What is OKR (Objectives & Key Results)?
Objectives and Key Results (OKRs) are powerful tools to put forth the goals of the organization. It is a well-proven goal setting framework that was first introduced by Andy Grove in Intel and later adopted by Google when John Doerr introduced it to them
OKR is an
- Effective goal-setting framework
- Alignment tool
- Communication tool
- Collaboration tool
The benefits of OKR Tools are so evident that most multinational companies like Google, Adobe, Intel, Spotify, and Netflix have implemented it and yielded tremendous business success.
Objective – Objective is the direction that will help us to understand where we travel. It is typically the “What”
Key Result – This help you to define the metrics and initiatives that help us to reach our objective. This the “How”
These key metrics help us understand what is in store and we plan resources and budget accordingly.
The Growth of OKRs Framework
Objectives and Key Results (OKRs) has been around for a while now. Google adopted OKRs in 1999 and there are other leading companies like Amazon, Uber, LinkedIn, and so on, has adopted it rapidly and scaled exponentially. Unlike other frameworks, OKRs have a proven track record and they have enabled organisations to scale 10x.
OKRs create focus to the teams that help them to set their priorities right. Increases the alignment and creates collaboration.
The last decade has seen tremendous growth in the market for OKRs. Organisations started adopting the framework as it helps them to see the goal and understand where they are traveling and bridge the gap. Apart for the Software companies’ other industries have adopted OKRs as well. There has been prominent growth in segments like manufacturing, BFSI (Banking, Financial Services & Insurance) and Hospitality.
OKR Software market
Interestingly the OKR software market grew exponentially that created a hot market for OKR and is growing in 14.10% CAGR. It has a market of 1.5 billion. OKR software make the strategy execution simple and effective. They connected the team and individuals towards the organisational goal and enabled the senior management to data that helps then to understand the gap and bridge the gap.
Especially, Hybrid and remote teams were able to connect on a common goal. While everyone is busy in their own priorities, we end up firefighting and become siloed. This can be the caveat for burnout and disengaged. OKR Software connect people to a common goal and keeps all the communication in one place.
The practise has been adopted by multiple enterprises is a positive sign that OKR does the work it is expected to do
Mentioning it as the hottest corner in the software industry would be an understatement. Teams try doing it in spread sheets and adding it to the HRMS system has failed most of them. Scaling in becomes challenging while tracking in such system, while effective scaling is key to OKR implementation. We cannot track key business metrics through spreadsheets and not relate it to operational HR (Human Resources) Data. The data help organisations in making decisions. Hence, having a dedicated OKR software that can integrate with your other systems are the answer to the problem.