Why High Growth Companies Use OKRs vs. Rocks
The history of goal setting with Rocks and OKRs (Objectives and Key Results) involves two distinct methodologies used for setting and achieving goals within organizations. While Rocks is based on the Entrepreneurial Operating System (EOS) framework, OKRs were popularized by John Doerr at Google. These goal-setting frameworks differ in their approach, focus, and implementation, with OKRs being more commonly used in the tech world.
- History of Rocks:
Rocks is a goal-setting methodology that stems from the Entrepreneurial Operating System (EOS), developed by Gino Wickman in his book "Traction: Get a Grip on Your Business." The EOS framework is designed to help businesses operate more effectively by implementing a set of simple, practical tools and concepts.
Rocks are essentially 90-day priorities or goals that help companies focus on their most critical objectives. The term "Rocks" was inspired by Stephen Covey's time management analogy, in which he compared tasks to rocks, pebbles, and sand. In this analogy, rocks represent the most important tasks that should be prioritized.
The Rocks methodology involves:
- Identifying the most critical priorities for the next 90 days.
- Assigning ownership of each Rock to a specific team or individual.
- Regularly reviewing progress and adjusting as needed.
- History of OKRs:
OKRs (Objectives and Key Results) is a goal-setting framework that originated in the 1970s, pioneered by Andy Grove, the former CEO of Intel. John Doerr, a former Intel employee and venture capitalist, later introduced the OKR framework to Google in the late 1990s, where it gained significant popularity and has since been adopted by many other tech companies.
The OKR framework revolves around setting ambitious objectives and defining a set of measurable key results to track progress towards achieving those objectives. OKRs are typically set at the company, team, and individual levels, with a strong emphasis on transparency, alignment, and focus.
The Difference Between Rocks and OKRs:
- Timeframe: Rocks are typically set for a 90-day period, while OKRs are usually set and reviewed quarterly or even monthly, depending on the organization.
- Ambition: OKRs emphasize setting ambitious, "stretch" goals that encourage teams and individuals to push their limits and strive for continuous improvement, while Rocks focus on prioritizing the most critical tasks within a 90-day period.
- Key Results: OKRs place a strong emphasis on measurable key results that track progress towards objectives, while Rocks may not have such a strong focus on quantifiable results.
- Alignment and Transparency: OKRs are designed to promote transparency and alignment across the organization by making objectives and key results visible to everyone. In contrast, Rocks may be more focused on addressing immediate priorities and may not have the same level of transparency.
Why OKRs are used in the tech world:
- Fast-paced environment: The technology industry is characterized by rapid change, innovation, and intense competition. OKRs provide a flexible, agile framework that helps organizations adapt quickly and maintain a sharp focus on their most critical objectives.
- Alignment and collaboration: Tech companies often have cross-functional teams working on complex projects. OKRs promote transparency and alignment across teams, ensuring that everyone is working towards common goals and reducing potential conflicts.
- Emphasis on innovation: The ambitious nature of OKRs encourages continuous improvement and innovation, which are critical in the technology industry. By setting "stretch" goals, companies can push their teams to think creatively and explore new possibilities.
- Scalability: OKRs are designed to be scalable and can be implemented effectively in both small startups and large organizations. This makes them well-suited for tech companies at various stages of growth.
In summary, while both MBOs and OKRs are goal-setting frameworks, they differ in their emphasis on stretch goals, key results, alignment, transparency, and agility. OKRs have become popular in the tech world due to their ability to support rapid innovation, alignment, and adaptability in a fast-paced and competitive environment.
Keep Climbing my friends 🚀⛰️
Master the habits and tools of Unstoppable venture-backed teams : https://www.collective-genius.com/peak-operating-system
#ceos #founders #startups #venturecapital #peaksystem #collectivegenius #EOS #Rocks #OKRs
Join the Collective Genius community
Get the Collective Genius Newsletter to stay at the forefront of building high-performing, venture-backed growth teams. Unlock exclusive access to best practices, essential tools, and valuable resources delivered right to your inbox.
