Whether you are setting a goal to develop your product or establishing a milestone for your company, setting an objective is crucial. Regardless of how small or big your goals are, establishing an objective will not only keep you on the right path but also push you toward development.
This is where employee performance tracking software comes in. Using tools has immensely helped the tech market, as projected by the SaaS market where companies with tech stacks would reach $720B by 2030.
Such software, like the OKR software, allows employees and companies to set accountable and measurable goals. This helps individuals keep track of their work and enhances a company’s management by establishing certain guidelines. Let’s explore how performance management frameworks and software help a company build an empire.
What is an OKR software?
ORK stands for Objective and Key Results. This is an employee performance tracking software that helps streamline individual milestones and goals. This framework is based on a collaborative goal set up that allows a company to monitor progress, and align the company objectives with that of the employee. It also inspires commitment and enhances productivity.
As per the Global State of OKRs Trends Report, different companies have different approaches to tracking and managing and this difference is caused by the various tools they use.
The primary purpose of establishing OKR software is to align the goals of an individual with their teams, especially with the larger objectives of the company. An OKR framework enhances accountability and productivity all over the team. Its established objectives are time-bound, ambitious, and measurable.
What OKR means to do is fairly simple. It sets objectives and provides key results. This employee performance tracking software sets high-level objectives for the company to achieve. These targets are typically set on an annual or quarterly basis. The main purpose of this tool is to provide a path for the company and its employees to achieve their goals.
For instance, reports show that over 80% of employees in companies working with OKR software had an understanding of their strategies and how their work contributed to the company. This led to increased productivity.
Its other aspect involves working on key results. Based on this a company outlines achievable milestones. These bars help them define the kind of progress made while working on a particular goal.
However, these objectives and results are not set on a universal basis. These will be set and adjusted as per the needs of your company culture. Regardless, the basic outline of the software for establishing ambitious goals for measurable results remains the same.
● How is It Different from KPIs?
The OKR framework is quite different from Key Performance Indicators (KPIs).
While OKR marks the long-term goals and points out the measurable milestones, KPI focuses on particular metrics. KPI focuses on such metrics and uses them to measure the performance of functions or activities inside the company.
KPIs are usually narrow in their approach and scope. It emphasises improving and monitoring performances. While KPIs are generally quantitative, OKRs are qualitative. Both these frameworks are known to be complementary as employee performance tracking software.
What Are the Different Types of OKRs?
Three major areas fall under the OKR software framework. These include:
Aspirational
As the name suggests, aspirational ORKs are based on an ambitious design crafted to push barriers and enhance goals. Companies seek aspirational ORKs when opting for breakthrough results.
These also often have higher risks and uncertainty. Aspirational OKRs often seek a more innovative effort and achieve better results even if the team fails to reach their set goals.
Committed
On another hand, committed OKRs are considered to be more achievable because of their practical and realistic nature. Following this, teams can easily stick to their achievable efforts. In this framework, the objectives and key results are based on the company’s capabilities and resources.
As these goals are closer to reality, it is easier for a company to accomplish and be accountable for it. In total, committed ORKs set a clear path to accomplishing outcomes that have defined timelines.
Learning
Learning OKR has its focus on exploring and experimenting. Crafting new OKRs with modern approaches and new ideas will foster learning. Getting more knowledge and trying different hypotheses. Such objectives and key results will allow your company to prioritise learning and discovery instead of simply achieving the desired outcome.
Why Are They Important?
There are a bunch of reasons that make OKRs a vital part of crafting an organised strategy. Setting the right OKR will lead a company towards holistic growth. Here are the top benefits of an OKR:
- Alignment:
OKRs work towards aligning the whole company with their main objective. This alignment is vital to track progress and ensure that every team is working in the best interest of the company.
- Establishes Expectation
These are the perfect employee performance tracking software
that sets the groundwork for what the company expects from its employees.
- Optimizes Management of Resources
A good OKR software is detailed, achievable, and clear. Setting goals for the company helps leadership teams optimise the allocation of resources and improves management strategies.
- Ensures Accountability
When an employee is clear about what the company expects from them, they get a better scope to develop accountability. When they feel responsible, they are more likely to work towards a particular goal.
- Increases Transparency
When everyone within the company understands the OKR framework, there will be more trust and transparency in leadership and management.
Conclusion
OKRs work as the perfect employee performance tracking software as they help a company set and achieve measurable strategic goals. You can begin by analysing the priorities and demands of the company and then gradually bring it into function.
