Differences between Traditional Performance Management System and OKR
In traditional Performance Management Systems, annual targets are usually set at the beginning of the year and are closed at the end of the year according to the target realization rates, without being revised throughout the year. Although some systems offer a 6-month interim evaluation; Instead of discussing these changing dynamics, conditions, needs and development process, meetings are held where the realization rates of the targets and the risks are discussed.
The OKR System, on the other hand, ensures that goals are followed in an agile and dynamic way throughout the year. It allows targets to be revised and pursued as realistic and challenging goals, taking into account changing conditions, needs, internal and external dynamics. In addition, thanks to the check-in meetings, which are usually held on quarterly basis, not only the realization rate of the goals, but also the support and development process that the employee needs in achieving the goal are discussed.
In traditional Performance Management Systems, goals are transferred from top to bottom by cascading method. In order to establish the goals, the top manager is expected to establish the goals and assign these goals to the lower levels. With this method, interaction only takes place from top to bottom.
In the OKR System, goal creation can be top-down and bottom-up bidirectional. This method allows individuals and teams to create their own goals based on their abilities.
Although the number of targets in traditional Performance Management Systems varies according to the company, the number of targets is usually high.
The number of Goals in the OKR System is usually less and more challenging. An average of 5 goals should be set and limited to a maximum of 4 key results for each of the goals. In traditional Performance Management Systems, goals are private, other employees in the organization cannot view the goals except for a top manager and authorized personnel.
In the OKR System, the goals are generally transparent. Generally, everyone has the authority to see and follow anyone's OKRs, although it does offer the option to hide some goals when it seems necessary. This allows for the creation of aligned goals that serve a common strategy and enrich teamwork.
In traditional Performance Management Systems, year-end meetings are usually held. These interviews cover the period when the whole year is evaluated and a performance score is created at the end.
OKR System provides continuous communication and development with check-in meetings and feedback focus throughout the year. Thus, by the end of the year, the points that need improvement are discussed throughout the year, and the Manager and the Employee are aligned and agreed on the same page.