OKR`s are the acronyms of Objectives and Key Results. It is a powerful and highly effective goal-setting methodology that helps companies align organizational focus, priorities and actions towards the most important matters for achieving their goals.
OKR's is a unique model for getting the organization to consciously focus on value-based activities, rather than unconsciously “being occupied”, reacting to demands, distractions and urgent matters that never seems to stop showing up!
The methodology creates clarity, focus and alignment in the organization towards top company goals. It up-levels a conscious awareness to what matters the most, drive high performance culture, organizational autonomy and accountability for the right results
Objectives should define; WHAT we want to achieve? And WHY we want to achieve it?
Objectives are a qualitative (and sometime quantitative) description of what you want to achieve.
Key Results should define; How we are going to achieve the Objective?
What are the 3-5 most important results we need to achieve to fulfill our Objective?
Key Results should specify the most important activities that drive the absolute highest impact for results. It should be the 20% of activities that lead to 80% of the results. Minimun input for maximum output!
In a way you can say that Vision, Purpose, Values, Objectives and Strategy are the most important tools for Leadership.
While Key Result, is the most important tool for Operational Management and execution!
“A great idea is powerful, but it is nothing compared to highly effective execution” - Haavard Helmen
There should be no more than 3-5 top company Objectives for the year, and equally 3-5 top company goals for the next quarter.
Each should have 3-5 Key Results for determining what we need to achieve to fulfill our Objectives.
For high impact, alignment and accountability in the organization all departments, and ultimately all employees, should have the same OKR structure throughout the whole company.
Their Objective and Key Results (OKR`s) should support top company and departments OKR`s. All cascaded down through the organization.
At the most basic level, OKR`s is a simple, yet very powerful tool to consciously align and engage everyone in the company to top Objectives and important Goals.
It is a management goal-setting system and methodology that helps focus everyone’s efforts on the most important priorities for results. The OKR´s connects and aligns the work of employees to what truly matters in the organization.
It also empowers employees to consciously look for value-based actions vs. being in reaction to old unconscious behaviors, habits and fixed ways of working. This is crucial for any company that wants to grow and succeed in today’s marketplace.
The methodology, if implemented the right way, changes the unconscious fixed mindsets in the organization to a growth mindset. Enabling new possibilities, futures and results to grow.
Listen to John Doerr, the founder of OKR's in his TED talk.
Get started with our proven OKR framework. Schedule a 30 minute DEMO of our software to find out what value we can bring to your business.Schedule a demo