Did you know there is a right time to apply OKRs to individual performance management?
A team’s work culture should be built with a focus on results, not just task completion. In this sense, the OKR methodology has become the preferred choice for companies. This is also due to its simplicity, easy understanding, and adaptability to any type or level of organization.
However, I have noticed a certain degree of obsession with using OKRs in small, medium, and large companies. Of course, I am not against their use, but when you apply a methodology because it is popular, you risk the proper functioning of your strategy.
Working with OKRs is undoubtedly attractive, but some precautions must be taken. Actions that end up diverting the true purpose of OKRs are prevalent.
The purpose of OKRs is to create alignment within the company. The goal is for teams to understand how they can contribute to achieving organizational goals.
Despite this, using OKRs for team performance management and individual development is often done incorrectly – I will explain in detail below.
Using an agile methodology, such as OKRs, to manage a team’s performance causes the focus on skill development to achieve the proposed results to overlap with the emphasis on achieving results. This usually happens when you want to implement strategic, tactical, and operational OKRs simultaneously, without maturity.
To start implementing OKRs in your company, I suggest you start with the step we call defining the scope model for strategic, tactical, and operational objectives.
A strategic objective generally needs a more extended timeframe than a tactical objective. I recommend that strategic OKRs have a timeline of up to 1 year and your tactical OKRs be quarterly.
Regarding operational OKRs, again, my suggestion is: I do not recommend that you implement them if you are just starting. The reason is that in the case of operational OKRs, we are talking about people management, where leadership must be highly active in developing the team’s skills. If you are just starting, you will neglect the main thing, delivering results.
If you are a manager, using technology in this process is essential to explain your operation’s numbers to senior management.
Here are some additional points to consider:
- OKRs are not a performance management tool. They are a goal-setting and alignment framework.
- Using OKRs for individual performance management can lead to a focus on short-term goals and personal achievement rather than long-term goals and team collaboration.
- OKRs can measure progress toward goals but should not be used as the sole measure of individual performance.
- Some other tools and methods are better suited for individual performance management, such as performance reviews, 360-degree feedback, and coaching.
If you consider using OKRs for individual performance management, I encourage you to consider the potential risks and benefits carefully. It is essential to ensure that you are using OKRs correctly and that they are aligned with your overall performance management strategy.
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