In recent years we been exploring OKRs as business performance and value tracking framework. The goal is to align company/teams/Personal objectives and key results to see business value come together. Here are few most commonly asked questions with their answer on OKRs that we have seen during analysis with our customers.
What is the difference between OKRs and Performance Management?
OKRs focus on business results, while individual performance management focuses on how an employee performs their job. OKR are done quarterly and everyone can see each other OKRs in the organization. However, individual performance review typically happen yearly and confidential. OKR are started by company/team level and individual performance cycle is started by HR/Manager.
Should we combine OKR and Individual performance in to one?
OKR is a business performance management tool, not an employee evaluation tool. So you should not mix the individual performance evaluation strictly based on OKR performance.
OKRs are a modern goal setting technique and, while not meant to be used with traditional performance reviews, it should be used with continuous performance management and regular check-ins.
Are OKRs replacing KPIs?
No, OKRs do not replace KPIs. Simply put, they serve different purposes and cannot replace each other. OKRs actually replace the several methods of managing your KPIs. KPIs and their trends indicate how well your business is doing or parts of your business are doing.
OKRs consist of Objectives and Key Results. Key Results in turn can be associated with a KPI. The key is “can be”. Key Results need not be necessarily associated with a KPI.
How do the OKRs compare with Lean Startup Methodology?
Here is a matrix that shows how OKR align with Lean Methodology principles.
Source: Profit.io
KR and Scrum — how to connect two powerful frameworks?
Scrum and OKR do play together and work well where Sprint Goals become Initiatives for OKRs. However, to see real value from both frameworks it’s vital that they’re well understood by everyone involved, that time is set aside to manage them, and that a Scrum Master and an OKR Ambassador are nominated.
Source: Perdoo
Can I use OKR for my AI/ML team?
AI Teams Need to Set Objectives Too. We sometimes think of data science, machine learning and AI as such new and complicated technologies that they can’t be managed by current best practices in business for planning and goal setting.
An Example of OKRs for AI and Data Science
Let’s say you have an analytics group that has just begun producing models with a team of five advanced analytics researchers. You, as team leader, might propose this as an OKR:
Objective: To produce an AI app or predictive model that generates recognizable new revenue for the company.
Key result 1: To meet with 3 business representatives in each of the 5 product divisions to understand their problems and educate them on what AI or predictive modeling could do for them.
Key result 2: To gain user-role defined access to all relevant internal datasets in compliance with existing privacy policies.
What is the best way to do status reporting in OKR framework?
The progress, plans, and problems (PPP) framework is an effective status management method used by several hugely successful business, including Apple, Facebook, and Skype.
Using PPP, managers can stay on top of their team’s short- and long-term OKRs without disrupting productivity by holding an excess of meetings or creating undue employee stress by putting people on the spot.
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