Effective Goal Management with OKR

One of the most important elements of the company's success is the success of the employee. Every employee is a part of the institution they belong to through the steps they take and the work they carry out during their career journey. One of the most important determinants in an employee's career journey is goal setting. Goals set with the right methods are effective on the employee's motivation and performance. 

👉 So, how is an effective goal-setting system established? How does goal setting affect the employee and the company?

What is Goal Setting?

Goal setting is a strategic process where individuals or institutions clearly define the successes they want to achieve in the future and plan the necessary steps to reach those goals. One of the important theories in this area is Locke's Goal Setting Theory. According to Locke, employees enjoy setting suitable goals for themselves and achieving those goals in their work life. The individual's suitable goals should be clear, significant, challenging yet attainable, and within a planable timeframe. Individuals start their career journeys with the desire to be successful and happy and work to realize their wishes. However, in today's conditions, merely fulfilling the job's requirements is not sufficient for success and happiness. Defining goals in business life and achieving continuous progress towards these goals directly affects success. 

The Benefits of Goal Setting

Goal setting has effects on motivation and performance. As a person reaches their goals, their belief in what they can achieve increases, and their motivation strengthens. While goal setting enhances employee performance, it also improves workplace costs. Achieving goals and realizing these objectives increases both employee well-being and job satisfaction.  According to a study conducted by Thammasat University in 2021 with 335 participants, a positive relationship was found between the goal-setting method known as the OKR system and employee motivation and commitment.

"Goals can only be achieved through a planning tool that we must fervently believe in and act vigorously upon. There is no other way to success." — Pablo Picasso

Goal Setting in Companies

The Critical Objectives and Key Results system, created by Andy Grove and named OKR (Objective and Key Results) by Doerr, is a management system used by organizations to take their success level to the highest.

OKR consists of two basic components: critical performance objectives and results.

🎯 Objective (Goals): These are the goals that need to be achieved. They are concrete, measurable, and action-oriented.

🎯 Key Results (Success Criteria) (KR): These are the efforts made to reach the outcome. Effective goals are time-bound, specific, and realistic. Once the critical objectives are completed, the outcome is achieved.

OKR systems generally consist of multiple critical objectives and 3-5 results for each critical objective. The status of critical objectives and results can be checked and updated every three months, six months, and annually. There are some points to consider in the OKR system;

📍 The OKR system should not be created as a to-do list. 

📍 Success criteria should be value-oriented rather than action-oriented.

📍 Progress in the OKR system should be checked at certain intervals.

The Benefits of the OKR System

The OKR System helps companies create a common goal (objective) and determine success criteria (key results). Additionally, it enables the employee to create an ideal roadmap for both the company and their career journey. A study conducted in Nigeria by Bingham University in 2021 found that the OKR system improved organizational performance. Additionally;

It positively contributes to employee engagement and employee experience.

It creates an integrated system with the employee's goals, departmental goals, and company goals.

It positively impacts company performance. 

It facilitates collaborative work.

It makes tracking and achieving goals easier.

It helps apply performance management effectively in remote and hybrid working models.

"The secret of progress is to start. The secret of starting is to break your complex, overwhelming tasks into small manageable tasks, and then to start with the first one." — Mark Twain

OKR Examples

The OKR system is used for both personal and organizational goals. A personal OKR example is as follows;

📍 Objective: Increase personal development

KR 1: Learn at least one new skill per month

KR 2: Read at least 2 books each month 

KR 3: Attend at least 4 personal development seminars in 3 months

A company's human resources department can create the following OKR for a three-month period;

📍 Objective: Increase employee engagement and satisfaction

KR 1: Increase employee satisfaction survey scores by 10%

KR 2: Conduct at least one employee survey within 3 months

KR 3: Increase participation in social events by 20%

Keep keİKen with you for an Effective OKR System!

Although the OKR system generally has similar rules, establishing a tailored system to the company facilitates achieving goals and positively affects both company performance and employee motivation. keİKen Consulting helps define your company's needs and future goals with its OKR System service and identifies the key objectives that will be effective in achieving those goals. For detailed information and consultancy;

keiken.com.tr 

info@keiken.com.tr

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References

https://www.whatmatters.com/faqs/okr-meaning-definition-example

https://asana.com/resources/okr-meaning

https://blog.servicedirect.com/okr-planning-12-tips-for-small-businesses

https://www.freepik.com/premium-vector/vector-illustration-motivation-achieve-business-target-by-completing-task-hand_43453304.htm

https://kolaydokuman.com/2020/hedef-belirleme-teorisi.html

IRIKEFE, P. O. (2021). Effect of objectives and key results (OKR) on organisational performance in the hospitality industry. International Journal of Research Publication, 91(1), 185-195.

Mavisu, H. (2010). The relationship between goal setting as a stage of individual career planning and career success (Master's thesis, Dokuz Eylul University (Turkey)).

Yıldız, T. (2018). A study on the effect of work passion, job characteristics, personality types, workaholism, strategic agility, and success goal orientation on organizational commitment (Master's thesis, Istanbul Arel University).

Mahitthafongkul, G., & Napathorn, C. (2021). Investigating the Relationship Between the Implementation of OKR and Employees’ Attitude and Development. Thammasat University.