It's a way to set and monitor targets across the enterprise. The Mission tells you where you want to go, the Key Results are the results you need to obtain in order to get there.
The benefits to companies working with OKR include greater emphasis, better collaboration and increased transparency. It helps to communicate company strategy to employees in a clear, measurable manner. This ties the goals that teams and individuals are focused on to the higher-level priorities of the organization. And it makes it clear what they are all responsible for.
The OKR implementation will never be a success overnight, quite the opposite, in fact.
OKR can be a difficult concept to grasp and can feel like an extra job for your staff, especially at the beginning. The change management is the introduction of OKR in an organization. When you introduce fundamental change across the organization, you would like to introduce it step by step.
Can OKRs replace KPIs?
A common mistake made by many organizations is to replace KPI (Key Performance Indicators) with OKR. OKRs are like your road map, they're going to guide you to your destination. The truth is, OKR and KPI don't replace each other, but they are goals that naturally complement each other. OKR provides organizations with a missing link between their ambition and reality. They help break the status quo and take organizations to a new, mostly unknown territory. Organizations with an ambitious dream need the Objectives and Key Results that will lead them there. A KPI, on the other hand, calculates the performance, efficiency, quantity or consistency of the ongoing process or operation processes or activities already in place, also referred to as business-as-usual.
OKR a tool for HR
NO, its not for HR only, OKR is the perfect tool for turning the long-term strategy of your company into short-term goals for teams and individuals. It is therefore not a fancy HR device, as many businesses tend to think, but a vital resource for CEOs and executives to help them execute their plans and drive growth. To make this happen, the CEO will have to make sure that his or her plan is translated into the right KPIs and OKRs for teams and individuals. And he or she would like to make sure that — mostly — the goals are met.