What if we told you there was a simple goal-setting methodology used by many of the highest performing organizations in the world? And that this practice has been attributed to much of their success?
Google, Adobe, Intel all use OKR’s to dream big and then make it happen!
So, what is an OKR?!
- OKRs stands for Objectives and Key Results. It is a framework for defining and tracking business objectives and their outcomes.
- Objectives are what the organization or individual wants to accomplish, and are typically qualitative or subjective, ambitious, and time-bound.
- Key Results are concrete, specific and measurable. They should describe how you will accomplish the objective and measure whether you are on track, behind, or at risk of accomplishing an objective.
- OKRs are most effective when they cascade. The company sets an objective and three key results, each business unit sets an objective and three KRs that supports the company, each team sets an O and three KRs that support the business unit. Looking from a company-wide or department view, child objectives will appear as key results for their parent objective.
Examples of OKRs include:
O: Launch new SMB product
KR: Product design completed by January 15
KR: 15 beta customer case studies by March 1
KR: Sales deck, training materials, and all product assets by March 20
O: Delight our current customers
KR: Net Promoter Score of 50 or better
KR: Customer churn rate less than 2%
KR: 50 new online customer review
O: Build an engaged and dynamic workplace culture
KR: Monthly employee happy hour activity, suggested by employees
KR: Company Pulse Check score of 4 or higher in 15Five
O: Increase qualified leads
KR:5,000 new leads this quarter
KR: 40,000 blog subscribers
KR: Attend 6 industry trade shows
Objective (OKR) tips:
- 3 Objectives, per level, at a time
- About 3 KRs per Objective
- Reviewed weekly or bi-weekly
- About 70% completion goal