OKRs are a powerful management model for transforming your business, driving better organizational performance and aligning individuals and teams with organizational purpose.
However, their effectiveness is not solely based on the mechanics of setting and tracking objectives. Rather, the psychology of OKRs plays a critical role in identifying the issues and solutions, driving motivation, engagement, and performance. Your motive to do OKRs is important for the success of the program.
The Motive is the Motivation:
Let’s look at organizational behavior concepts in light of goal-management:
1. Locke and Latham’s (2002) theory of goal setting and task motivation provides a foundation for understanding how goals and motivation are related.
According to this theory, specific and challenging goals lead to higher levels of performance than over-ambitious, vague or easy goals. Moreover, feedback and participation in goal setting can enhance motivation and performance.
Inference: So, OKRs are never a uni-directional cascade model. The characteristic of the model is to be engaging and involving.
2. Ryan and Deci’s (2000) self-determination theory provides insight into the underlying psychological factors that drive motivation and engagement in the context of OKRs. This theory proposes that humans have three innate psychological needs:
1. autonomy, (engagement and innovation)
2. competence (training and development)
3. relatedness. (alignment)
Satisfying these needs leads to greater motivation, participation, and well-being.
Inference: In the context of OKRs, this means that objectives should be designed to align with these needs. For example, employees should have a degree of autonomy in setting their own objectives (IKRs), be given opportunities and platforms to develop their skills and competencies and be connected to the broader goals of the organization.
Empirical evidence supports the relationship between these psychological factors and employee engagement.
Have you measured engagement and burnout levels in your organization?
Schaufeli et al.’s (2002) measurement of engagement and burnout is a validated instrument for measuring employee engagement and burnout.
This instrument has been used in numerous studies to measure the impact of various factors on employee engagement, including autonomy, competence, and relatedness.
By referencing this study, we can see that by aligning OKRs with these psychological factors, organizations can create a more motivated, engaged, and productive workforce.
In conclusion, understanding the psychology of an organization and how it connects to the psychology behind OKRs is important success factor.
By leveraging the principles of goal setting, motivation, and engagement, organizations can create a culture of high performance and drive business results.
By designing OKRs with specific and challenging goals, opportunities for autonomy and skill development, and connection to the broader goals of the organization, organizations can maximize the potential of OKRs and their employees.