Keywords: Facebook OKR performance management
Back in June 2017, Facebook had already reached a staggering 2 billion monthly active users, and this was without entering the domestic market. Why has Facebook been so successful?The reasons must be multifaceted, and it is worth studying and Xi from our domestic enterprises. Today, let's take a look at Facebook's OKR performance management case and learn how Facebook uses OKRs to manage employees' performance Xi.
Everyone must be familiar with performance management, but what is OKR?OKR (Objectives and Key Results) is a new type of performance appraisal tool and tool. It originated from Intel and was introduced to Google by investor John Doerr less than a year after it was founded. After the great success of the company, it was promoted to major domestic and foreign enterprises. OKR is very different from our traditional performance management such as KPIs, and the performance management model of OKR is to change the purpose of performance management from appraisal tools to improving performance. That is, from a management model centered on rewards and punishments, to a management method that focuses on needs, finds a way to achieve goals, and continuously designs and improves the way to achieve them. In this way, employees guide themselves and find ways to improve their performance in ** and feedback.
There are four main features of Facebook's OKR performance management:
1. Pay attention to matters that have a significant impact on the team and individuals
On Facebook, OKRs should focus on the issues that have a significant impact on the team and individuals when setting goals for individual employees, teams, and companies, and be result-oriented or impact-oriented when setting goals. Before the start of each quarter, Facebook's OKRs ask employees to think about what is worth doing from an impact perspective and what you want to do, and then take the intersection between the two and list a number of means that have a certain probability (usually 2 3) of achieving the goal.
Second, Facebook's OKR system is more relaxed
Facebook doesn't mandate the implementation of OKRs across the company, but it supports the development of OKRs in terms of tools, and its ideas are goal-driven when it comes to actual implementation, but most teams don't use dedicated OKR tools to manage goals, but instead find a random wiki or something like listing goals and tracking goals in a less rigorous way. In fact, Facebook has a very liberal OKR system.
3. Use peer review for performance appraisal
Facebook also hands over performance reviews to peer reviews, which are generally done every 6 months, and are mainly divided into four parts: self-evaluation, peer evaluation, direct supervisor evaluation, and boss evaluation. Employees can decide whether this thing is open to the public and who can see the assessment results. On Facebook, about 85% of employees will choose to be open, which is a very scary statistic, and it can be said that everyone is basically open to each other.
Fourth, the results of performance appraisal are linked to bonuses and incentives
While the Soma Cube experiment tells us that managers need to avoid one of the biggest mistakes they make when it comes to talent management and motivation: exaggerating and relying on the role of material incentives. Appraisal and rewards are like caffeine, which can bring short-term effects to explode, but it is difficult to sustain and destroy the long-term enthusiasm of talent work. But does that show that businesses and employees don't need caffeine stimulation?The answer is absolutely no.
Facebook conducts a personal performance review after June and December each year, and managers make necessary corrections to the results of the peer review through performance calibration meetingsThe performance evaluation at the end of June has a certain impact on bonuses and promotions, which mainly depends on the performance evaluation at the end of December, and at the end of the year, in addition to cash, there is an additional performanceRegardless of the level, as long as you are an engineer, you will be given the corresponding **, and the performance review at the end of each year will determine how much additional ** will be given to youBonuses fluctuate from 10% to 25%, and the higher you go, the higher you getThen to multiply by individual performance, 0 means no bonus, generally at 125 or so, 45 is very high;Finally, multiply by the performance of a company, the company's senior management will score how well the company has done in the past six months, and if the company is doing well, everyone's salary will increase.
*: HR Case Network
——— Huaheng Zhixin ———
Google says "KPIs are outdated, it's OKR times!"."Traditional KPI performance appraisal methods have indeed exposed many drawbacks in the Internet era, and many enterprises have found that excessive segmentation and rigid appraisal indicators not only overwhelm employees, but also make enterprises inefficient in the process of using KPIs. The core idea of OKR is to be goal-oriented, simplify the performance management system, and not just evaluate for the sake of assessment. But is OKR a good fit for every business?Huaheng Zhixin analysts believe that enterprises need to pay attention to the following three points when using OKR as a management tool:
(1) Build an OKR connection process to unleash employee creativity
In the process of establishing OKRs, enterprises need to build connected OKRs upward, downward, and horizontally, and align individual OKRs to departmental OKRs, and then to the entire enterprise OKRs. The main purpose of building a good OKR connection is, on the one hand, to greatly improve the quality of decision-making and the rationality of resource allocationOn the other hand, it is necessary to let the employees of the enterprise understand the strong correlation between their personal and the company's OKRs, so as to release the creativity and enthusiasm of employees.
However, in the process of traditional assessment, many domestic enterprises only communicate between superiors and subordinates to achieve assessment goals and methods, and have less communication with other relevant units and teams. For such a business, there are a lot of obstacles in the process of building an OKR.
(2) Develop a continuous performance management system based on OKRs
Many companies use OKRs to completely replace the original assessment system, and as a result, they encounter many follow-up docking problems. It should be noted that OKR is a collaboration and management tool, not a performance appraisal tool, so enterprises need to develop a corresponding performance management system. Forward-looking research and analysis believe that the quarterly cycle of OKR management has driven the reform of the traditional performance management system. Therefore, OKRs are not necessarily pitted against other appraisal methods, and they can be integrated into a system.
For example, BetterWorks uses an "OKR + CFR" approach to manage employee performance at a higher level. As a continuous performance management tool, CFR refers to "Conversation-Feedback-Recognition", that is, there needs to be open and transparent communication between superiors and employees, employees and employees, so as to give real feedback on problems, improve personal performance in a targeted manner, and then motivate employees accordingly according to the size of their work contributions. CFR emphasizes transparency and collaboration, delegation and accountability at all levels of the organization, complementing and reinforcing OKRs.
(3) The management thinking of OKR needs to match the corporate culture
OKR has its own unique advantages, but it cannot be blindly adopted, for enterprise managers, it is necessary to seriously think about whether the management thinking of OKR matches the corporate culture and organizational structure. In contrast, OKRs are more suitable for companies with a corporate culture of active innovation, goal-oriented, transparent and open, and focus on the personal development of employees, in which employees often have a stronger sense of initiative and responsibility, are willing to take the initiative to meet challenges, and reflect their personal will in their work, so the OKR method is more feasible to set high-level goals and achieve key results as the core. In terms of organizational structure, the flat management structure has the advantages of flexibility, efficiency, and systematic collaboration, which is more convenient for OKR formulation and implementation.