Session 2:

Types of Goals

“OKRs”, created by Andy Grove of Intel, is defined as “Objectives and Key Results.” It is a collaborative goal-setting framework for defining and tracking objectives and their outcomes. OKRs enable you track progress, create alignment, and encourage engagement around measurable goals – with two key components:

• Objectives: What is to be achieved.
• Key Results: Clear steps to achieve your objective

OKRs focus on the most important priorities. With a clear objective and measurable key results to track towards completion, you are positioned to achieve your goals successful.

OKRs are becoming very popular globally with Google being the one of their adopters in 1999. See the video below from John Doerr, famous author of Measure What Matters, on why the secret to success is setting the right goals.

Since we learned about how to set goals, let’s determine how often should your company set and review them.

Some companies use an annual cycle but those that use SMART goals and OKRs utilized a more frequent cycle – quarterly or monthly.

We suggest that you start with quarterly goals then move on to monthly goals when your company and employees are ready. A monthly frequency allows for more early feedback and course corrections – making the company adaptive and responsive to changing conditions.

Shorter-term goals position you for success and a lower chance of not getting completed. A lot could happen in a year or even a quarter. A global recession could happen in less than a month. Why invest in plans that will likely change later?

Quarterly or monthly goal-setting creates opportunities to achieve successful milestones for you and the rest of your company. This approach enables and motivates people further increasing adoption of your goals program.

On an annual goal cycle, your employees get just one chance per year to be recognized for hitting their goals. To learn about the transformative power of recognition, read our article The Science of Recognition and Rewards, then maximize it by spreading your goal cycles across the calendar.

Managers have greater visibility of employee performance. More importantly, at the end of each goal cycle, managers can provide effective feedback and coaching that gives employees sufficient time to adjust and improve. This enables more employees to be successful and be recognized – a clear win-win for employees and the company.

Want to dive deeper? Check out this article - 5 Reasons Why Quarterly Goals will Benefit You.

Equipped with a better understanding of what kinds of goals your performance management program should consider, and on what frequency, you’re ready to start building your program!

Next, we’ll talk detailed steps. See you soon for session 3!