OKR & KPI... Balanced Scorecard

OKR & KPI... Balanced Scorecard

In this professional world, driven by objectives and key results, it is instrumental to have goal setting and performance management in place.

In any organization, post strategy building comes its implementation. That’s where the rubber hits the road; where the culture, operations and management of the business have to come together to execute this strategy and make it a success.

Any organizations irrespective of their size of operations have social interactions, attitudes, opinions, emotions etc. within workforce. So how do you know when things are working and when they aren’t?

As a leader, you have your hand’s full, balancing between looking at what comes next and what is happening now. Unless you have a system in place, a way to track and steer progress your strategy is worth nothing.

Managing a business means measuring the right things – not just anything though. That’s where KPI comes in.

No alt text provided for this image

But how does your team understands what they need to do? How do you align them to where you want the business to go?

By using OKR’s you work with your teams, not simply top-down approach but you also provide them with the tools to understand what they need to achieve and then they decide the how to achieve it.

So we need to measure the right things and to set objectives at different levels of the business – but allow teams to do the objective setting like a cascade so it all knits together. In my option, that while KPIs and OKRs are different, there’s a clear benefit to having both.?

What is OKR?

No alt text provided for this image

  1. Stands for Objectives and Key Results.
  2. Action-oriented goals (objectives) and measures (key results).
  3. Future focused and directional, trying to get from point A to point B.
  4. Ambitious goals.
  5. Should be aggressive and bold, help move the needle on something strategically important to your organization.
  6. Growth Orientation.
  7. Have a set time period (quarter, year, etc.), and changes from quarter to quarter or year to year as you progress.
  8. A broad framework that enables clear communications aligned to roles.

What is KPI?

No alt text provided for this image

  1. Stands for Key Performance Indicator.
  2. Number (metrics) that measure the health of your business.
  3. Could be a result or leading indicator (Looking at past results or future goals/targets).
  4. Attainable goals.
  5. Monitors the "steady-state" and provides benchmarks; It prompt actions when the numbers are off track.
  6. Performance Management Focus.
  7. Usually measured on an on-going basis may have many of the same KPIs from quarter to quarter and year to year, but the targets might change.
  8. Linked to organizational performance – balanced scorecard.

How to Use KPIs and OKRs together?

No alt text provided for this image

  • Both should be specific, clear and measurable.
  • You should focus on a few of each that are truly pivotal. (Both acronyms contain the letter K for key, “pivotal “). You should have 3-5 OKRs at a given time and no more than 8-12 KPIs.
  • You can have OKRs and KPIs for the company as a whole, for departments or teams, or for specific roles, individuals, or projects.
  • You may run your business by aligning everyone around well-defined goals and clear measures of success.
  • For the team, one needs an owner that is accountable for the results.

OKR framework:-

No alt text provided for this image


COMPANY MISSION?– The company's mission is a brief description of the company’s vision and purpose, and how they should be implemented.

MID-TERM-GOALS?– Mid-term goals are the link between the company's mission and the OKR. They are usually defined for one year.

OKR PLANNING – At OKR planning the respective objective and key results become defined for the entire cycle and at all levels. This is done both top-down and bottom-up.

OKR WEEKLY – The OKR weekly helps to synchronize the objective and key results?implementation and supports self-responsibility as a solid ritual of the teams during the cycle. The weekly should only take about 15 minutes and should give an overview of the current status of the OKR.

OKR REVIEW – Review meetings are used to determine the degree of achievement at the end of an evaluation cycle. The scoring should be consistent with team standards.

OKR RETROSPECTIVE – During a retrospective, the teams analyze the OKR process from a systematic point of view. What did the team learn? What should be improved in the next cycle?

OKR COACH – As experts, coaches, facilitators, change agents are OKR Coaches responsible for the smooth implementation of the OKR framework in the company and support their teams in the definition of OKRs and other regular events.

Closing:

No alt text provided for this image

The OKR model is a great way to align your team to the goals that matter most. It brings focus, clarity, transparency, and accountability. For the OKR methodology to function at its best, there needs to be clear communication, agreed-upon key results, and aspirational goals. While OKRs should be updated regularly, moving the goal posts too frequently can lead to burnout. You also don’t want to set too many OKRs, because priorities can get lost and confusing.

The OKR model is an effective way to set and measure goals, while achieving alignment throughout your organization. If you’re interested in implementing it, be prepared for highly communicative and transparent leadership, accurate goal-setting, cross-organizational alignment, and a lot of discipline.??


Nitin Sohony

Automotive Professional dedicated to helping industries reach their full potential. My cross-functional experience across multiple industries renders me industry-agnostic.

3 年

Prasannan P This all can be summarised in SMART .

Prasannan P

Regional Head at HDFC Life | Strategic Planning, Network Expansion, Competitive Differentiation

3 年

"An effective goal-setting system starts with disciplined thinking at the top, with leaders who invest the time and energy to choose what counts.” --- John Doerr,

Prasannan P

Regional Head at HDFC Life | Strategic Planning, Network Expansion, Competitive Differentiation

3 年

“Ideas are easy. Execution is everything.” --- John Doerr,

Prasannan P

Regional Head at HDFC Life | Strategic Planning, Network Expansion, Competitive Differentiation

3 年

“When people have conflicting priorities or unclear, meaningless, or arbitrarily shifting goals, they become frustrated, cynical, and demotivated.” --- John Doerr,

要查看或添加评论,请登录

Prasannan P的更多文章

  • Net-worth & its importance

    Net-worth & its importance

    What is personal net-worth statement? A personal net worth statement or personal financial statement is simply your…

    12 条评论
  • Financial Literacy... Important Outlook

    Financial Literacy... Important Outlook

    What Is Financial Literacy Definition? Being financially literate means having the ability to make healthy financial…

    22 条评论
  • Emerging Trends in Digital Transformation for Insurance Sector

    Emerging Trends in Digital Transformation for Insurance Sector

    India’s burgeoning internet economy is slowly warming up to the potential of its massively underpenetrated insurance…

    5 条评论
  • DATA ANALYTICS in direct calling

    DATA ANALYTICS in direct calling

    DATA ANALYTICS in direct calling Great sales leaders know that calls are not just about relationship building: they are…

    6 条评论
  • Trading or Investing... a take!!!

    Trading or Investing... a take!!!

    Investing and trading are the two most common terms in the stock market. So if you are into stock market what are you…

    14 条评论
  • Artificial Intelligence --- Insurance industry perspective

    Artificial Intelligence --- Insurance industry perspective

    Artificial Intelligence In simple words, Artificial Intelligence (AI) can be defined as a wide-ranging department of…

    11 条评论
  • Blockchain in Insurance Industry and its impact.

    Blockchain in Insurance Industry and its impact.

    What is Blockchain? Blockchain is a system of recording information in a way that makes it difficult or impossible to…

    9 条评论
  • Invest in yourself. A decision to make...

    Invest in yourself. A decision to make...

    It may sound selfish but it is not. Investing in yourself is a necessary part of growing as a person and bettering…

    15 条评论
  • Exemplary leadership... an outlook

    Exemplary leadership... an outlook

    It is said that… a great leader is certainly in charge, not everyone who is in charge is a great leader. This is…

    12 条评论
  • Optimize personal savings

    Optimize personal savings

    As long as you are getting paid for your hours, you will never have 100% flexibility & freedom. To create real time…

    14 条评论

社区洞察

其他会员也浏览了