Benefits of OKR

We live in a dynamic age, where things are constantly changing, especially for businesses. Companies have had to adapt to ever-increasing customer expectations, adopt new marketing channels, utilize new technologies, and compete at a global level, all in a single generation.

While you focus externally to address these challenges, you need to align people internally with your strategy to move faster. One such way to achieve internal alignment is using a framework called OKR.

OKR or Objectives and Key Results is a simple habit-forming framework for CEOs and companies to build the habit of thinking, planning and executing company objectives and strategy. Few of the benefits your company will get with OKR implementation are

  1. GOAL ALIGNMENT
  2. TRANSPARENCY AND OPEN COMMUNICATION
  3. MONITORING AND ACCELERATING PERFORMANCE
  4. EMPLOYEE ENGAGEMENT

1.GOAL ALIGNMENT

With increasing diversification, employee roles are becoming more and more specialized. With such an acute division of labour, sometimes people can lose sight of what the most important goals of the company are. Employees instead focus on their individual roles within the institution, giving those tasks higher priority. With the help of OKR, setting objectives which highlight the priorities of a company, can help employees work better in pursuit of a common objective rather than compete based on their individual performance.

This also helps in team building. OKRs are more effective at uniting a company than KPIs because they combine qualitative and quantitative goals. The objectives are often aspirational and can create enthusiasm in a certain category of employees like design or customer service departments. On the other hand measurable Key Results create quantitative goals to drive people in the accounting and sales departments. Hence OKR can cause the company to unite around its primary focus so that everyone can be simultaneously working towards the same overarching goals.

2.TRANSPARENCY AND OPEN COMMUNICATION

Transparency and open communication is a very hard concept to achieve. And the challenge only grows as the company expands. Each department within a company becomes an independent unit. While this is great for intra departmental efficiency, what suffers is the realization of common goals, and effective communication. Often the goals of a company are clear, but there is no clear path to communicating these goals. Managers spend majority of their time ensuring that no one is acting on misinformation. OKRs are a great way to communicate and ensure that everyone understands the company’s goals, and how it measures strategies and success. Through OKRs Company goals can be reviewed and set, for a predetermined period of time (example: quarterly or biannually). Once these goals are set they can be percolated down from the executive to individual levels in order to ensure that everyone is working in support of the main objectives. Setting specific and quantifiable Key Results helps to communicate these objectives with even greater efficiency. Since the process is time-bound it creates transparency and eradicated confusion. Key Results also help in breaking down and highlighting small steps in order to achieve a bigger common goal.

3.MONITORING AND ACCELERATING PERFORMANCE

Each individual employee can make a massive difference in the success or failure of a company. That is why monitoring employee performance is crucial. However, there is no clear way to measure this performance or efficiently create metrics that highlight an employee’s work. Most companies simply use financial indicators to determine growth and success. However financial indicators are not enough. Using a meaningful set of rounded performance indicators that can be quantitatively measured is the solution. This is where OKR steps in.  Quantifiable Key Results serve as excellent metrics to judge the progress towards achieving a company’s main objectives. These Key Results are targeted with a specific deadline, and measurable steps, hence clearly indicating the employee’s performance to whom these tasks were assigned.

However ,it is not necessary that OKR is the sole tool for deciding an employee’s value to an organization. Sometimes OKRs can be set as seemingly impossible, but rather aspirational goals to be achieved, to drive people to perform better. Such goals can tend to attract the best people and create the most exciting work environments. Furthermore, when high goals are set, even failing at them can produce substantial results. Google, which is one of the many companies successfully implementing OKR follows such a practice. In their OKR’s they set what are known as ‘stretch goals’ because their achievement is very hard, and unlikely. They then clearly communicate the nature of such goals and create vestibules for success were achieving 70% of the objectives is considered success. And achieving a 100% of these objectives is considered exceptional performance. Because OKRs are always stretch goals, they encourage employees to continually perform the best that they can.

