OKRs and what are the challenges of implementing them in remote teams?

In a world where organizations are constantly looking to improve their performance and alignment, tools such as Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs) have become essential allies. Although these methodologies differ in their approach, they share a common purpose: to help us define clear goals, measure progress by keeping teams focused on what really matters. Whether we're driving ambitious projects or monitoring day-to-day performance, understanding how these tools work and complement each other can make all the difference in any company's success.

OKRs invite us to dream on a large scale, setting inspiring goals that challenge us to step out of our comfort zone, while KPIs keep us grounded in reality, offering an accurate view of our performance in real-time. In this article, we'll explore what they are, how they stand out, and the benefits they bring, so you can make the most of their potential and take your organization to the next level.

What are OKRs?

We're talking about a goal-setting methodology that helps us define and follow ambitious goals within our organization. OKR stands for "Objectives and Key Results," and it consists of two main elements:

Objectives are clear, aspirational goals that define what we want to achieve, such as increasing our market share or boosting sales of product X.

Key results, on the other hand, are those specific and measurable effects that indicate progress toward achieving the objective, such as increasing our inventory turnover to a certain number in the next two months or reducing paper use in the office to less than X reams in the next quarter, and so on.

OKRs are designed to help us focus on what really matters and align our teams around common goals. By setting challenging yet achievable objectives and defining clear, quantifiable key results, we can better track our progress, hold ourselves accountable, and make data-driven decisions about where to invest our time and resources in optimizing our Business Process.

>> Process improvement using As Is & To Be <<

In a very condensed form, the objective tells me what I want to achieve, and the key result tells me how to achieve it.

Benefits of OKRs

In my experience, I've found that OKRs offer numerous benefits that simplify and enhance our daily work. First, by using OKRs, we foster greater autonomy and responsibility. Each of us has clarity about our responsibilities, but we also enjoy freedom in our daily work, which allows us to innovate and adapt as needed.

OKRs also help us set bolder and more challenging goals. They challenge us and our teams to reach beyond our comfort zones through ambitious objectives. This approach keeps us focused and disciplined, allowing us to better prioritize our time and manage our workloads more effectively.

Another aspect to highlight is how OKRs simplify the entire goal-setting process, reducing the time we spend on this task. This frees up time to focus on execution and progress.

Additionally, with OKRs, communication within the organization is clearer. We can all see the organization's goals and understand how our work contributes to overall growth. This not only improves our alignment and cooperation as we work together towards larger goals but also increases employee engagement. It connects us more with the company's overall mission and with each other.

A question that cannot be missed: What is the main difference between OKR and KPI (Key Performance Indicators)?

OKR

OKR focuses on setting and achieving challenging and aspirational goals. It is used to drive the focus, alignment, and commitment of teams towards meaningful and long-term results. OKRs are more oriented toward growth, innovation, and learning, and can change more frequently to adapt to new conditions or priorities.

KPI

KPI, on the other hand, focuses on measuring performance and specific outcomes in key areas of the business. KPIs are quantitative indicators used to assess current performance in relation to established goals and expectations. They are often used to monitor and control operational performance in real-time and can have a narrower and more detailed focus compared to OKRs.

Examples of OKRs

Everything is better understood with an example. Here are a few typical OKRs from a human resources department.

Example 1: Improving employee satisfaction and retention

Objective: Improve employee satisfaction and retention.

Key Result 1: Achieve 90% satisfaction in the semi-annual work climate survey.

Key Result 2: Reduce staff turnover by 20% compared to the previous year.

Key Result 3: Implement a recognition program that reaches 100% of departments each quarter.

>> Did you know that you can automate these processes with a CRM <<

Example 2: Strengthening training and development

Objective: Develop key skills in personnel to promote innovation.

Key Result 1: Launch 5 new training programs focused on digital skills and leadership.

Key Result 2: Increase participation in training programs by 25% compared to the previous quarter.

Key Result 3: Achieve an average satisfaction rating of 4.5/5 with the training programs.

>> Key benefits of defining your processes <<

Example 3: Optimizing recruitment processes

Objective: Streamline the recruitment process to improve efficiency and quality of hires.

