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Change. It can be scary and unknown and invites anxiety and stress. We’ve all heard that nobody likes…

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Change. It can be scary and unknown and invites anxiety and stress. We’ve all heard that nobody likes change. But change is good, and it’s healthy and inevitable.

Organizational Change Management

Changes happen all the time. Some are successful, but many are not. Unsuccessful changes are likely due to very little preparation for that change.  

Organizations don’t change; people do. Organizations set the strategy and objectives, but the people in the organization decide to get on board and support and affect that change.

And this is where Organizational Change Management (OCM) comes in. OCM is a process of managing the people side of change in an organization. It involves assessing the impact of change on employees, developing strategies to communicate and engage them, and supporting them through the transition process to engage, learn, adapt, and use a change in their daily work.  

People don’t like to BE changed, but if they are part of the change, they BECOME the change.

Jack Welch, the successful one-time Chairman and CEO of GE, once said, ‘Don’t manage – lead change before you have to.’ Businesses that plan for and drive continuous change are more successful than those that change because they are forced to. Business needs will change over time, and change management should be a part of any business practice.  

Getting started 

How to Get Started with OCM

Change Management can be daunting for those unfamiliar with it. With the right approach, you can ensure that your organization is prepared for any changes that might come its way. 

Prosci is one Change Management methodology that can be used – there are many – these 3 phases of the Prosci approach are:

Assess and Prepare – the purpose of this first phase is:

  • Establish sponsors and confirm their commitment to change.
  • Define and capture the 4 P’s – what is the Project, the Purpose, the Particulars, and who are the People impacted?
  • Define what success looks like. 
  • Assess the organization across four pillars: Project Management, Change Management, Leadership/sponsorship, and success.
  • Assess the organization’s attributes and change characteristics to define the risk level of the change. This will inform the level of plans to be created and implemented to support the change. 

From the people aspect, additional consideration will be required:

  • Define the groups of impacted people. These cohorts will be the focus of the planning and will be tracked throughout the project.
  • For each group, assess how the change will impact them and the degree of impact. Group impact could be vastly different by the same type of change, so ensure this is being measured.
  • Proactively consider any resistance or challenges for each group to include in the strategy and plans. What will they have the most trouble with, and how can we ensure those items are addressed upfront?
  • Identify resources and support structures for the change (sponsors, SMEs, etc.)
  • Align the change timeline to the project schedule.

Define the Change Management strategy and review it with sponsors for alignment and sign-off.

Manage the Change – This phase involves creating, implementing, and adapting the Change plans.   

  • Using the information collected, create the Master Change Management Plan – which consists of 5 plans (Communications Plan, Sponsor Plan, Coaching Plan, Training Plan, Resistance Management Plan)
  • Activate the Plans starting with Communication, Sponsor, Coaching, and Resistance Management.

Conduct ADKAR assessments.

This model consists of a 5-question survey delivered at different times of the project (usually 3-5 times). It is used to assess impacted individuals and their journey through change. It helps to identify barriers and gaps so that we can support them in adopting the change. Trends can be seen in how groups and individuals progress through the change journey.

Adapt planned actions based on feedback and ADKAR responses. 

Maintain and Sustain the change – impacted individuals have been informed, included, assessed, trained, and supported. That’s not the end. The change needs to be sustained to be successful.

  • Review and audit performance to ensure that individuals stick with the change.
  • Identify gaps or enhancements and goals and prioritize them for implementation.
  • Celebrate success!  

Who leads all this?

Depending on several factors (organization size, change size and impact, etc.), a Change Manager may be identified to lead these activities. Sometimes, a Project Manager may play a hybrid role to carry out these tasks and project management-related activities.

Remember, change management’s focus is on the people that are affected by the change. Therefore, a separate Change Manager and Project Manager are recommended to ensure that the technical and people sides of the project are given the right amount of focus they need without sacrificing either.

Important roles

How Leadership Can Support OCM

Sponsors

A sponsor is someone who authorizes the change, is supportive of it, and promotes the change with their actions, behaviors, and conversations. This means they aren’t just signing a charter and are done with it. They must remain active and visibly participate throughout the project.  

Sponsors should be involved in communicating the change to the employees. They can speak to how the change aligns with the organization’s vision, why it is needed, and the risks of not changing.  

The Change Manager will coordinate efforts with the sponsor(s) to ensure the right level of involvement is planned through activities and communications. 

To help support the change, Sponsors should take the lead in building and maintaining a sponsor coalition – a group of other key business leaders and stakeholders – to help support the change being implemented.

Managers

Successful change is driven and supported by the role of managers. 

Managers support the change process, set expectations, and motivate their teams to embrace the changes. 

