OKR and KPI what is? 5 Steps for effective implementation in 90 days

No little business, the start of the process operation, falls into a state of “digitization in the dream, admin on paper”, i.e. applying the software workflow automation, but don't have a clear criteria to measure the efficiency of deployment. This is at OKR, KPI exert an important role in shaping goals, track progress, evaluate performance.

This article will help you – as leader or curator deployment process numbers – understand the nature OKR and KPIdistinguish properly, the app fits in operate of chemical, avoid the common mistakes that plan stalled or failed.

1. OKR and KPI what is?

OKR is what? – Admin target-oriented strategy

OKR (Objectives and Key Results) is a system setting, goal tracking performance are common at tech corporations like Google, Intel, Spotify. OKR include:

• Objective (goal): clearly state what you want to achieve – short inspiring.
• Key Results (result, key): Measurement accomplishing goals through the quantitative indicators clear.

For example OKR in ongoing business process numbers:

• Objective: to shorten the processing time internal requirements through workflow.
• Key Results:
  • 95% internal requirements are handled automatically by the system in 3 months.
  • Average duration of treatment decreased from 3 days down to 1 day.
  • The response rate of the internal system reaches 100%.

Highlights of OKR:

• - Oriented, innovation, often far exceeding KPI usual.
• Motivational held: because the goal is usually set higher current capabilities, requires a break.
• Links in a chain: from company level → parts → individual guaranteed strategy is “popular culture” the whole business.

KPI what is? – The measured performance in operation management

Key Performance Indicators (KPIS) is a system of performance indicators key help measure the level of complete objective job – often have the nature quantitative, direct measurement, periodic review.

Characteristics of KPI:

• Specific goals can measure.
• Commonly used to monitor performance daily/weekly/monthly.
• Good application in the process of digitization of the work have regulations as clear as: order processing and approval costs, delivery time,...

For example KPI in business digitization operation process:

• The rate of orders processed timely ≥ 98%
• Duration approve the cost of internal ≤ 24h
• The rate of approval automatically via workflow ≥ 80%
• Index SLA handle ticket customer, ≥ 95%

OKR and KPI's different how?

2. Business number bill should choose OKR or KPI?

Choosing the OKR or KPI is not the question “select a remove a”, which is to identify the right tool for each phase, a specific target in the process of digestion. Here is the specific situation to help you get to know should be preferred type any.

Situations should use the OKR in the operation of

When businesses need strategic direction, innovation, or change organizational behavior, OKR will be more suitable KPI because:

• Lets set a goal exceeds the current limit, boost creativity.
• Help the team understand the “why” instead of just “what to do”.
• Encourage transparency, measure progress, public, easy-to-follow.

Example situation: A company is switching from processing paper records to an approval process fully electronic. At this time, leaders need the OKR to:

• Objective: system application approved electronically on the company.
• Key Results:
  • 100% parts and accounting personnel use the process of goods in 3 months.
  • Shorten the approval time spent from 3 days down to 1 day.
  • The percentage of employees who comply with the process of digitizing reach 95%.

Situations should use the KPI in the operation of

KPI very useful in the stabilization phase, optimized operation, when you have set up is automatic processes, like to monitor performance on a daily or according to the specific cycle.

Example situation:

• Process management order processing automatic:
  • KPI: the processing Time on average, every single ≤ 1 hour.
• Processing system requires internal:
  • KPI: 98% of the requests get a response within 24h.

KPI created “clock speed”, to help you find the high performance instant of the links in the system of culture.

Can combine OKR and KPI not?

Yes. And even should. The business of culture of success often do not choose which side that combining OKR and KPI as a double strategy – operating:

• OKR strategic direction, create boost innovation.
• KPI monitoring performance, ensuring the execution results.

Case study fact: A distribution company established:

• OKR for parts warehouse:
  • Objective: to shorten 30% of the time order processing.
  • KR: Apply processes, pick – pack – ship automatically, reducing the number of steps action.
• KPI parallel:
  • The rate of on-time delivery ≥ 97%.
  • The rate of single top handle error ≤ 2%.

The index OKR and KPI popular in the operation of

The tool supports measurement OKR and KPI

• Google Sheets + Dashboard: for small business or testing phase.
• Asana, ClickUp, Notion: Good for the team project to deploy OKR.
• Power BI, Tableau: Visualize the KPI depth.
• Software process management integrated KPI/OKR: comprehensive solutions for business are construction workflow digitization.

3. Step by step deployment OKR and KPI's in the process of digitizing

The digitization process is only really effective when it is led by a system of clear objectives (OKR), indicators of specific reviews (KPI). However, many businesses still perplexed in integrating them into daily operations. Here are step by step instructions to help you implement OKR and KPI articulated with the process number – guarantee can practice be easy to replicate.

Step 1: Determine the target number conversion according to the strategic level

Before writing any OKR or KPI's any need to clarify:

• Businesses are transforming what?
• The desired result is what?
• What is success – what is defeat?

Hint defined goals:

• Increase processor speed, internal requirements.
• Shorten the time for approval of vouchers.
• Automate repetitive tasks.
• Increase the transparency, control work flow.

When there was a target level strategy, you switch to set OKR to navigate the organization.

Step 2: set system OKR according to company level – parts – personal

OKR should be built in the direction of from the top down (top-down), adjustable from the bottom up (bottom-up) to ensure both strategy just created the commitment of the team.

Write Objective (goal) – concise, results-oriented, inspirational

• Does not contain data (data is located in Key Results).
• To answer the question: “We want to change anything?”

For example: “Move the entire approval process from paper to electronic in the third quarter”

Write Key Results (result key) – measurable, quantitative clear

• Should be from 2-5 KR for each Objective.
• Each KR should start with an action verb: increase, decrease, deployment, achieve,...

For example KR for targets on:

• 100% parts and accounting personnel make approvals on the system.
• Rate profile approved within 2 days to reach ≥ 95%.
• Reduce processing time 1 records from 4 days to 1 day.

Assign OKR according to each level

Step 3: Determine KPI's according to each process stage

Other with OKR (the direction to the final result), KPI helps you monitor performance, execution in step by step process. Establishing KPI should be in the direction of “bottom-up”, i.e. based on existing procedures, to determine the point to measure.

Hint how to define KPI:

• Analysis process has been digitized or are deployed.
• Listed step by step/task main.
• Select the step at risk of delay or affect the quality.
• Given KPI to monitor police performance.

For example: KPI in the approval process cost internal

• The number of request approval average/day.
• The average time to handle a request.
• Rate requires correct handling limit ≥ 90%.
• Rate request is returned due to lack of information is ≤ 5%.

A number of KPI template for each department:

Step 4: Attach the KPI at each step in the process of digitizing

This step is important to turn KPI from reporting the monitoring tool automatic in operation. You need:

• Link KPI's with specific step by step in the process of (for example, handling ticket, browsing documents, customer feedback).
• Determine the threshold measurement – warning when KPI exceeds the limit.
• Decentralized responsibility measurement – report for each indicator.

Practice examples: In the process of onboarding:

• Step 1: Submit the form → KPI: Percentage of correctly send the form the first time ≥ 95%
• Step 2: Review profile → KPI: Time browsing ≤ 2 days
• Step 3: the task in the first place → KPI: Completed before the 3rd business day

Step 5: track progress – feedback – adjustment

Don't wait until the end of the quarter new look back OKR and KPI. Management target in the environment of need to be followed periodically, even in real time.

• Organization review OKR periodically (once/2 weeks, or monthly).
• Send report KPI automatically every week to manage.
• Create a “feedback channel” for employees to report difficult if KPI impossible.
• Ready to adjust the Key Results or KPI when there is a change actual process.

