What are OKRs (objectives and key results)?
A goal-setting method that starts with a directional objective, then uses a few measurable key results to judge whether it has been achieved.
In detail
The O (Objective) is a goal that sets a direction and inspires commitment; the KRs (Key Results) are 2 to 4 measurable outcomes used to judge whether the objective has been met. OKRs are usually set quarterly, shared openly within the team, and encourage ambitious goals.
For example
Objective: get orders to customers faster. Key result 1: cut average shipping time from 48 hours to 24 hours. Key result 2: halve the number of orders delayed by stockouts.
How companies use it
Use them where breakthroughs and change are needed, as a complement to KPIs that measure day-to-day operations. At the end-of-quarter review, focus on what was learned and what comes next, not just on scoring.
Common misconceptions
Tying OKRs directly to bonuses. People then tend to set safe goals, which defeats the purpose of OKRs as a way to encourage ambition.
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