4.EMPLOYEE ENGAGEMENT

Employee disengagement is a very detrimental problem to institutions. The full extent of its impact is only now being understood. Statistics show that 70% of the workforce remains disengaged, and that disengaged employees cost companies roughly $500 billion annually. While the common assumption of why employees are disengaged or dissatisfied is money, studies suggest that more relevant causes could be their bosses, or even not understanding their role within a company, and what their work is contributing to it’s success.

OKR can solve these problems by creating Objectives on central and individual levels, linking these objectives and creating co-dependencies. This will help employees understand their part in the machinery of the company hence creating engagement. It also helps keep executives in check,and prevents them from taking advantage of employees that they are managing by setting quantitative Key Results that measure performance.

To conclude, it is important to remember that OKR is only as good as it’s implementation. It is a flexible and dynamic framework that can provide a lot of benefits for small and big companies, however ,it’s strength lies in adapting it to your company’s needs for maximum success. To blindly follow the OKR practices of some famous companies like Facebook, Deloitte or Accenture can actually be detrimental to your institution. So the best practice would be to follow the scientific method of trial and error, combined with research to generate strategies to implement OKR that best serve your company.

10 Principles of Strategy Execution

The Brightline™ Initiative is a coalition led by the Project Management Institute together with leading global organizations dedicated to helping executives bridge the expensive and unproductive gap between strategy design and delivery.

Like the Agile principle which helps in delivering the Software, Brightline has listed the 10 principles that can help in achieving the Strategy.

Those who are not from a software background might not know that before the Agile practices of developing the software came to picture, the software was developed using the model called “Waterfall model”, where software was delivered taking 9 to 12 months. And by the time the software was shown and delivered to the customer, customer requirements and expectations from the software have been changed.  Then came the Agile principles, where software was delivered to customers every 2 weeks. This has lead to a better understanding of what the customer wants out of software and reduced the overall cost in developing the same.

Now think of Strategy deliver in your company. Being from the Software background, I can clearly see the Strategy a.k.a the business plans a.k.a growth goals are still getting delivered in the waterfall model.  Many Strategy Heads, CEO offices and PMO offices are living in “Waterfall model” age, where the focus is on Governance, following the same old processes that cause the delay in the actual execution. But I feel with Brightline initiative, the thing might change, and it will bring the Agile like principles in delivering the Strategy.

Here is the brief summary of Brightline 10 principles :

Principle #1 – Acknowledge that strategy delivery is just as important as strategy design: Strategy is not just a fancy word for the business plan. Bringing your strategy a.k.a business plan needs more than just annual offsite. The implementation plan to get execution done needs to be created in a way that it actually leads to the getting execution done.

Principle #2 – Accept that you’re accountable for delivering the strategy you designed: Once you have defined the strategy, your focus should shift to overseeing the progress of implementation so that the strategy delivers results and achieves its goals. You need to know what is your company execution velocity and how the program managers are performing on the identified growth goals and the people who are moving slow on the execution.

Principle #3 – Dedicate and mobilize the right resources: Strategy deliver is a team game. To achieve your strategy to get executed, you need to enable your program managers to easily identify & build the team that will help you achieve the growth goals/objectives which will ultimately help in achieving your strategy.

Principle #4 – Leverage insight on customers and competitors:  No plan survives contact with the enemy. To course correct your growth goals and objectives, keep talking and listening to your customers and leverage insights from your competitors. Otherwise, you will end up executing a plan which might not be relevant to current market conditions.

Principle #5 – Be bold, stay focused and keep it as simple as possible:  Your team may end up losing focus on the growth goals and objectives which will help you achieve your strategy because of day-to-day operational urgencies. By keeping the plans simple at the same time bold will help bring back the focus on execution.

Principle #6 – Promote team engagement and effective cross-business cooperation: To gain the buy-in on executing the growth goals you need to involve the people who will be actually doing the execution. As a leader, CEO and Strategy head, you need to communicate with them, engagement them in the process of creating the plan and keep explaining to them why we are doing what we are doing.

Principle #7 – Demonstrate bias toward decision-making and own the decisions you make:  Many plans fail and keep the pace with changing business conditions. At qilo, while implementing our solution across different companies, we have seen that it’s far difficult to update those metrics and milestones that help the team to achieve the growth goals. And this happens because the process of making these updates are complex and bureaucratic. By keeping the governance process simple, you can always empower your people to change/adjust the plans per the internal and external business conditions.

