Learn what OKR is: objectives, how to implement, examples and tips

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In this article, you will learn about OKR, a methodology widely used by Silicon Valley companies to manage their goals. Discover the main advantages, how to get started with the application and how Bitrix24 can help you implement OKRs.

Applying the OKR methodology will allow you to define your goals more clearly and track them through measurable metrics. Read the article below to learn more about OKRs and how they can help you achieve significant results.

Understand what OKR is
OKR is a methodology, or framework, used to define objectives aligned with the company's strategy and establish measurable goals that support the achievement of these objectives.

The history of the methodology is extensive, but the first use of the term “OKR” is generally attributed to Andy Grove at Intel in the 1970s. However, its popularity is more recent, especially after its use at Google and adoption by other Silicon Valley companies.

The term OKR is an acronym for Objectives and Key Results. These terms are the basis for the framework. It is necessary to outline motivating objectives that leverage the organization to a new level and define goals, the key results, which, when achieved, will allow these objectives to be achieved.

This methodology can be used at an organizational, team or even individual level. The important thing is to follow the rules to define and monitor OKRs. With proper application, it is possible to achieve alignment in strategy and high-value results.

Setting Goals
Two professionals analyze graphs, spreadsheets and data obtained using the OKR methodology.

Objectives in general should begin with a verb, be qualitative, expressed through a short and simple sentence and have a motivating character.

They also need to have a deadline, with a quarterly deadline being the most argentina telemarketing data common, and a person in charge. However, having a person in charge does not mean that they will be the only one working towards this goal, only that they are the person who is committed to achieving it.

Objectives can be more conservative, based on historical facts and easier to achieve, or more daring, with great challenges and ambitions. There is no better or worse; the definition will depend mainly on the profile of the organization and the team that will work on these objectives.

Given these characteristics, an example of an organization's objective could be “To become a market leader in my state.”

Defining Key Results
Key results are goals that, when achieved, should contribute to achieving or getting closer to the objectives. Determining them is extremely important, as it is necessary to identify the main values ​​that will have an impact in order to move towards the established objective.

It is important that these results are measurable, so unlike objectives, they need to be quantitative. Through measurements, results can be constantly monitored.

It is also essential not to confuse key results with tasks and initiatives. Tasks and initiatives are hypotheses, actions that will be carried out on a daily basis with the aim of achieving goals, but they are not key results in themselves as they do not have a guaranteed value.

For example, “send emails to 10 customers” is a task, as it does not necessarily generate value. “increase the number of customers from 10 to 20” can be considered a key result, as achieving it will certainly generate some value.

Key results are usually composed of a verb, an indicator is a target for this indicator. Thus, we can cite as an example: “Increase NPS to 70”, “Increase customer base by 20%”.

OKR (Objective and Key Results) Examples
Man typing qualitative OKR data into notebook. Above hologram images of a globe connected to several points.

According to the concepts above, we can present some examples of OKRs, represented by objectives and the key results that accompany them.

Strategic OKR: Objective: Become the market leader in the region of operation. Key results: Reach a total of 20,000 customers, increase customer retention to 85%.
Development Team OKR: Objective: Deliver a high-quality product. Key Results: Reduce the number of bug fixes to just 10/month, reduce the average time to resolve issues to just 3 days.
People OKR: Objective: Build a pleasant work environment. Key results: Increase eNPS to 85, decrease turnover to just 4%.
Discover the differences in the OKR methodology
Some features of OKRs are responsible for making them so attractive to many organizations. Among them, we can highlight:

Transparency: When using the methodology, the company's objectives must be shared with all employees, as well as goals and indicators that are often hidden. This translates into greater engagement and motivation, as each person knows what their effort is being applied to and what results are expected.

Alignment: With transparency and shared general objectives, there must be alignment between different areas. In both the definition and monitoring of OKRs, the objectives must complement each other and meet the organization's overall strategic planning.