OKRs (Objectives and Key Results) and organizational goals are essential strategic tools that companies use to drive and measure success in business initiatives. Organizational goals are broad, strategic objectives that outline a company’s vision and the key outcomes needed to achieve success. They serve as guiding principles for all departments and teams.
OKRs, on the other hand, provide a structured framework for setting and tracking goals. They consist of two main components: Objectives and Key Results. Objectives are qualitative, inspirational statements that define what an organization aims to achieve. Each objective typically has multiple key results, which are measurable outcomes that indicate progress toward the achievement of that objective.
Objectives Example:
Objective: Increase customer satisfaction.
Objectives are broad, qualitative, and inspirational statements that define what the organization wants to achieve.
Key Results Example:
For the objective “increase customer satisfaction,” the key results could include:
- Improve the Net Promoter Score (NPS) from 75 to 90.
- Achieve a 97% positive feedback rate from customers on support tickets.
Key results are quantitative, measurable outcomes that indicate how the organization will achieve the stated objectives. They are specific and actionable, providing a clear way to track progress.