HR glossary / O / Objectives and Key Results (OKR)

Objectives and Key Results (OKR)

Definition

Objectives and Key Results (OKR), is a performance management method aimed at improving the achievement of strategic goals within an organization. This concept involves setting ambitious objectives and specific, measurable outcomes (Key Results) that indicate how close we are to achieving a particular objective.

The OKR method promotes transparency and commitment to achieving objectives at all levels of an organization. Through it, every employee understands the company’s main priorities and how their work contributes to meeting those priorities.

Implementing OKRs fosters a culture of continuous improvement and adaptation. With regular OKR reviews, organizations can quickly respond to changing market conditions, and employees can adjust their approach to achieve the best possible outcomes.

FAQ

Why do organizations use OKRs?
Organizations use OKRs to better focus on their most important objectives and measure progress towards their achievement.

OKRs are typically set on a quarterly basis to allow for agility and responsiveness to change. However, the frequency can vary depending on the organization’s needs and the specific nature of the objectives. It is common practice to review progress on OKRs regularly – often weekly or monthly – to ensure they remain relevant and to address any challenges that arise during execution.

While both OKRs and KPIs are used to measure performance, they serve different purposes. KPIs are metrics that track the efficiency and success of ongoing activities against defined targets, often used to monitor the health of existing processes. OKRs, however, are goal-setting tools designed to push boundaries and drive significant forward progress. OKRs are set with the intent of fostering growth and transformation by setting ambitious goals aimed at leveraging opportunities and tackling challenges.

Uses

Strategic alignment

Ensures all team members and departments are working towards unified, strategic objectives that directly contribute to the company’s mission.

Focus and prioritization

Helps teams concentrate resources on high-impact activities that drive growth and improvement.

Transparency and collaboration

Increases organizational transparency by making company objectives and team progress visible to all employees, fostering a collaborative environment.

Agility and adaptability

Allows companies to remain agile, adjusting objectives and strategies quickly based on real-time data and market changes.

Performance and growth:

Drives performance by setting challenging goals that stimulate growth, innovation, and continuous improvement within teams.

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