Principle #8 – Check ongoing initiatives before committing to new ones:  Strategy is delivered by identifying few strategic initiatives and then linking the growth goals that will help you to achieve those strategic initiatives. Many times leaders end up starting the new strategic initiatives before the previous initiatives see the light of the day. Avoid committing to new things before you finish the previous one.

Principle #9 – Develop robust plans but allow for missteps — fail fast to learn fast:  Even the best people and teams fail to deliver. It’s up to the CEO and CEO office, Strategy head to create the environment where failures are acceptable and seen as learnings.

Principle #10 – Celebrate success and recognize those who have done good work:  This is where most companies fail. CEO office, Strategy Heads and Program managers fail to recognize the people who are actually executing the growth goals and demonstrating the habits that are leading to execution. People who are involved in the execution of strategic plans are doing those in addition to their day-to-day operations, recognizing them is crucial for the success of achieving your growth goals.

qilo wins 2019 Raising Star & Premium Usability Award from FinancesOnline!

We’re all incredibly proud of what we accomplished at qilo in the last 3 years, and our latest honor gives us even more reason to celebrate.

qilo has earned the prestigious 2019 Raising Star and Premium Usability Award from FinancesOnline, a popular B2B software review platform. This recognition is given out annually to products that provide outstanding solutions for B2B companies across a number of categories.

With an overall review score of 8.0 out of 10, and a user satisfaction score of 100% at the time of this writing, qilo was also honored in FinancesOnline’s new list of the Top 500 OKR Software market leaders and list of best 20 best project management software for enterprises

In evaluating qilo for the 2019 Raising Star and Premium Usability Award, FinancesOnline’s team of software experts examined and compared qilo against its competitors in various scenarios. Some of the specific criteria that their review team took into account were:

  • qilo range of “key OKR functionalities,” combined with a simple and intuitive interface
  • The collaborative nature of qilo’s ability to create team-based OKR’s
  • The capacity to forecast execution against defined Key Results
  • Email integration from multiple apps and services
  • The ability of 1-on-1 guidance and quarterly OKR progress reviews
  • Cascade Annual Operating Plan and Strategic Projects using 1 software
  • Business Vision and Organization Values Alignment
  • Continuous feedback execution loops

According to a FinancesOnline statement released to qilo, “Experts have seen qilo OKR perform impeccably for mid-size to large teams. It is an awesome product that a CEO can implement to Driving results on company objectives.”

We’re delighted to have a shiny new award to put on the qilo mantle, but more importantly, the 2019 Raising Star and Premium Usability Award is another confirmation that at qilo we are committed to help CEO’s and companies drive execution on company strategic objectives and help them accelerate growth.

Please visit FinancesOnline.com to post your own review of qilo, and thanks for your support through another amazing year.

About the industry awards received

FinancesOnline recognized qilo with two industry awards in the top enterprise project management software space for its exceptional usability as well as its consistent market growth and customer reception. The review platform noted a highly positive user feedback through its Customer Satisfaction Algorithm, with Qilo garnering 141 positive social mentions and no negative social mentions at all. This allowed us to win the Rising Star award for 2019. Furthermore, the software experts found all available Qilo features to be quite user-friendly and intuitive, thus allowing us to be distinguished with the Premium Usability title.

Keep visiting qilotech.com to check what’s in store for 2019!

Building the Execution Culture!

When we started qilo’s journey, we had one single focus and agenda. How can we help companies perform better! During this journey, we met hundreds of leaders across industries and geographies. Did research with over 5000 people – Here are some learning’s from the experiences we got;

Execution Accountability

One theme, which clearly emerged as inputs from the leaders, was execution accountability. On an average a management team invests thousands of critical man-hours in boardroom/ meeting rooms, the question to be asked, are they genuinely productive?

Over 90% of the respondents we asked this question said no. So what could be the reason?

