The 6 Business Benefits of OKRs Based on HUAWEI's Survey. | WMA 富道学院

The Major 6 Business Benefits of OKRs Based on HUAWEI’s Survey.

In 2017, Huawei conducted a performance management satisfaction survey and found that:

The satisfaction of the teams running OKR in each dimension of performance management is higher than that of the teams using traditional performance management methods.

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Among them, the promotion of teamwork, freedom of work, personal strength, and openness of the organization is most obvious.

Moreover, none of the teams conducting OKR are willing to return to traditional performance management methods.

Below, we’ve listed out the key values and benefits of OKR.


1. Breaks the hierarchical system.

With OKR,  each team member plays some certainty role to undertake the company’s strategic decomposition and achieve a more flexible form of work

For the uncertainty target, the employee will report to the supervisor, and the supervisor will comprehensively grasp the strategic direction of the company.

Generally speaking, as long as the strategic deviation from the organization is not large, it is recommended to encourage employees to actively do some useful explorations, and perhaps a big innovation will emerge.

In other words, OKR is claimed by itself, not forcedly.

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Flat organization level: For employees, he only needs to pay attention to the OKR market.

Thus, for employees, the company seems to have only two layers of structure: direct supervisors and employees.

If a higher-level supervisor needs to derive a task, he only needs to add an OKR to the OKR market. In essence, he is equivalent to the role of the direct supervisor.

So, after a period of development, the team found that the supervisor was finally freed from the complicated task coordination and could free up more time to do more meaningful and valuable work.

Supervisors have also changed from a simple “tube” and “rational” to a service role.

2. Employees have more freedom to make their own decision.

The effect of OKR is not obvious in the first cycle.

About 10% of employees actively set challenging goals, and many employees will still take a wait-and-see attitude toward this change based on inertia.

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Since then, with the lengthening of OKRs development time, employee concerns have gradually been resolved, and the proportion of employees willing to set a challenging goal will continue to climb.

After about three cycles, on average, the proportion of employees who dared to set a challenge goal in the team would increase to about 30%, and the value stabilized thereafter.

The team atmosphere is more oriented to cooperation, gradually breaking the unique wolf culture and forming a community collaboration culture.

3. Increase in employee performance.

One of the great advantages of OKR is that it is open to all members by default.

Employees can check the OKR of anyone else in the company, including the OKR of the surrounding colleagues and supervisors.

Although all other people’s OKRs are public, employees do not take the initiative to check the OKR of other related colleagues, which may be caused by mutual distrust among employees in the traditional performance management model.

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With the extension of OKRs development time, after about two cycles, employees gradually changed their original practices.

They began to pay close attention to the OKR of their colleagues who work. On average, an employee would check the OKR of 15-20 colleagues.

By consulting other people’s OKR, on the one hand, it has improved the understanding of the work of other colleagues, and also enhanced the mutual inspiration and improved employee performance.

4. More fair performance evaluation.

Under the traditional performance management mode, the supervisor gives important work to his competent employees according to his own judgment.

And those employees with relatively insufficient abilities may only be able to do some insignificant work.

When it comes to performance appraisal, important work usually contributes more, so good employees get better performance because they do more important work.

OKR breaks this task assignment relationship.

As with the OKR market mentioned in Value Point 1, the organization’s mission is stored in a public OKR marketplace where everyone has equal opportunity to claim.

What employees need to do is to constantly improve their skills, match their abilities and task difficulty, and have the ability to complete more important and complex tasks.

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Those who can do more can get more work.

In the end, at the time of performance appraisal, how many tasks he claimed was clear at a glance.

5. Improve the organizational atmosphere.

Huawei compared and analyzed the differences in the organizational atmosphere between the OKR pilot team and the non-OKR pilot team. It found that:

The OKR pilot team scored significantly higher in all dimensions than the non-OKR pilot team.

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Especially in the four dimensions of peripheral collaboration, growth and development, information transparency and work autonomy, the difference between the perception of the OKR pilot team and the non-pilot team is most obvious.

6. Changes in leadership.

From a subjective perspective, there are three main differences between OKR and PBC: openness, bottom-up, and agility.

When the supervisor is asked: If you choose again in the future, would you choose the OKR method or the previous method?

As a result, no supervisor is willing to go back to the past model, as follows are some of their feedback:

“I will no doubt choose OKR and will not go back to the past.

At present, some changes have been realized in the team atmosphere. Now it is no longer a tree-like management method. It has added a lot of bottom-up methods and added a lot of initiative. ”

“OKR has been simplified, which has led to everyone’s thinking. The team’s goals are constantly changing. After the target is offset, everyone can constantly match and adjust.

Even if you return to the original performance management method, you will bring these good practices back. ”

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