OKR (Objectives and Key Results) is a goal-management methodology that assists organizations, teams and individuals in establishing and achieving objectives in a relatively simple way. The purpose is to align, commit and keep all employees working in concerts, in search of challenging and measurable results. OKR is widely used by companies like Google, Intel, and other leading innovative organizations.

The main objective of OKR is to align the team around clear, measurable and inspiring goals, ensuring focus, transparency and engagement at all levels of the company. It is a goal-setting framework that helps teams and individuals set and monitor their objectives and measure progress toward achieving them. This involves setting clear objectives and inspiring, ambitious statements outlining goals.

Key Results are defined as measurable results that will indicate whether an objective has succeeded. OKR is made up of two elements: objectives and key results.

• Objectives are qualitative, ambitious, inspiring targets. They should be expressed in clear, understandable language and generate motivation. They answer the question, “What do we want to achieve?”
• Key Results: These are quantitative results that indicate whether the objective is being achieved. They must be specific, measurable and value based. They answer the question, “How will we know that we are achieving the goal?”

The application of the OKR methodology is developed in three fundamental stages:

1. Planning: Objectives and key results are established for a certain period (often quarterly or annually).
2. Monitoring: Progress against key results is tracked, verifying that goals are being met and adjusting actions as needed.
3. Debriefing: At the end of the period, performance is evaluated in relation to the established objectives and key results, providing an opportunity to learn from mistakes and successes for the next cycle.

The use of the OKR framework is a strategic practice that provides several benefits for the company, chief among them:

• Employee commitment: When well implemented, OKR provides clarity of purpose and autonomy for teams, increasing employee engagement and motivation.
• Organizational alignment ensures that everyone in the organization is working toward the same goals.
• Engagement motivates employees by setting realistic, challenging and measurable goals.
• Focus and priority: With OKR companies choose a limited number of objectives per cycle, forcing teams to focus on what is really important to prevent a scatter-shot approach.
• Transparency: Organizational OKR and individual OKR are visible to everyone in the company. This creates an environment of transparency, accountability, and collaboration.
• Scalability: It can be applied to companies of all sizes and sectors.
• Measurement of results: Key results are measurable, which allows you to track progress and understand whether objectives are being met. This makes performance more quantifiable and evaluation of performance based on data, not subjective impressions.
• Culture of continuous improvement: OKR is defined by cycles, which encourages constant reflection, learning and adjustments. This is essential for companies that want to be agile and adaptable.
• Agility and innovation: By allowing for short planning and review cycles, OKR drives innovation and helps the company adapt more quickly to market changes.

Many must be wondering: are there differences between the OKR method and KPIs? Yes!

While OKR defines objectives and key results to achieve success, KPIs (Key Performance Indicators) are used to measure performance against these objectives. OKR is broader and more strategic, while KPIs are generally more specific and operational.

To illustrate, here are some examples of OKRs:

• Objective: Company-wide commitment to sustainable practices and strengthened social responsibility.

Key Result 1: Reduce energy consumption at operating units by 15%

Key Result 2: Implement sustainable waste disposal policy at 100% of units by the end of the quarter

• Objective: A new product successfully launched.

Key Result 1: Reach 10,000 app downloads in the first two weeks.

Key Result 2: Get an average rating of 4.5 stars on the app.

Key Result 3: Reach 500 active users in the first month.

• Goal: Increased customer satisfaction.

Key Result 1: Reduce average customer response time by 20%.

Key Result 2: Increase customer retention rate by 10%.

Key Result 3: Improve customer satisfaction score by 15%.

In sum, as a methodology for the establishing of clear and measurable objectives, OKR is important for organizations seeking to promote team alignment and commitment, to develop and achieve superior results, and to ensure continuous improvement and company development.