OKR stands for Objectives and Key Results. The Objective is qualitative, and the Key Results (most often three) are quantitative.
The goal of OKR is to define how to achieve objectives through concrete, specific and measurable actions. It is a simple tool to create alignment and engagement around measurable goals.
OKR consists of two key components, the Objective and the Key Results:
Objectives are memorable qualitative descriptions of what you want to achieve. Objectives should be short, inspirational and engaging. An Objective should motivate and challenge the team to achieve results.
Key Results are a set of metrics that measure your progress towards the Objective. For each Objective, you should have a set of 2 to 5 Key Results. Any more than that and there is a risk that no one will remember them.
All Key Results have to be quantitative and measurable.
Advantages of using OKR
There are so many advantages to using Objective and Key Results (OKR). Some are listed down here.
For team members and employees, some of the benefits include:
- Achieving more by doing less;
- Being listened to by your leader;
- Receiving praise and getting feedback from your co-workers;
- Having a lightweight task manager to track significant goals and weekly objectives.
For leaders and managers, the benefits are:
- Quickly knowing what's happening within a team;
- Increasing productivity;
- Allowing for better, more informed decision-making;
- Guiding your people and sharing feedback;
- Measuring work satisfaction;
Example of an OKR
Objective: Delight our customers
- Reduce revenue churn (cancellation) from X% to Y%
- Increase Net Promoter Score from X to Y
- Improve average weekly visits per active user from X to Y
- Increase non-paid (organic) traffic to from X to Y
- Improve engagement (users that complete a full profile) from X to Y.