Better Thinking

Objectives and Key Results (OKR)

OKR (Objectives and Key Results) is a popular goal-setting methodology that helps organizations and individuals achieve strategy execution and continuous improvement through clear objectives and measurable key results.

Categories
Goal Management
Target Users
Business managersProject ManagerTeam LeadersSelf-learnersHuman Resources
Applicable
Team CollaborationPersonal growthOrganizational stretegy execution
#goal management #performance management #Strategy Execution

What is OKR

OKR stands for Objectives and Key Results.

  • Professional definition: A goal-setting methodology that helps organizations and individuals achieve strategic alignment through clear objectives and measurable outcomes.
  • Simple explanation: If your goal is “to learn English well,” the key results would be “pass CET-4,” “memorize 50 words daily,” and “write a weekly English journal.”

Origin and Key Figures

  • Background: OKR originated in the 1970s at Intel, created by CEO Andy Grove.
  • Founder: Andy Grove, known as the “father of OKRs.”
  • Adopters: Google, LinkedIn, Twitter, Spotify, and many other tech companies.
  • Case: Google adopted OKRs in its early stage, aligning company-wide goals and driving rapid growth.

How to Use OKR

  1. Set Objectives
    • Inspirational and directional, e.g., “Enhance product user experience.”
    • Tip: Keep it to 3–5 objectives per cycle.
  2. Define Key Results
    • 2–4 measurable outcomes per objective.
    • Example: “Increase user retention by 20%,” “Raise NPS score to 70.”
  3. Execute and Track
    • Review progress quarterly or periodically.
    • Tip: Regular check-ins and adjustments are critical.

Case Studies

  • Case 1 (Business): An internet company sets the objective “Expand market share.”
    • Key results: “Achieve 30% user growth,” “Overseas revenue reaches 15%.”Insight: OKRs turn big strategies into actionable results.
  • Case 2 (Personal Growth): John’s objective is “Improve public speaking skills.”
    • Key results: “Join one speaking contest per month,” “Give 3 company talks in a quarter.”Insight: OKRs also work for personal development.

Advantages and Limitations

Advantages

  • Clear, measurable goals
  • Encourages innovation and motivation
  • Aligns company, team, and personal objectives

Limitations

  • Too many objectives dilute focus
  • Requires strong data tracking
  • Poor implementation may lead to formality

FAQs

  1. Q: How is OKR different from KPI?
    • A: KPIs focus on performance evaluation, while OKRs emphasize growth, alignment, and challenge.
  2. Q: Do key results always have to be measurable?
    • A: Yes. Key results must be quantifiable to evaluate progress.

Applicable Scenarios

  • Work: Strategy execution, cross-team collaboration, performance management
  • Learning: Skill improvement, study plans, progress tracking
  • Life: Fitness goals, financial planning, self-development

Recommended Resources

Books

  • Measure What Matters — John Doerr, the go-to book on OKR practice
  • High Output Management — Andy Grove, the foundation of OKR thinking

Other Resources

  • Google re:Work website with OKR insights
  • TED Talk: John Doerr on OKRs

Related Frameworks

  • SMART Goals: Specific, Measurable, Achievable, Relevant, Time-bound
  • PDCA Cycle: Plan-Do-Check-Act
  • Balanced Scorecard: Strategic management tool

Key Takeaway

OKR: Drive growth with clear objectives and measurable results.