As such, they must understand the change process and be able to identify potential risks and challenges for their groups to support the process and, ultimately, their direct reports. This is why managers are the first to embark on the journey of change. 

It’s the same as the analogy of putting on your own oxygen mask first before you can help others. They must be aware and have embraced the change themselves before they can support their employees through it.

In addition to Sponsor communications, Managers must also be able to communicate effectively with their teams about the changes. The coaching plan will help managers understand why they are necessary for the success of the change.  

Managers are the closest and likely most trusted by their direct reports. Therefore, they are in the best position to deliver essential messages about change and to be available to listen and respond to questions from their employees. 

Managers will play multiple roles for their team. 

  • As a Communicator, they will ensure that their team members are aware of the changes coming and that the messages are clear and consistent. 
  • As a Liaison, they will share information such as progress, usability results, and feedback with the project team. 
  • As an Advocate of the change, the Manager will show support through their words and actions in active and observable ways. 
  • Finally, Managers will play the roles of Resistance Manager when pushback occurs and Coach to support their teams as they progress through the change.

Communicating About Change

Communicating information about the change is essential to building awareness and support for the change. These communications will be planned at different project stages, in various forms (multi-media), and originate from other people and sources. No matter the sender or timing, communication about the project must ensure consistent and clear messages are transmitted. 

The Change Manager will work with the sponsor and project members to craft key messages and communications for the project, focusing on a few themes such as the business landscape today, messages about the change, how the change will impact employees, and the schedule of the change project.

The Communications Plan will detail each message’s content, timing, method, and preferred sender. These communications will be set for specific times: initiation of the project, during the design of the project, before implementation, during implementation, and post-implementation. 

Using this strategy, messages can be crafted to logically provide information about the change, gradually providing more detail with each new communication.

Communication is Key to Organizational Change Management

The delivery mechanism should also be varied. 

Communication about the change could come in a variety of ways:

  • Company newsletters
  • Company town hall meetings
  • Leadership meetings
  • Email
  • Meeting agenda topics
  • Posters throughout the organization
  • Videos

Because different people process information in different ways, varying the delivery mechanism of the messages will help ensure that more people can receive and process the message and ultimately raise their awareness of the change.  

Preferred Sender

Research shows that employees prefer to hear messages from two organizational roles. 

  • Organizational messages address the organization’s perspective and the business reasons for change. These messages should come from executives and senior leaders.  
  • Immediate supervisors should be the sender of messages about the personal impacts that the change will have on employees. This is because they are the closest to the employees and are trusted; therefore, immediate supervisors will better deliver these messages.

Following this, the preferred sender will be considered and worked into the communication plan to ensure that the correct source delivers the messages to those impacted by the change.

Training Approaches and Best Practices

Depending on the change to be implemented, some or all of these should be considered. People learn in different ways and at different paces. Some best practices for training are as follows:

  • Set expectations. Tell attendees what will be covered, the session’s objective, and the session’s length. Also, if specific materials, information, or access permission is required, detail that too so people are prepared.

In-person, face-to-face, or virtual sessions. Whenever possible, in-person sessions are more personal and are favored. 

  • If in-person isn’t possible, a group video call with cameras on should be the next option to keep everyone engaged and following along. Solo exercises could follow either of these methods.
  • Incorporate different learning styles. People learn in different ways, so it’s best to try to incorporate as many different learning styles into the sessions as possible – build word-based and visuals into presentations, use acronyms that resonate, or analogies that will be remembered.
  • Demonstrations and practical activities are encouraged. In addition to a detailed instructor-led demonstration, incorporate a hands-on exercise or workshop into the session. This also allows people to test what they’ve learned and apply their new skills.
  • Involve the trainees in the presentation. Ask them to share experiences or examples related to the training topic. Ask them questions to ensure the information is being absorbed and keep people engaged.
  • Keep on track and use a parking lot. Keeping a log of questions or items that need to be revisited will help you keep track of them and allow you to reevaluate and provide responses later.
  • Planned breaks – depending on if your session is in person or virtual, the frequency of these may vary. Plan breaks into your presentation so that topics aren’t interrupted or broken up too much.
  • Respect the session time. Ensure that you start and end on time.
  • Request feedback immediately after the session. Provide a feedback quiz to be reviewed and incorporated for future sessions. 

Resistance and Reinforcement to Change

Resistance 

How to Manage Employee Resistance to Change

Resistance to change is normal but can block change success if left unmanaged. 70% of change projects fail to achieve their goals largely due to employee resistance. With Change Management, we can support the impacted people and groups through the change process and manage resistance to minimize the impacts.

Resistance in people can occur because change can sometimes create anxiety, fear, misunderstanding, etc.

