Difference between MBO and OKR
Parameters |
MBO |
OKR |
---|---|---|
Developed |
Peter Drucker created it in the 1950s. |
It was first developed in the 1970s at Intel. |
Support |
It adopts a hierarchical and structured method. |
It promotes a structure that is more flexible and agile. |
Time Horizon |
It has a yearly or longer-term goal emphasis and is regularly assessed and evaluated. |
Shorter timescales are typically used, like quarterly cycles, to improve flexibility and responsiveness to shifting business conditions. |
Transparency |
It lacks transparency. |
It allows transparency and visibility. |
Performance Appraisal |
MBO is associated with performance reviews, in which workers are assessed according to how well they accomplish predetermined goals. |
It is not connected to performance reviews directly. Rather than carefully attaining predetermined goals, the focus is on gaining knowledge of and adjusting. |
Focus |
It highlights the importance of establishing SMART (specific, measurable, achievable, realistic, and time-bound) goals. |
It encourages a more creative and bold manner of questioning by concentrating on high aspirational goals that won’t be achievable. |
MBO vs OKR Differences
Organizations utilize purpose-setting frameworks like Management with the aid of Objectives (MBO) and Objectives and Key Results (OKR) to enhance overall performance and coordinate efforts. Although putting and reaching desires is a common purpose among MBO and OKR, there are a few big differences between the two techniques. In this article, we’re going to learn about the variations in them.