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Objectives and Key results (OKR) (video)
Objectives and Key Results (OKRs) are a popular goal setting mechanism in agile organizations. In this video, we explain what OKRs are and how they can create clarity and focus for your agile teams. Ideally, OKRs replace KPI's, moving the focus from 'me' to 'us'. To understand OKRs at a deeper level, the boek 'measure what matters' by John Doerr (a famous silicon valley investor) is usefull: https://www.goodreads.com/book/show/39286958-measure-what-matters
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OKR vs KPI
So which one is the correct one, OKR used in organization and KPI used to measure how succeed individual of team do the task as the derivative of the OKR or OKR used in a higher level organization then KR of the higher level will become an Objective of the lower level organization?
Or may be we can still combine it, do cascading OKR setup and at the lowest level (development team individual) we set the KPI for them?
Or may be we can still combine it, do cascading OKR setup and at the lowest level (development team individual) we set the KPI for them?
Hugo Messer
Setting kpi or OKR is ideally done by the people themselves (so we don't set it FOR them, they set their own).
For simplicity sake: a kpi (but then set by the person) could become the KR under an objective. BUT this can only work IF the kpi is aligned with the objective. Which also means that we should re-consider what people are working on. They should only do work which contributes to the OKR, to the progress of the tribe. If they do other 'stuff' it will make them distracted. The key if people have a unit AND work in a tribe is to see what they can eliminate from the unit/BAU and only do the things that really contribute to the work in the tribe (which is 'the future').
Imagine I work in marketing. I have a line manager and the kpi I always get from him is 'create 1000 leads per quarter'. In the past, I was just doing my job, generating any lead (as long as it made my boss happy). But now, I am working in a tribe. That tribe has a great new product and I am driven to help the tribe leader succeed by applying innovative growth hacking style techniques for lead creation. I would go to my boss to say 'look boss, I will deliver the 1000 leads, but will make sure it helps my new tribe lead. So I will do it differently, in my own way and I'll report the learning to you, so you can maybe share that with other people in your unit as well'.
That's where we want to be.
For simplicity sake: a kpi (but then set by the person) could become the KR under an objective. BUT this can only work IF the kpi is aligned with the objective. Which also means that we should re-consider what people are working on. They should only do work which contributes to the OKR, to the progress of the tribe. If they do other 'stuff' it will make them distracted. The key if people have a unit AND work in a tribe is to see what they can eliminate from the unit/BAU and only do the things that really contribute to the work in the tribe (which is 'the future').
Imagine I work in marketing. I have a line manager and the kpi I always get from him is 'create 1000 leads per quarter'. In the past, I was just doing my job, generating any lead (as long as it made my boss happy). But now, I am working in a tribe. That tribe has a great new product and I am driven to help the tribe leader succeed by applying innovative growth hacking style techniques for lead creation. I would go to my boss to say 'look boss, I will deliver the 1000 leads, but will make sure it helps my new tribe lead. So I will do it differently, in my own way and I'll report the learning to you, so you can maybe share that with other people in your unit as well'.
That's where we want to be.