What are OKRs?

OKRs are known as Objectives and Key Results. It is a goal-setting framework that is used by the person to set a challenging goal with measurable metrics. Around the measurable goals in software engineering and non-profit organizations, the OKRs track the progress and create alignment.

The Objectives and key results methodology was developed in the 1970s by Intel CEO Andrew Grove. Later Doerr served on the board of Google and also introduced its founders Larry Page and Sergey Brin.

What are Objectives and Key Results (OKRs)?

OKRs stands for Objectives and Key Results is a framework that helps the companies to set their goals and also measure them. It is designed to encourage the companies to set the goals of the monitor board. It is a performance management framework that is meant to be transparent which aligns the team and business objectives in a measurable way. The main motive of OKR is to make sure that the members are working towards the goal of the business.

How to Use OKRs?

OKRs provide an idea to the group members on how to measure the milestone of the path and what they are exactly trying to achieve. It try to provide a framework to the teams and it insures that all the part of the company are working together for the same objective. There are two types of components present in OKRs which are mentioned below:

• Objectives: Objectives refers to the clear goals in which the teams are working on. Therefore it is a clearly defined common goal in a company which impact on the business of the company. It should align with the company strategies and the company goal.
• Key Results: These key results refers to the progress of objectives which are measured on the basis of achieving the particular goal. They serve as a result which provide the evidence of whether the objective have been achieved or not.

When to Use OKRs ?

Objectives and key results are used in setting the goal quarterly, annually and biannually which completely depend on the requirement of the businesses and what the group of teams agrees on. OKRs have been in demand due to rise in remote work even if the teams are spread in multiple locations this framework helps in encouraging the effective workflow which further enables the communication and align the team to obtain their goal or objective.

Types of OKRs

There are two types of OKRs which are mentioned below:

Committed OKRs

The committed OKRs are also known as “stretch goals”. The result of committed OKRs are real and it needs to be achieved by the team or the group of the business. These are the main goals of the business which every individual agrees to and these main goal needs to be achieved by the teams of the company and the particular team are even willing to adjust the resources to achieve this main goal.

Aspirational OKRs

Aspirational OKRs are also known as “moonshot”. These are the large and ambitious goals which the business sets for itself. These type of OKRs mainly focuses on the companies vision and they are also very challenging.

Advantages of OKRs

Some of the main advantages of OKRs are mentioned below:

• OKRs optimizes the allocation and the resource management.
• With the help of OKRs individuals can find the problems and their root cause and to create a good environment for decision making.
• OKRs helps in tracking the common goals and the progress which align with the business goals.
• OKRs establishes productivity around the goals and also align individuals with the business goals.
• With the help of OKRs within the company the individuals can promote collaboration.

FAQs on OKRs

1. What is an OKR meaning ?

OKR means “Objective and Key Results”. It is goal setting and leadership framework which is used by the person to set the challenging goal with measurable metrics and also for communicating what type of goal a business needs to be acquired.

2. What is the difference between OKR and KPI ?

OKR is way in which the business identifies both the metrics and target it needs to acquire while KPI is more focused on the tracking the progress of achieving the particular goal.

3. What is an example of an OKR ?

The main example of Objective and Key results is the Marketing OKR, Human resources OKR, Operation OKR, Hospitality OKR and so on.