One person’s resistance could present very differently from another, so it’s good to be aware of what resistance could look like. Here are some of the ways that resistance can present:  

  • Emotions such as fear, sadness, anger, anxiety, frustration, depression;
  • Disengagement presented as ignoring, silence, apathy, indifference;
  • Work Impact resulting in reduced productivity/efficiency, absenteeism, non-compliance;
  • Acting out could present as conflict, arguments, aggressive or passive-aggressive behavior, and sometimes even sabotage;
  • Negativity, such as starting rumors/gossip, miscommunication, complaints, focusing on problems
  • Avoidance of the change, reverting to old behaviors, workarounds
  • Building barriers such as excuses, counterapproaches, secrecy, and breakdown in trust
  • Controlling is presented by asking lots of questions, defending the current state, attempting to influence outcomes

Ignoring resistance will ultimately result in a cost to the project and realization of the benefits. Resistance should, therefore, be anticipated, expected, and integrated into change management plans.  

Managers should consider their direct reports and proactively identify challenge areas that they can foresee, as well as identify resistance within their team and how it might present for specific individuals. 

These items, once identified, can then be planned for in communications, training, and coaching.

Reinforcement

Reinforcement’s purpose is to sustain change. Because people naturally tend to revert to what they know and are comfortable with, reinforcement should be part of the full change journey. It should be part of the initiative from the early stage, right to the end, and even afterward to sustain and ensure the adoption of the change. It may revert to the former state if you don’t reinforce the change.

How to Reinforce Positive Reactions to Change Management

Reinforcement can take different forms. It can be positive and negative.

  • Celebrate wins by giving praise, awards, and even gamification for healthy competition are good ways to reinforce progress. It helps to build momentum and maximize success.

Accountability checks. 

  • Regular compliance audits can identify gaps and serve as reminders of responsibility and accountability. 

Dashboards & report cards. 

  • If automated generation of audit information can be created, this is a great way to reinforce positive actions and highlight gaps and non-compliance.  

Building reinforcement requires constant application across the board.  

Both resistance and reinforcement must be addressed promptly from the early stages of the project and consistently through to the end, even after the project has been completed and closed. Achieving the key benefits of the initiative depends on the long-term adoption of the change, and that will only happen if reinforcement strategies are in place. 

Change Management Tools

ADKAR Model

Part of the 3 phases of the Prosci methodology is the ADKAR model. ADKAR is an acronym for the stages of change an individual will go through during their change journey. 

  • Awareness is the first stage. People must first be aware of the need to change before considering it. They should understand why the business is changing, what exactly is changing, and why now.
  • Desire comes next. Once people are aware, they need to have the desire to change. They need to understand the vision and benefits of change to continue their change journey.
  • Knowledge is knowing how to change. This involves communication and training, usually theory, but practical training is helpful too. 
  • Ability will follow and allow people to put the steps, skills, and behaviors they learned into practice. This requires support and permission to try and sometimes fail before being successful.
  • Reinforcement is the stage that doesn’t end when the project closes. This is the step to support and reinforce the change with people. Good behaviors should be rewarded, and bad habits need to be addressed.

People will be assessed at different times in the project by responding to a 5-question ADKAR survey. The survey results will allow the Change Manager to measure people and their progression through the ADKAR phases and trend the results from survey to survey. The information will help identify if groups or individuals require different support or coaching to help them through the change journey.

PCT

Prosci Change Triangle (PCT) is another tool used to assess areas of strength and weakness related to Leadership/Sponsorship, Success, Project Management, and Change Management for the project in the organization. It allows the Change Manager to leverage the areas of strength and strengthen the areas of weakness.  

Conclusion

The Change Management Process is a crucial framework that recognizes the inevitability of change and emphasizes the importance of managing its impact on individuals within an organization. As Jack Welch wisely noted, leading change before it becomes necessary is a key to success in the dynamic business landscape.

In essence, the Change Management Process is a holistic approach that recognizes change not as an abstract concept but as a transformational journey for individuals within an organization. By prioritizing the human element, organizations can navigate change with resilience and ensure it becomes a positive force for growth and progress.

Embarking on a successful Change Management journey requires expertise and strategic guidance. If your organization is gearing up for transformative initiatives and seeking comprehensive change management solutions, it’s time to connect with Kolme Group. 

With a proven track record and a wealth of experience, Kolme Group specializes in tailoring Change Management strategies to meet your unique needs. From assessing organizational impact to implementing effective communication plans and sustaining change through reinforcement strategies, Kolme Group is your partner in navigating the complexities of change. 

