OKR what they are and which software to use to manage them better
OKR what they are? The acronym of Objective Key Results. They are used both as an effective tool in Management By Objectives (MBO) and as a privileged channel to communicate where the organization is going and what milestones are needed to get there.
Having already dedicated an in-depth guide on what OKRs are, I will use the time you want to dedicate to this new article on Objectives and Key Results to understand how the main world organizations use them for their strategies, or what are the mistakes OKRs to avoid and which, conversely, are the best practices.
Finally, to offer those interested the opportunity to use the OKR methodology, I made a ranking among the 3 best OKR management software.
OKR what are they, who invented them, and who uses them?
Objective Key Results are a methodology for defining and managing objectives. The OKRs are born from the combination of two very characterized elements: the objective (O), also very ambitious, which marks the final direction, and the key results (KR), concrete and measurable, which indicate where we are and if the road is right.
But to whom do we owe the formulation of this methodology? And which companies and organizations use it? We talk about it right away in the next chapter.
What are OKRs: from Google to conquering the world
To explain the OKRs what they are today, I would like to start from the beginning, that is, who invented the OKRs. The concept of goal and key outcomes was devised in the 1970s by Andy Grove (CEO of Intel) but owes its popularity to John Doerr, one of the first Google backers.
It is Doerr himself in his book “Measure What Matters” to tell us how OKRs have become the methodology of management by objectives in the then startup Google. 1999, Palo Alto, Larry Page, and Sergey Brin, two ‘dropouts’ from Stanford, want: “Organize the world’s information and make it universally accessible and useful“.
Organizing the world’s information and making it universally accessible and useful: is the flag of Google and Doerr invests 11.8 million dollars in this very ambitious goal-setting. During a meeting with the founding team – which in addition to Page and Brin also included Marissa Mayer, Susan Wojcicki, and Salar Kamangar – Doerr introduces to Google the OKR philosophy to build a business planning model, measurable by 3 key results:
- KR # 1: I would like to finish my presentation on time.
- KR # 2: I would like us to create a sample set for Google OKR quarterly.
- KR # 3: I would like to obtain a management agreement for a three-month OKR trial.
Here’s how Google set up its business strategy based on the OKR framework. The OKR examples of Big G have since been followed by other large companies, among which I can mention: LinkedIn, Dropbox, Spotify, Netflix, Uber, and Airbnb.
What are the OKRs in the Doerr formula?
Before moving on, I still refer to the Doerr formula to fully define the Objectives and Key Results:
O = what must be achieved. The goal is meaningful, concrete, and inspirational. The lens serves as an antidote to unfocused thinking.
KR = results that are used to monitor how we move towards the goal. Key Results are specific, realistic, limited in time and, above all, measurable.
Once all the KR have been completed, the Objective is necessarily achieved.
OKR what they are and 3 mistakes to avoid
The OKR philosophy is simple but not simplistic: learning to write OKRs requires time and knowledge of internal organization processes. Below I list a number of incorrect approaches that can lead to hasty conclusions and reductive applications. Here, in my experience, are the most common and therefore most insidious OKR errors:
- Sitting on the BUS: Business As Usual is in contrast with the ambition that characterizes the goal. Good OKRs should have the ultimate goal of adding value and not maintaining the status quo.
- Trenching: obstructing the transmission of the OKR communication flow means making the overall strategy blurry and, consequently, excluding both work teams and stakeholders from involvement.
- Wrong indicators: management by objectives does not necessarily require the use of the OKR framework. Whichever methodology you choose, you need to understand its purpose. Take for example OKR vs KPI: OKRs have a broader scenario than KPIs (Key Performance Indicators) since they measure change, while KPIs measure health status.
Objective Key Results – Best Practice
In light of the above, to avoid OKR errors we can implement some preventive measures. I refer to the good practices that allow us to make the best use of Objective Key Results, establish the purpose, and set the results to be achieved during the process.
I suggest the following checklist to verify that you are correctly using OKRs:
- Be ambitious with the goal
- Link the objective to the larger strategic ones
- The KR only works if you can measure it
- KR is an achievement, not a task
- Each KR must have an owner
In addition to the aforementioned good practices, there are also tools that allow you to use them to the fullest. I dedicate the next chapter to a mini ranking of OKR software.
OKR what are they and which software to use?
Since OKRs are used to join efforts towards achieving measurable goals aligned with strategic direction, writing them correctly can be complex.
OKR software serves to simplify and optimize the process of setting up and monitoring OKRs at the organization, team, and individual levels.
If you’re interested in learning more, I’ve compiled a ranking of the three best OKR software tools. For the judgment I kept in mind a few, but fundamental, evaluation criteria:
- Usability: Is the software easy enough to use? Does it have an intuitive interface and complex but not complicated features?
- Service: Does the manufacturing company have good technical support? Do I find information and tutorials on the product online?
- Integration: Can I connect OKR software with other HR or objective management tools?
1. Profit.co: complete OKR software
Let’s start in our roundup with Profit.co, a platform used by companies and businesses that use the OKR methodology for strategic and learning activities. The tool is usable as it is easy to install and rather intuitive. Among the strengths of Profit.co is the ability to take advantage of over 300 metrics on the basis of which to define your own custom.
Another advantage is given by the possibility of implementing Profit.co on different platforms and operating systems, such as Windows, Android, iOS, Web, Cloud.
2. Wrike: Easy OKR software
OKR Wrike software adapts to organizations and work teams of various sizes, so it is not difficult to find a plan that fits the needs of the company. Registering on the platform gives you access to the free trial plan. While the help center page offers practical support on the use of the product as needed. If this is not enough, it is possible to send a ‘ticket’ to the assistance service.
Another aspect that I would like to point out is the customized integrations with over 400 applications locally and on the cloud, so that it is possible to connect Wrike to Microsoft, Google, Adobe®, Creative Cloud®, JIRA, etc.
3. FlowyTeam: economical OKR software
The latest OKR software that I present to you is FlowyTeam. Like the other two, it is designed to make the company vision engaging and interactive, through participation and sharing of company objectives and results. It has a full free plan that includes the first 10 users and which includes OKR and KPI monitoring. In this way managers and employees can not only set goals, more or less strategic but also monitor performance and review them with real-time reports.
The last FlowyTeam feature that I highlight is the opportunity to plan a demo meeting to learn how to use the tool and be able to set goals clearly, linking them to key results both at an organizational and personal level.