Series - Quantification of Objectives and KRA’s Can it be done? (Part 1)
This series is divided into five parts, from the meaning to case lets. Today is part 1 of the series.
A new terminology OKRA (Objectives and Key result area). This is old wine in a new bottle. Terminologies and technologies change, what does not change is people. We deal with people, their emotions, behaviors, and habits.
Companies talk about sales, revenue, cost, targets, time, and salaries. These are all output variables. So what are the input variables?
OKRA is a structure, measurable, and data-driven framework that gives the HR power to quantify the results.
Objectives - A measurable goal.
Key results - Data-driven metrics that measure the objectives.
Action - The action that needs to be taken to achieve the key results and hence the objective
OKRA’s need to be audacious with the full support of manpower, finance, operational freedom, and tolerance for mistakes.
Need of OKRA
To bring everyone on the same page.
At appraisal, there is transparency as to what was expected and what is accomplished.
OKRA’s can be linked to a pay matrix.
HR becomes a strategic partner with measurements in place.
Areas where OKRAs can benefit
Talent acquisition
Talent management
Performance management
Learning and development
HR Analytics
Compensation and benefits
Organizational development
Employee engagement
Diversity and inclusion
Measurement and evaluation