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Mission Impossible: Planning Method with Unachievable Goals



Just over a year ago, at Wrike, we started using the Objectives and Key Results (OKR) method for planning. It was invented and first applied to Intel, then picked up by Google, Oracle, LinkedIn and Twitter. The method is universal, well helps to focus on goals, increases initiative and stimulates work between different teams in the company. Plus, it can be perfectly implemented using the tools of our service , which for us was one of the key requirements.

If you are looking for a suitable approach to planning and evaluating the effectiveness of teamwork, or even for yourself, we suggest that you take a closer look at OKR.

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The specifics of the method


To begin with, OKR is a relatively aggressive goal-setting and planning technique. Initially, the method was used for setting quarterly goals, but today most companies use it for annual planning. The bottom line is that for each given goal there must be a number of measurable results (metrics) that would show how achieved the goal.

This helps, firstly, to achieve measurable progress in specific indicators, and secondly, not to blur the focus in everyday work. In order not to be sprayed and to avoid burnout, there is also a restriction on goals and metrics. You can create no more than 5 goals for the planned period and no more than 4 metrics for each of them.

The key feature of the method is that these goals must be fundamentally unattainable . If the goals are achieved at 100%, they are considered not sufficiently ambitiously set, and this should be taken into account in the planning for the next period. The best would be the implementation of 60-75% of the results of each goal. It turns out that OKR from the very beginning provokes you to the notorious exit from the comfort zone and a more daring approach to planning.

Another feature of the methodology that distinguishes it from KPI and other performance measurement methods is that OKR does not affect the employee's assessment or the size of bonuses and other incentives. It is believed that OKR can only be used if the company consciously cultivates trust in employees. Without a stick and a carrot, it will be easier for people to set really difficult goals without fear of being punished for non-fulfillment, and the tactic of setting simple goals to get a bonus at the end of the quarter will be meaningless.

From general to specific


OKR provides for mandatory specification of goals from corporate-wide to a specific person. It is clear that employees of a technical or, say, design department, it is not obvious where they should start their day to help the company "increase sales" or "increase customer satisfaction." And OKR requires "split up" common goals to a tangible level. This allows you to coordinate the work of individuals and departments in a single direction. The method is used simultaneously on three levels:

- the entire company
- department or team
- each employee.

Objectives and metrics at each level differ in their degree of specificity, but they must be consistent among themselves and contribute to the achievement of the company's common goals. Annual goals are allowed to be adjusted at the end of each quarter, but quarterly goals cannot be changed in order to fully concentrate on their achievement.

Another limitation is precisely how common goals and metrics are formulated. In contrast to traditional corporate planning, more than half of the goals should be formulated from the bottom up - at team meetings or several departments working on one project (for example, launching a site). The formulation process may involve several iterations so that teams can discuss everything in advance and get a clear idea of ​​how to coordinate the work further.



Examples


Suppose the company has set itself the following goal:
Get into the top three most downloaded applications on the App Store.

Key results:


At the level of the mobile development department, this goal and key results may correspond to it:

Increase user satisfaction by 30%.


At the individual level, the iOS developer can set himself the next goal.

Increase user satisfaction by 50%.


As you can see, goals and results must be measurable. At the end of a quarter or year, each employee evaluates the fulfillment of his goals from 0 to 1 and calculates the overall progress. As already mentioned, 60-70% of each goal is optimal.

Effect


The good news is that bad results in OKR simply cannot be! Therefore, if you are not satisfied with your results in other planning systems, you will definitely like this one. If one of the goals turned out to be low results, it is a reason to overestimate its significance and either lower the priority, or reformulate, or abandon it altogether. In general, the list of specific results achieved over the quarter clearly shows the distribution of time, achievements and gaps. So, OKR helps to make a more accurate plan for the future.

If we consistently adhere to planning with OKR, the founders of the methodology guarantee the following improvements to us .

  1. More consistent decision making at all levels. Before setting a new task, employees will think about how it relates to the overall goals of the company and the department.
  2. Understandable metrics for measuring progress. Since metrics are already embedded in goal setting, you will always rely on objective, not subjective criteria.
  3. More transparent communication between teams.
  4. Synchronization of efforts of teams towards a common goal.


After a year of using OKR in Wrike, we are ready to admit that these changes have occurred. With the very rapid growth of the company, an extremely timely tool for us turned out to be a tool that helped improve work between departments and transform teams into cross-functional groups that work on common goals. This was especially relevant when launching new product features.

We will be happy to read about your experience in planning as a team and the impressions from OKR in the comments.

Source: https://habr.com/ru/post/300368/

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