The acronym OKR stands for Objectives and Key Results, a popular goal management framework that helps companies implement the strategy.
The benefits of the framework include improved focus, increased transparency, and better alignment. OKR achieves this by organizing employees and the work they do around achieving common objectives.
In today’s competitive business situations OKR (Objectives and Key Results) is considered the Agile methodology for managing goals. A successful business model is dependent on having clear, structured, and reliable data, which is a result of employing well-designed performance measurement metrics.
It is not enough to simply check up on our revenue, costs, and HR-related indicators – we need better, more flexible, and comprehensive methods for gauging our current status-quo. In other words, we need something like OKRs. The objective is to ensure that everyone moves in the same direction, with clear priorities, at a constant pace. OKRs have been a condition for investments in Startups, as it provides proportional predictability of strategic positioning and prioritization.
Some salient feature of OKR is to
- Improve the strategy execution of your company by identifying the main short-term objectives and key drivers of success.
- Increase employee accountability by enabling them to practice OKRs alignment and by fostering flexibility
- Obtain better business results by focusing on key stretched objectives for each quarter.
The biggest impact of using OKR in most organizations without goal management already in place, or those who focus purely on metrics and KPIs, is a cultural shift from output to outcomes. OKR creates focus, transparency, and alignment for all the work in an organization, thus these three factors combine and lead to increased employee engagement.