Strategy Candy: Strategy | OKR | Product Management OKR vs Performance Management: How to Get the Best of Both Worlds
Feb 27, 2025
Dive into the debate on tying OKRs to performance management and discover how it can transform your team's dynamics. Explore the pitfalls of traditional goal-setting that might be stifling creativity. Learn why team-based OKRs and stretch goals foster a safe space for experimentation. Gain insights on measuring success beyond just hitting targets, and discover key behaviors that can elevate your leadership. Don't forget the power of celebration in boosting team morale and accountability!
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True Purpose of Performance Management
- Performance management is about enabling individuals to be successful, not just maximizing their value to the organization.
- Happy, engaged employees contribute to better business outcomes by living their life's purpose fully.
Limitations of Bonuses
- Bonuses rarely improve performance for white-collar workers and can encourage gaming the system.
- Motivation hinges more on autonomy, mastery, and purpose than financial incentives.
Favor Team-Based OKRs
- Use team-based OKRs rather than individual OKRs to reflect true team effort on goals.
- Recognize that success in OKRs is collective, not attributable to a single person.