OKRs: Objectives & Key Results

Do you want to ensure that your employees are focused on your company's strategic goals?

If so, the OKR framework is a lightweight process that encourages that focus.

It was first introduced by Andrew Grove at Intel in the 1970s and later popularized by venture capitalist John Doerr, who introduced the concept to Google in 1999.

Like all good processes, it's unbelievably simple.

The objective is the what

For example: Make the best pizza we’ve ever made

The thing you want to achieve over three months that if successful will take you one step closer to your strategic goals. An objective should be qualitative, ambitious, and inspiring.

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The Key Result is the How

For example:

• Spend at least 20% per more on ingredients
• Receive a customer feedback score of above 70%
• Lengthen the dough-proving process by 50%
• The head chef confirms that the pizza is the best we've made

The quantifiable outcome leaves no doubt as to whether it's been done or not. Each Objective should have three to seven key results. They should be specific, time-bound, and measurable.

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The benefits of OKRs

It provides focus: High-performance organisations focus on what's important and leave aside things that are unimportant. There are always ten times more things to do than time permits and the OKR framework helps you clearly understand what matters. It's a fantastic mechanism that reduces the 'Activity Trap', which is when your team seems busy but their outcomes don't have any real impact on the business.

It promotes unity: OKRs are usually shared amongst the organisation which means everyone understands what everyone else is doing and can easily visualise how the entire company is pushing in a singular direction. It also helps functions identify cross-functional projects that matter the most

It creates accountability because those who use OKRs publicly state what they are focussing on achieving in a given time period. Its been well documented that projects are completed more often when the person delivering that project has made their intentions clear from the outset

It forms the basis of 'stretch goals, which challenge the ambitions of your team

Let's learn about objectives in more detail