Understanding OKRs

OKR-example

Understanding OKRs

Here are some characteristics of OKR or Objectives and Key Results:

  • KPI’s are determined top-down, OKR’s are determined bottom-up
  • Objectives are the dream; Key Results are the success criteria a way to measure incremental progress towards the objective.
  • Objectives are qualitative and Key Results are quantitative.  OKRs are not the same as employee evaluations.  OKRs are about the company’s goals and how each employee contributes to those goals.  Performance evaluations, which are entirely about how an employee performed in a given period, are independent of OKRs.
  • Objectives are ambitious and should feel uncomfortable.  [In general, up to five objectives and four key results per initiative are optimal, and key results should see an achievement rate of 60-70%: if they don’t, the bar is set too low.]

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