OKR (Objectives and Key Results) is a methodology that was created by former Intel CEO Andrew S. Grove. However, it only became known in 1999, when one of Google's investors, John Doerr, introduced it to a group of company employees.
The intent of this methodology is to guide business efforts towards critical measurable goals. The OKR management model seeks to establish clear directions to reach the numbers that indicate the growth of a company. OKR has two formulas as pillars: “I will” (goal) and “measured by” (set of key results).
Our objective in this text is to explain to you the importance of this methodology and how they help companies, whether small or large, to have above-average results in digital.
One of the reasons for the lack of consistency in many companies is that they are only concerned with the pace of the market and neglect efficient management. The lack of a solid management model that can be easily applied is one of the biggest bottlenecks that can harm a business.
The OKR methodology comes to meet this need in a simple and practical way. As mentioned before, this method has two management pillars which are the objectives and the key results.
The first presents a clear direction of what the business intends to achieve. The second are smaller goals that directly help in achieving the main target. They serve as a parameter to determine how close the company is to achieving a goal.
See an OKR example for clarity.
Goal #1: Become an authority on the market.
KR #1: Rank #1 on Google for a specific keyword;
KR #2: reach 10 thousand newsletter subscribers;
KR #3: Form 5 successful co-marketing partnerships;
KR #4: Increase by 50% the number of customers who found out about the company through digital channels.
When OKRs are defined by a team, it becomes easier for everyone to understand their importance and the efforts that need to be made to achieve them. In addition, with this method it is possible to evaluate in a more concrete way the results obtained over time and make the necessary adjustments.
There are several benefits of applying the OKR methodology in business. It differs in some aspects in relation to traditional methodologies. Some of them are:
With all this information, it became easier to understand how the OKR methodology is so important for efficient management. At 4leads, we use this method so that we can focus and measure results, adjusting the processes whenever necessary. In this way, we are able to deliver an even better job to our customers.
Visit our website and talk to our specialist to learn more about our work. Follow us on social media to keep up with other content.