Objectives & Key Results (OKRs)
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Define Objective & Key Result
OKR stands for Objective & Key Result. An OKR is a management tool used to focus an individual, team, or company around a specific goal.
Most companies want to get better (e.g., release an updated product or grow revenue), but these goals are vague and mean different things to different people. Using the OKR framework can help to combat against this problem.
An OKR consists of 2 parts:
- Objective: A clearly defined business goal
- Key Result: One or more results that lead to the Objective
When should I use an OKR?
You should use an OKR when you would like to organize people around a common goal.
Objectives and key results are a great way to cut through the noise, and get down to what needs to be done. When using OKRs, be sure to set goals that are binary.
For example, you do not want to set a "key result" that says "make more sales". That is too vague and will only lead to more arguments.
Instead, write down that your sales representatives should each "make 30 calls in March". This is very direct, easy to understand, and easy to measure.
How to utilize OKRs?
OKRs can be leveraged in a variety of ways. The board of directors of a company may create a handful of quarterly OKRs for executives. A manager could create 2-3 OKRs for this month that her team should work again. And a solo entrepreneur could set OKRs for himself, to stay focused.
Alluxo makes it easy for your team to create a shared OKR dashboard. This dashboard can be pulled up in meetings, emailed to key stakeholders, and referenced at any time.