurable Key Results.
- The OKR mechanism has four main features: Transparency, Two-way communication, Effective review, and setting challenging goals.
- Important support tools for OKR: CFR (Conversations, feedback, and Recognition) and OKR digital tools for continuous performance development.
What is OKR?
OKR(Objectives and Key Results) is a tool for managing goals, driving execution, and promoting collaboration.
O stands for objectives. “O” is what you and your team want to accomplish. A good objective, no matter if it is an individual objective or a team objective, should be reasonable and inspirational, aiming to solve the main contradiction with well-defined and effective strategies.
KR is a set of measurable key results, specifying what needs to be achieved to meet the objective.
| Organizational Perspective | By visualizing the company’s mission, vision, and strategy, OKR guides project planning and execution, promotes collaboration, and drives the organization to move toward the goals in a consistent and efficient way. |
|---|---|
| Individual’s Perspective | By thinking about the nature of the problem, individuals can find the right direction, choose an optimal strategy, and align goals. |
OKR’s Key Features
- Transparency: OKR’s are public across the company. Employees are encouraged to comment on each other’s OKRs.
- Two-way communication: Employees at all levels can discuss and set OKRs together, maintain communication, and give feedback to each other.
- Effective review: Teams can periodically review, conclude and adjust strategies accordingly.
- Set challenging goals: Teams are encouraged to set ambitious goals and are allowed to fail.
Important support tools for OKR
- CFR for continuous performance development
Conversation
Feedback
Recognition
- OKR digital tools
The difference and connection between OKR and KPI
Alibaba’s KPI is similar to OKR in goal and process management, targeting customer value and emphasizing the importance of communication, alignment, review, and iteration.
In the past, goals were mainly managed via methods that were excessively dependent on our employees. As the business grows and becomes more complex, it is necessary to introduce a systematic tool (OKR) to solve the business pain points. We will also work to integrate OKR with Alibaba’s closed-loop framework from strategy to execution to upgrade our performance management system.
The difference between OKR and KPI
OKR and KPI have different focuses and are used for different purposes:
OKR focuses on the goals while KPI focuses on the indicators.
When focusing on the goals, we will think about what to do next. However, when focusing on the indicators, we will consider how to evaluate our work.
Connection between OKR and KPI
OKR measures a broader range of key results than KPI.
KR: a broad range of measurable key results in which may include indicators or milestone events
KPI: quantitative indicators
若有收获，就点个赞吧
0 人点赞
