Other key differences between MBOs and OKRs are that the latter are quarterly, not annual, and they are divorced from compensation.ĭoerr was the one who crafted the name “OKRs.” He introduced the philosophy to Google’s founders in 1999. Grove rarely mentioned Objectives without tying them to “Key Results,” a term he seems to have coined himself. Despite the original name, Grove created some key differences between the two which he passed along to Doerr. In fact, Grove’s name for them originally was “iMBOs,” for Intel Management by Objectives. MBOs were the brainchild of Peter Drucker and provided Andy Grove a basis for his eventual theory of OKRs. In the book Measure What Matters, John Doerr writes about “MBOs,” or Management by Objectives. Since then, many companies have adopted them, including Google, Allbirds, Apartment Therapy, Netflix, and inspiring nonprofits like Code for America. The OKR methodology was created by Andy Grove at Intel and taught to John Doerr by him. Once they are all completed, the Objective is achieved. Where an Objective can be long lived, rolled over for a year or longer, Key Results evolve as the work progresses. At the end of the designated period, typically a quarter, we do a regular check and grade the Key Results as fulfilled or not. You either meet a Key Result’s requirements or you don’t - there is no gray area, no room for doubt. Most of all, they are measurable and verifiable. Effective KRs are specific, time-bound, and aggressive yet realistic. Key Results benchmark and monitor how we get to the Objective. When properly designed and deployed, they’re a vaccine against fuzzy thinking and ineffective execution. By definition, Objectives are significant, concrete, action oriented, and (ideally) inspirational. I will (Objective) as measured by (Key Results).įor example, “I will fix the website for the vast majority of people as measured by 7 out of 10 people being able to get through, a 1-second response time, and a 1% error rate.”Īn Objective is simply what is to be achieved, no more and no less. OKRs are typically written with an Objective at the top and 3-5 supporting Key Results below it. Want to get started on creating OKRs for yourself or your organization? Take our OKRs 101 course! What are the components of an OKR? Objectives and Key Results They can also work for personal goals and can even be used by individuals to get things done at places where senior leadership doesn’t use them. Whether talking about office operations, software engineering, nonprofits or more, OKRs work the same for setting goals throughout many company levels. OKRs are how you track progress, create alignment, and encourage engagement around measurable goals. OKRs stand for Objectives and Key Results, a collaborative goal-setting methodology used by teams and individuals to set challenging, ambitious goals with measurable results. In this article we’ll define an OKR, look at how they’re used and provide some examples of OKRs. OKRs are used by some of the world’s leading organizations to set and enact their strategies. OKRs are an effective goal-setting and leadership tool for communicating what you want to accomplish and what milestones you’ll need to meet in order to accomplish it. “OKR” stands for Objectives and Key Results.
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