If you heard about OKRs, but not sure what they are or whether they can help your organization, this section will provide an introductory primer. You can learn how OKRs are defined, their benefits and how OKRs compare with other goal-based management approaches like KPIs and MBOs. Also checkout a case study about Google’s implementation of OKRs, including a video by Rick Klau from Google Ventures Startup Lab.
Objectives are what you and your organization want to accomplish. Objectives are aspirational and qualitative in nature. Key Results describe how you will accomplish these objectives, and measure whether you successfully accomplished the objective. Key Results are specific, measurable, time-bound goals with a clearly accountable owner...read more »
Setting of goals and objectives has been around in organizations for several decades. MBOs were introduced by Peter Drucker in the late 60’s. In the early 80’s, the concept of SMART goals started to gain ground, followed by KPIs in the mid 80s. Compared to MBOs and KPIs, OKRs are primarily different in two ways - Linking to individual compensation and transparency of goals in the organization...read more »
OKRs enable organizations to focus employees on the right business goals, align the workforce to accomplish those goals and finally, drive tranparency of execution. The structure of OKRs ensures that the team members' goals and work is aligned with the team and company objectives. Focus on key results enables the team to execute on the right things and avoid "busy work"...read more »
Google has been using OKRs since 1999. At Google, the Objectives are ambitious and are difficult to achieve 100%. Typical objective achievement is in the 60-70% range. Key Results are measurable. At Google, each key result is graded on a 0 - 1.0 scale at the end of each quarter. All the key results are averaged to determine the OKR grade. All OKRs are visible across the organization...read more »