OKR Elements with Examples

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John Doerr, a world-renowned venture capitalist, began his career at Intel and later invested in major companies including Google and Amazon. He was one of the initiators of the introduction of OKRs at Google, offering his own goal-setting formula: “I will achieve ___________, which can be measured by ___________.” An important element of the right priority is not only the result, but also the method of its measurement. The phrase “which can be measured by” emphasizes that without the ability to evaluate the result, the goal is just a wish.

Dorr's formula perfectly reflects the restaurants email list structure of the technology: "I will achieve (the set goal), which can be assessed through (specific key results)." Thus, from the name of the method itself, it is clear that OKR consists of 2 main elements: the goal and key results.

An objective is a clear and easy-to-remember description of the desired outcome. They should be concise, motivating, and engaging to inspire and challenge the team.

Key results are a set of metrics whose values ​​are adjusted in the process of achieving the goal. In order for the former to remain memorable, it is recommended to have from 2 to 5 metrics for each priority, no more.

Key results should always be quantifiable and measurable. As Marissa Mayer, former VP of Google, said, “No number means no key result.”

OKR Goal Setting Example #1
Start by stating your priority. For example:

Provide the user with an outstanding and satisfying user experience .

This sounds great, but how do you know if he has actually achieved this competency? Remember: if a goal can’t be measured, it’s just a wish. That’s why key results are essential.

What metrics can you use to measure how great your user experience is? Repurchase Rate and Net Promoter Score are great options. Are customers so satisfied with our service that they want to come back and recommend us to others?

OKR Goal Setting Example #1

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However, there is a possibility that focusing solely on NPS and customer retention can lead to a desire to please the user at any cost. Therefore, to balance the metrics, it is worth adding an inverse metric, such as Customer Acquisition Cost (CAC). It will help to monitor whether our users remain happy and costs are under control.

Let's see what it looks like in full:

Goal: To provide the user with an outstanding and satisfying user experience.

Key results:

achieve an increase in Net Promoter Score from X to Y;

increase the repeat purchase rate (Repurchase Rate) from X to Y;

maintain customer acquisition costs (CAC) below Y.

OKR Goal Setting Example #2
Now let's turn to the team developing a digital service aimed at increasing user engagement.

Target:

To give customers an unforgettable experience .

Key results:

reduce the proportion of returns (refusals) from X% to Y%;

increase Net Promoter Score from X to Y;

increase the frequency of visits of active users from X to Y per week;

increase the volume of organic traffic from X to Y;

stimulate the growth of engagement (the volume of users who filled out the profile) from X to Y.

Again, having key results helps you create realistic and successful OKR metrics: the goal is to increase the number of weekly visits, but not increase marketing costs.

Key results are critical. They help the team understand what exactly is behind the phrase “Give customers an unforgettable experience.” Other teams or companies may have the same goal, but with completely different key results.