Drive Individual AND Organization Performance
As a CHRO, you are likely interested in finding ways to boost organizational performance while also fostering employee engagement and purpose in their work. The OKR Framework has emerged as a powerful tool for achieving these goals, and it is no wonder that many organizations are adopting it at record pace.
Connecting Employee Purpose with Organization Goals
One of the reasons why HR is particularly interested in the OKR Framework is because it brings purpose to work and connects what people do to why they do it. By doing so, it helps employees find more personal meaning in their day-to-day work and ultimately benefits the organization as a whole. Additionally, the OKR Framework can help organizations move faster from strategy to results, making it an effective strategic execution playbook.
Linking Employee Performance to Organization Performance
Traditional performance management practices have been shown not to impact organizational performance in a meaningful way. They tend to work at the individual level, but they do not roll up to organizational performance. This is where the OKR Framework can be particularly powerful. It directly connects individual performance with organizational performance, allowing CHROs to link employee performance directly with organizational performance. This is particularly desirable in an organization-wide initiative, and HR has the most experience and success in adopting such large change initiatives.
The OKR “Superpowers”
The OKR Framework has many “superpowers” that directly relate to employee performance. For example, it can help employees focus on the why of their job, enabling them to explore the best way to solve a problem. It can also foster alignment by combining top-down and bottom-up communication about goals. Additionally, the OKR Framework drives engagement by helping people understand the why behind their work, not just the what. It encourages goal tracking and accountability, which enables a collegial culture throughout the organization. Finally, OKRs are set to motivate employees to go above and beyond, to achieve amazing things, and to experience their most creative and ambitious sides.
Do we Need both KPIs and OKRs?
KPIs, or Key Performance Indicators, are a familiar tool for many organizations, but they have their limitations. While KPIs can be great for measurement, they are standalone metrics that do not necessarily communicate context or provide direction. OKRs, on the other hand, provide much-needed direction and context by describing what you want to accomplish and how you know you’re making progress. The OKR Framework is a strategic framework that is directly linked to important moves the organization needs to make.
In short, KPIs and OKRs are both valuable tools that can help organizations measure their performance and achieve their goals. KPIs are like looking in the rear-view mirror, while OKRs are like looking through the windscreen. By adopting both tools, CHROs can ensure that their organization is moving in the right direction while also fostering employee engagement, purpose, and fulfillment.
If you would like to know more about how the OKR Framework can help you directly link people performance with organization performance, please go to my diary and set up a time for us to talk.
If you would like to understand more about the OKR Framework, visit our overview of the OKR Framework page.
I’m looking forward to our time together.
Gail Sturgess
Agile OD Facilitaor / Coach / Consultant
Working with leaders to set and achieve their most audacious goals, turn mission into action, and create an ongoing discipline resulting in execution and results. | Experienced in Business, Technology, and People