Exploring the Essence of OKRs to Build a Culture of 'Dialogue and Challenge' in Teams! ~ Management Professional #23
Hello! I am Tsuboi (@tsubot0905), an HR Business Partner at DeNA.
This is the 23rd installment of 'Management Professional,' a note exploring the evolution of management.
In this Management Professional note series, I strive for a simple structure that can be easily learned in 5 minutes, with content focused on questions that are easy to synchronize and use in communication with others.
Now, the tactics section that began in the 18th installment.
Once I write about management-level tactics and frontline-level tactics, it will be complete.
This time, it is about OKRs, which can be considered management-level tactics.
However, this is not an article recommending that you use OKRs!
I am writing this with the intention of incorporating what can be applied to team management from the essence of the trendy tactic called OKRs.
I have written this concretely, touching on effective ways to use OKRs and stories of failure that I have felt during the three years I have been using OKRs since joining DeNA.
Here is the table of contents!
<What are OKRs?>
OKR is an abbreviation for 'Objective and Key Results'.
It is a management method that involves communicating so that key results can be achieved toward an objective, and it has gained attention after being born at Intel in the U.S. and subsequently adopted by companies like Google and Facebook.
For the O, define an ideal that cannot be expressed numerically in a qualitative way.This ensures that you can always ask whether your actions are leading to the O.
For the KR, concretely verbalize the state of achievement relative to the O. Here, you clarify deadlines and numerical results so that progress can be viewed objectively.
This is a brief explanation of OKRs.
I personally perceive OKRs as a management method that makes it easier for a team to produce fast and wonderful results by having an aspirational goal, aggressive qualitative/quantitative indicators, and a rhythm of weekly execution and accountability within the team.
In the next chapter, let's look at the differences between OKRs and MBO (Management By Objectives), which has been used in Japan since before OKRs became a hot topic.
<Four differences between MBO and OKR>
I have organized the four characteristics that change when shifting from MBO to OKR as follows.
We will look at each one individually. Bold text represents the essence/effect of OKRs. Please read through while reflecting on whether these are necessary for current management.
Comprehensiveness → Importance
Select the purpose to commit to
When deciding on an O in OKRs, the team first identifies all valuable issues that need to be solved together. Each person sees different management-level issues, and by sharing these, we can develop a shared understanding from multiple perspectives. From there, the team engages in repeated discussions regarding importance and priority.
Since there is no organization without issues, many will come to light. However, we do not attempt to incorporate all of them into goals comprehensively. The process of narrowing down to an O that is important for management without trying to do everything is crucial.
Through the process of deciding on an O, the team can unify their awareness toward the goal. Ideally, everyone focuses on what the team aims to achieve, deciding on an O that allows the team to work as one.
Sustainable → Dramatic
Set challenging goals
In OKRs, we set challenging goals (goals that require a jump rather than just a stretch) that can be achieved with a 70% success rate if we try hard enough. In terms of confidence at the time of goal setting, it feels like a 50/50 chance of achievement.
Therefore, we consider a 70% achievement rate a success, and 100% a great success. A 100% great success is when you can definitively say you have achieved an ambitious goal and realized dramatic growth! In OKRs, aiming for great success is expressed in one word: 'moonshot.' It is convenient because it can be used as a watchword in conversations without having to explain the entire content of the OKR.
One thing to be careful about in terms of mindset is the evaluation method.
Since MBO is directly related to evaluation and compensation, it requires aiming for an achievement rate of 100% or more against goals. Therefore, OKRs should not be linked to evaluations, or at most, kept as a loose connection where success leads to bonus points, to encourage taking on challenges.
By setting a team O, you can create a culture that welcomes members'
challenges.
That is one of the benefits of OKRs.
Closed → Open
Discuss goals and direction as a team
Once the KR goals are decided and it is determined who will be the owner for each item, collaboration within the team begins. Instead of setting individual goals and proceeding in a closed manner like in MBO, we proceed by discussing openly as a team to achieve the goals.
When plans are put into action, changes in circumstances or progress require course corrections for any discrepancies. It is precisely at such times that it becomes important to share opinions and decide how the team will judge and handle the situation.
If we can convey our thoughts and feelings to each other through dialogue and move forward, we become an aligned team that practices without deviating from the policy.
Each person's intentions chain together, leading to a chain of actions, and finally, a chain of value is born. It is reassuring when a team becomes a solid, unified entity.
Deadline → Timeline
Constantly share progress and recent status
The MBO approach is to pursue goals individually in line with evaluation deadlines, but the OKR approach is to keep goals constantly in sight and pursue them as a team while monitoring the situation.
Furthermore, the management and evaluation of KRs toward results are done by the team, not by a supervisor. By sharing within the team, we maintain awareness of the goal at all times and create a team that can focus on the goal.
It is important to pursue results as a team in accordance with recent developments that change over time, much like a social media timeline.Therefore, without information sharing, dialogue cannot develop, and the team cannot pursue results with a shared understanding. It can be said that information sharing is essential for dialogue.
