Learn about the OKR (Objective Key Results) model, its methodology, examples, and how to implement them in your company to achieve business objectives.
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What is an OKR?
OKR are the acronyms that represent the words Objectives, Key Results, a system of organization of the goals and objectives that need to be achieved to organize the work in the different departments of a company to achieve common objectives.
In addition, the OKRs must be connected with some results. In this way, they can be measured and control their development.
The OKRs were created by the CEO of Intel, Andrew Grow, and serve to face the main objectives of a company more efficiently.
The operation of this system is based on the words that compose it:
- Objectives: the objectives that mark the direction towards which they are directed.
- Key results: the parameters used to measure whether or not the objectives are met.
How are OKRs Different from KPIs?
We must bear in mind that although OKRs and KPIs are performance management methods, the former defines objectives, while the latter monitors the achievement of objectives. OKRs and KPIs can be used in a complementary or independent way.
How can a Company Benefit from Implementing OKRs?
Using the OKR methodology in the company is a significant benefit that can help better organize the objectives, making it easier to achieve them. The advantages they bring to a company are clear reasons to use them and thus improve the functioning of an organization:
- OKRs allow you to measure and obtain results that allow you to achieve improvements.
- They help teams to work collaboratively and for a common goal.
- They are easy to implement and review.
- They allow fluid interdepartmental communication, managing to implement a global vision for the entire company.
Some Examples Know How to Implement OKRs
OKRs can be used for many things within a company, from helping open markets, gaining customers, or even improving revenue. Many examples can be found and inspired to create OKRs and adjust them to the needs of each business.
In this way, it is possible to establish objectives around issues such as establishing financial sustainability, planning annual budgets, obtaining leads, or launching a new product.
And Now, How do we Implement OKRs in a Company?
The OKR methodology can be structured into 6 steps that allow the process to be structured and followed in an orderly manner toward the goals that are established:
1. Defining the Objectives
The objectives to be defined must be clear and concise. It is essential that they are clear and that they are aligned. With a clear foundation, it will be possible to work towards them.
2. Classification of Objectives
Only some of the proposed objectives have the same characteristics, so it will be necessary to classify them between top-down and bottom-up, that is, objectives that start from higher levels towards the base and objectives that will reach the leaders from below. of the company
3. Establishment of Deadlines
The objectives must be met in a specific time, so the time it will take to achieve them must be defined to measure whether or not the strategy established for it has worked.
4. Continuous Review of Results
The best thing about establishing measurable objectives is that it will be possible to continuously measure and review whether or not the strategy is working. It is essential to look at what is happening and correct what can be improved.
5. Communication of OKRs to the Entire Company
One of the great benefits of this technique is the possibility of having fluid interdepartmental communication that allows knowing the objectives and working together for them. Transparency will be directly reflected in the success of the results.
6. Final Analysis
A thorough analysis of the results obtained through web analytics is necessary to be aware that things are being done correctly.
It is critical to analyze whether the objective has been reached correctly and not stay with the effort made since it will be the only way to redo the strategy if things have turned out differently than expected.
