OKRs

OKRs (Objectives and Key Results) is a goal-setting framework used to help teams set and achieve ambitious goals. The framework is designed to align individual and team goals with the company's objectives, which helps to improve focus and drive results.

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.

Resources