Dear Friends, We always see positive OKR means always growing. So is there any case where OKR has a negative value?. If yes, please give an example?. Thank you.
Hi! It's a good question. OKRs can have a negative value when they are not done correctly. For example, a lot of companies who start using OKRs never really learn the right principles and do not follow the best practice process. What happens as a result of that is they do not set any real or good OKRs and people are very confused around what and why should they do. It can bring conflicts and demotivated people. For example, one wrong use of OKRs is forcing every employee to set their own OKRs while they should actually be set on the team level. Individual OKRs can drive individualism, micromanaging, and demotivation, people can hate the OKRs eventually. So OKR implementation can be negative if companies do not put in the right effort to learn and use best practices. It's not only the problem of OKRs, every organizational change needs thought through preparation and leading. Let us know if you have any other questions!
KPIs are indicators, there should be ranges if you're hitting green, amber or red. This video explained KPIs as equivalent to a fixed target. I'm not sure the reason why, can someone please enlighten me.
@Mirell Põllumäe Thank you so much for taking time on responding to my comment. I really appreciate it. I understand and I like your point that ranges really adds weight on work. :) I'm just confused because the colors/ranges is what made KPIs different from the fixed target. And I'm just concerned that people will be more confused if "indicators = KPIs" will be explained similarly with "fixed targets". Maybe next time it can be explained as fixed targets not KPIs. I have several samples if you like, I can show you and we can discuss further. Please feel free to send me a personal message. God bless, again I appreciate you and your comment! :)
could it be that the indicator itself is fixed - but the evaluation of your progress towards this fixed indicator is expressed by the colors and accompanying ranges you mention? if your performance is way too poor, it could be red, if your performance is getting close it could be amber, and if your performance is in the 'accomplished' range it could be green. But these ranges are measured against the fixed KPI value.
Every explanation of OKRs always tries to paint a KPI as some narrow, BAU measure. It's not and if it is it's only because it's been used that way. Look into something called a KPI tree or a Results Oriented KPIs (ROKS). It's much better at ensuring outcomes are tied back to strategy vs. a siloed outcome.
Hi Piero, I totally understand where you are coming from. I think there are different types of KPIs and here and there the line between the KPIs and OKRs might be really thin. Many KPis might even end up as your KR's time to time. The main difference usually is rather around the cadance and how actionable one or another is. KPIs rather change less but are absolutely crucial for the business. BAU doesn't mean it's not important or that it's less important. OKRs are rather very "aggressive" focus areas for each quarter. Best is if OKRs are really narrow and focus on the question - what do we want to improve and how? OKRs should affect your KPIs and help to hit them. If you are not setting goals for better performance then what for are you setting them!? And I also agree that methodologies evolve and change in time (as they should) so new ways of KPis can be really similar to OKRs one day. In this video, we are indeed focusing more on the most used way of KPIs. The goal of the video is to help people who just, for example, track their revenue and think it's an sales OKR but they could do so much more and more fruitful goal-setting to target challenges to overcome and opportunities to take. Revenue stays as an KPI to show what needs to be achieved and OKR is there to figure out how to achieve it.
We need to clarify what a KPI is! A KPI is a metric that has a target value set by the company for a key business area (using a goal). The company monitors and tracks progress to see if the goal is reached or not . If it fails to reach the intended goal, corrective action is needed. Therefore the goal has to be revised or design a new one. Hope this helps!
Really well explained! Thank you for sharing!
Well done, guys - perfectly explained!
I often find it tricky not setting my KRs as KPI this points in the right direction for sure.
Thanks for a great video! Very informative and thanks to the examples, well-explained!
Thank you! It means a lot to get this feedback!
Thank you very much for your explanation. It's really insightful made me think how can I apply it on my company. Congratulations!
Glad you found this helpful!
Nice and clear, will be recommending this at my place of work!
Great to hear!
Excellent!
