Google employs an internal grading system known as Objectives and Key Results (OKRs) to assess its staff. This method, initially introduced by Intel’s Andy Grove, is designed to align individual employee goals with that of the company. OKRs comprise two parts: the Objective, which is a clearly defined goal, and the Key Results, which are quantifiable measures used to track the achievement of that goal.
OKRs are set quarterly and annually, and are public within the company. This transparency encourages collaboration and prevents overlap of efforts. The system also allows for ambitious goals, with a 60-70% achievement rate considered a success.
Google’s former CEO, John Doerr, believes that the OKR system is a significant factor in the company’s success. He recommends other businesses adopt this approach, stating it fosters focused, measurable, and transparent operations. Notably, Google’s OKR grading system is not used for performance reviews or promotions, maintaining a clear distinction between goal setting and employee evaluation.
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