OKR

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Dusan

OKR is a proven goal management framework that enables organizations;

  • to implement company strategy by executing tasks with measurable results
  • to align teams on company objectives

Key components are:

OBJECTIVES

3-5 objectives per quarter to support your strategy

  • where do you want to go? “Build sustainable sales pipeline”, “Build brand awareness”, “Improve customer service”
  • not a metric; “Achieve $100m revenues“
  • not defined as tasks: “Make 100 calls“

KEY RESULTS

Each objective is accompanied by 3-5 key results

  • Measurable
  • Time bound
  • Not defined as tasks
  • Ambitious (expect 80% attainment rate)
  • If results are achieved, so are objectives

TASKS

Specific actions that lead to results.

  • proposed by teams and individuals

EXAMPLE OKR

CRITICAL CONSIDERATIONS

While OKR should be ambitious and you should expect 80% attainment rate, consider consequences if teams or individuals are not hitting the 80% target.

Consistent underachievement should trigger a post-mortem to identify bottlenecks in performance.

You can also link underachievement to compensation. Less than 60% attainment should cap bonuses to 80%