Objective Key Results (OKRs) is a collaborative goal-setting methodology used by teams and individuals to set ambitious and challenging goals with measurable results. It is a rigorous method of targeting and monitoring invented by Andrew Grove and used at Intel since its early years. OKRs are designed to encourage companies to establish, communicate and monitor broad organizational objectives and results. Key objectives are inspirational, high-level goal statements that should not be technical and should not contain a metric.
Key results are a set of metrics that measure progress toward the goal, indicating how close you are to achieving the objective. Each objective should have 2 to 5 key results, as more than that can be difficult to remember. Key results should always be time-limited to ensure that team members complete them promptly and within the right time frame. Keeping group goals within a short and strict time frame encourages concentration and allows you to review them in cycles.
Once teams establish their clear objectives and key results, individual team members will decide how to achieve their OKRs. In addition, the OKR methodology is useful for measuring progress with KPIs (Key Performance Indicators). It is also beneficial for creating alignment and encouraging participation around measurable goals. The framework must be transparent and align business, team and individual objectives in a hierarchical and measurable manner.
OKRs are an extension of Peter Drucker's teachings of goal-based management, also known as Management by Objectives (MBO). MBO helps you track employee performance, while OKRs help you track progress, create alignment, and encourage participation around measurable goals. In conclusion, OKRs are an effective way for teams and individuals to set ambitious and challenging goals with measurable results. It is a business management methodology or tool used by teams and individuals to set challenging objectives with measurable key results.
The framework must be transparent and align business, team and individual objectives in a hierarchical and measurable manner.