Why should OKR and compensation be separated?
Posted: Thu Feb 06, 2025 9:25 am
The simplest way to conduct a retrospective is Start-Stop-Continue. In this model, each team member is asked to identify specific things the team should do: Start doingStop doingContinue doing.
OKRs that were not achieved in the previous cycle are re-evaluated so that they can be included in the next quarter or discarded when they are no longer necessary.
Some companies view objectives as a “vision” that the company and teams will pursue over time, so objectives may roll over from one quarter to the next. For example, an objective such as “Delight our customers” is something a company can use over several quarters, creating new key results with each tactical cycle.
Even some Key Results themselves will remain constant morocco mobile database over time, with just the targets changing. Metrics like revenue and Net Promoter Score tend to appear in almost every quarter for all the companies I’ve seen. But the value drivers each team uses to improve those metrics will change over time.
OKR is a management tool, not an employee evaluation tool. Therefore, the second principle of the OKR framework is to separate OKR from compensation and promotion. As Andy Grove of Intel writes:
OKRs are not a legal document that performance evaluations are based on, but should simply be an input used to determine how an individual is performing.
OKRs that were not achieved in the previous cycle are re-evaluated so that they can be included in the next quarter or discarded when they are no longer necessary.
Some companies view objectives as a “vision” that the company and teams will pursue over time, so objectives may roll over from one quarter to the next. For example, an objective such as “Delight our customers” is something a company can use over several quarters, creating new key results with each tactical cycle.
Even some Key Results themselves will remain constant morocco mobile database over time, with just the targets changing. Metrics like revenue and Net Promoter Score tend to appear in almost every quarter for all the companies I’ve seen. But the value drivers each team uses to improve those metrics will change over time.
OKR is a management tool, not an employee evaluation tool. Therefore, the second principle of the OKR framework is to separate OKR from compensation and promotion. As Andy Grove of Intel writes:
OKRs are not a legal document that performance evaluations are based on, but should simply be an input used to determine how an individual is performing.