The acronym OKR may not mean anything to you, but we guarantee you’ve come across it in your life. Especially if you deal with team management or are part of one. In fact, we go even further and suggest that even in a college assignment you will have dealt with OKRs. Your own career, and even your life, may also include this acronym, even though you may not be familiar with the letters of it or how it sounds.
What does OKR mean anyway?
As we mentioned in the previous paragraph, there is no strategy that does not have objectives. It is true that these can be modified over time, depending on what the internal or external context may dictate. The only difference, however, is that the objectives are now different. In other words, objectives do not cease to exist.
They are present in small, medium and large companies… or even in the life of each one of us, and these objectives are not limited to the professional sphere and include personal and family aspects. After all, there are always those who may want to adjust their weight by the time summer arrives. And there are also people who set their life course thinking about children or buying a car or house. That is, no matter how many turns life takes, the truth is that goals do not escape our home.
In addition to objectives, there is also the notion that certain key outcomes need to be achieved. Or key results, to be fully in line with the acronym in question, which refers to the English name – Objectives and Key Results.
Behind this name is a goal-setting methodology that tends to be collaborative. That is, in which several people participate and who can help in the monitoring of the project (monitoring its progress) and in a common union around certain points that an organisation wants to achieve. In other words, it opens doors for a harmony that can be beneficial in the long term.
What makes up an objective or key outcome?
The main objectives and outcomes can be mouldable as the project unfolds and in this methodology there is even a phrase used that can help define each of these components: I will [objetivo], and it will be measured by [principal resultado].
In other words, the objective concerns what you want to achieve, the goal line you want to cross. It may concern Brand Awareness or, for example, a certain number of sales closed in a stipulated period of time.
The main outcome, on the other hand, relates to the metrics by which you will be able to measure progress towards a particular goal. This could be, for example, getting thousands of social media followers, or perhaps gaining contacts from potential customers.
In conclusion, a goal is about what a person wants to achieve, while a key outcome is the route to achieving it.
A good goal will be concise, conducive to action and sometimes able to generate inspiration.
On the other hand, a good headline result must also have its specificity and have defined timings, which may be established on a quarterly or four-monthly basis.
Where did it all start?
We can think of this methodology and its components and easily infer that this method has an ancient origin. After all, human beings and goals are words that go hand in hand. Indeed, there is almost an existential link between the two.
However, the OKR methodology has its genesis at a more recent date. In effect, it was created by Andy Grove and had as a faithful follower John Doerr. The former instilled it at Intel, the latter implemented it at Kleiner Perkins in 1980. In other words, this methodology is relatively recent looking at the spectrum of human evolution. However, it can be said that it was an impactful change in the organisation of companies. After all, relevant companies like Google, Allbirds or Netflix have followed.
What is the difference between OKR and KPI?
The reader may wonder about the similarity between OKRs and KPIs (Key Performance Indicators), after all we are talking about methodologies that have monitoring as a fundamental point. Whether through key results, in the case of OKR, or through performance indicators, in the case of KPIs. Both can be compatible and included in the same project. In effect, one indicator may act as an excellent headline result. However, there are differences between them.
Starting with the key results, this is a metric by which progress towards your company’s goals can be measured. This may be quantitative or qualitative data. In case they are quantitative (for example, increasing the number of followers of your company on social media to 50,000), you can measure it by defining a desirable quantity for a certain period. Using the example previously mentioned, you could set the 20,000 followers goal for January, 40,000 for March and the final goal of 50,000 for April, for example. In case they are qualitative, the main results could be related to the evaluation of customer feedback regarding a particular service.
Looking at KPIs, or key performance indicators, we can say that this is a great way to quantify progress and check that you are on schedule. As we have seen, the similarities with key quantifiable outcomes are clear. The same, however, cannot be said of the main qualitative results, where there is a significant difference, although not the main one. Indeed, another key difference lies in the way in which employees can play a role in achieving a particular goal. That is, the key results may in fact be defined by employees rather than management.
In conclusion, this is a method that has garnered a lot of popularity, and justifiably so. After all, it was followed by several companies that achieved undisputed success. In this sense, it is to be equated this option by the OKR methodology, where the main objectives and results are in full harmony by the project managers and the other members. In other words, they encompass a significant slice of people within the organisation, who will eventually feel more motivated by being part of the decision-making process towards the common goal. The first step to take may be to use Asana. Contact us and find out more.