OKR stands for Objectives Key Results, which in Italian translates as ‘objectives and key results’. It is a Data Driven approach that is useful both for a company in general and for a company’s team.
This tool is used to align all members of the company with a shared model and to relate the objectives one wants to achieve with the results one obtains from time to time, to be used to monitor precisely how one is progressing.
Specifically, we speak of a framework, a methodology, which serves to give a shared model to the entire company, in which an association is created between the realisation of the objective and the evaluation of performance; but it can also be used at an individual level as a method of personal growth.
This organisational method is widely used by large companies, such as Spotify, Google, Amazon and many others. It is a very useful solution for several reasons.
To give a few examples, it can be considered useful because if you only think of your own goal you lose sight of the common good, or you happen to look too much at the goal without considering the results, or you have no idea what the real goal is, applying this method keeps the focus on the final goal.
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What are OKRs and what are they?
Objectives are the main element, the direction to take to get to the point you want to get to. They must therefore be significant and achievable over time. Basically, they must always keep in mind:
- The Mission: What to do?
- The Focus: What to focus on?
- The Realization: How far are you from your goal?
Key results are used to answer these three points, because they are used to monitor progress and understand if you are moving towards your goals. This is why the measurability of results is important, as is their specificity, consistency and realism.
Finally, the most important step in conclusion is measurement. Evaluating progress is essential to understand if you are having effective results and if something is not working it allows you to realign and study a different strategy that can lead you back on the right path to achieving your goals.
How and how many OKRs to define
As mentioned above, it is important that the goal is measurable and verifiable, but above all it must be connected to your daily work.
It may happen, in fact, that in some large companies not all employees are clear about how their contribution is actually valid in order to achieve the company’s final goal.
It is clear that the best strategy is to create collaboration and interest, thus motivating your employees by making it clearer what their contribution to the final result is.
It is therefore necessary to keep in mind that OKRs should not be too many. Therefore, it would be good not to exceed ten OKRs. Furthermore, they will be more effective the clearer they are, therefore visible to everyone in the company; quantifiable, therefore realistic, specific and achievable; and above all ambitious, so as to be stimulating for those who must achieve them.