Objectives and Key Results (OKRs) is a well-proven goal-setting framework. Used and established by leading organizations globally. OKRs become started gaining visibility once Google started it and they help organizations in creating and tracking the goals set.
Objectives are defined to understand the “what”. What are we trying to achieve? These objectives are generally Roof-shot and moon-shot goals.
Roof-Shot goals: Committed or Operational OKRs are goal-setting commitments. While grading we expected to score 100%. Lower progress calls for a discussion, as it shows improvement in planning and/or execution
Moon shot goals: With aspirational OKRs, lack clarity on what knowledge or resources we need. The expected average score of an aspirational OKR is 70% (Varies from case to case)
Key Results are the “How” we can achieve the “what”. Key results help in understanding the input and output metrics that help to achieve the outcome.
These are two questions OKRs answers
• Where do I want to go? (The answer provides the Objective)
• How will I pace myself to see if I’m getting there? (this gives milestones / key results)
OKRs have a history from 1954. Peter Drucker, the father of management designed MBO(Management by objectives), he was the person who understood the value of measuring the objectives. When in 1968 Andy Grove implemented MBO which is the current OKR in Intel. When John Doerr joined Intel, he got fascinated by OKRs and was later introduced to Google.
Which companies use OKR
- Adobe
- Amazon
- American Global Logistics
- Anheuser-Busch
- Asana
- Baidu
- BMAT
- Box
- CareerBuilder
- Dell
- Deloitte
- Domo
- Dropbox
- Eventbrite
- FiServ
- Gap
- GE
- GoPro
- Humanitec
- InsideSales
- Instructure
- Intel
- ISO Energy
- Kelly Services
- KupiVIP
- LG
- Lookout
- Lumeris
- Malwarebytes
- Microsoft
- Moz
- Mozilla
- MyfitnessPal
- Nerd Wallet
- Netflix
- Oracle
- Panasonic
- Paperless Post
- Rackspace
- Salesforce.com
- Samsung
- Siemens
- Slack
- Spotify
- Tableau
- Trello
- Uber
- Viacom
- Vmware
- Vox Media
- Yahoo
- YouTube
- Zynga