1. Mainly Internet companies and high-tech companies.
Jobs once said: 1 good engineer is worth 1 0,000 ordinary engineers. Good engineers, their work results are often unpredictable, but their internal motivation has a great influence on the work results. As the performance management means of KPI, labor time and the number of patents can only make the company get a bunch of expensive but useless innovations. On the other hand, a set of management methods that encourage adventure to solve problems in their own way will be more appetizing for knowledge workers like engineers.
2. Companies above medium scale and companies with more levels.
When the number of companies exceeded 65,438+000, Zhihu introduced OKR management. At the same time, compared with flat companies, those multi-level companies are more suitable for OKR, which can solve the problem of internal friction or direction deviation between departments.
3. Business transformation companies
In this kind of company, the pressure of innovation only falls on the CEO, and others just implement it. Regardless of a person's innovation ability, the risk brought to the company by decision-making mistakes in the transition period is fatal. Better innovation may require young people from the bottom of the hierarchy to understand the business, and these ideas need to be discussed, and OKR provides such a way of communication.
KPI, key performance indicator, is the abbreviation of key performance indicator. KPI is a tool to measure our performance as employees and the overall performance management of the company, which is closely related to the overall strategy and objectives of the company.
The meaning of 1 and KPI
For employees, KPI means: 1. What tasks should I complete within the specified time period; 2. To what extent should I complete these tasks? 3. Take money according to your achievements and completion. In other words, if you complete KPI, you can get money, you can get rewards, and you can do whatever you want if you fail. In this way, the KPI of the leader is certain, the employees shake their arms and everyone works hard. So always remember that KPI is powerful and popular because: "You will get what you evaluate".
2.KPI is a double-edged sword.
KPI improves the efficiency to the greatest extent, but it is also a double-edged sword.
First of all, too many corporate goals will lead to a series of KPIs. If the leader chooses the wrong KPI, it means that employees will execute the wrong instructions, and the consequences are obviously serious.
Secondly, some things are worth doing, but only part of them can be measured, so it is impossible to make KPI. If it is not written into the incentive mechanism, innovation will be even more difficult.
Third, no one is responsible for the final result, and everyone is only responsible for their own process. Then, if you forget why you started for a few numbers on the KPI, this will inevitably happen.
In short, effective KPI is often closely related to strategic objectives, which is true for employees, departments and companies as a whole. But if a company's KPI is inconsistent with its goal, it is like taking a cruise ship in the wrong direction, and the result is likely to be Titanic. So, how to drive a team of thousands or even tens of thousands of people to work together effectively? OKR theory was put forward.
The full name of OKR is goals and key results, and it is a set of management tools and methods to define and track goals and their completion. OKR's thought originated from Drucker's management by objectives.
1954, Drucker put forward an epoch-making concept-ManagementByObjectives (MBO), which is the most important and influential concept invented by Drucker and has become an important part of the contemporary management system.
As a loyal believer of Drucker, Andy, president of Intel Corporation? 6? 1 Graf invented and popularized OKR under the banner of "HOM (High Output Management)". Meanwhile, Oracle Bone Inscriptions's boss, Larry Ellison, set up a MOKRS (Mission, Objectives and Key Achievements) in Oracle Bone Inscriptions.
John Toure first worked at Intel, and OKR left a deep impression on him. 1999, John Doerr (already a partner of well-known venture capitalist KPCB and a director of Google) brought this process to Larry and Sergey of Google.
After the successful implementation of OKR method in Google, IT was used for reference by other well-known IT companies, including Linkedin and Zynga, and OKR was gradually recognized by more and more IT companies. Among all the enterprises it invests in, Google should specialize in the training and implementation of OKR system.
At present, in addition to Google, Intel, Oracle Bone Inscriptions and LinkedIn, pea pods and Zhihu in China have also started to use OKR management mode.
Execution procedure of OKR:
1, set the target:
(1) Full staff setting. Companies, departments, managers and employees have set their own annual and quarterly goals from the beginning of the strategy.
(2) Top-down. The order of setting goals should be from company to department to group to individual. Because what an individual wants to do is generally not exactly the same as what the manager wants him to do. Then he can consult the upper-level goals first, find the part that is beneficial to the company's goals within the scope he wants to do, and take him out to discuss with his managers and make a choice. It is very likely that what you want to do will even become the future development direction of the company.
(3) target * * * knowledge. The goal must be the knowledge of managers and employees after direct and full communication. The goal of not reaching * * * knowledge cannot be regarded as a goal, and the goal setting is to reach * * * knowledge as the end point.
(4) The goal is concrete and measurable. For example, don't say "I want to make my website better" in general, but put forward specific goals such as "website speed up by 30%" or "integration degree improvement 15%". You can't say "Make gmail a success", but say "gmail was launched in September,1had 10/10,000 users in October".
(5) ambitious goals. Generally speaking, 1 is the total score, and it's better to reach 0.6-0.7, so that you will continue to work hard for your goals and won't meet the deadline.
(6) Don't have too many goals. Employees usually set four to six goals every quarter. Too many goals can be overwhelming.
2. Set KR (key result) for each goal.
(1) target should have both annual kr and quarterly kr. The annual KRs dominates the whole year, but it is not fixed and can be adjusted in time, and the adjustment must be approved; Once the quarterly KRs is determined, it cannot be easily changed.
(2) It is KRs that can be adjusted, but the target cannot be adjusted. Measures and methods (KRs) can be continuously improved, and the setting of KRs should also be based on the understanding of managers and employees after direct and full communication, mainly based on the confirmation of employees.
(3)KR is a necessary feature: it must be able to achieve the goal directly; Must be enterprising and innovative, and can be unconventional; Must be based on output or results, measurable, and set scoring standards; Not too much. Generally, each target does not exceed 4 KR, which must be related to time.
3. Promoting implementation (from key results to "action plan")
(1) Each key result will generate a series of tasks and give them to different colleagues.
(2) The person in charge of key achievements becomes a veritable project manager to organize and coordinate everyone.
(3) The project managers of key achievements are very important members of the team, and they should be able to schedule and influence enterprise resources. If he doesn't have this power, give it to him; At the very least, there should be absolutely smooth communication between project managers and enterprise decision makers.
4.OKR review and performance evaluation
(1) Every employee needs to determine his/her OKR at the beginning of each quarter, and after the end of a quarter, he/she needs to score OKR according to his/her work completion in this quarter-this scoring process only takes a few minutes, but the result is not directly linked to performance.
(2) Conduct a real performance evaluation for all employees every six months, mainly to review the performance of employees in the past six months and change the work ladder and salary according to the evaluation results.
(3) All the achievements and levels of personal performance appraisal are made public to the whole company, which can be more fair and transparent on the one hand, and provide better samples for each colleague to learn and grow on the other hand, encouraging everyone to challenge and demand themselves with higher quality in their work.