Have you heard of "moonshots"? These are such ambitious goals that at first glance they seem just as unattainable as a moon landing in the 1960s. Today, we would probably call it a "Mars shot". For example, your team sets itself the goal of speeding up a key process for customers fivefold in the next quarter. At the end of the quarter, the jointly driven process is actually three times faster than before. Did you miss the target? No, on the contrary: Customers now benefit from three times better services!
What do moonshots have to do with OKR?
In both traditional goal-setting processes and budget planning processes, the aim is to achieve the planned goal as accurately as possible - no less, but not much more either, please. This may make sense in certain areas, such as financial planning. In many other areas of the company, however, the focus is on Development. After all, a sprinter like Mujinga Kambundji doesn't slow down just before the finish line just because she could beat her planned time.
The use of "moonshot" goals and thus focussing on progress rather than goal achievement is one of the differences between OKRs and traditional goal-setting methods.
What are OKRs?
In today's fast-paced and competitive business environment, it is crucial to set clear goals and regularly review their effectiveness. The framework for goal setting that provides you with the key to this is the OKR method (OKRs = Objectives and Key Results).
Objectives are precise formulations of overarching goals that an organisation or a team wants to achieve. They are similar to a vision and aim to inspire. Key results represent a subordinate level. They are measurable results that are intended to quantify and ensure the progress of the objectives (and not the achievement of objectives per se).
What makes the OKR method special?
In addition to the use of very ambitious objectives, there are three main points that set the OKR method apart from other approaches:
- Team orientation: OKRs are set by the team together and for the team. It is not about individual goals and services, but about what can be achieved as a team.
- Regular review: While individual targets are often set and then disappear into a drawer, OKRs include regular check-ins. The current progress is analysed and corrections are made if necessary. In addition, a review and planning phase takes place at the end of a cycle. The previous period is reflected upon and the OKRs for the new period are defined.
- Transparent communication: OKRs are openly visible to everyone in the company - including, for example, the OKRs of a management team.
Why is OKR the most effective method to enable top performance?
OKRs offer a number of advantages over KPIs and other control mechanisms. At team level, jointly formulating your own OKRs helps to focus on key priorities. At the employee level, OKRs enable better involvement and meaningfulness, as all team members work transparently on the team's goals and results. At the overall organisational level, consistent application of the OKR method ensures that all teams are moving in a common direction in line with the company's strategic vision and are pulling in the same direction. Within the OKR cycles, you can also react quickly to changing conditions, such as a disruptive market environment.
OKR is a transformative method that enables you and your company to grow beyond yourselves in a self-directed manner. Thanks to OKR, you can effectively implement your vision and strategy, promote collaboration and focus objectives at all levels. To embark on your own moon landing, you should definitely consider OKR.