Objectives and Key Results (OKR) is a collaborative goal-setting framework. They are used by teams and individuals to set challenging, ambitious goals with measurable outcomes. 

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Understanding
OKR

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What are OKRs?
• Objectives and Key Results
(OKR) is a collaborative goal-
setting framework
• It is used by teams and
individuals to set challenging,
ambitious goals with
measurable outcomes.

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Understanding
Objectives
• Objectives is simply what is to be
achieved, no more and no less.
• Objectives are significant, concrete,
action-oriented, and (ideally)
inspirational.

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Understanding Key
Results
• Key Result(s) defines and monitor how we
will achieve the objective.
• Effective Key Results are:
 Measurable with specific target and start
value.
 Time-bound
 Aggressive yet realistic.

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Why Companies Use
OKRs?

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Potential Impacts Of
OKRs
Reduces Time to deploy
execution plans & goals by
90 days
Enhances Cross-functional
Collaboration &
accountabilities
Brings Order to a
chaotic environment
Experience increase in
Revenues without
additional investments
Increase Execution
Velocity across teams
Clear Visibility Of
Execution across all
levels

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How to implement OKR
Successfully
• Define the purpose of OKR implementation with leadership –
be on the same page.
• Discipline of creating & updating OKRs - Combine OKRs
with quarterly performance reviews.
• First time OKR implementers – cover team members till level
3, max 4. And then rollout to other team members.
• Proper mix of individual and team OKRs - avoid cascading.
• Keep it simple – avoid chasing everything, learn the art of
focusing few with highest impact on growth.

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OKR Examples

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OKR combines Outcomes
& Efforts at one place
Outcomes
(Performance
Measures)
Efforts
(Action Plans)
OKR

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Examples - Outcomes & Effort
Outcomes (means Business
KPIs)
Effort (means Action
Plan)
1. Outcomes are business KPIs or
metrices that you want to achieve.
2. Few of the common outcomes are:
1. Revenue, COGS, Profit numbers to
be achieved.
2. Customer Satisfaction(NPS) to be
achieved.
3. Hiring Numbers to achieve.
4. Employee Satisfaction(ESAT) to be
achieved.
1. Effort are the action plans that needs
to be executed to achieve the defined
outcomes.
2. The action plans are executed by
individual or by team.

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OKR Example - 1
OBJECTIVE
Our share of revenue from New Stores to be INR. 60.7 Cr by Q4
KEY RESULTS
• Total revenue share from new stores to be Rs 60.7 Cr in Q4 OUTCOM
E
• Prepare SOP document for new store opening EFFORT
• Setup 5 stores by march-31 EFFORT
• Hire 8 people in central ops team by Jan 15th EFFORT
• Create new product that integrates dealer, central ops with online leads
by Feb 5th
EFFORT

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OKR Example - 2
OBJECTIVE
Enhance Sales Effectiveness by Q3
KEY RESULTS
• NPS of new training module >=8 OUTCOM
E
• Develop the sales training module by Oct, 15th EFFORT
• Complete training of all filed sales executives in north zone by end of
Nov,30th
EFFORT
• Conduct assessment of all sales executive by Dec,31st. EFFORT

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OKR Example - 3
13
OBJECTIVE
Acquire 3000 leads (or signups) by end of Q1
KEY RESULTS
• Deliver 1000 leads through direct mail campaigns by end of Q1 OUTCOME
• Deliver 2000 leads through online campaigns by end of Q1 OUTCOME
• Hire 3 people in the lead generation team by 25th April EFFORT
• Get all the 6 campaigns copyrights team by 3th May EFFORT
• Launch 6 targeted online campaigns to achieve 2000 leads by end of
Q1
EFFORT
• Get the content for direct mail campaigns from copyrights team by EFFORT

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OKR Example - 4
OBJECTIVE
Improve our Employee Retention by Q2
KEY RESULTS
• Reduce attrition from 15% to 13% OUTCOME
• Introduce the quarterly 1-On-1 process across teams EFFORT
• Conduct the Upward feedback(Managerial effectiveness Scan) EFFORT
• Submit plan to conduct the managerial effectiveness training based
on Upward Feedback findings
EFFORT

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