OBJECTIVES KEY RESULTS (OKR)
Improve your Company Performance Now
Contacts us now to know more about how our MyERP systems can help your business.
What are Objective Keys Results (OKR)?
According to Wikipedia, OKR has been defined as Objectives and key results that have goal-setting frameworks used by individuals, teams, and organizations to define measurable goals and track their outcomes. The development of OKR is generally attributed to Andrew Grove who introduced the approach to Intel in the 1970s.
Later on, this OKR has been implementing in many giant companies and industries, starting from Intel, google, Allbirds, Apartment Therapy, Netflix and etc. According to Larry Page, former CEO of Alphabet and co-founder of Google in Doerr’s Book, he stated that “OKRs have helped lead us to 10× growth, many times over. They’ve helped make our crazily bold mission of 'organizing the world’s information perhaps even achievable. They've kept me and the rest of the company on time and on track when it mattered the most”.
From this, we can say that OKR really effective in improving the productivity of the organization. Because of this, now day OKR has been favored by several other similar large tech organizations such as Linkedin, Microsoft, Twitter, and more.
Objective Key Results (OKR) elements.
It is really important to understand how this OKR positions in reality. There are two major elements in OKR, one is the Objective, and the second is key results.
What do they mean by Objectives, objectives are the goals or what you want to accomplish. A good objective is significant, concrete, action-oriented, and inspirational. Can be set annually or over an even longer -term.
As the key result is actually how you will accomplish the objective that has been set. Good key results are specific, timebound, aggressive yet realistic measurable, and verifiable. It can be set quarterly and evolve as work progresses.
Examples can be explained below:
The sales team in company ABD has objectives to get 30 clients in 6 months timelines. These are the team goals that have been set by the higher management.
KR 1: Need to get around 100 potential clients in the first 2 months using all mediums of marketing offline and Online such as social media, events, and acts.
KR 2: From these 100 clients need to get around 80% (80 potential clients) to present the solutions or products.
KR 3: Converts this potential client to confirmed clients by end of the fifth month.
Results: 30 clients in 6 months
Rewards: Achieved this target, the whole sales team will get holiday trips.
This is just one simple and easy example to understand how OKR is being implemented in one organization.
But there are a few more examples or types of OKR models that can be used, I will be explained more in other blogs about this.
To conclude on this, OKRs can work throughout an entire organization and don’t need to be top-level only. It can really help the organization to improve its productivity of the companies.
To know more about How Our systems MyERP can help in this OKR system, let's visit our website www.myerp.com.my.