a better understanding of the organization's objectives,
greater participation of workers,
facilitate monitoring of progress,
respond more quickly to changes,
improve internal communication.
Examples of successful OKR management can be found in the history of many global corporations, such as Google, which may have achieved significant growth and development through this approach.
Differences between OKR vs KPI and Management by Objectives
OKR vs KPI and Management by Objectives (MBO) are three different methods of managing objectives that have their advantages and disadvantages. The main difference between them lies in the approach to measuring results and defining objectives.
In the case of OKRs, key results are measurable and concretely defined, which makes it easy to monitor progress and achieve the strategic objective. KPIs (Key Performance Indicators) are performance indicators that are also measurable, but may be less closely tied to specific strategic objectives. Management by Objectives, on the other hand, focuses on setting goals for individual employees and teams, but does not always include measurable results.
Practical examples of the differences between the two methods can be illustrated by the example of a manufacturing company. In the case of OKRs, a company may set a goal of increasing production efficiency by 10%, and key results may include a reduction in machine breakdowns or downtime. In the case of KPIs, a company may monitor parameters such as the number of units produced per hour or the cost per unit of production. In the MBO approach, managers may set goals for individual employees, such as increasing the number of orders or improving product quality. These methods, despite their differences, can be used simultaneously for different purposes.
Who developed the OKR method? The method of the best