What are OKRs? How are they relevant to Growth Planning?
Objectives and Key Results (OKRs) are a goal-setting framework used by organizations to define measurable goals and track their outcomes.
OKRs help align company efforts with specific, ambitious goals.
An Objective is a clearly defined goal set on a company or team level, while Key Results are measurable outcomes used to track the achievement of that goal.
This framework encourages companies to set goals that are challenging yet achievable, and it emphasizes measurable outcomes to gauge progress.
Example:
Consider an Indian ed-tech platform. Their 'Objective' might be to 'Become the leading online platform for competitive exam preparation in India by the end of the year'.
The 'Key Results' could include:
- 'Increase the number of registered users by 30%',
- 'Achieve a 40% increase in average study session lengths', and
- 'Attain a 90% student satisfaction rate'.
These Key Results are specific, measurable, and directly linked to the Objective, providing clear targets for the team.
Takeaways:
The Objectives set the direction and ambition level, while the Key Results provide a quantifiable way to track progress. This system allows businesses to be more focused, align teams towards common goals.
Tracking progress towards these Key Results would enable them to adjust strategies in real-time, ensuring they remain on track to achieving their overarching goal.