Let’s first guarantee we’re all on the identical web page with what OKRs and KPIs are.
OKR is an acronym that stands for Aims, Key Outcomes.
Its origins will be traced again to Peter Drucker in 1954 and the invention of MBO (Administration by Aims). MBO was then largely utilized by Intel and later grew to become widespread by means of John Doerr, an ex-Intel worker and early advisor to the 2 Google founders. Since then, it has grow to be widespread and often called OKRs.
OKRs break down into your:
Goal: the purpose we want to obtain, and;
Key outcomes: measurable outcomes that point out whether or not we’ve achieved our purpose or not.
OKRs are designed to explain an final result — the affect you want to obtain however not the how.
A typical mistake is describing an output reasonably than an final result as your OKR — one thing like “Launch app x” just isn’t an OKR, it’s not the target — it’s an output, as an alternative launching app x to realize blah — that’s your final result.
🔥Professional tip #1: If you happen to ever end up on this entice, merely ask “why?” — why are we launching app x? What profit are we anticipating to see? The solutions to those questions are prone to be the end result you’re attempting to realize.
The second essential a part of an OKR is the important thing end result you anticipate to see — in different phrases, how will you measure the end result? Fluffy statements like “drive buyer engagement” are neither helpful nor measurable. Key outcomes have to be measurable, like “improve retention by 5%” — assume SMART targets.
OKRs can be utilized in any respect ranges, from high-level firm OKRs to low-level Product improvement OKRs.
Okay, in order that’s OKRs out of the way in which; what about KPIs?