Don’t let the fear of the unknown hinder your progress – take the proactive step today. Reach out to Kolme Group for a personalized consultation and unlock the full potential of your organizational change. Your success story begins with a conversation – contact Kolme Group now to pave the way for a seamless and successful transformation.

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Objectives and Key Results: What are OKRs? https://prodsens.live/2023/08/06/what-are-okrs-4/?utm_source=rss&utm_medium=rss&utm_campaign=what-are-okrs-4 https://prodsens.live/2023/08/06/what-are-okrs-4/#respond Sun, 06 Aug 2023 01:24:58 +0000 https://prodsens.live/2023/08/06/what-are-okrs-4/ objectives-and-key-results:-what-are-okrs?

Executive Summary  Due to information overload, knowing and tracking Objectives and Key Results (OKRs) in business is essential…

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Executive Summary 

Due to information overload, knowing and tracking Objectives and Key Results (OKRs) in business is essential to decipher what the company’s key performance indicators are trying to tell you. This article will address what OKRs mean, how they better your business, and show you an OKR example to help you establish your own OKRs.

What Superpowers Do OKRs Give My Organization?

A while back, I had a conversation with my father, who is in his seventies and has been retired for over ten years. For the last 20 years of his career, he worked as an HR manager for a global company. Now that he is retired, he reads a lot of newspapers and has recently taken an interest in the phenomenon where younger people seem prone to burnout and other stress-related illnesses.

And talking with him made me realize that the amount of information the current generation of ‘younger people’ are exposed to during their careers – especially compared with my dad’s generation, is much higher. 

Due to this information overload, I will address why knowing and tracking Objectives and Key Results (OKRs) is essential to decipher what these key performance indicators tell you. I will address what OKRs mean and how they better your business. 

We live in a world that is moving much faster than we can. More information than we could ever consume is accessible on demand 24/7, and the opportunities for us are endless.

As much as this applies to people, it also applies to organizations. Information flows is 24/7, and we have on-demand access and endless choices concerning business opportunities. It can seem like the more complex decision isn’t what you can do – but what can’t you do?

And with so many opportunities available, how do you choose what strategy initiatives to focus on? Each option is better than the previous, and you can easily find yourself accomplishing none if you try to do it all!

For businesses, but also individuals, OKRs are a method that can help you create a framework around your goals that: 

  • nurture focus
  • alignment
  • accountability, and
  • transparency 

OKRs can help your organization, its teams, and the individual members reach the stars.

What Are OKRs?

What Are OKRs?

What Are OKRs?

OKR stands for Objectives & Key Results and is a management methodology for setting goals within an organization, although you can also use I for setting personal goals. It differs from other goal-setting methodologies, as OKRs are better equipped to implement changes at a higher pace and in iterative cycles.

OKRs help you focus on the most critical business priorities in shorter time frames and are openly shared, communicated, and measured within the organization. Tracking and analyzing OKRs helps increase transparency, cross-team alignment, and accountability of the Objectives & Key Results.

Outlining OKRs, like Agile methods, have been around for a while. These methods are gradually gaining more use as the need for flexible and adaptable frameworks & methodologies to stay in line with continuous change is required.

The Four Superpowers of Outlining Objective & Key Results (OKRs)

OKRs distinguishes itself from other goal-setting methodologies because they possess four superpowers:

Superpower #1 – Focus & Commit to Priorities

OKRs help you choose what matters most to the organization. Determining what matters most will help you concentrate on the Core Objectives that make the absolute difference. 

These Core Objectives are the Objectives that are leveraged at the next level, compared to other Objectives that are still important but need to provide that extra leverage to make a difference.

Superpower #2 – Align & Connect for Teamwork

Transparent OKRs nourish collaboration between teams. When OKRs are out there in the open for everyone to see and to give feedback, critique, or provide corrections on, this creates two essential aspects:

It creates a team of team’s approach to solving problems. When team A is working on something that can benefit team B’s goal, they can reach out to team B and work together on their goal.

Because transparent OKRs are out in the open, it is impossible to be secretive about goals. Secrecy drives fear & shame and nourishes business toxicity that is dangerous for the growth of your business.

Superpower #3 – Track for Accountability

The OKR lifecycle is a living organism. Teams or employees track, score, revise and adapt OKRs in iterative cycles. In that process, they gain vital insights into the progression that they are making, and they continuously assess whether the Objectives are still worth pursuing.

Being part of that process and experiencing the OKR progression helps keep your teams/employees growing, motivated, and engaged in their work. Motivation and engagement are the best sources for increasing accountability within teams and/or employees.

Superpower #4 – Stretching OKRs for Maximum Value

Stretching your OKRs will help create maximum value. An OKR should push against (not over!) boundaries of the impossible, as this will help teams/employees discover they can reach impressive levels.

