what it is and how to apply this methodology
Posted: Mon Jan 06, 2025 5:40 am
Have you heard about OKRs ? If you are interested in productivity tools and new ways to achieve your goals, this topic will surely appeal to you.
Because it is not enough to have a goal in mind, but it is necessary to land it and translate it into specific objectives and achievable results.
In this article you will find what an OKR is , examples, how to make an OKR and how this methodology can help you focus on the results of your business.
What is an OKR?
An OKR is an internal work management methodology, focused phone leads on setting objectives and their key results. It consists of compiling objectives by organizing work in a company , thus contributing to the business growth strategy.
What does OKR mean?
OKR stands for “Objectives and Key Results”.
Who created OKRs?
The OKR methodology was born in the mind of Andrew Grove, former CEO of Intel in 1971, with the aim of focusing work on the company's main objectives.
The popularity of this model is the work of Google, who implemented this methodology in its business plan since 1999 and has brought tremendous results.
Learn more about a business plan:
Article
Business plan: what it is and how to make one easily
Image from: Business plan: what it is and how to make one easily
OKR vs KPI
If you are already familiar with the KPI (Key Performance Indicators) methodology , you may be wondering: “what are the differences between OKRs and KPIs ? ”
Perhaps the biggest difference between OKRs vs KPIs is that while KPIs focus on measuring the most important aspects of a business at the present moment, the OKR methodology focuses on the future .
We show you more differences between KPIs and OKRs in this table:
KPIs OKRS
They focus on the present They focus on the future
They measure the performance of collaborators or projects They drive objectives to achieve the proposed results
They are created by the leaders of an organization They are created as a team, usually by consensus.
OKR Examples
To give you a practical view of what these objectives are like, here are 2 OKR examples .
OKR example in an online store
Let's say you want to improve sales at your online store . In this case, an example of a KPI would be to increase e-commerce sales by 20% in the first quarter of the year.
Instead, an example of an OKR could be:
Objective > increase virtual store sales.
Key Result 1 > Increase the average ticket by 5%.
Key Result 2 > Create a promotional campaign to promote “x” product line.
Key result 3 > link the store with the main marketplaces , acquiring new sales channels.
OKR example on social media
Imagine you want to grow your community on Instagram. An example of a KPI would be: increase the number of Instagram followers by 50% in 6 months.
Instead, an example of OKR would be:
Objective > increase the number of Instagram followers.
Key Result 1 > Publish 2 reels weekly.
Key Result 2 > Promote a post every 15 days.
Key Result 3 > Launch an advertising campaign with two influencers .
As you can see, a KPI focuses on a specific aspect and represents the result of a process that already exists; while OKRs are a “package” of more ambitious objectives, which include key actions to reach the final goal.
Because it is not enough to have a goal in mind, but it is necessary to land it and translate it into specific objectives and achievable results.
In this article you will find what an OKR is , examples, how to make an OKR and how this methodology can help you focus on the results of your business.
What is an OKR?
An OKR is an internal work management methodology, focused phone leads on setting objectives and their key results. It consists of compiling objectives by organizing work in a company , thus contributing to the business growth strategy.
What does OKR mean?
OKR stands for “Objectives and Key Results”.
Who created OKRs?
The OKR methodology was born in the mind of Andrew Grove, former CEO of Intel in 1971, with the aim of focusing work on the company's main objectives.
The popularity of this model is the work of Google, who implemented this methodology in its business plan since 1999 and has brought tremendous results.
Learn more about a business plan:
Article
Business plan: what it is and how to make one easily
Image from: Business plan: what it is and how to make one easily
OKR vs KPI
If you are already familiar with the KPI (Key Performance Indicators) methodology , you may be wondering: “what are the differences between OKRs and KPIs ? ”
Perhaps the biggest difference between OKRs vs KPIs is that while KPIs focus on measuring the most important aspects of a business at the present moment, the OKR methodology focuses on the future .
We show you more differences between KPIs and OKRs in this table:
KPIs OKRS
They focus on the present They focus on the future
They measure the performance of collaborators or projects They drive objectives to achieve the proposed results
They are created by the leaders of an organization They are created as a team, usually by consensus.
OKR Examples
To give you a practical view of what these objectives are like, here are 2 OKR examples .
OKR example in an online store
Let's say you want to improve sales at your online store . In this case, an example of a KPI would be to increase e-commerce sales by 20% in the first quarter of the year.
Instead, an example of an OKR could be:
Objective > increase virtual store sales.
Key Result 1 > Increase the average ticket by 5%.
Key Result 2 > Create a promotional campaign to promote “x” product line.
Key result 3 > link the store with the main marketplaces , acquiring new sales channels.
OKR example on social media
Imagine you want to grow your community on Instagram. An example of a KPI would be: increase the number of Instagram followers by 50% in 6 months.
Instead, an example of OKR would be:
Objective > increase the number of Instagram followers.
Key Result 1 > Publish 2 reels weekly.
Key Result 2 > Promote a post every 15 days.
Key Result 3 > Launch an advertising campaign with two influencers .
As you can see, a KPI focuses on a specific aspect and represents the result of a process that already exists; while OKRs are a “package” of more ambitious objectives, which include key actions to reach the final goal.