What is OKR? Management by objectives and key results

Objectives and Key Results (OKR) is a unique management method that helps businesses achieve outstanding success through setting clear and measurable goals. Widely applied by leading companies such as Google , Intel , and FPT , OKR creates a "compass" for teams and organizations.

What is OKR?

OKR stands for Objectives and Key Results . This is a modern management model that supports setting and tracking large goals, along with measurable results to evaluate progress. OKR has a basic structure including:

1. Objective - An overall result you want to achieve .
2. Key Results - Key Results : Indicators that accurately measure progress toward goal achievement.

For example:

• Objective : Improve customer satisfaction.
• Key Results :
• Increase customer satisfaction score by 90%.
• Reduce issue resolution time to under 24 hours.

OKR Classification

In practice, OKRs can be divided into two main types:

1. OKR commitment

These are goals that the organization is 100% committed to achieving. OKRs help teams focus on realistic, important, and core goals, often asking questions like: “Is this goal important and measurable?”

2. Extended OKR (aspirational)

Stretch OKRs , also known as aspirational goals, are goals that are difficult to achieve 100%, but encourage innovation. This is an opportunity for businesses to take on big challenges, pushing the limits. A stretch OKR that only reaches about 70% is considered successful.

5 Benefits of Applying the OKR Model

OKRs provide focus and clear direction to your team, helping them avoid getting lost in the myriad of tasks. Here are 5 key benefits:

1. Focus – Focus : With OKR, the organization only focuses on a limited number of goals, maximizing work efficiency.
2. Alignment – ​​Helps goals from individuals to organizations to move towards a common destination.
3. Commitment – ​​When employees participate in building OKRs, they will be more committed to the goal .
4. Tracking – Regularly measure progress to ensure consistency and quickly adjust when needed.
5. Stretching – Push employees to push themselves beyond their limits with ambitious goals.

Example of OKR model

1. Company Level

• Objective : To become a leading company in the technology industry.
• Key Results :
• Revenue growth up 20%.
• Increase the number of new customers by 10%.
• Launched 3 new products this year.

2. Department Level

• Objective : Develop new products.
• Key Results :
• Complete product A in 6 months.
• Reach 10,000 trial users in 3 months.

3. Personal Level

• Objective : Develop new features for product A.
• Key Results :
• Complete S function in 2 months.
• Achieved 5/5 customer satisfaction score for new feature.

OKR Model Principles to Remember

For OKRs to work effectively, organizations need to adhere to core principles. These principles help ensure focus, transparency, and commitment from the entire team, towards a common goal in a sustainable way.

1. Limited goals : Only set 3-5 goals at a time to avoid overload.
2. Transparency : OKRs need to be public within the organization to ensure accountability.
3. Set multidimensional goals : Each member needs to set their own goals and make sure they are relevant to the team.
4. Not for employee evaluation : OKR is not a tool for punishment but for tracking progress.
5. Empowerment and accountability : OKRs require autonomy from individuals and alignment across departments.

Building and implementing OKR in practice

To successfully implement OKRs in practice, businesses need a clear and sequential process. From defining goals to evaluating, these steps help ensure that everyone understands, commits to, and works towards a common goal. Below are specific steps to build and implement effective OKRs.

• Define goals : Need to be specific and measurable.
• Identify key results : KRs need to link together to create the big picture.
• Dissemination and communication : Make sure everyone is clear and committed to the common goal.
• Monitor and evaluate : Continuously monitor to adjust and optimize performance.
• Iteration : The cycle is usually 3 months to allow for quick adaptation and ensure continuous updates.

Notes when building OKR model

1. Understand OKRs : Clear training on process and how.
2. Don't set too many OKRs : Focus on what really matters.
3. Ensure connectivity between levels : All levels need to be closely connected to each other.
4. Regular monitoring and evaluation : Timely adjustment.
5. Leadership commitment : Leadership needs to lead by example and support OKRs.

Large businesses have successfully applied OKR

Many leading companies have adopted OKRs for continuous growth and innovation. Through OKRs, these companies achieve high focus and drive overall performance. Here are some notable examples of successful OKR implementation .

• Google : OKR has helped Google continuously grow and innovate. Thanks to the focus of OKR, Google has built great products like Gmail, YouTube.
• Intel : A pioneer in using OKRs to drive the transition to microprocessor manufacturing.
• FPT : In Vietnam, FPT has applied OKR to improve work efficiency and increase product development speed.

Some frequently asked questions about OKR

1. Which businesses does the OKR model apply to?

OKR is flexible and applicable to all types of businesses from small, medium to large. Regardless of size, OKR still helps to clearly direct and promote efficiency.

2. How is OKR different from KPI?

• OKR : Focus on big goals and measure by key results.
• KPI : Is an index to measure and monitor performance according to a specific direction of the company.

3. How to write effective OKRs?

To write effective OKRs, make sure they meet the SMART criteria : Clear, Measurable, Attainable, Relevant, and Time-bound.

4. What percentage of progress makes OKR successful?

With stretch OKRs, hitting 70% is a success. Commitment OKRs often ask for 100%.

In short , OKR is not only a management tool but also a “compass” that guides every organization. Applying OKR properly will bring strong connections, promote creativity and long-term success for your organization.

Brand Manager – Specializing in Providing Comprehensive Marketing Services for Brands

OKR is a goal management method that has been used by many leading brands to guide strategy and optimize results. In the field of Brand Marketing , Brand Managers play an important role in applying OKR to clearly define marketing goals , from building brand awareness to increasing customer loyalty. With the mission of providing comprehensive marketing services , Brand Managers use OKR to ensure that campaigns are consistent, measurable and directed towards the core values ​​of the brand.

In addition to defining strategies, Brand Managers also use OKRs to create detailed action plans, helping to break down larger goals into more achievable steps for each marketing campaign. This allows the marketing team to work in sync, focusing on key results to optimize budget and time. Thanks to OKRs, Brand Managers can monitor progress and quickly adjust strategies when needed, ensuring that all efforts are directed towards enhancing brand value and optimally meeting customer needs.