  • Lack of belief/ Clarity in the Vision
  • Limited say in creating the plan
  • Fear of conflicts
  • Yes Minister Syndrome
  • PTB- Passing the buck
  • Limited know how

Recently there has been a trend in companies that divide the workforce into 2 buckets – Planners and Doers. In some companies, they work as a team and in some still hierarchal. Depending on their culture, I have categories them as following types

  • The Houdini’sType – This team pops up while creating an annual plan and asks for data from across functions and post creation of the plan does a vanishing act. And to be seen during the review meeting sometimes. These type of companies build 2 classes amongst team (unknowingly) the corporate and rest of others.
  • Living on the edge Type– these are a set of companies, who do not believe in strategic planning or vision and find it a waste of time. (Believe me, they do exist and in masses.) These companies focus on a month-to-month plan with no strategic vision. Some of them pretend to be non-conformist (Strategy Atheist) but deep inside they lack know how at a leadership level.
  • King with the golden robe Type– These are set of companies where decision making resides in one corner office. Whether the company is doing well, bad is decided upon which side of the bed the king woke up from. The companies are highly perception and ego driven. The single focus for the teams is to please the king.
  • The Change Makers– they are a group of people closely aligned with the purpose and leaders vision. They fail together and succeed together. These companies align their teams with their purpose first and the drive execution accountability. They work in a network of teams and the leadership team rolls us the sleeve whenever required and run the shop floor.

Globally, the shelf lives of companies are getting shorter and shorter. Product Power and Proprietary Power will not just be enough. The key differentiator of a company will be the way you work and get the Strategy Execution done.

Always remember the pace and the quality of execution will decide if your team is working for you or your competitor!

 

 

 

OKR Design Patterns For Successful Implementation

design pattern is a general repeatable solution to a commonly occurring problem. In the context of OKR (Objective & Key Results)  many companies fail at the implementation stage as to how to arrange the OKR’s in a way that can lead to successful implementation and adoption of the framework.

This challenge will come to you when you have understood the basics of OKR and probably have read a couple of books and articles on the subjective. When implementing the OKR in your company, you need to remember that the organization is not made of different parts and pieces but it’s a complex adaptive system. And this system is run by people who have different motives and need to be satisfied at gut, mind and heart level. Any change we bring into the system needs to be carefully thought through.

The question here we are trying to answer is how you will arrange the OKR’s in your hierarchical complex system. There are 4 basic design patterns which can be applied to implement OKR’s

  1. Silo Pattern
  2. Team-based OKR Pattern
  3. Top-to-bottom flow pattern
  4. Top-3-level flow pattern

1. Silo Pattern: Each individual owns the objective and all the keys results are owned by the objective owner herself. Its simple to implement and easy to modify but again encourages silos in the company.

OKR

2. Team-Based OKR Pattern: Its different from silo pattern in a way that the Key Result are either owned by (a) objective owner reports(team members working under objective manager). Or the Key Result are owned by someone else working under a different manager,  but working with the Objective owner to achieve that Objective.

3. Top-to-bottom Cascade Pattern: In explaining this pattern (which means a way to arrange OKR’s) I am assuming that your company has 4 level hierarchy. This OKR design pattern connects the top level execution agenda with the bottom level execution. This means that the agenda of execution is cascaded down till the last mile of the company. But it also assumes that most of the execution is taken care by the bottom layer of the company.

OKR

4. Top-3-level Cascade Pattern: Again assuming that your company has 4 level hierarchy. In this OKR pattern, we connect top 3 levels of the company and cascading stops at the 3rd level of the company. And the 4th level will have their OKR’s based on silo pattern. It is based on the understanding that if the top 3 levels of the company are in sync then we will have a better flow of the agenda.

OKR

If you are struggling to implement the OKR successfully, we will be happy to have a conversation with you and help you in achieving success in OKR implementation. Feel free to drop mail talk[at]qilotech[dot]com

 

Preparing your company for next level of growth

As a CEO/Founder, you have already taken your company from point A to point B. You have survived the initial 2 to 5 years of journey to build a company. Now you clearly understand what kind of people will be able to work with you and in your company, and most importantly you are revenue positive too.

