OKR, or Objectives and Key Results, has become more popular in the tech industry when it was first adopted by Google in 1999. John Doerr is the one who introduced it to Google and thus make Google a highly effective organization until now.
Getting to know OKR
OKR (Objectives + Key Results) is a technique that set two levels of goals that are closely interrelated. Objective is the clear goal that an organization wants to achieve. Key Results are the indicator and helper that tells you how to get to that goal.
In simple words, objective is what you need to achieve. Key result is the method to make that achievement.
Objective: Strategic goal for success
A good objective must
Be qualitative and corresponds to the vision and mission
Be ambitious and inspires the organization to move forward
Not be too difficult or too easy. Objective should always be at least 60-70% achieved.
Key Result: The indicator that tells the progress along the way to achieve goal
What is a good result?
- A good result must be quantitative, concrete and can be measured.
- There should be 3-4 results per one objective.
- There should be specific person to be responsible for each key result. The responsible person should prepare “To Do List”.
To make it easy, let’s put it this way.
If an objective is to make your ice cream product become the No. 1 in Asia,
A key result should be concrete, such as making 100,000 dollars in the first quarter, or to sell 300,000 bars of ice cream in the first month.
If an objective is to introduce the best Minimum Viable Product (MVP) to the market and to have many media review this product,
Then the results should be:
Reviews on 10 websites, 80% of which is positive
Ensure that 40% of the customers repeat their purchase or consumption at least twice in a week
Make the product a “recommended item” with 8 out of 10 scores
And, this is the meaning of this world-class technique. In the next article, we will see how to make an excellent and most efficient OKR. Stay tune!
Thanks for information from The ASIA Bootcamp: the first in Thailand and a cooperation between Seedstars and Digital Ventures Accelerator (DVA)