Business Objective & Key Result (OKR) Examples
High-performing teams use business OKRs to drive real results. Learn how business OKRs can create value for your departments.
Objectives and key results (OKRs) are a great way to organize a group of people around a common mission.
Who Uses OKRs?
Leading companies, from Amazon and Google to Accenture, use OKRs to meet demanding internal goals.
Benefits of OKRs
An OKR boils down a variety of data points into a single measurement of exactly what matters!
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What is a business objective and key result (OKR)?
As the size of a team grows, communication becomes increasingly important. In order to be successful in your job, you have to collaborate with more people – both within your department but also outside of your department and even outside of your company.
Thankfully, there is a helpful framework for setting expectations and tracking progress. Objectives and key results are used to measure performance against monthly, quarterly, or annual goals. At its core, business OKRs are designed to organize a business team around a single objective (the "O" in OKR).
Let's say you manage an ecommerce store that sells clothes. When you go to create an OKR, you want to start with a single objective that would have a material impact on your business. You do not want to set a "nice to have" as an objective.
From there, we recommend setting 2-5 quantitative results for each objective. It is important that results are measurable so you can clearly identify if the outcome was met or not.
Sample Ecommerce OKR
- Objective: Set new record for gross sales in 2018
- Key Result: Sell 10,000 pieces of merchandise
- Key Result: Drive average order size from $26 to $40
- Key Result: Increase cart conversion rate to 50%
In the example above, each of the Key Results (KRs) are measurable. At the end of the year, you can look at the data to see if you sold 10,000 items or increased average order size to $40. This is the power of OKRs – they remove ambiguity around business goals!
Examples of business OKRs
Here are a list of example business OKRs, broken out by department. To discuss your specific needs, please contact the Alluxo team!
Sales OKR Examples
- Objective A: Set new record for gross sales in 2018
- Key Result A1: Sell 10,000 pieces of merchandise
- Key Result A2: Drive average order size from $26 to $40
- Key Result A3: Increase cart conversion rate to 50%
- Objective B: Successfully train 5 sales reps this month
- Key Result B1: Walk through all pages of internal training guide
- Key Result B2: Shadow each representative on 3 customer calls
- Key Result B3: Have all 5 reps pass the Sales Acronym Test
Marketing OKR Examples
- Objective A: Have 10,000 users complete onboarding this quarter
- Key Result A1: Reduce cost per click by 25%
- Key Result A2: Implement referral program for existing customers
- Key Result A3: Set up 2 A/B tests for the welcome email
- Key Result A4: Increase onboarding conversion rate by 20%
- Objective B: Build marketing campaign for our new mobile app
- Key Result B1: Start App Store Optimization (ASO) research
- Key Result B2: Based on research, select 5 target keywords
- Key Result B3: Finalize App Store description & screenshots
- Key Result B4: Draft press release to coincide with app launch
Customer Support OKR Examples
- Objective A: Improve Net Promoter Score (NPS) by 5 points
- Key Result A1: Increase support hours to 24/6
- Key Result A2: Introduce developers to customer support rotation
- Key Result A3: Reduce average time to first response by 33%
Finance & Accounting OKR Examples
- Objective A: Reach $100,000 in June EBITDA
- Key Result A1: Implement inventory management software
- Key Result A2: Reduce outsourced design efforts by 20%
- Key Result A3: Send personalized emails to encourage repeat purchases
- Objective B: Implement process for expense reimbursement
- Key Result B1: Create Google Doc outlining budget approval process
- Key Result B2: Configure expense software for whole team
- Key Result B3: Share the new process at company all hands meeting
- Objective C: Prepare for Series A fundraising
- Key Result C1: Update pitch deck to include Q2 and Q3 2018 progress
- Key Result C2: Get latest product roadmap from Product Manager
- Key Result C3: Write email template for investor outreach
- Key Result C4: Contact 25 potential investors at Series A funds
Management OKR Examples
- Objective A: Financial Projections for 2019
- Key Result A1: Gather feedback from each department head
- Key Result A2: Update model with actual Q3 2018 numbers
- Key Result A3: Present the new projections to CEO
How do you select business OKRs?
As a business, it is important to keep your core metrics front and center. An OKR dashboard can be a great way to organize your department or company around the same set of metrics.
When creating an objective & key result (OKR), it's important to pick a target that will drive real business change. Your goals should be achievable, but difficult.
For example, if you set a goal to implement a new process within one week, you force yourself to dedicate time to this intiative. The same is true if you set the goal of writing tailored emails to 25 investors in your target market. Even if you fall short of these goals, you will be much further along than if you casually wrote a note down.
OKRs work because they short, clear, and measurable. There is also a social pressure: By publicly saying your goal, you are accountable for that result!