Introduction
Objective and Key Results (often abbreviated to “OKRs”) are metrics used to help measure if you are on track for a particular objective as opposed to Key Performance Indicators (“KPIs”), which focus on tracking progress.
How do I define OKRs?
The easiest way to define your OKRs is to see objectives as the “what” and the key results as the “how.”
To define your objectives, ask yourself what you and the team want to achieve over a particular period if time. A general rule of thumb is that OKRs should be defined and reviewed on a quarterly basis. Your objectives should be ambitious and serve as our team’s North Star (highest priorities).
Examples of objectives are:
- Increase sales revenue
- Increase market share
- Achieve a predictable development cycle
- Minimize the introduction of new bugs to production
Then, to define your key results, detail how your objectives can be quantified — e.g. what are ways you can objectively measure whether or not you have achieved your objective.
Examples are:
- Reduce the average sales cycle from 3 to 2 weeks
- Reduce customer churn rate by 25%
- Reduce carryover into future development sprints by 20%
- Increase UAT engagement by 30%
Conclusion
Generally, you’ll want to work with all stakeholders involved to determine and commit to a given set of OKRs. This is because, even if you are the CEO, if the teams involved with the OKRs execution are not aligned or worse, do not buy-in to the OKRs, then your OKRs are doomed to fail.