Mehrdad Speech: OKRs in Goal setting
We all see that companies lose their capital and people waste their time and exhaust their resources not because they’re dumbbut because not setting appropriate goals or choosing wrong objectives orperhaps considering wrong metrics.
Many of us are setting goals wrong and most of us arenot setting goals at all.
A lot of organizations set objectives and meet thembut they lack a sense of purpose to inspire their teams.
So how do you set the goals right way?
First, you must answer the question WHY. Why?
Objectivesand key results (OKR) is a†goal-setting†framework that helpsorganizations as well as individuals define†goals†ó or objectives óand then track the outcome.
OKR†has been around since the 1970s. Theconcept was created by intel president Andy Grove, and popularized by JohnDoerr, who was one of the earliest investors in Google.
Andy Grove who invented the OKRsystem was a superb leader. It is all about excellent execution.
The objective is the direction and the key results has to be measurable.
The Objectives are WHAT you want to have accomplished and the Key Results are HOW am I goanna get that done?
ObjectivesÖKeyResults. What .. and how.
The difference between OKR and SMART goals
On the surface, SMART goals and OKRs look similar. They both offer a structure, and they both have rules that help set scope, time frames, and alignment.
However, the similarities end here, and where SMART ends, OKR takes over.
SMART views goals in isolation and provides a simple, yet memorable acronym and criteria to describe their structure.
OKR also provides a structure but draws a distinct line between the Objective of the goal (what you want to achieve) and how to measure progress towards it using Key Results.
This an area where the ìMî in SMART can cause confusion since there are several variations of what the acronym SMART means.
For example, the M can stand for measurable, meaningful, or motivational.