What is OKR?
OKR is one of the most Effective and timely execution tool
OKR stands for Objectives and Key Results. It’s a powerful tool to get your team aligned to major goals and achieving those goals through key outcomes or results. OKR is a method invented at Intel by CEO Andy Grove in his highly regarded manual – High Output Management. In this highly regarded manual, he introduced OKRs as the answer to two simple questions:
Where do I want to go? Which means Objectives
How will I know I’m getting there? Which means Key Results to ensure progress is made
The concept gained its popularity after it was brought to Google by venture capitalist John Doerr in 1999. In addition to Intel and Google, other fast-growth companies using the system include LinkedIn, Zynga, Oracle, Twitter, Compunell and Facebook.
OKR primarily tracks individual, team and company’s goals and outcomes in an open and transparent way. Objectives are drafted more like SMART goals and Key Results are the success criteria – a way to measure incremental progress towards the objective.
A clear definition of OKR goes like this:
Objectives. Objectives should be ambitious, qualitative, time bound and actionable by the person or team.
Key Results. Define 4-5 measurable results to achieve an objective. Key results should be quantifiable, which means numerical in value, achievable and be difficult, but not impossible.
Here are some examples of OKR:
Example 1 – Objective: Beat our Q1 financial targets
- Achieve more than $10M in product revenue
- International sales of at least $2M
- Customer churn rate under 5%
- 20% increase in sales from new product launches
Example 2 – Objective: Deliver superior quality new leads
- Deliver 1000 new leads in Q1
- Increase monthly webpage views by 30%
- Outbound email campaign targeting more than 5000 prospects
- Inbound marketing that will generate 1000 new leads
An OKR puts you and your team on the same page. OKRs are about the company’s goals and how each employee contributes to those goals. It creates control framework to manage fast growth. List your OKR today and unleash the productivity tool that makes growth a shared responsibility for your team.