{"id":14177,"date":"2020-09-03T15:09:11","date_gmt":"2020-09-03T19:09:11","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=14177"},"modified":"2020-09-12T21:57:01","modified_gmt":"2020-09-13T01:57:01","slug":"define-okr","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/define-okr\/","title":{"rendered":"Define OKR: Everything You Need to Know"},"content":{"rendered":"\n<p>How do you define OKR? What is the OKR definition, and how can you use OKRs in your business?<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shortform.com\/blog\/what-are-objectives-and-key-results\/\">OKRs are<\/a> a type of metric that stands for Objectives and <a href=\"https:\/\/www.shortform.com\/blog\/key-results-measure-what-matters\/\">Key Results<\/a>. OKR objectives help companies set, track, and adapt their goals. <\/p>\n\n\n\n<p>Keep reading to further define OKR, and find out how OKR objectives work. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Define OKR<\/strong> and Its Components<\/h2>\n\n\n\n<p>How do you define OKRs? <strong>OKR stands for <a href=\"https:\/\/www.shortform.com\/blog\/product-principles\/\">Objectives and Key Results<\/a>.<\/strong> They help companies, teams, and individuals set, measure, and <a href=\"https:\/\/www.shortform.com\/blog\/goal-reflection\/\">reflect on goals<\/a> in a structured, meaningful way. This is the first step in understanding the OKR definition. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Objectives<\/strong><\/h4>\n\n\n\n<p>What does OKR mean when it comes to objectives? The objective is the goal, what the company, team, or individual aims to achieve. In other words, the objective is the \u201cwhat.\u201d<\/p>\n\n\n\n<p>Objectives:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>State the overall goal or vision<\/li><li>Must be tangible, concrete, and objective<\/li><li>Must be action-oriented<\/li><\/ul>\n\n\n\n<p>Example: Hire new employees to meet the needs of the expanding organization.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Key Results<\/strong><\/h4>\n\n\n\n<p>What does OKR mean when talking about key results?<strong> Key results are benchmarks toward the objective.<\/strong> In other words, key results are the \u201chow,\u201d the steps you need to take to meet your goal.<\/p>\n\n\n\n<p>Key results:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>State the measurable sub-goals that, if achieved, will collectively result in achieving the objective<\/li><li>Usually include numbers (revenue, market share, active users, growth, and so on)<\/li><li>Are time-bound (they include specific deadlines)<\/li><li>Are black-and-white\u2014you either succeed in achieving a key result, or you don\u2019t<\/li><li>Are relatively challenging. If a key result seems easy, it, or your objective, may not be ambitious enough<\/li><\/ul>\n\n\n\n<p>Example:<\/p>\n\n\n\n<p><strong>Objective: <\/strong>Hire new employees to meet the needs of the expanding organization.<\/p>\n\n\n\n<p><strong>Key Result #1: <\/strong>Meet with 3 candidates this month for the role of director of finance and hire 1.<\/p>\n\n\n\n<p><strong>Key Result #2: <\/strong>Meet with 5 candidates this quarter for the role of marketing manager and hire 1.<\/p>\n\n\n\n<p><strong>Key Result #3: <\/strong>Meet with 5 candidates this quarter for the role of product manager and hire 1.<\/p>\n\n\n\n<p>Using this OKR meaning, companies that use this system have OKRs at every tier: Top-line OKRs for the entire company, division OKRs, team OKRs, and <a href=\"https:\/\/www.shortform.com\/blog\/personal-okr\/\">individual OKRs<\/a>. Everyone in the company creates OKRs, and everyone\u2019s OKRs are visible to everyone else. Now that you know that answer to the question &#8220;what does OKR mean?&#8221; you can think about how it compares to <a href=\"https:\/\/www.shortform.com\/blog\/traditional-leadership\/\">traditional management<\/a> systems. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Traditional Management Systems v. OKRs<\/strong><\/h3>\n\n\n\n<p>Your company likely uses a traditional management system with the qualities listed below. Compare it to the OKR meaning:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Traditional Management Systems<\/strong><\/td><td><strong>OKRs<\/strong><\/td><\/tr><tr><td>Key question: What\u2019s the goal?<\/td><td>Key questions: What\u2019s the goal, and how will we get there?<\/td><\/tr><tr><td>Goals reviewed annually<\/td><td>Goals reviewed quarterly or monthly<\/td><\/tr><tr><td>Objectives are private<\/td><td>Objectives are public (even those of the CEO)<\/td><\/tr><tr><td>Alignment is top-down (objectives trickle down from the CEO to frontline employees)<\/td><td>Alignment is top-down, bottom-up, <em>and <\/em>horizontal<\/td><\/tr><tr><td>Success of objectives is tied to compensation<\/td><td>Success of objectives is (mostly) divorced from compensation<\/td><\/tr><tr><td>System encourages risk-aversion<\/td><td>System encourages risk-taking<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>How to Implement OKRs for focus: <\/strong>Create OKRs at the organizational level, the departmental level, the team level, and the individual level. At each tier, create no more than 5 sets of objectives and key results. Limiting the number of OKRs keeps you focused on what matters most. This also helps you define OKRs for your personal use. <\/p>\n\n\n\n<p>This OKR superpower has two facets: 1) focus on your priorities, and 2) commit to the <a href=\"https:\/\/www.shortform.com\/blog\/okr-methodology\/\">OKR process<\/a>. We\u2019ll look at \u201cfocus\u201d first to help you define OKRs. <\/p>\n\n\n\n<p>There are 3 steps to creating OKRs that focus your attention<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Identify your objectives<\/li><li>Identify your key results<\/li><li>Check the quantity and quality of your OKRs<\/li><\/ol>\n\n\n\n<p>Now you can define OKRs, and explain the OKR definition to others. The next step is to begin using OKR objectives in your business. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>How do you define OKR? What is the OKR definition, and how can you use OKRs in your business? OKRs are a type of metric that stands for Objectives and Key Results. OKR objectives help companies set, track, and adapt their goals. Keep reading to further define OKR, and find out how OKR objectives work.<\/p>\n","protected":false},"author":5,"featured_media":14186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[121],"class_list":["post-14177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-measure-what-matters","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Define OKR: Everything You Need to Know - Shortform Books<\/title>\n<meta name=\"description\" content=\"How do you define OKR? 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