{"id":15090,"date":"2022-10-07T12:16:00","date_gmt":"2022-10-07T11:16:00","guid":{"rendered":"https:\/\/www.theleansixsigmacompany.com\/uk\/?p=15090"},"modified":"2025-09-22T14:28:13","modified_gmt":"2025-09-22T13:28:13","slug":"okr","status":"publish","type":"post","link":"https:\/\/www.theleansixsigmacompany.com\/uk\/library\/okr\/","title":{"rendered":"OKR"},"content":{"rendered":"\n

OKR stands for Objective and Key Results, meaning the setting of objectives and results following a framework possibly wholly monitorable and measurable.<\/strong><\/p>\n\n\n\n

This working model is a projectual and strategic element, essential for any type of business, and the adoption of which has been largely completed by organizations, regardless of their geographical location or dimensions.<\/p>\n\n\n\n

Among the main strengths of the OKR framework, we can find a high transparency and a thorough visibility on the effectiveness of the management\u2019s decisions.<\/strong><\/p>\n\n\n\n

OKR: Strategic objectives with high precision<\/strong><\/h2>\n\n\n\n

Creating beacons to establish objectives and results means ensuring that each action and effort taken inside the company is correctly directed to the goals the management is aiming to.<\/p>\n\n\n\n

The more precisely OKRs are set, the easier it will be to monitor them<\/strong> and determine your progress on achieving them.<\/p>\n\n\n\n

Examples of correctly set OKRs:<\/em><\/strong><\/p>\n\n\n\n

    \n
  1. 20% sales increase of product X by Q3<\/em><\/li>\n\n\n\n
  2. Reducing total churn by 5%<\/em><\/li>\n<\/ol>\n\n\n\n

    Examples of not ideal OKRs:<\/em><\/strong><\/p>\n\n\n\n

      \n
    1. Increasing lead generation<\/em><\/li>\n\n\n\n
    2. Identifying and eliminating blockers that contribute to churn<\/em><\/li>\n<\/ol>\n\n\n\n

      Analysing these latter examples, number 1 is not an optimal OKR because it lacks precision, especially by not providing measurable and specific expectations on the achievement desired.<\/p>\n\n\n\n

      Example number 2, instead, is not right because it represents a step<\/strong> to take in order to achieve an OKR (being, for instance, OKR 2 from the former list of examples). Such step could be then better identified as a second-layer-goal to reach instead.<\/p>\n\n\n\n

      OKR VS KPI<\/strong><\/h2>\n\n\n\n

      If OKRs represent a group of goals and results, KPIs are metrics used in the same framework to achieve them.<\/p>\n\n\n\n

      KPIs (Key Performance Indicators) allow you to track progress on a project in a clear and reliable way, and indicate the relevant factors around it.<\/p>\n\n\n\n

      While the fulfillment of the OKR\u2019s framework gets measured following a 0-100 scale, the KPI indicators can be made measurable by quantitative, variable values.<\/p>\n\n\n\n

      Example of a Business Scenario<\/strong><\/h2>\n\n\n\n

      In an E-commerce of spares cars and moto parts a significant churn is observed, despite the marketplace seems to offer good perspective and possibilities.<\/p>\n\n\n\n

      OKR 1: <\/strong>Bringing churn from 10% to 5%<\/p>\n\n\n\n

      Key strategy points:<\/strong><\/p>\n\n\n\n