Objective and key results (OKRs) are a goal setting framework that arose out of Intel in the 1970s and is a refinement of management by objectives (MBO)1.
An objective is what the company wants to achieve, i.e. the goal. Key Results are the how: the path to the goal. Objectives should be big and motivating. Key Results should be measurable2, and therefore have metrics that can be tracked in a dashboard.
Differentiate between aspirational OKRs and committed OKRs. The former have unclear paths to success or even may be unachievable (they should have about a 70% success rate). In contrast, committed OKRs are expected to be delivered and success rate should be a 100%. Finally prefer a small number of OKRs over a laundry list2.
OKRs are useful because: 1) Concrete actions that explicit layout actions and metrics for the strategy 2) Cadence of progress 3) Creates alignment 4) The quarterly creation and grading cadence creates a learning cycle
OKRs define the big rocks that we want to move in a quarter. The atomic unit of an OKR is: âWhat am I doing this week to get closer to our strategic goals?â.
OKRs are quarterly because it is enough time to accomplish something but not enough to forget what we are doing.
Mission vs. Vision vs. OKRs
Mission: what would like to see happen in five years Strategy: how are we going to achieve the mission, what are we doing this year and then break into quarters which will become OKRs. This is like a half built strategy. OKRs: At a quarter you evaluate your progress agaisnt goals
Use the test of âHow do we knowâ when evaluating an objective to determine what the success criteria is of a wishy-washy objective.
Critique of OKRs
âA team sets OKRs based on what they believe they can do, regardless of how much is actually neededâ3
1. Sparks, R. OKRs: The Ultimate Guide. https://www.atlassian.com/agile/agile-at-scale/okr.
2. Doshi, R. 10 Tips For Using OKRs Effectively. https://rushabhdoshi.com/posts/2020-06-18-10-tips-for-making-okrs-effective/?__readwiseLocation= (2020).
3. Danger, J. Executive Engineering: Practical Engineering Theory for Software Leaders. (The Technical Executive, 2024).