Key Result 1: Reduce the average hiring time from 30 to 21 days.

Key Result 2: Increase the job offer acceptance rate to 85%.

Key Result 3: Ensure that 95% of new employees successfully pass the trial period.

>> Use case: Processes in Formula 1 <<

Example 4: Improving organizational culture

Objective: Strengthen organizational culture to foster a positive and collaborative work environment.

Key Result 1: Organize 12 team building events throughout the year that involve at least 75% of the staff.

Key Result 2: Implement a flexible work policy that is used by at least 50% of employees.

Key Result 3: Achieve a 15% improvement in the response to the question about organizational culture in the annual employee survey.

Challenges of implementing OKRs in remote teams:

Now, let's get to the heart of the matter, when it comes to remote teams, implementing OKRs can present specific challenges, but also offers opportunities to improve alignment and efficiency. Below are some of these challenges and strategies for effectively implementing OKRs in remote teams.

Communication and alignment

The lack of face-to-face interactions can make it difficult to clearly communicate objectives and expectations. Misunderstandings are more likely, and it can be harder to ensure that all team members are aligned with the company's overall goals.

Tracking progress

In a remote environment, it is more complicated to continuously monitor progress and ensure that everyone stays on track toward achieving their OKRs.

Culture and commitment

Fostering a strong company culture and a high level of commitment in a geographically dispersed team can be challenging. Team members may feel disconnected or less committed to the organization's goals.

Adapting to different time zones

Although not necessarily applicable to all remote jobs, coordinating team members in different time zones can complicate the scheduling of regular meetings to review objectives and progress.

Strategies for implementing OKRs in remote teams:

To address these challenges, some strategies are proposed, such as:

Use of collaboration tools

Implement technological tools that facilitate collaboration and communication in real-time and asynchronously. Tools like Zoom, Google Meet, or Microsoft Teams can help keep everyone on the same page.

Establishment of regular routines

Having regular check-in meetings and OKR reviews can help keep everyone aligned and focused on common goals, tracking the progress of results. These meetings are also essential for adjusting or redefining objectives as needed. The adjustment of OKRs will depend a lot on the goal. A common assessment is usually carried out at the end of each quarter.

Training and guidance on OKRs

This strategy is advisable to implement at the beginning of the exercise with the whole team and especially when incorporating a new member. And it consists of providing adequate training on the OKR methodology and how it should be effectively used in a remote environment. This includes teaching teams to set achievable and measurable objectives.

Transparency and accessibility of OKRs

Ensure that the OKRs of each team member and the team in general are accessible to everyone, which helps improve visibility and alignment. Transparency here is key to achieving the goals and is linked to regular tracking routines.

Promotion of company culture and commitment

Implement initiatives that promote a strong organizational culture and a sense of belonging, even in a remote environment. This may include virtual team-building activities, public acknowledgments of achievements, and open and honest communication. Without this sense of belonging, transparency from the previous point will be difficult to achieve.

Adaptation to different time zones

Be aware of time differences and plan interactions so that all team members can participate without being too affected by their geographical location. This does not apply to all businesses and teams, but it is a point to consider if it is your case.

Conclusion

Certainly, developing OKRs in distributed teams poses unique, though not insurmountable, challenges. Undoubtedly, the most notable challenge lies in maintaining collective cohesion and understanding in the face of physical distance. However, through fluid communication and the skillful use of virtual tools, it is feasible to cement a common sense of purpose.

Moreover, by promoting transparency and active engagement by all, we can circumvent the spatial-temporal constraints inherent in these contexts. In this way, each one will feel that he or she is the architect of joint achievement, strengthening the bonds of belonging that are so vital. In the same way, OKRs provide an additional advantage by enabling greater agility, adaptability and proactivity in the face of changes. In the end, the fundamental thing is how these objectives allow us to align day-to-day with the parent mission, with a tangible impact.

Therefore, although implementing them is an initial challenge, their benefits of effective management more than outweigh the effort involved. More than a mere metric, OKRs provide these teams with a strategic orientation.