Now it time to scale your company and take it from point B to point C. And this kind of scaling comes with its own kind of challenges. It’s the time you must bring in more experts inside your company especially at the leadership and mid-managerial positions. And most importantly, allow them to run the show on your behalf. Since people will be executing things on your behalf and you will move from PUSH to PULL mode of execution, you must invest heavily in the organization, people efficiency & effectiveness. The 3 most important work areas for you apart from arranging capital to support execution are

  1. Hiring right kind of people.
  2. Constantly aligning People beyond Leadership with your Strategic and Annual Business Plan.
  3. Investing in people efficiency and effectiveness.

1. Hiring right kind of people

Hiring the right people is the core of every business. It makes sense to outsource your hiring if you choose to remain small. To grow your business from point B to C, you need more people.

It starts with investing in the right kind of talent acquisition team who will be in charge of hiring the right people for you.  And making sure your existing people are accountable for hiring the right people. And make your talent acquisition team accountable for hiring the people with right kind of behaviors.

The first step of hiring the right kind of people is to create the data-driven process of hiring. You create the Interview Score Cards which are easy to be understood by employees who are hiring on your behalf. These interview scorecards are created for each department separately.  Even if you don’t want to score people, just identify the required skills and required behaviors specific to your company and mark it yes and no.

Interview Scorecard

Skill/Competency Score by

Team member 1

Score by

Team member 2

Skill-1
Skill-2
Skill-3
Skill-4
Behaviors
Behavior – 1
Behavior – 2
Behavior – 3
Behavior – 4

 

Example : Hiring a Sales Manager

Skill/Competency Score by

Team member 1

Score by

Team member 2

Ability to hiring the Sales People
Ability to train the new Sales People
Ability to pitch the product/service with clarity
Negotiation Skills
Ability to Build Relationships
Behaviours
Realistic and Rational
Open Minded/Open to Change
Ability to Learn new things
Disciplined to the core
  1. Constantly aligning People beyond Leadership with your Strategic and Annual Business Plan

Probably Strategic Business Plan and Annual Business Plan(also called Annual Operating Plan) are big jargonish words for you. Many first-time entrepreneurs & CEO’s don’t understand them, and many feel that it’s a corporate company thing.

Strategic Business Plan(SBP) is about what you as the founder(s) & CEO want to achieve in next 3 to 5 years. Its about what point “C” looks like. If you don’t want to put in detailed SBP, you can simply put in place 3 to 5 statements indicating what as a company you want to achieve in the next 3 to 5 years. Draft these statements and get these statements validated by your leadership team.

Annual Business Plan(Also called Annual Operating Plan) is about how as a company you have to performance in a particular financial year to meet your Strategic Business Plan. Many companies break down their revenue targets till sales executive level and think they are done with it.

And many do create a plan beyond achieving sales number during their annual offsite; but post that CEO struggles to see the action plan and execution on that action plan. Here is a quick step-by-step process to set your Annual Operating Plan and to make sure execution happen on that plan.

  1. Before annual offsite, share the 3 to 5 statements that describe what needs to be achieved in that financial year. These 3 to 5 statements should be linked(aligned) with your strategic business priorities.
  2. Validate these annual priority statements with your team before going to onsite.
  3. While you are preparing for the offsite,  ask the team now to come up with 1 to 5 projects & goals for the next 3 to 6 months that will help the company to achieve these annual priorities.
  4. During the offsite, the entire leadership team validates those projects. And put in place the action plan & milestones to achieve those projects & goals.
  5. Post offsite, leadership team discuss, validate and correct these projects with their respective teams. And put this plan in action for execution.

Though this sounds simple, making sure that the team remain focused on drafting the projects and milestones to achieve those projects. You need to put a person in charge who will own this entire end to end process & activity. Usually, this person has a very good understanding of your business horizontally and to whom rest of the team members will listen to.

Frameworks like Objective and Key Results (OKR)  can help you in achieving how to creating the strategic and annual plan and how to link people and execution with this plan.

