Objectives and key results (OKR, alternatively OKRs) is a goal setting framework used by individuals, teams, and organizations to define measurable goals and track their outcomes. The origin of OKR can be traced to Management By Objectives (MBO), a goal setting framework coined by Peter Drucker, though the development of OKR is generally attributed to Andrew Grove, who introduced the approach to Intel during his tenure there (and later to John Doerr, who then introduced it to Google).[when?]
OKRs comprise an objective (a significant, concrete, clearly defined goal) and 3-5 key results (measurable success criteria used to track the achievement of that goal).
Not only should objectives be significant, concrete, and clearly defined, they should also be inspirational for the individual, team, or organization that is working towards them. Objectives can also be supported by initiatives, which are the plans and activities that help to move forward the key results and achieve the objective.
Key results should be measurable, either on a 0–100% scale or with any numerical value (e.g., dollar amount, percentage) that can be used by planners and decision makers to determine whether those involved in working towards the key result have been successful. There should be no opportunity for "gray area" when defining a key result.
In 1975, John Doerr, at the time a salesperson working for Intel, attended a course within Intel taught by Grove where he was introduced to the theory of OKRs, then called "iMBOs" ("Intel Management by Objectives").
Doerr, who by 1999 was working for venture capital firm Kleiner Perkins, introduced the idea of OKRs to Google. The idea took hold and OKRs quickly became central to Google's culture as a "management methodology that helps to ensure that the company focuses efforts on the same important issues throughout the organization".
The key result has to be measurable. But at the end you can look, and without any arguments: Did I do that or did I not do it? Yes? No? Simple. No judgments in it.
OKRs have helped lead us to 10x growth, many times over. They’ve helped make our crazily bold mission of 'organizing the world’s information' perhaps even achievable. They've kept me and the rest of the company on time and on track when it mattered the most.
It is recommended that an organization's target success rate for key results be 70%. A 70% success rate encourages competitive goal-making that is meant to stretch workers at low risk. If 100% of the key results are consistently being met, the key results should be reevaluated.
Organizations should be careful in crafting their OKRs such that they don't represent business as usual, since those objectives are—by definition—not action-oriented and inspirational. Words like "help" and "consult" should also be avoided as they tend to be used to describe vague activities rather than concrete, measurable outcomes.
When coming up with key results, it is also recommended to measure leading indicators instead of lagging indicators. Leading indicators are readily measurable and provide organizations with an early warning when something is not going right so they can course-correct. Conversely, lagging indicators are those metrics which cannot be attributed to particular changes and so prevent organizations from course-correcting in time.
OKRs are typically set at the individual, team, and organization levels, although there is criticism that this can cause too much of a waterfall approach—something that OKRs in many ways intend to avoid.
There is an overlap with other strategic planning frameworks like Objectives, goals, strategies and measures (OGSM), the traveler framework (destination, itinerary, steps and speed) and Hoshin Kanri's X-Matrix. OGSM, however, explicitly includes "strategy" as one of its components.
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