Okr Methodology: What And Why Google Uses It Among Its Employees
2021-02-01 | by CusiGO
Google works. The company, which specializes in Internet products and services, has improved employee performance through the OKR approach, A simple way to organize work is to set goals and link them to quantifiable results. Each department or working group has three to five ambitious goals to achieve within the usual three-month time frame and always in line with the company’s strategy. Guillem L ó PEZ, digital processing manager at rocasalvatella, will chair the OKR methodology webinar on what they are and how to apply them with your team, summarizing the main advantages of the OKR approach: “it’s flexible and adaptable to a variety of realities.”.
Attend the OKR methodology webinar: what they are and how to apply them with your team, led by Guillem L ó PEZ, digital processing manager, rocasalvatella. Date: Tuesday, February 2, 4:00 p.m.
It is important to emphasize the ambition of each goal, because 100% of the goal does not have to be achieved to be considered successful. ‘it’s not a problem that the Google assistant team has failed to meet its goals for five consecutive quarters,’ Mr. Lopez said. According to Google’s official policy, only 60% to 70% of the expected value should be achieved. The OKR method can help solve the night vision problem of Google’s own cars, and help other companies identify presentations in investor search or reduce the cost of office consumables, This proves that it’s easy to adapt to different environments.
Joan Riera, Professor of innovation and entrepreneurship at ESADE strategy and General Administration, has added other definitions that help to understand this approach in Silicon Valley and make it different from other classic models: “it’s ambitious, challenging, collaborative, participatory… Cross domain.”. But that doesn’t mean the company’s hierarchy is diluted. In fact, it is not a matter of changing the organizational structure, but a matter of keeping all departments and teams in line with the company’s strategy.
There are two ways to apply this approach from the bottom up: teams first define the OKR that is directly related to them, and then define the OKR that is related to the long-term vision of the company. They are based on the company.
“The second model is more effective,” Lopez said. “Because it allows the team to focus on the strategic needs of the organization,” he added. That doesn’t mean taxes, Lopez said. They can be more or less involved. Riera stressed that the approach promoted by Dick Costolo, the former chief executive of twitter, is collaborative.
Another characteristic of this strategy and other classic models is transparency. A sales team can see that all departments forming an organization are marked with OKR of operation area, etc.
Lopez thinks why small businesses usually do not have the control mechanism of large companies, but benefit from this method: “in small and medium-sized enterprises, we are more likely to show personality and information is not transparent. OKR is a non authoritative way to ensure consistency across the team. ”
Riera gives an example to help us understand how the goal is set and what the key results are: a company wants to get an investment of 500000 euros. The team’s goal is to list 150 potential investors and establish a measurement mechanism: you have to submit 30 reports Promote the project. At the end of the quarter, it turned out that four investors each contributed 100000 euros, or 80% of the target. Other departments of the company seeking financing know that the team responsible for this work has established OKR.
As there is no OKR linked to any form of variable compensation, it reduces the competitiveness among employees. “It’s not an assessment tool, it’s a management tool,” Lopez recalled. “It’s wrong to link employee bonuses to the realization of OKR,” Riera said. Transparency defines the way big technology companies, such as LinkedIn, spotify or airbnb, work, and helps deepen understanding at meetings.
“When you know the goals of another team, you already know the problems you face in meetings. When you’re ready, you look for meeting places and avoid potential conflicts,” Lopez explained It helps optimize meetings.
This approach requires a certain degree of discipline in order to achieve these three, four or five set goals in a quarter. Riera suggested an annual timetable for outcome review meetings so that “emergencies do not prevent us from carrying out our important work.”. One “champion” said the professor stressed the importance of having a reference employee in the team who is responsible for monitoring compliance more closely.
It’s difficult to measure the results. People always tend to consider time, sales, cost and other indicators, but there are many other indicators that are not so obvious. “A suitable application can calculate the ambient noise or the number of times a word is used while speaking,” Lopez said, citing an attempt to quantify these variables. “When you want to measure intangible assets like satisfaction, there are surveys, surveys or evaluation tests,” he added.
Riera stressed that the premise of maintaining the simplicity of this method and an affordable indicator is that it will not be abandoned and the urgency of other tasks will not be pushed forward, but return to the classic method or directly do not apply any method.