Thanks, Vishal!
About your questions:
1) Would you recommend to have individual OKRs (for team members) as well?
No, exactly because you want the whole team pulling towards the same direction. If people have conflicting OKRs, they will probably try to push the thing that they need to accomplish over what the team needs to accomplish.
You might have OKRs that are derivated from the team’s OKRs, but I wonder if it is worth the effort. What is the point of setting an individual OKR anyway? I feel this is about performance management, which OKRs should not be a part of.
2) If OKRs are not linked to performance management, how should you do the appraisal? How do you decide the compensation and incentives?
To be sincere: I don’t know.
I believe it depends a lot on the position. For example, you will appraise a PM and an engineer by different criteria.
As I a PM, my boss uses 4 criteria to assess my performance:
- Behavior (how I work and if I display the correct behavior to be a good PM);
- Deliveries (if my teams are being able to move the needle on the metrics that are priority to the team and the company);
- Influence (if I am influencing the growth of others in and out of the company).
It is a bit qualitative, but it is a framework. And it communicates clearly what is expected of me.
