What’s an OKR?

Objectives and key results

OKR is a framework for goal-setting. It was introduced by Andy Groove at Intel in the 1970s. Set an Objective and measure it with concrete numbers, aka Key Results.

OKRs example for:

• Sales Manager:
  • Hit 310 demo calls this quarter - 0/310
  • Bring back 20 old customers by calling them - 0/20
• Marketing:
  • Grow LinkedIn engagement by 200% - 0/200

• OKRs ensures that everybody has the same goal and works towards it.
• You can apply OKR on different timeframes, but at CUTR we use quarterly OKR.
• Writing down goals raises the chance of completing them.

Setting OKRs

• Setting higher goals pushes you to the limit and makes you more engaged.
• Note the difference between committed goals and aspirational goals. Aspirational goals should stretch performance and should be completed to 70% in the best-case scenario.

How to score OKRs

• Score OKRs: after a cycle, mark what was achieved and note what you would do differently next time. A low score should raise the question, "Should I still pursue this? If so, what can I change to achieve this?".
• Assess OKRs based on their purpose. If you had an OKR to read 5 books, but you read 5 books with 50 pages, then rate that OKR as 0.5, not 1.0.
• If you had an OKR to bring in 10 customers, but a customer brought other 9 customers, the bar was too low, and the OKR can be marked with a low score.
• Reflect on OKRs after completing a cycle.

Leading an OKR driven culture

• Leaders should focus on the importance of a goal and the faith that it is attainable.
• The new management standard relies on CONTINUOUS PERFORMANCE MANAGEMENT. This can be done with the help of CFRs - Conversations, Feedback, and Recognition. This is why regular 1-on-1s are recommended between the team lead and the employees.
• Always give recognition for advancing an OKR, even for little progress.
• Andy Grove, in “High Output Management”, said that culture is a set of values and beliefs, as well as familiarity with the way things are done and should be done in a company.
• If everything is green, we failed.