  1. Investing in people efficiency and effectiveness

This is the part where most of the CEO fails to do a good job. And end up hiring the team of consultants/guru who end up giving you ready to eat meals which probably don’t work for your company. Organization effectiveness and efficiency is majorly about:

  • 3. a) Properly defining the business KPI’s & Projects to achieve your achieve your Annual Business Plan.And then making sure execution happens on to achieve those KPIs and Projects.
  • 3.b) Investing in tools that enhance productivity and get work done.
  • 3.c) Enhancing leadership capabilities through training or workshops

3.a) Properly define the business KPI’s and Project:

Most employees hate taking accountability towards what needs to be achieved by them in a company. And most managers take the decision of who is making progress and who is not based on perception; not on data. When the company invest time in setting up the process to define KPI’s and projects to achieve execution properly, it enhancing decision making, transparency from top to bottom and reduces biases between teams and across the company.

3.b) Investing in processes and tools to enhance productivity: The next question to answer is what kind of tools are required by employees so that it can enhance & accelerate the execution on business KPI’s and Projects to be executed. Many companies invest time in drafting a plan, but only a few invest time and resources in making sure that the plan gets executed. At company level you primarily need 3 kinds of tools :

  • One that enhances execution on your Business KPI’s and Projects. Example: CRM’s, Project Management tools, Goal-setting tools, Task management tools.
  • Second is that help the company in enhancing customer centricity. Example: Tools to measure customer satisfaction, tools to listen to customer voice/opinions and tools to provide awesome customer support.
  • Third are tools that reduce administrative work. Example: Financial Support Systems, HRMS etc.

Not all listed tools are required immediately. You need to decide which tools are more important and which can be implemented later. Another important point here is, many of these tool implementations fail for many companies. This happens because of many reasons. I am listing down few of them for you:

  • Company is not able to define the requirement clearly and you end up buying something which doesn’t fulfill your need.
  • An Owner and internal champions are not defined who is responsible for successful implementation.
  • Vendor is not helping the company to identify their requirements.
  • Company doesn’t go into the detail on evaluating the tool in detail and don ask the right question.
  • A UAT (User Acceptance testing) is not done properly against the requirement before rolling out to the larger audience.
  • Not leveraging vendor expertise in implementing solution successfully.
  • Owner of implementation is more bothered about her learning from the implementation than successful implementation.

3.c) Enhancing your leadership capabilities through training or workshops

The first few training or brainstorming sessions you need to invest are in:

  • Visioning Workshops
  • Team Alignment workshop
  • Building accountability across company workshop

Visioning: In a 1996 HBR article, James Collins and Jerry Porras showed that companies with a strong sense of vision had outperformed the others in the stock market by a factor of 12 since 1925! Vision reflects what we care most about and is derived from our sense of purpose and values. It provides meaning, attracts commitment, and focuses human energy by drawing on our deepest yearnings in striving towards a purposeful goal. Visions provide a clear, easily understood image of a better future. Strong visions inspire employees. They embody values & behaviors, provide people in the company the purpose, and direct them to what will be different and distinctive.

Team Alignment : The biggest challenge we have seen while implementing qilo is that of alignment towards the annual and long-term goals of the company. A simple test of this is to “ask your employees what are the 3 to 4 things the company wants to achieve in this financial year”.  Almost 80% people in the company fail to answer this. This is CEO and leadership failure, not employee failure. With alignment workshop, focus on communicating what company wants to achieve and help people align their work with CEO’s agenda.

Accountability workshop: Accountability means I will deliver the expected results from me, come what may. I will collaborate with people across teams and will not wait to be lead by someone to get work done. Building the behavior of accountability is far more difficult. And that the reason companies prefer people from top institutes and people with the excellent academic record because it shows that the likelihood of this person being accountable for execution is very high. But every company doesn’t have access to these people, and the best way to build this behavior is to constantly communicate about the importance of the same across the company.

Summary

  1. Invest in setting up the strong process and people who hire on your behalf.
  2. State your strategic business priorities in 3 to 5 statements.
  3. Draft 3 to 5 statements that will summarize your annual business plan. And link these statements with your strategic business plan statements.
  4. Invest in enhancing your leadership capabilities. And invest to set up processes and tool to enhance people productivity.