Objectives and Key Results or OKRs is a framework of goal setting invented by Andy Grove, legendary CEO of Intel . OKRs were later popularised by John Doerr, a legendary Silicon Valley venture capitalist who helped implement the OKR framework at Google during its early days.
OKR is a framework of qualitative and quantitative goal setting to drive the organization forward in a desired direction.
Objectives are qualitative statements that answer the broad question "What do we want to do?" and Key Results are the quantitative statements that address the question "How will we know if we met success in achieving the objectives"?
John Doerr, in his popular book, Measure What Matters says "Objectives and Key Results are the yin and yang of goal setting - principle and practice, vision and execution"
OKRs are set at 3 levels - 1) Company 2) Team and 3) Individual with alignment from bottom to top.
Objectives should be:
Key Results should be:
Companies set objectives or goals to translate their vision and mission into actions.
In today's rapidly changing world, annual objective setting exercise alone is not sufficient as companies need to be more agile and resilient to adapt to the changes in the external business environment.
OKRs allow companies to break down annual objectives into set of objectives and key results that are tracked more frequently for example, once a quarter. OKRs help companies drive more agility, accountability and alignment with the overall company objectives.
Below are some of the key benefits of implementing OKRs: