In defining its strategy, a company begins by defining its mission - its raison d'être - and its vision. In an age of urgency and immediacy, it's essential for companies to take the time to set a course. Using the OKR method enables us to define the company's fundamental objectives and clearly communicate them to our teams, thus ensuring that all employees feel involved in a global project to which they will all contribute.
Developed by Andy Grove, former CEO of the Intel Group, and popularized by Google in the 90s, the OKR method stands for "Objectives and Key Results".
This methodology consists in setting ambitious objectives, at all levels of the company and for all teams. Its aim is to put the company's fundamental objectives back at the center, so that every member of staff can work towards a common goal.
Key Results" are derived from these objectives, representing the concrete results to be achieved and the strategy to be implemented to achieve them, and ultimately fulfill the company's "mission".
Henrik-Jan van der Pol, a Dutch entrepreneur and consultant, put it this way
The goal gives you the direction to follow and the key results on how to get there.
Every company has a mission and a vision that is the very essence of its existence.
To achieve this mission, it sets objectives to be reached, which it measures with the help of the key results obtained and the progress of the tasks to be carried out.
This approach will challenge and motivate teams and make employees more productive.
It's important not to confuse the concept of the OKR method with that of the SMART method. The SMART method, however, enables you to set motivating objectives for your teams.
Unlike S.M.A.R.T. objectives, one of the most important characteristics to take into account is the ambitious nature of OKR objectives (I invite you to compare the SMART and OKR methods). compare the SMART method and the OKR method).
They are designed to take employees out of their comfort zone and push them to excel, breaking the daily routine and creating a dynamic and motivating environment.
OKRs must be public and shared with every member of the company, so that everyone is aware of the company's work and progress. Teamwork is the key to achieving a common goal.
Beforehand, it's a good idea to explain to your teams what OKRs and Key Results are, how they are defined and why. This will help you to get your staff on board with the overall strategy.
It's also a good idea to include your teams in the definition of objectives. This often generates greater motivation to achieve them, and enables your employees to position themselves as the driving force behind the company's success.
And don't forget: good communication of objectives within the organization is one of the key factors for success.
They can be defined at the individual or team level. Most of the time, they are set at the team level, which is given a set of objectives to achieve, determined according to the company's strategy and in correlation with the global objectives.
Key Results must be measurable and easily assessable, so that everyone can define their progress. On average, we define 3 to 4 Key Results per objective, so as to have a precise and concrete view.
In this methodology, we consider objectives to be achieved when we reach 60-70%. Remember, they have to be ambitious! If your teams reach 100% every time, or surpass the targets, then they've been badly set in the first place.
The objective is to structure the work of each department, team and employee so that it is aligned with the company's objectives.
Like Google, you can also use "Stretch Goals". These are goals that are very difficult, if not impossible, to achieve. Their role is to create an extremely challenging environment for teams, so that they perform to the best of their abilities and beyond.
Caution! The use of "Stretch Goals" can quickly become counter-productive, creating a sense of failure in your teams who never manage to reach their goal. In this case, the manager's role will be to make it clear that failure to achieve objectives is not synonymous with failure, because we're not aiming for 100%.
In reality, we're looking for total team involvement and progress. To better understand the mindset behind the OKR method, here's a concrete example.
"If tomorrow I set myself the goal of doing 10 seconds in the 100 meters, it is very unlikely that I will succeed despite the intensive training I will put myself through. On the other hand, all the training I've done to reach this goal will allow me to significantly increase my abilities in this area."
Let's take a concrete example: reducing the churn rate.
Key results:
👉 Increase Customer Satisfaction Score (NPS) from 7 to 9.
👉 Implementation of a Customer Success strategy.
👉 Respond to 90% of incoming requests (support / business / development) within 24 hours.
In this case, my teams know exactly what they have to achieve, how much time they have, and what results are expected. Throughout the year, they can monitor their progress and adjust the actions implemented to achieve the objective. The idea is also to create more internal synergies and strengthen team spirit.
As you can see, the aim of the OKR method is to create an environment focused on performance and commitment, by getting every member of the company on board. The expected results provide the direction to follow and lead each employee along a common path, with the same final destination: the company's success.
Once you have defined your mission and vision, define objectives to achieve them, then define them for your teams in a very explicit way in the form of key results. Depending on the context and the profile of your teams, you may or may not set very ambitious objectives to challenge your teams. In any case, monitor your results closely to re-evaluate your strategy if necessary.