Very nicely done ✅ congrats
Thank you for explaining a precise usecase 👍🏼
Great work, would you please share the software name which you are using for presentation/editing? I like your engaging presentation.
This was a very informative video, Thank you
Glad you found it helpful!
Damn....this was good. Thx!
the book does not download. I get an error page. great video by the way.
Dear Friends,
We always see positive OKR means always growing. So is there any case where OKR has a negative value?. If yes, please give an example?. Thank you.
Hi! It's a good question. OKRs can have a negative value when they are not done correctly. For example, a lot of companies who start using OKRs never really learn the right principles and do not follow the best practice process. What happens as a result of that is they do not set any real or good OKRs and people are very confused around what and why should they do. It can bring conflicts and demotivated people. For example, one wrong use of OKRs is forcing every employee to set their own OKRs while they should actually be set on the team level. Individual OKRs can drive individualism, micromanaging, and demotivation, people can hate the OKRs eventually. So OKR implementation can be negative if companies do not put in the right effort to learn and use best practices. It's not only the problem of OKRs, every organizational change needs thought through preparation and leading. Let us know if you have any other questions!
nice🔥🔥🔥
KPIs are indicators, there should be ranges if you're hitting green, amber or red. This video explained KPIs as equivalent to a fixed target. I'm not sure the reason why, can someone please enlighten me.
I like this point.
@Mirell Põllumäe Assuming you are correct, based on your experience. Then this is just a goal. Who needs the stupid initials KPI.
@Mirell Põllumäe Thank you so much for taking time on responding to my comment. I really appreciate it. I understand and I like your point that ranges really adds weight on work. :) I'm just confused because the colors/ranges is what made KPIs different from the fixed target. And I'm just concerned that people will be more confused if "indicators = KPIs" will be explained similarly with "fixed targets". Maybe next time it can be explained as fixed targets not KPIs. I have several samples if you like, I can show you and we can discuss further. Please feel free to send me a personal message. God bless, again I appreciate you and your comment! :)
could it be that the indicator itself is fixed - but the evaluation of your progress towards this fixed indicator is expressed by the colors and accompanying ranges you mention?
if your performance is way too poor, it could be red, if your performance is getting close it could be amber, and if your performance is in the 'accomplished' range it could be green. But these ranges are measured against the fixed KPI value.
what is the best software to measure OKR and KPIs?
Try Atlassian. Jira.
Every explanation of OKRs always tries to paint a KPI as some narrow, BAU measure. It's not and if it is it's only because it's been used that way. Look into something called a KPI tree or a Results Oriented KPIs (ROKS). It's much better at ensuring outcomes are tied back to strategy vs. a siloed outcome.
Hi Piero, I totally understand where you are coming from. I think there are different types of KPIs and here and there the line between the KPIs and OKRs might be really thin. Many KPis might even end up as your KR's time to time. The main difference usually is rather around the cadance and how actionable one or another is. KPIs rather change less but are absolutely crucial for the business. BAU doesn't mean it's not important or that it's less important. OKRs are rather very "aggressive" focus areas for each quarter. Best is if OKRs are really narrow and focus on the question - what do we want to improve and how? OKRs should affect your KPIs and help to hit them. If you are not setting goals for better performance then what for are you setting them!? And I also agree that methodologies evolve and change in time (as they should) so new ways of KPis can be really similar to OKRs one day. In this video, we are indeed focusing more on the most used way of KPIs. The goal of the video is to help people who just, for example, track their revenue and think it's an sales OKR but they could do so much more and more fruitful goal-setting to target challenges to overcome and opportunities to take. Revenue stays as an KPI to show what needs to be achieved and OKR is there to figure out how to achieve it.
this makes depressed I don't know why
I think I know now. It's the horrible globohomo graphics
We need to clarify what a KPI is!
A KPI is a metric that has a target value set by the company for a key business area (using a goal). The company monitors and tracks progress to see if the goal is reached or not . If it fails to reach the intended goal, corrective action is needed. Therefore the goal has to be revised or design a new one. Hope this helps!