The VDX People platform is a digital tool for creating, managing and evaluating key goals and results at the individual, team and enterprise level. It is centered on the OKR model. It is a management method based on the definition, communication of objectives and the measurement of its progress by results achieved.
This methodology was created by Andrew Groove, then president of Intel. John Doerr, one of intel’s largest technology investors and former employee, was responsible for its worldwide dissemination. It was he who suggested its use to Google leaders, when it was still just a Startup. This methodology has slowed its growth and was one of the reasons for this company’s success and digital icon. Among the companies that also use this methodology are: Amazon, Spotify, LinkedIn, Adobe, to name some of recognized success. It is a simple approach proposal to create alignment and engagement around measurable goals.
It is different from traditional KPIs and MBOs, as it induces employee engagement at all levels of the company, through:
- employees’ performance, always aligning strategic objectives and execution;
- employees’ awareness that the proficiency of their function contributes to the macro outcome of the business;
- propose an execution with more agility, transparency and cooperation among employees.
“(…) Spending hours cascading targets up and down the company doesn’t improve performance. It takes a lot of time and it is very difficult to ensure that all goals align. We have an approach where all our goals converge, because everyone’s OKRs are known and visible, including those at the top of the hierarchy. In this context, teams that are outside the alignment stand out (…)” Laszlo Bock, former Google CHRO
VDX OKR value for business
- Creation of a culture and a discipline of decision making and business management based on data, real-time action to adjust results according to the strategic objectives of the organization.
- Panoramic view, from macro to micro, of the company’s performance
- Governance system standards, goal and results definitions based on strategic objectives, such as increased sales and customer satisfaction, cost reduction and specific project deliveries at a set time.
- 6% increase in net income (Source: MIT & McKinsey – published in Harvard Business Review, HBR: The Management Revolution, A.McAfee and E.Brynjolfsson)
- Direct impact on business growth according to studies in companies using the OKR system: 8.5
% increase in sales with the use of OKRs. (Source: Ben Lamorte expert and OKR consultant working with global companies). 26% higher growth in year-on-year revenue. (Source: Aberdeen Research, 2015).
Value for managers
- A tool that provides managers, in real time, clear understanding of how their teams are performing. In this way they can act as true “coaches”, always present, focused on maintaining the alignment between the strategic goals established and the performance of the employees under their management. This prevents them from acting as micromanagers, with no focus on what really matters.
- The actions and decision-making of managers are based on concrete data that reveal the real progress of the company in achieving business goals.
Value for employees
- Employees feel more valued, because OKR encourages their active participation in the definition of their own goals together with managers. The more employees are encouraged to participate in the decision-making process, the more intense their engagement will be to meet their company’s goals and strategic objectives. According to a Gallup survey, only 30% of employees agree that managers involve them during the goal-setting process. (Gallup)
- Encouraged to participate in the definition of their goals, employees feel recognized, are more committed to the company’s purposes, because they have a clearer perception of the connection between their individual performance and the success of the business. This makes employees more productive and value aggregators for the company.
- Objectives and results easily become frequent discussions integrated with 1:1 meetings, staff meetings and business results check point sections.
- OKR, through its management model, encourages frequent performance meetings between managers and employees who have, in real time, a clear vision of how their performance is in relation to the established goals.
- This process of continuous goal achievement assessment causes employees to improve their skills and skills, develop their work potential, and be rewarded more transparently for goals achieved or exceeded.
Value for HR
- A unique system of continuous monitoring of people’s performance and progress in achieving business goals.
- A customizable tool that adapts to each company and department, to be used throughout the process, rather than the punctual annual performance evaluations.
- A system to build a culture of constant performance feedback and direct company leaders to motivate and achieve people’s high performance, identifying non-challenging goals of employee potential.
- Direct influence and impact on business results with significant productivity gain. It is 56% increased employee productivity, on average, when managers are involved in helping employees align their goals with the company’s objectives. (Gallup)
- The number of voluntary layoffs in companies implementing efficient recognition programs is 31%. (Gallup)
- Problem faced: Only 2 out of 10 employees agree that their performances are managed in a way that motivates them to do exceptional work. (Gallup)
Goal Management and OKR at VDX
- Strengthens the concept of systemic management. At VDXPeople, OKR is a performance management system. More than a “framework” of visualization of results, it breaks with the management mode in the form of silos, by giving transparency to the objectives and goals of the teams, providing that everyone knows the priorities of other sectors, avoiding the unproductive competition between them and that all are committed and aligned with the objectives of the company. Teams start communicating, know their implications, are cooperative, and align themselves to meet organizational objectives and goals.
- In his systemic view, there is transparency among OKRs of all hierarchical levels of the organization: the company, departments, teams and people. That is, from trainees to CEO, everyone knows each other’s goals. Each team and even each individual has autonomy to define their objectives and goals, as long as they are aligned with the company’s strategic objectives and goals. A dashboard focuses on these OKRs and is always updated to reveal how they are coming to fruition. Who, which team, which area, of all hierarchical levels, is in arrears, below the targets or reaching the programmed result. This makes it easier to monitor managers in real time, who can immediately intervene where and with whom they need guidance to correct route deviations.
- The Platform adopts intelligent methodology to facilitate the creation of more solid “KRs” (Smart), bringing optimized models for sales goals, cost reduction, NPS, among others.
- The tool creates or supports the creation of governance to verify the results of the OKR. The Software allows you to choose a day of the week to monitor the outcome of OKRs, updating your goals, in the time interval that the company finds convenient.
- In the event that any contributors forget to update the OKR results on the predetermined dates, the Software sends reminders to notify you. The manager also receives notifications indicating who is overdue.
- A dashboard illustrates how the goals are developing: in the green color updated goals and with results within the expected; the outdated targets and/or with below-expected results.
- Analytics graphically demonstrate trends and advances in the results of each team, the company and the possible problems in the course of the process.
- All changes and additions to the Analytics base are recorded and the tool audits the data to prevent improper changes from being made.