THE OKR GRADING SYSTEM
One of the unique elements of the OKR system that I like is its own self review process. The objectives created when using the OKR should be ambitious and impactful as a priority for the business. The objective will often require special additional resource help and focus through skills, technology, resources, effort and time. Said simply, your objective should be a stretched goal, a goal that seems very challenging yet attainable. (See SMARTER goal setting for a similar structure)
The transparency element of OKR’s can be a challenge for organizations or people used to having more privacy surrounding their personal achievements. The concept of OKR’s for instance in Google is to have each employee’s OKR as an inter-company public record of what they have done in the past and what they are working on right now. – A benefit of such a system is the collaboration and development opportunities that can be found. A person in finance may have a great track record or need for continued experience and learning in a task so are placed in a task team with the operations department to reach a specific OKR.
The key results are graded on a scale between 0-1 (0% to 100% success shown as 0.8 for an 80% success). The grading should be conducted every 90 days to help identify support and development areas needed and also to clarify the level of ambition and stretched challenge of the goal. If a score of 0.2 is discovered it could highlight an overly ambitious goal that was not attainable, on the opposite side could be a consistent 0.9 or 1 score which may highlight that the challenges in future should be set higher.
Key Message: Depending on the culture of your business scores between 0.6 and 0.8 are in the ideal range. There is an emphasis and acceptance that not all results can be attained within the time line as the key focus on OKR is to gather speed of implementation and not always achieve a perfection level in the results. Low scores and none attainments should not be seen as negative but considered as opportunities to grow, learn, develop and keep a healthy level of motivation. The average of your RESULTS grades becomes your OBJECTIVE grade.
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