OKR (Objectives and Key Results)

What is OKR - Meaning and Definition

OKR stands for Objectives and Key Results. It is a popular strategy used for performance evaluation in workforce management. They are helpful ways for teams and individuals to set goals and a roadmap for success and achieve them.

This idea was made popular by Andrew Grove at Intel way back in the 70s. Today, big companies like Google use them. To understand what exactly OKRs mean, we need to understand the two main parts they are composed of: Objectives and Key Results.

Objectives

An Objective is like an employee’s big and inspiring goal that they are trying to achieve, something that gets them excited, but also something they can realistically reach. The employees’ objectives are supposed to line up with what the company is trying to do overall so that there is a clear direction for everyone.

Key Results

Now, how can one know if they are making progress towards their objective? That's where Key Results come in. These are specific, measurable steps that show the employees that they are on the right track. Key results are usually numbers-based, so you can easily see how you're doing. For each Objective, you will have a few Key Results, ideally two to five.

What Are the Benefits of Having OKRs?

One of the best things about OKRs is that they help everyone in the team, and even the whole company, work towards the same goals. Ensuring that everyone is on the same page is important, as long as keeping the focus on the important tasks is needed.

When you have clear Objectives and Key Results, you can easily avoid the traps of getting distracted by less important things. Another key advantage of OKRs is that they make everyone accountable. Everyone has specific metrics to track, so it is much easier to see who's doing what and how things are progressing.

How do you use OKRs?

Usually, teams set OKRs every quarter, and they regularly check in to see how they're doing. With such a proactive approach, they can make adjustments if needed and verify if they're still on track.