OKR: getting started with this guide for beginners

Goal and Key Results (OKR) is a goal setting framework that has grown in popularity over the past decade, and is now the most popular goal setting method for many hypergrowth startups.

But with so many goal-setting frameworks, what sets OKRs apart? Why do companies like Google and LinkedIn attribute their success to OKRs?

What sets OKRs apart is that they drive focus, alignment, visibility, and accountability in execution, which helps fast-growing companies execute quickly as they grow. they evolve and contribute to the creation of a results-oriented culture.

Here's a deeper dive into OKRs and how to get started with them.

What are OKRs?

OKRs help you set challenging and challenging goals with measurable key results. They can help set corporate, team and individual goals.

In combination with your business strategy, OKRs track progress. They make sure everyone on your team is aligned on critical goals and meeting expectations.

Goals

Objectives determine what you are trying to accomplish. They must be SMART (specific, measurable, achievable, relevant and time-bound). A goal is the desired business outcome. It must therefore be inspiring, specific, action-oriented and aligned with your company's strategies.

EXAMPLE: A goal could be "Get SEO to top 3 revenue generation channels by the end of Q2"

Principle results

These determine how you want to measure progress. You need to take a few steps to achieve your goals, and the key results identify the specific actions you need to take to achieve those goals. Key results are always quantifiable and time specific, yet realistic and empirical.

initiatives

Initiatives are achievable, time-bound efforts to achieve your goals and key results. They tell you exactly what you need to do to hit your OKRs. Basically, OKRs are your roadmap for what you want to achieve, and initiatives are what you'll need to do to walk the roadmap.

OKR History

In 1954, Peter Drucker introduced the concept of management by objectives (MBO) in his book The Practice of Management. Andrew Grove, the co-founder of Intel, was inspired by this concept and proposed the OKR framework in 1970.

In 1974, John Doerr discovered the concept while working at Intel and introduced OKRs to Google in 1999. Since then, OKRs have been adopted by many organizations around the world, such as Google, Spotify , LinkedIn, Intel, Microsoft, Netflix, Accenture, Dropbox, Oracle, Deloitte, Bills and Melinda Gates Foundation, Twitter and Airbnb.

5 OKR Superpowers

With the right strategic direction, your business can achieve great results. Seventy-six percent of successful companies confirmed that they always focus on a limited set of strategic initiatives to achieve their goals.

OKRs, formed in conjunction with your strategic priorities, keep your teams focused on what matters, saving you time and money wasted on distractions.

Alignment

Strongly aligned businesses experience 58% faster revenue growth and are 72% more profitable than misaligned businesses.

OKRs are formed taking into account dependencies and alignment between teams. They align with overall business goals and can contribute to your organization's strategic and cross-functional alignment.

Commitment

OKRs drive a results-oriented mindset in your teams, empowering them to work autonomously and take ownership of the results they achieve. It keeps your teams motivated and committed to doing their best without micromanaging.

Followed

Tracking metrics quantify success and hold employees accountable. They give you the space to recognize and work on deficits, celebrate victories and promote strengths. Plus, who doesn't want to know if they're successful or stuck?

OKRs are measurable and can therefore be tracked and monitored. They are transparent and make everyone's performance public, which allows your teams to remain accountable while being involved.

Elongation

To determine how far your teams can go, you have to experiment and push their limits - and OKRs do that for you.

With stretch goals, OKRs lead to innovations. They encourage setting ambitious goals. Stretched OKRs are always...