What is OKR?

With the “Practice of Management,” Peter Drucker shared the principles of Management by Goals in 1954, and the business world experienced that working with goals was much more productive. As a result, they practiced their target cards extensively in the 1950s and 60s to align better with common goals.
However, the vast majority of companies avoided setting short-term goals in practice. As a result, the sub-goals were not result-oriented and did not give the impression that the sub-goals would not secure achieving the objective.
Most organizations have used the total scorecard score for years to determine performance bonuses or pay without reflecting the effort factor.

Intel was the first to react to applying the classic scorecard approach with misused principles. In the early 70s, Intel’s CEO Andy Grove developed a new performance management system called OKR which he believed to have significantly contributed to Intel’s rapid rise in the business world. He introduced this system in his book “High Output Management” in 1983.

Unfortunately, very few companies have adopted these principles shared by Andy Grove. By 1992, Kaplan and Norton shared their book “Balanced Scorecard.” Although there has been some improvement in the traditional goal management system, most of the misused principles of scorecard applications continued until the 2000s.

In 1999, Google met John Doerr, an Intel veteran, and became the first company to adopt OKR principles and implement them under the name OKR.
The OKR methodology, which developed quickly in the ecosystem influenced by Google, rapidly increased its popularity worldwide with John Doerr’s 2017 book “Measure What Matters” and took management by objectives to a different level.
Management by Objectives has made it possible for companies to align with their dreams, which they cannot achieve by working hard alone. Companies that practiced it well outperformed their competitors by repeatedly practicing their plans guided by goals.
By fostering an environment where your people align with your vision and strategic priorities, Stiza helps ensure that the right goals are executed decisively to get your company where you envision it. In addition, creating a culture of regular reviews and feedback realizes leaps in performance improvement.

For More Information