Pushing for results driven by your Objectives and Key Results (and, in the process, experiencing the results of those outstanding efforts) fuels a team’s innovation and empowerment. These two ingredients are critical to the survival of an organization, and OKRs can help you drive business-critical success factors.

The Approach in a Nutshell

OKRs are Based On Asking Yourself Two Questions

OKRs are Based On Asking Yourself Two Questions

Primarily, OKRs are based on asking yourself two questions:

Where do I want to go?

  • THE OBJECTIVE = The What
    • These should be aspirational and motivational Objectives that are clear enough to be easily understood and ambitious enough to inspire.

How will I monitor and measure if I am getting there?

  • THE KEY RESULT(S) = The How
    • These should be concrete, specific measurements of progress toward achieving the Objective.

Creating OKRs for your organization involves converting the Why into the What and the How. Therefore, a good starting point for you to start working with OKRs is:

The WHY: What is the business value of introducing OKRs into your organization? Define the fundamental reason for wanting to adopt OKRs and prepare to be able to explain how OKRs will help improve the organization.

The WHAT: What do you want to achieve/where do you want to go? This answer will result in formulating the Objective.

The HOW: How will you know that you have reached your goalThis answer will formulate the Key Result (s) for each Objective.

Since the added value of OKRs is the short-term and frequent time frame, it is crucial to predefine a timeline for your OKRs. Ideally, this is three months, but it is up to each organization to make this shorter or longer if required. 

Especially when you start with OKRs, I suggest you work in 8-week sprints to get into the flow of the OKR process. Because the time frame is so important, I would like to add the following:

The When: In what time frame would you like to achieve your goals?

Finally, there is one last step that I would also include, and that is:

The Initiative: What can I do as an organization employee to help reach the Objective (s)

It is not up to management to decide what each employee can do. Still, it is an excellent initiative to get your employees involved in the adoption process and challenge them to actively participate and think of how they can contribute to the Objective(s).

How Does This Look in Daily Practice, and How Can I Start?

Great, we are ready to adopt OKRs! Now, what…?

First, Define your Why

Before defining the Objectives and Key Results, please note the difference:

  • Objectives are always significant, concrete, action-oriented, and preferably inspirational
  • Key Results are always specific & time-bound, aggressive yet realistic, and measurable & verifiable

Create a list of five Objectives maximum based on the organizational strategy, mission, and vision. 

Keep in mind the criteria mentioned above; I highly suggest considering if the Objective is inspirational. This priority is the difference from Superpower #1 mentioned above.

For each Objective, define a list of five Key Results, maximum. Remember the criteria mentioned above, make them measurable (by including a number or percentage), set a time frame, and make sure they push against the boundaries as suggested in Superpower #4.

Communicate the OKRs within the entire organization as outlined in Superpower #2. During the lifecycle of the Key Results, continuously track and rate the progress of each Key Result.

At the end of the cycle, grade each Key Result to address how it performed (based on your performance tracking rates) and assess what you would do differently next time. For example:

  • A score of 7 or higher is delivered, between 4-6 is the progress made but no completion, and three and below is failing
  • Any low-scoring Key Results (under 7) let you know that you need to reassess the Objective and, if still valuable, make changes for the next cycle

OKR Example: How Does That Look in Practice?

Why: You have always struggled to be a healthy person – you are very fond of food and alcoholic beverages, and sports are not your favorite to do. Now it starts to affect your health; therefore, you realize your lifestyle has to change, and you set an OKR for the coming three months.

  Definition Explanation 
Objective I want to get healthy Significant: it means a lot to you to become healthy, as your health is currently not so good

Concrete: this is something that just needs to happen; it has a lot of priority

Action-oriented: It requires you to take action to improve your health

Inspirational: You would be so proud of yourself if you achieved this goal

Key Results Lose 10 lbs Specific & Time-Bound: lose 10 lbs in 3 months

Aggressive Yet Realistic: that is a lot of weight loss, but I know I can do it

Measurable & Verifiable: I can measure at the end if I have lost the 10 lbs

Key Results Eat 9 ounces of fresh vegetables each day  Specific & Time-Bound: you need to eat 9 ounces every single day of a week

Aggressive Yet Realistic: it is a lot of vegetables, which you do not really like, but if you cut down on other food sources, it is doable

Measurable & Verifiable: each day, you need to measure your vegetables until you have reached 9 ounces

Key Results I want to run 3 miles, three times a week Specific & Time-Bound: 3 days out of the 7-day week, I run for 3 miles

Aggressive Yet Realistic: for a beginner, 3 miles running is tough, but I have enough days in between to give my body some rest

Measurable & Verifiable: I can measure progression by marking the run-days in my agenda

 

Fair Warning; Keep in Mind the Success Criteria!

Like any framework or methodology, it is only as good as the execution. As they say, Good intentions can still pave the way to hell, therefore when adopting OKRs within your organization, keep in mind the following success criteria:

  • Before you start, start with WHY (do I want to adopt OKRs);
  • OKR provides for fast-paced business environments and quick changes, but that does not mean you can implement fast. 
    • Reserve enough time for OKR crafting, as it will make the difference between success and failure, especially when you are just starting!
  • Less is more—work, at most, with five Objectives. I recommend 1-2 for the first attempt.
  • There is no right or wrong; keep this in mind:
  • Objectives are significant, concrete, action-oriented, and inspirational.
  • Key Results are specific, time-bound, aggressive yet realistic, and measurable & verifiable.
  • Every month review the progress of your Key Results. Key results are either Achieved or Not Achieved
    • Therefore, you need to know how they progress through the process to make the necessary on-time adjustments.
  • Last but certainly not least: Get support and buy-in from your coworkers by involving them in the adoption process and challenging them to think about what they can do to help achieve the OKRs. 
    • You can even add this to their development plan, although OKRs on this level should not be included in any compensation plan as it paves the way for setting an easy-to-reach OKR to ensure the compensation.

If you want to read more about OKRs, I recommend the book ‘Measure What Matters,’ written by the OKR godfather John Doerr. 

Twenty years ago, he introduced the methodology to the management of a small company named Google. In his book, you can read more about that story and other organizations that have successfully implemented and are using OKRs to drive their business.

John Doerr also did a TedTalk on ‘Why the Secret to Success is Getting the Right Goals‘ – watch here.

What’s Next?

At Kolme Group, we want to help you get the best out of implementing OKRs in your business and help your team focus on the main business priorities.  We see great value in using the OKR methodology to make your business and team thrive for the best!

Don’t hesitate to contact us to learn more about our services and how we can help you.

Contact Us

Follow us on Twitter, LinkedIn, and YouTube, and use #KolmeGroup on shared posts!

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Executive Summary  Due to information overload, knowing and tracking Objectives and Key Results (OKRs) in business is essential…

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objectives-and-key-results:-what-are-okrs?

Executive Summary 

Due to information overload, knowing and tracking Objectives and Key Results (OKRs) in business is essential to decipher what the company’s key performance indicators are trying to tell you. This article will address what OKRs mean, how they better your business, and show you an OKR example to help you establish your own OKRs.

What Superpowers Do OKRs Give My Organization?

A while back, I had a conversation with my father, who is in his seventies and has been retired for over ten years. For the last 20 years of his career, he worked as an HR manager for a global company. Now that he is retired, he reads a lot of newspapers and has recently taken an interest in the phenomenon where younger people seem prone to burnout and other stress-related illnesses.

And talking with him made me realize that the amount of information the current generation of ‘younger people’ are exposed to during their careers – especially compared with my dad’s generation, is much higher. 

Due to this information overload, I will address why knowing and tracking Objectives and Key Results (OKRs) is essential to decipher what these key performance indicators tell you. I will address what OKRs mean and how they better your business. 

We live in a world that is moving much faster than we can. More information than we could ever consume is accessible on demand 24/7, and the opportunities for us are endless.

As much as this applies to people, it also applies to organizations. Information flows is 24/7, and we have on-demand access and endless choices concerning business opportunities. It can seem like the more complex decision isn’t what you can do – but what can’t you do?

And with so many opportunities available, how do you choose what strategy initiatives to focus on? Each option is better than the previous, and you can easily find yourself accomplishing none if you try to do it all!

For businesses, but also individuals, OKRs are a method that can help you create a framework around your goals that: 

  • nurture focus
  • alignment
  • accountability, and
  • transparency 

OKRs can help your organization, its teams, and the individual members reach the stars.

What Are OKRs?

What Are OKRs?

What Are OKRs?

OKR stands for Objectives & Key Results and is a management methodology for setting goals within an organization, although you can also use I for setting personal goals. It differs from other goal-setting methodologies, as OKRs are better equipped to implement changes at a higher pace and in iterative cycles.

OKRs help you focus on the most critical business priorities in shorter time frames and are openly shared, communicated, and measured within the organization. Tracking and analyzing OKRs helps increase transparency, cross-team alignment, and accountability of the Objectives & Key Results.

Outlining OKRs, like Agile methods, have been around for a while. These methods are gradually gaining more use as the need for flexible and adaptable frameworks & methodologies to stay in line with continuous change is required.

The Four Superpowers of Outlining Objective & Key Results (OKRs)

OKRs distinguishes itself from other goal-setting methodologies because they possess four superpowers:

Superpower #1 – Focus & Commit to Priorities

OKRs help you choose what matters most to the organization. Determining what matters most will help you concentrate on the Core Objectives that make the absolute difference. 

These Core Objectives are the Objectives that are leveraged at the next level, compared to other Objectives that are still important but need to provide that extra leverage to make a difference.

Superpower #2 – Align & Connect for Teamwork

Transparent OKRs nourish collaboration between teams. When OKRs are out there in the open for everyone to see and to give feedback, critique, or provide corrections on, this creates two essential aspects:

It creates a team of team’s approach to solving problems. When team A is working on something that can benefit team B’s goal, they can reach out to team B and work together on their goal.

Because transparent OKRs are out in the open, it is impossible to be secretive about goals. Secrecy drives fear & shame and nourishes business toxicity that is dangerous for the growth of your business.

Superpower #3 – Track for Accountability

The OKR lifecycle is a living organism. Teams or employees track, score, revise and adapt OKRs in iterative cycles. In that process, they gain vital insights into the progression that they are making, and they continuously assess whether the Objectives are still worth pursuing.

Being part of that process and experiencing the OKR progression helps keep your teams/employees growing, motivated, and engaged in their work. Motivation and engagement are the best sources for increasing accountability within teams and/or employees.

Superpower #4 – Stretching OKRs for Maximum Value

Stretching your OKRs will help create maximum value. An OKR should push against (not over!) boundaries of the impossible, as this will help teams/employees discover they can reach impressive levels.

Pushing for results driven by your Objectives and Key Results (and, in the process, experiencing the results of those outstanding efforts) fuels a team’s innovation and empowerment. These two ingredients are critical to the survival of an organization, and OKRs can help you drive business-critical success factors.

The Approach in a Nutshell

OKRs are Based On Asking Yourself Two Questions

OKRs are Based On Asking Yourself Two Questions

Primarily, OKRs are based on asking yourself two questions:

Where do I want to go?

  • THE OBJECTIVE = The What
    • These should be aspirational and motivational Objectives that are clear enough to be easily understood and ambitious enough to inspire.

How will I monitor and measure if I am getting there?

  • THE KEY RESULT(S) = The How
    • These should be concrete, specific measurements of progress toward achieving the Objective.

Creating OKRs for your organization involves converting the Why into the What and the How. Therefore, a good starting point for you to start working with OKRs is:

The WHY: What is the business value of introducing OKRs into your organization? Define the fundamental reason for wanting to adopt OKRs and prepare to be able to explain how OKRs will help improve the organization.

The WHAT: What do you want to achieve/where do you want to go? This answer will result in formulating the Objective.

The HOW: How will you know that you have reached your goalThis answer will formulate the Key Result (s) for each Objective.

Since the added value of OKRs is the short-term and frequent time frame, it is crucial to predefine a timeline for your OKRs. Ideally, this is three months, but it is up to each organization to make this shorter or longer if required. 

Especially when you start with OKRs, I suggest you work in 8-week sprints to get into the flow of the OKR process. Because the time frame is so important, I would like to add the following:

The When: In what time frame would you like to achieve your goals?

Finally, there is one last step that I would also include, and that is:

The Initiative: What can I do as an organization employee to help reach the Objective (s)

It is not up to management to decide what each employee can do. Still, it is an excellent initiative to get your employees involved in the adoption process and challenge them to actively participate and think of how they can contribute to the Objective(s).

How Does This Look in Daily Practice, and How Can I Start?

Great, we are ready to adopt OKRs! Now, what…?

First, Define your Why

Before defining the Objectives and Key Results, please note the difference:

  • Objectives are always significant, concrete, action-oriented, and preferably inspirational
  • Key Results are always specific & time-bound, aggressive yet realistic, and measurable & verifiable

Create a list of five Objectives maximum based on the organizational strategy, mission, and vision. 

Keep in mind the criteria mentioned above; I highly suggest considering if the Objective is inspirational. This priority is the difference from Superpower #1 mentioned above.

For each Objective, define a list of five Key Results, maximum. Remember the criteria mentioned above, make them measurable (by including a number or percentage), set a time frame, and make sure they push against the boundaries as suggested in Superpower #4.

Communicate the OKRs within the entire organization as outlined in Superpower #2. During the lifecycle of the Key Results, continuously track and rate the progress of each Key Result.

At the end of the cycle, grade each Key Result to address how it performed (based on your performance tracking rates) and assess what you would do differently next time. For example:

  • A score of 7 or higher is delivered, between 4-6 is the progress made but no completion, and three and below is failing
  • Any low-scoring Key Results (under 7) let you know that you need to reassess the Objective and, if still valuable, make changes for the next cycle

OKR Example: How Does That Look in Practice?