Important rules:

• KPI not to punish – that to improve.
• OKR is not to 100% completion – that to lead the way.

4. Accelerate deployment OKR and KPI thanks to the LV-DX Dynamic Workflow

Why business construction process number should be mounted OKR and KPI system with dynamic LV-DX Dynamic Workflow?

When businesses step on the stage of the process – from expense approval request processing internally to manage work – the only “has OKR and KPI” is not enough. You need a system that automates the process of combining monitoring goals, that's why LV-DX Dynamic Workflow is the ideal solution.

LV-DX Dynamic Workflow support business-like?

• Integrated objectives, KPI on the step by step process.
• Automatic warning when the KPI threshold or late term.
• The intuitive interface helps the team progress updates OKR in real time.
• Suitable for both medium and large enterprises are deploying conversion of each of the departments.

Practical examples from clients using LV-DX Dynamic Workflow:

• A logistic company have fallen 30% of the time, order processing and internal through a combination of KPI in workflow automation.
• The hr department of a business delivery tracking the progress of onboarding employees through the OKR, automatic alert when slow target.

5. Mistakes when applying OKR and KPI in digitization

Whether OKR and KPI are essential tools in the management, operation number, but the application of the wrong way can cause them to backfire – wasting resources, lack of transparency or even resistance from the hr team. Here are 3 common mistakes that companies should avoid:

Applied machinery – not clinging target practice

Many businesses “copy” OKR/KPI from other models that do not adjust according to the characteristics of its own. Results:

• KPI is too ideal not measured performance truth.
• OKR put out too general, no quantitative results are key.
• Team don't understand the goal, just “fill in the table according to you”.

Solution: OKR and KPI should be built based on the context of practical activities, fastened with strategy, processes are digitized. Should the pilot ago at a small scale, then multiply.

Not affiliated OKR and KPI – cause fracture goals

Another common mistake is to separate OKR and KPI, causing parts to deploy OKR direction was A department supervisor KPI in the direction B. this causes:

• Loss of connection between strategic objectives, enforcement action.
• Report KPI good, but did not achieve OKR.
• Embarrassing in performance reviews end of the period.

Solution: build system KPI support complete the Key Result in OKR. For example, if OKR is to “shorten the processing time required internal”, then the KPI should be measured processing time, average number of requests processed through the process number, etc.

Lack of transparency – measure but does not respond promptly

A system OKR/KPI effective must be transparent, updated almost in real time. However:

• If the KPI is only reported at the end of the month, you don't react soon.
• If OKR is not monitored regularly, the goal is prone to “forget”.

Solution: Use the software workflow has the ability to connect directly with KPI/OKR to reports, alerts, reminders constantly. This is especially important with business operating system digitization process.

In the construction process solutions, digital business will encounter many challenges: change your thinking, re-structure, work flow, digitization procedure, craft, especially the measurement efficiency. Two tools OKR and KPI is the “lever dual” to help businesses:

• Determine the right strategic objectives should be achieved.
• Measurable performance details step by step.
• Synchronize the entire operating system in a roadmap digitized transparency – consistency – effective.

But to deploy effective OKR and KPI, business can't just rely on spreadsheets or software to manage discrete. You need a platform commissioning of ability to integrate the goals, processes, reports, metrics in real-time.

LV-DX Dynamic Workflow not only is the software digitization process normally. Here is the solution operation management of comprehensive, enables enterprises to:

• Set workflow automatically according to each department: accounting, CUSTOMER service, hr, business,...
• Mounting KPI directly to each step in the process, help track performance in a close.
• Integrated OKR strategy, to every action towards common goals.
• Report realtime alerts, KPI threshold, adjustment assistance immediately.
• Flexible configuration, in accordance with the peculiarities of operation of each business.

If you are looking for a solution that can turn OKR and KPI from theory into practical action, then LV-DX Dynamic Workflow is a worthy choice to invest today.

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