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Why Performance Management begins with Quality OKRs

October 19, 2023

To achieve success in goal setting, performance management, and communication, it's crucial for founders, employees, and HR professionals to understand each other's perspectives and needs.

Founders should consider the impact of their decisions on employees, while employees should appreciate the challenges founders face in steering the company. HR acts as a mediator, ensuring that both sides' concerns are addressed.

We brought both perspectives in performance management to foster an understanding and collective success.

Understanding the role of target results

Before delving into the intricacies of OKRs, cascading strategy, and communication, it's crucial to understand the role of target results in the larger context of performance management and goal setting. Target results serve as benchmarks or milestones that indicate progress toward broader objectives. They are the measuring sticks that enable organizations to track their success.

Quality OKRs

OKRs are a performance management framework that emphasizes setting clear, measurable objectives and key results to drive focus, alignment, and engagement across an organization. From the founder's perspective, OKRs serve as a compass for the company's direction. When founders set quality OKRs, they provide a roadmap that guides the organization toward its vision. These objectives and key results should be challenging yet achievable, inspiring employees to perform at their best.

For employees, quality OKRs offer a sense of purpose and a clear path to success. When goals are well-defined, employees are more motivated and focused, knowing that their work directly contributes to the company's mission. However, it is essential that OKRs are designed in collaboration with employees, allowing them to have a say in shaping their own objectives and key results.

HR's role is to facilitate the OKR process, ensuring that the objectives set by founders align with the overall company strategy. They also act as a bridge between founders and employees, helping to strike the right balance between challenging goals and realistic expectations.

Cascading strategy

Cascading strategy involves aligning individual and team goals with the company's broader strategic objectives. From a founder's perspective, cascading strategy ensures that every employee's work directly contributes to the organization's vision. It breaks down the company's mission into actionable steps, making it more achievable.

For employees, cascading strategy translates the high-level vision into practical and relevant tasks. This alignment fosters a sense of ownership and engagement as employees can clearly see how their work fits into the bigger picture. It's essential for employees to understand the "why" behind their tasks, which cascading strategy achieves.

HR plays a crucial role in cascading strategy by facilitating the process of aligning individual and team objectives with the overarching company goals. They must ensure that employees receive the necessary training and support to fulfill their roles effectively within the context of the broader strategy.

Understanding each other

Open and transparent communication is the cornerstone of success in any organization. From a founder's perspective, regular and clear communication with employees is essential to provide context, share the company's vision, and inspire dedication.

For employees, communication from founders ensures that they are informed, engaged, and feel like an integral part of the organization. When they understand the "why" behind their work and can see how it connects to the company's mission, they are more motivated and committed.

HR professionals act as facilitators in this process. They can help founders craft their messages effectively, ensuring they resonate with employees. They also play a role in collecting feedback from employees and conveying it to the founders, fostering a culture of open dialogue.

Both founders and employees play integral roles in achieving organizational success. By understanding each other's perspectives and needs, we can create a work environment where every team member is motivated, aligned with the company's vision, and contributes to collective success. The collaboration between founders, employees, and HR professionals ensures that the organization thrives with enthusiasm and efficiency. In this way, we bridge the gap between our visions and our reality, making our goals not just achievable but inspiring.

By understanding each other's perspectives and needs, we create a work environment where every team member is motivated, aligned with the company's vision, and contributes to collective success. Learn more here.

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