OKRs originated from Andy Grove and his process for tracking goals at Intel. John Doerr, a then-salesmen at Intel, carried the OKR framework to his new job at venture capital firm Kleiner Perkins. He introduced OKRs to Google—one of Kleiner Perkin’s investments—who, according to Google co-founder Larry Page, used them to propel 10x growth on multiple occasions. If you want to learn more about how Google uses OKRs, I recommended watching this presentation from Rick Klau and reading John Doerr’s book, Measure What Matters.
OKR stands for Objectives and Key Results. It's a goal management framework used by companies to implement and execute strategy. Its benefits include improved focus on significant results, increased transparency, and better strategic alignment. An OKR consists of an Objective (the goal) and several Key Results (the outcomes needed to achieve the goal). Initiatives, comprising various projects and tasks, are undertaken to achieve these Key Results. The framework aids in prioritizing, aligning, and measuring work, bridging the gap between strategy and execution, and shifting from an output- to an outcome-based work approach.
OKRs have two main components:
An Objective is a future goal or destination, setting a direction but not technical or metric-focused, ensuring clarity for everyone involved. Think of it as a point on a map, a destination like New York. It answers the question “Where do I want to go?”
A Key Result is a measurable outcome needed to reach an Objective. It includes a metric with a starting and target value, acting like a signpost indicating proximity to the Objective. It answers the question “How do I know if I’m getting there?”
A Key result consists of the following elements: