OKR WITH REORGANIZATION | GOALIFY

Goalify has collected many cases about the engagement of OKRs and organization changing. For us, this is called a symbiosis relationship, they assist each other in developing. This relationship does not help only your organization solve easily various kind of problems, but it also lubricates the process of working to be some achieved goals smoothly.

First of all, Goalify wants to emphasize the definition of OKRs. We think that you are able to understand more clearly the concept of this useful method.

1. What’s OKR?

OKR is an acronym for Objective (O) and Key Results (KR). Objective and Key Result keeps every staff being coordinated closely in the working process. Staff will be able to track, review, align their job following the organization’s mission and vision. Moreover, OKR is the useful method for creating transparency, interaction and changes to head to the right direction. It fills many gaps between staff and managers. Firstly, it makes them contribute their ideas to build OKR, and then they will unanimously approve the big one.

OKR is popular to all of staff, following from top to bottom, bottom-up, and many across features. OKR assures that every person will improve to work and complete effectively the task with a great deal of effort. Additional, OKR is an appropriated solution for developing your organization, such as startup, SME or even high–scale company all over the world.

Next, we will discuss about the definition of “Organizational Change” – the second factor Goalify has mentioned in the beginning of this article.

2. Organizational Change and its Role

Organizational structure, cutting down workforce, reducing fees for spending to order, dividing up and arranging ranks in your organization, etc. These are called “Organizational Change”. It’s the riskiest factor in managing,running the process and achieving your targets. If it’s practiced successfully, there will be a positive change, which motivates your organization to achieve the ambitious goals.

Changing organization is a thorough move. Especially, it is the only direction, which creates many helpful opportunities. Reorganization can be applied when your business is facing with difficulties, or your beloved organization is looking for maintaining competition advantages and competition abilities. A perfect form of reorganization acquires managers having their own mission, vision and management skills. Actually, when the real results are reached, they could make all staff recognize clearly this change is positive or not.

3. The link between OKR and reorganization

Goalify would like to show a valuable information to you once more time: Organizational Changes and OKR method have a symbiosis relationship. It’s simple to know that the required condition of successful reorganization needs to be followed by the basic theory of OKRs like a shadow. And then, the working process of the OKR method is the same as Organizational Changes, OKR has to match with many action to adjust with the practice situations of organization. Both of them assist you in guiding your business and your team to get the exact Objective and Key Results.

There are 3 examples about the engagement of reorganization and OKR, Goalify has collected and would like to share them to you:

Engaging diverse resources to develop together.

Dividing up organization to teams, it’s easy to manage and control them, but they have to follow the right direction of organization.

Cutting down goals, which is not valuable for Objective and Key Results, and then, showing clear, transparent decisions for a big target of business.

Those are three main engaged points in the relationship of OKRs and organizational changes. Once apply and practice perfectly these three engaged points, your business will able to motivate your members, increase every staff’s senses and abilities. On the other hand, this engagement will break effectively many obstacles and fill the gap between managers, leaders and members by transparent decision and solutions. Making all for your objective and key results.

Goalify starts discussing with you about the point “Engaging diverse resources to develop together” from Microsoft. In order to help audiences to understand this case study, Goalify will analyze three principal phases: What was the main reason made the organizational change of Microsoft? – How did Microsoft reorganize? – What were the benefits Microsoft received when applying their organization?

1. What was the main reason that made Microsoft organizational changes?

After being developed the phenomenal and going from one success to another, Microsoft became a long–lived company operating Windows systems and all of Office software to serve the white-collars. However, this large company faced with a big problem in their working process. Every part of Microsoft was mistaken about engaging together to achieve goals, they acknowledged each other as a redoubtable opponent, and then they wasted more time to compete against their partners than to coordinate together.

And then, the appearance of this problem occurred when Microsoft changed its structure. Microsoft obstructed because of its own environment. Our explanation each of the separated team, instead of showing respect and being responsible to each other, they went up against another. Moreover, they rarely contributed and concentrated on Microsoft’s objectives and key results. That was the major reason why Microsoft was on a completely wrong process of working cycle. While Microsoft had some difficulties in management, Google was increasing and expanding day by day, and Apple took over the market share of smartphone. Microsoft had to make an earnest endeavor, but its efficiency was not achieved as Microsoft wished, because it was an incoherent organization, and the whole working process was not connected. Therefore, the direct and potential market share of Microsoft were narrowed down considerably day after day.

2. How did Microsoft reorganize?

After being accredited to the position of Microsoft’s CEO - Satya Nadella, Microsoft started to adopt the reorganizational change. He eliminated successfully many internal competitions sabotaging a lot of important schemes of Microsoft. He gathered all of the teams to become a united organization. Moreover, Satya Nadella directed his staff to focus on their work following the right direction as well as:

• Aligning the working process and innovating productivity.
• Building the new sound technology foundation from data of smart cloud platform
• Improving many personal computing skills for each member

In September 2016, Nadella associated some teams, such as research teams, Bing, Cortana team and the information basis team, etc. into a new big group named R&D. About 5.000 engineers and computer scientists have the new target that innovates artificial intelligence of Microsoft’s products.

3. What were the benefits Microsoft received when applying reorganization?

Before the organizational changes, all staff had been lack of their constructive recognition in regarding to Microsoft’s objective and key results, this reason was the cause of their low spirit and made their participation in the working process reducing. Although Microsoft’s goals would be reached smoothly when applying reorganization, perhaps Microsoft’s vaster accomplishment has been become aware of offering every member of company an innovated sensibility: their contribution is the most important factor influencing in the company’s successful achievement.

This is the case study of Microsoft regarding to reorganization. This problem is closely related to OKR in the processing working. Goalify encourages you to apply this methodology, in order to improve the approach of objective and key results in your business. Goalify is going to analyze the organization of a high-scaled company engaging with searching engine product.

Prior to the analytic regarding to the case study of Microsoft, now Goalify will figure out “Dividing the organization to get objectives” – arranging according to the whole quantity of professional roles and following the management of Google.

1. Why did Google need to apply the reorganization?

In the beginning of 2000s, Google achieved various successful goals and rocketed to become the top company of the digital searching market. Google possessed many famous and necessary products for human life, such as Google Map, Gmail, etc. Perhaps, R&D teams of Google had their own passion for everything concerned with Larry Page’s projects, such as life – span of human, autonomous vehicles, intelligent house equipment, etc. sooner or later, this spectacular list will be updated day by day. Some invents approached successfully to people’s demand, some went wrong and the others have not been done in the lab yet though.

Google has been considered as one of the fastest developing companies. However, it was not a united connection like Larry Page had expected, that’s the major reason why Page decided to split this organization into groups. Many groups were connecting closely, it assured that the process of working of every team would contribute to Google’s Objective and Key Results.

2. How did Larry Page reorganize Google?

Page divided Google into some different companies. Every company had its main specific feature, and whole of them are belong to Alphabet – the new big company. Position of Mr.Page in Alphabet was Chief Executive Officer, Mr Sergei Brin was the Co-Founder, and Eric Schmidt has been in the position of the chairman of Google. Each company of Alphabet possesses its own targets while the CEO of every company is in charge of these goals Page had confidence in his decision, which assists Google in expanding into more fields, like allocating jobs, Page thought that all of them are helping Google with their achievements.

3. How did Google successfully reach ambitious goals when reorganized?

Before Page decided to implement his reorganizational changes, he showed it to all of members in Google first, and then he explained clearly the principal reason related to his decision. Page gave the prominence to unfetter and increase the energy of the labor in the process of their work. It guided them to focus on their mission and their happiness. Following that, each of companies took responsibility for its own expense and income, and it helped them to realize many new senses of liability, influence the main reasons and the consequences in the processing working, that could make innovation more meaningful. And up until now, Google has developed incredibly since it established, Google has already become the high-scale company, concerned with the world by its own Objectives and Key Results. In short, Google applied excellently the process of OKR method in the whole apparatus of organization, such as creating the right direction for each plan, training and interacting with staff to identify their opinion about the plan, etc.

This is case study in regarding to applying OKR in reorganization of Google. We are recognized clearly the engagement both of them in Larry Page’s decision. He created smartly a referendum as soon as possible about his reorganization, and then he made smoothly the interaction with his staff to get their opinions. Finally, Google is becoming the most well-known company all over the world.