The OKR framework consists of two main components: Objectives and Key Results.
- The Objective is a specific, measurable, and time-bound goal aligned with the overall business strategy. Objectives should be challenging but achievable, inspiring and motivating the team to strive for excellence.
- The Key Results are specific metrics that track progress toward achieving the objective. They should be measurable and quantifiable and aligned with the purpose.
The OKR framework provides a clear roadmap for achieving goals and enables teams to measure progress, identify areas for improvement, and make data-driven decisions. The framework encourages teams to set ambitious goals that push the boundaries of what is possible while remaining achievable.
Practical Example
Suppose a company wants to design a mobile application to order food online for customers. The company aims to increase revenue and customer satisfaction through the application.
OKRs
Objective: Increase the number of orders by 25% in the first three months of launching the application.
Key Results:
- Increase the daily active users by 20% in the first three months.
- Increase the conversion rate of the application by 15% in the first three months.
- Increase the average order value by 10% in the first three months.
Objective: Achieve a user satisfaction rating of 4.5 out of 5 stars within the first six months of launching the application.
Key Results:
- Conduct at least 100 user interviews within the first month of launching the application.
- Increase the average rating of the application to 4.0 out of 5 stars within the first three months.
- Reduce the number of customer service inquiries by 20% in the first six months.
By using the OKR framework, the project team can focus on the critical success factors for the project, track progress, and make data-driven decisions to achieve the project’s objectives. The framework provides a roadmap for success and helps ensure the team is aligned with the company’s overall goals and objectives.