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What are objectives and Key results (OKRs)?
Objectives and key results (OKRs) are more than just a framework; they’re the roadmap to success. Imagine going on a road trip without a clear direction, or any landmarks to guide you to your destination. Chances are, you’d end up lost, or far from where you intended to go. This is where OKRs (Objectives and Key results) come to play. A powerful goal setting framework that acts as your road-map, providing directions, milestones and a clear vision of success.
In the ever-evolving landscape of business, setting clear and actionable goals is more crucial than ever. With the help of OKR (objectives and key results) a framework is designed to drive alignment, engagement and performance within organisations.
The birth of OKR (Objectives and Key results): transforming how companies achieve success
Since we’re imagining stuff, picture this, you’re on a treasure hunt. You have a map (your objective), and clear clues (your key results) that guide you to your hidden treasure. Similar is the story of how OKR came to be.
- From Intel’s lab
The story begins in the 1970s at Intel, a tech company buzzing with innovation. Andy Grove, Intel’s brilliant CEO, was searching for a way to keep his team focused and aligned. He devised a straightforward method: set ambitious goals (Objectives) and track specific measurable steps to achieve them (Key results). This approach ensured everyone knew what they were aiming for and how to get there. And just like that, OKRs were born!
- Google’s Golden touch
Speeding up to the 1990s, a venture capitalist by the name of John Doerr, who used to be a part of the management team at Intel and had learned about OKRs, thought of introducing the framework to a small startup called Google. Intrigued, Google’s founders, Larry Page and Sergey Brin, adopted the framework with enthusiasm and the results were spectacular. The clarity and focus OKRs provided to Google allowed it to grow rapidly while staying true to its goals. This methodology helped bridge the gap between ambition and reality by breaking down goals into two parts: the objective (What you want to achieve) and the Key results (How you will measure the success).
What are Objectives
Picture these as your destination points on the map of success. Objectives are big-picture dreams that propel your organization forward. They provide clarity in what you want to accomplish and act as guiding stars for your team. Your objectives can range from launching innovative products, conquering new markets to simply wanting to reach a destination on time. The objectives need to be clear and concise and easy to understand, leaving no room for ambiguity, bearing in mind that objectives set a direction so, keeping them descriptive is crucial.
What are Key results
Now, let’s add some GPS coordinates to those objectives. Key results (KR) are measurable milestones that mark your progress towards achieving your objectives. Think of them as stepping stones along your path to success. Answer the question “How do you know you have achieved the target/ objective?”. They are specific, quantifiable outcomes that indicate whether you’re on track. Unlike the Objectives, Key results should include numbers to track progress and determine success. These key results need to be realistic but challenging enough to require significant effort.
How to set effective Objectives and Key results (OKRs)
- Start with identifying a broad, ambitious goal (Objective) that aligns with your overall strategy. Ensure the objective is clear and inspiring enough to motivate the team.
- Define 3-5 key results for each objective, making sure not to exceed the limit as too many key results can dilute the focus. Make each key result specific, measurable and time-bound, making certain that collectively, these key results indicate the successful achievement of the objective.
- Align the OKRs across teams to encourage collaboration and create a cohesive approach towards fulfilling the objective. This eliminates confusion and promotes a sense of unity and purpose.
- Regularly review and adjust by holding frequent check-ins to track progress and address any issues.
A Quick Example:
Objective: Enhance Product Differentiation to Gain Market Share
Key Results:
KR-1: Identify and Implement Three Unique Product Features
KR-2: Launch Two Major Product Updates Focused on Differentiation
KR-3: Improve Customer Satisfaction Score by 20%
KR-4: Reduce Churn Rate by 15%
Objectives set the vision, while key results provide the measurable steps to get there, when combined, OKRs transform lofty goals into actionable plans. The origin of OKRs tech us that with right goals and clear steps to achieve them, anything is possible. From Intel’s labs to Google’s boardroom and, now to your team.
As you embark on your OKR journey, remember the words of Peter Drucker:
“What gets measured, gets managed.”
With Objectives and Key results you’re not just setting goals; you’re crafting the roadmap to success. Embrace the clarity and direction they provide and watch your team achieve remarkable success.
Schedule a free demo with Worxmate’s OKR now and witness the magic tomorrow!
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