Do OKRs help employees collaborate and innovate?

Abstract

Purpose This study aims to determine whether and how objectives and key results (OKRs) help employees collaborate and innovate. Design/methodology/approach A total of 295 executives and operational staff from two types of organizations – large corporations and start-ups – that have adopted OKRs were interviewed. Content analysis was performed. Findings Based on the opinions of executives and operational staff from both large organizations and start-ups, OKRs encouraged employee collaboration and innovation. Research limitations/implications This study adopted a qualitative method; thus, the generalizability of the results might be limited. Therefore, more samples are required for statistical testing in future studies. Practical implications Managers can adopt OKRs and use them to encourage employee collaboration and innovation. OKRs should not be linked to employee compensation and clear and challenging goals should be set. Originality/value This study enhances the existing knowledge boundary, as to the best of the authors’ knowledge, no study has investigated the effect of OKRs on employee collaboration and innovation in two different types of organizations: large organizations and start-ups.