Why: You have always struggled to be a healthy person – you are very fond of food and alcoholic beverages, and sports are not your favorite to do. Now it starts to affect your health; therefore, you realize your lifestyle has to change, and you set an OKR for the coming three months.

  Definition Explanation 
Objective I want to get healthy Significant: it means a lot to you to become healthy, as your health is currently not so good

Concrete: this is something that just needs to happen; it has a lot of priority

Action-oriented: It requires you to take action to improve your health

Inspirational: You would be so proud of yourself if you achieved this goal

Key Results Lose 10 lbs Specific & Time-Bound: lose 10 lbs in 3 months

Aggressive Yet Realistic: that is a lot of weight loss, but I know I can do it

Measurable & Verifiable: I can measure at the end if I have lost the 10 lbs

Key Results Eat 9 ounces of fresh vegetables each day  Specific & Time-Bound: you need to eat 9 ounces every single day of a week

Aggressive Yet Realistic: it is a lot of vegetables, which you do not really like, but if you cut down on other food sources, it is doable

Measurable & Verifiable: each day, you need to measure your vegetables until you have reached 9 ounces

Key Results I want to run 3 miles, three times a week Specific & Time-Bound: 3 days out of the 7-day week, I run for 3 miles

Aggressive Yet Realistic: for a beginner, 3 miles running is tough, but I have enough days in between to give my body some rest

Measurable & Verifiable: I can measure progression by marking the run-days in my agenda

 

Fair Warning; Keep in Mind the Success Criteria!

Like any framework or methodology, it is only as good as the execution. As they say, Good intentions can still pave the way to hell, therefore when adopting OKRs within your organization, keep in mind the following success criteria:

  • Before you start, start with WHY (do I want to adopt OKRs);
  • OKR provides for fast-paced business environments and quick changes, but that does not mean you can implement fast. 
    • Reserve enough time for OKR crafting, as it will make the difference between success and failure, especially when you are just starting!
  • Less is more—work, at most, with five Objectives. I recommend 1-2 for the first attempt.
  • There is no right or wrong; keep this in mind:
  • Objectives are significant, concrete, action-oriented, and inspirational.
  • Key Results are specific, time-bound, aggressive yet realistic, and measurable & verifiable.
  • Every month review the progress of your Key Results. Key results are either Achieved or Not Achieved
    • Therefore, you need to know how they progress through the process to make the necessary on-time adjustments.
  • Last but certainly not least: Get support and buy-in from your coworkers by involving them in the adoption process and challenging them to think about what they can do to help achieve the OKRs. 
    • You can even add this to their development plan, although OKRs on this level should not be included in any compensation plan as it paves the way for setting an easy-to-reach OKR to ensure the compensation.

If you want to read more about OKRs, I recommend the book ‘Measure What Matters,’ written by the OKR godfather John Doerr. 

Twenty years ago, he introduced the methodology to the management of a small company named Google. In his book, you can read more about that story and other organizations that have successfully implemented and are using OKRs to drive their business.

John Doerr also did a TedTalk on ‘Why the Secret to Success is Getting the Right Goals‘ – watch here.

What’s Next?

At Kolme Group, we want to help you get the best out of implementing OKRs in your business and help your team focus on the main business priorities.  We see great value in using the OKR methodology to make your business and team thrive for the best!

Don’t hesitate to contact us to learn more about our services and how we can help you.

Contact Us

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 Organizational change management in Agile is used as a systematic approach to managing the Transformation process to…

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Organizational change management in Agile is used as a systematic approach to managing the Transformation process to support the people and the organization to adapt to the changes required. It’s essential to implement strategies for effecting change, controlling it, and helping people adapt—and ensure that progress is being made to achieving Transformation goals the way it needs to be.

Transformation can be held back to a snail’s pace or fail altogether without a clear plan for change and managing the challenges of changing an entire organization. It’s common to encounter resistance to change from your people because change could mean that they have to learn new skills, adapt to a new team structure, or worry that their job might go away. Because of that, a good change management strategy encompasses both the people and organizational changes needed, with a plan to support both along the way.

This video highlights how we approach change management at LeadingAgile and how we support our clients moving through an Agile Transformation. We also explore how to work with organizations to figure out who is responsible for change management, how to overcome common challenges, and how leaders need to support their teams through the Agile Transformation process. By openly communicating with your teams, bringing them into the change plan, and supporting their worries along the way, Transformation progress will proceed much more smoothly and lead to sustainable Business Agility.

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