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    What are OKRs?

    Definition

    What are OKRs?

    Objectives and Key Results, or OKRs, is a goal-setting methodology for organizations, teams, and individuals to set ambitious goals with measurable results.

    What are OKRs not?

    OKRs should not include all of your organization’s work or track business-as-usual activities. Duplicating what already exists as tasks or procedures isn’t focusing on what matters.

    History

    Where do OKRs come from?

    OKRs 101 Andy Grove play video button
    "The Objective is the direction and the Key Results are the milestones..."Andy Grove, OKR inventor

    1950s

    Peter Drucker develops Management by Objectives (MBO)

    1970s

    Andy Grove creates OKRs during his time at Intel

    1975

    John Doerr learns about OKRs from Andy Grove

    1999

    John Doerr introduces OKRs at Google

    2000

    Google starts using OKRs to grow

    Today

    Businesses worldwide use OKRs to grow

    Practitioners

    What companies use OKRs?

    OKR Guide

    What determines a good OKR?

    Six must-ask questions before creating an Objective

    Overview:What is my company’s mission?
    Relevance:What is my company’s focus for this year?
    Goals:What is my team trying to achieve?
    Focus:Is this a main priority or can it wait until the next cycle?
    Routine:Would my OKR require any change within my day to day?
    Significance:Will anyone else see and understand the importance of this OKR?

    Formula

    Objective=Verb+what you're going to do+in order to/so that we achieve (business impact)

    Questions to ask before creating a Key Result

    Overview:What is my company’s mission?
    Relevance:What is my company’s focus for this year?
    Goals:What is my team trying to achieve?

    Formula

    Key Result=Verb+what you’re going to track+from X to Y
    OKR Superpowers

    What are the “superpowers” of OKRs?

    OKRs help you manage your F.A.A.T.E.

    Focus

    Is your organization’s focus clear to everyone so teams can make better decisions, prioritize, and execute effectively?

    Alignment

    Alignment has five areas: purpose, strategy, organizational capability, resources, and management systems. Is your organization aligned in these areas?

    Accountability

    Is everyone clear about their responsibilities, from the top down so effective work can be accomplished?

    Transparency

    Do your employees know what’s happening around them, so they can adjust their goals while supporting the goals and work of others?

    Engagement

    Do your employees know the purpose of what they’re doing and how their work benefits the organization, their coworkers, and customers?

    KPIs

    Do I need OKRs if I’m tracking KPIs?

    Key Performance Indicators (KPIs) and OKRs go together. KPIs are a tool for evaluating performance. OKRs are used to drive performance improvement.

    OKR
    Linked to strategic goals
    Measures should have strategic significance
    Can describe the cross-functional nature of business
    Change as strategy evolves
    Designed to drive focus
    Fosters transparency by default
    KPI
    Linked to processes
    Measures may or may not have strategic significance
    Tends not to reflect the cross-functional nature of business
    Definitions mostly remain constant
    Designed to cover all aspects of the organization
    Usually constrained to line of business
    Platform

    Where do I manage my OKRs?

    Dedicated software can play a big role in managing the scale and cadence of OKR implementation. How?

    • Standardizing OKR definitions and KR updates
    • Showcasing contributions and interconnectedness of critical goals
    • Making KR updates quick and easy for teams and individuals
    • Populating OKR reports with up-to-date data
    OKRs 101 platform image

    If you wonder where to start, look no more.Get your free copy of our E-books

    FREE E-BOOKThe Ultimate OKRs Playbook

    Everything we've learned from successful OKR implementations at dozens of companies, distilled into a single Playbook.

    The Ultimate OKRs playbook
    FREE E-BOOKThe Elements of Excellence: Employee Experience & OKRs

    How the world’s best companies outperform competition and practical tips on crushing your competitors.

    The Elements of Excellence - Employee Experience and OKRs
    FREE E-BOOKHow to Run an OKRs Pilot

    You have decided to use OKRs to achieve goals. This guide has what you need to adopt OKRs successfully.

    How to run an OKRs Pilot
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