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 Targets, Key Outcomes.
Its origins may be traced again to Peter Drucker in 1954 and the invention of MBO (Administration by Targets). MBO was then largely utilized by Intel and later turned widespread via John Doerr, an ex-Intel worker and early advisor to the 2 Google founders. Since then, it has grow to be widespread and often known as OKRs.
OKRs break down into your:
Goal: the aim we want to obtain, and;
Key outcomes: measurable outcomes that point out whether or not we’ve achieved our aim or not.
OKRs are designed to explain an consequence — the influence you want to obtain however not the how.
A standard mistake is describing an output slightly than an consequence as your OKR — one thing like “Launch app x” shouldn’t be an OKR, it’s not the target — it’s an output, as an alternative launching app x to realize blah — that’s your consequence.
🔥Professional tip #1: For those who 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 more likely to be the end result you’re attempting to realize.
The second essential a part of an OKR is the important thing outcome you count on 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 objectives.
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?
