Objectives and Key Results (OKRs) are often considered a simple goal-setting tool with a couple of features to achieve success. It is so much more than a goal management framework! OKRs in business are different from traditional methodologies such as Key Performance Indicators (KPIs), Balance Scorecards, etc. They follow a simple yet powerful way of aligning everyone in the same direction, focusing on the company’s priorities, and measuring business success. Understanding individual contribution towards accomplishing the company’s vision and goal creates a sense of accountability that drives engagement. Moreover, when managers assess OKRs every month or quarter, employees can learn more and collaborate better, boosting their morale and unlock performance impact.

OKRs in business best fit for tracking progress and setting goals over a month, quarter, or year. Five common mistakes that organizations must avoid in the year 2021 while adopting OKRs include-

1. Forgetting to Align OKRs

Alignment is a crucial aspect of the OKR framework. Managers and leaders should not forget to align OKRs to teams and individuals. They must set a shared set of inspiring goals and then funnel them down to drive focus on the company’s priorities and improve overall impact.

1. Treating OKRs as a Checklist of Tasks

Objectives and Key Results are not a checklist of tasks that are mandatory to finish. Business goals set an aim for everyone and provide a clear picture of the company's goal, vision, and purpose. Key results are quantifiable metrics that synchronize everyone towards common goals, thus driving engagement and performance.

1. Setting Too Many or Too Less OKRs

For attaining improved business outcomes, each objective must be linked to 3-5 key results. This enables individuals and teams to focus on their priorities consistently. Creating too many or too few OKRs dilutes employees' focus, which affects their progress and overall business growth.

1. Linking OKRs with Compensation

When OKRs in business are connected to compensation or performance reviews, employees only focus on output rather than the outcomes. With an aim to achieve 100% targets, the overall OKR approach becomes ineffective. Therefore, organizations should set ambitious yet realistic goals that create alignment between different teams and execute an agile business strategy to bring the best possible outcomes.

1. Failing to Review OKRs Timely

Few companies plan OKRs but forget to conduct regular review meetings to assess individual/team progress. Weekly or monthly check-ins are essential for managers to monitor their team's performance and guide the areas of improvement. By adopting the OKR methodology, leaders can track accomplished goals, update individual OKRs as per the changing priorities, and analyze how well employees have performed.

It may appear like a difficult task to successfully utilize the OKR framework and leverage its maximum benefits. So, avoid the above-outlined mistakes and achieve the best outcomes with the successful adoption of OKRs in business. With proper alignment, focus, rhythm, and feedback, OKRs help accelerating performance, drive innovation and ultimately unlock business success.  

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