Through this process,
a culture that welcomes dialogue within the team can be created.
I think this is another great aspect of OKRs.
~~~~~~
We have looked at four differences, but have you grasped the essence of OKRs that create a 'culture of dialogue and challenge'?
While MBO was a 'system for evaluation to improve individual performance,' I believe the focus has shifted to a 'system that encourages dialogue and challenge to improve team performance' through OKRs.
Now, next, I would like to share some things I felt were easy to stumble upon while actually operating OKRs, including some failure stories.
<Three Traps Where OKRs Fail>
1. Being too greedy with O
It is easier to focus on the goal if O can be narrowed down simply.
However, this is difficult...
A long time ago, when all 6 team members identified valuable issues that needed to be solved, 60 issues were raised (about 30 if duplicates were excluded).
Since the granularity and scope of the issues varied, it was difficult to narrow them down to one O, so we set multiple Os and worked on them.
Because we set three KRs for one O, the number of KRs increased, activities became more fragmented, and tasks were left to individual KR owners.
Although it was easy to demonstrate individual ownership and performance, I feel that the multiplication of team strength, which is the benefit of OKRs, was difficult to achieve.I think.
2. KRs become a to-do list
It often happened that the three KRs were lined up in chronological order. Do A, then B, then C. This does not result ina to-do list of things to do, rather than the indicators that Key Results should show.
Also,be careful about trying to quantify KRs too easily.It is counterproductive if actions are forced to increase just for the sake of quantification. Care must be taken not to let the means become the end.
In terms of actions, it is ideal to create actions for KRs that can be executed independently and in parallel, and to have team members share the responsibility.
It is also recommended to include 'things that are important but not urgent' as it makes it easier to challenge new activities.
3. No system for OKR operation
If you have never done OKRs, it is difficult to imagine how to systematize them.
① and ② can be corrected if you are conscious of them at the time of goal design, but ③ is difficult because it will not go well if daily communication design is not done.
What kind of mechanisms are needed to operate OKRs effectively, making team communication feel open and fluid like a timeline?
In the next chapter, we will delve into the secrets of operation.
<3 Secrets to OKR Success>
CFR is an important concept for OKRs. Are you familiar with it?
CFR is an acronym for the following:
・Conversation
・Feedback
・Recognition
This is a concept from 'Measure What Matters' by John Doerr, who is said to have introduced OKRs to Google.
I would like to share the three secrets to successful OKR operation, along with examples of how we practiced them in our own team.
< Conversation >
It appears here too: 'Conversation'! During the OKR period, we create regular opportunities for dialogue within the team.
There are various angles for dialogue. For example, we have written down our individual experiences from the perspective of FDL and discussed them as a group.
F: Fun = Things that were enjoyable
D: Delivery = Things where value was provided
L: Learn = Things that were learned
The effect of dialogue is that it activates communication within the team by allowing members to touch upon how others feel and think.
< Feedback >
'Feedback' is a necessary action to directly influence team activities. For example, we hold meetings to review and improve team activities from the perspective of KPT.
K: Keep = Things to continue, things that went well
P: Problem = Things that were problematic, things that went poorly
T: Try = Things to do next, things to change
The effect of feedback is that it allows for course correction of OKRs by having options to review team activities.
< Recognition >
In OKRs, we create opportunities called 'Win Sessions,' where we write down what each person has done, acknowledge each other's efforts, and hold meetings to praise one another as a team.
The effect of recognition is that it allows the entire team to share gratitude and contributions toward fellow members.
~~~~~~
To ensure teams continuously improve their performance, it is important to effectively incorporate CFRs and operate the OKR framework with genuine commitment.
Ultimately, even if you don't implement the OKR tactic in its entirety, it is fine as long as you can create a mechanism that achieves the effects described so far. Why not consider how you can reflect the essence of OKRs in your team's management?
<Questions for this session>
That was the content I wanted to deliver in the 23rd ManagePro!
How was it?
So, for the final question, a ManagePro tradition.
Through this theme, I have selected four questions to pose to leaders and managers. I hope this helps organize your thoughts and encourages new actions for all you busy people!
*I would be happy if you could share your thoughts, such as 'This is what I think' or 'This is what I would ask,' on Twitter with the hashtag #ManagePro!
<Looking ahead to next time>
This time, we extracted the essence of OKRs by comparing them with MBOs and explored, along with case studies, whether there are perspectives that can be incorporated into teams.
The theme for next time is 'OODA'.
If this OKR session was about management-level tactics, OODA is about frontline-level tactics.
Next time will be in two weeks on Wednesday.
If you liked this, please consider giving it a 'like' or following me on note.
Thank you for reading until the end this time as well!
It would be my greatest pleasure to explore the evolution of management together with you, the readers.Follows and retweets on Twitter are very welcome! Please feel free to send your thoughts via DM as well! (@tsubot0905)
By receiving your own theories and new perspectives on the topics covered in note, the exploration of management should become even more enjoyable. Therefore, I look forward to hearing your reactions. Thank you!