OKR is a goal setting framework that is driven by outcomes that are defined by the objectives. This is created by Andy Grove, co-founder of Intel and gained traction with John Doerr’s propagation. This framework is most often confused with other goal-setting frameworks such as SMART goals, Balanced Scorecard or KPIs, which actually measure activities.
What is OKR – Objectives-Key Results?
‘O’ stands for Objectives. Objectives are clearly defined goals.
‘KR’ stands for Key Results. The key results are used to measure the impact and success rate of action. It measures the actual outcome vs the reality.
This framework is highly objective and quantitative.
How to Use OKRs?
It is recommended that at a given time, you should not have more than five objectives to deal with. To validate each objective, you can have at most three to five key results areas or KPIs.
Good Objective Format Examples:
- Increase customer satisfaction by reducing the support ticket resolution time by 25%.
- Increase page rank by increasing linkbacks by 30% next year.
Your objectives should be easily measurable and should be tied back to a KPI and an area of impact or result area.
This is used by large enterprises, right from their startup days; such as Google, Intel, AirBnB, Linkedin, Uber, and so on.