OKR (OBJECTIVES & KEY RESULTS) FOR ENTREPRENEURS

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OKR stands for Objectives and Key Results, which translates as Objectives and Key Results. It is a a management methodology used to define clear and measurable objectives and to measure progress towards their achievement. It consists of setting individual and team objectives, as well as the key results that must be achieved in order to reach those objectives. OKRs are a a very popular tool in technology companies and startups, but they are also used in other companies and organisations.

OKR for entrepreneurs

OKR (Objectives and Key Results) is an objectives management methodology used to set specific and measurable objectives in an organisation and measure progress towards their achievement.

Here are some techniques and tools related to OKR:

1. Target setting SMART (+): Before starting to work with OKR, it is important to set SMART (Specific, Measurable, Achievable, Relevant and Timely) objectives. This ensures that objectives are clear and precise, making it easier to measure progress and make decisions. 
2. Define key results: key results are the indicators that measure progress towards the achievement of the objective. It is important to define key results in a clear and measurable way, so that they are easy to track and evaluate.
3. Use target management tools: There are several online goal management tools available, such as Asana, Trello, OKRSoftware, Profit or Weekdone. These tools help to set and track OKRs, as well as to measure progress towards achieving goals.
4. Periodic review: It is important to conduct periodic reviews of OKRs to measure progress towards the set objectives and to make the necessary adjustments to achieve the expected results.
5. Effective communication: Communication is critical to the success of OKR implementation. It is important to communicate objectives and key results to all team members, as well as to establish regular meetings to review progress towards achieving the objectives.

In general, OKR-related techniques and tools focus on setting clear and measurable objectives and measuring progress towards their achievement. This helps companies to focus on results and establish effective action plans to achieve their objectives.

How do OKRs help to establish action plans?

The OKRs (Objectives and Key Results) are an effective tool for establishing action plans as they allow the definition of clear and measurable objectives, as well as key results that indicate whether or not progress is being made towards them. By setting objectives and key results, priorities and approaches for daily work can be established and the efforts of all people involved in achieving the same objectives can be aligned. OKRs also help to foster transparency and accountability, as everyone can see what is being worked on and how it contributes to the achievement of the company's objectives. In addition, OKRs allow monitor progress over time and adjust strategy and actions as necessary to achieve the objectives set.

okr for start-ups

For new companies, setting OKRs (Objectives and Key Results) can be a very useful tool to define and measure progress on their long-term strategic objectives.

HERE ARE SOME EXAMPLES OF OKRs THAT COULD BE RELEVANT TO A NEW COMPANY:

• OBJECTIVE: TO ESTABLISH THE COMPANY'S BRAND IN THE MARKETPLACE

• • Key result 1: Create a marketing and advertising plan for the brand in the next 3 months.
  • Key result 2: Establish a public relations team to build media relations and secure press coverage in the next quarter.
  • Key result 3: Increase the brand's presence on social media and gain 5,000 followers on Instagram in the next six months.

• OBJECTIVE: TO DEVELOP AN INNOVATIVE PRODUCT OR SERVICE

• • Key result 1: Conduct market research to identify customer needs and preferences over the next 2 months.
  • Key result 2: Develop a product/service prototype and receive feedback from potential customers within the next 3 months.
  • Key result 3: Improve the product/service based on the feedback received and launch in the next semester.

• OBJECTIVE: TO GROW THE CUSTOMER BASE

• • Key result 1: Create a referral programme to attract new customers in the next 3 months.
  • Key result 2: Develop a content marketing strategy to attract new customers in the next quarter.
  • Key result 3: Improve the user experience on the platform to increase customer retention in the next six months.

These are just a few examples of possible OKRs for start-ups. It is important to note that OKRs should be specific, achievable and measurable, and should be aligned with the company's vision and long-term objectives.

Example of OKR for a company seeking to internationalise:

GOAL: EXPAND OUR PRESENCE GLOBALLY AND INCREASE OUR INTERNATIONAL SALES BY 50% BY THE END OF THE YEAR.

• KR1: Identify and assess five new potential international markets by the end of the month.
• KR2: Establish contacts with at least three distributors in each identified international market by the end of the second quarter.
• KR3: Launch a website in English and in the local language of at least two new international markets by the end of the third quarter.
• KR4: Increase traffic to new websites by 30% by the end of Q4 through online and social media advertising campaigns.
• KR5: Secure a 50% increase in sales in newly identified international markets by the end of the year, compared to the same period last year.

Through the setting of specific objectives and key results (KRs), the company has a clear and measurable action plan to achieve its global expansion goal. Each KR is concrete and has a specific timeframe, which helps maintain focus and motivation within the team to achieve the overall goal. In addition, by monitoring the progress of each KR, the company can adjust its strategy and approach as it moves forward, increasing the chances of success in its internationalisation goal.

What is the main purpose of OKRs?

• The main purpose of OKRs is to set clear and measurable objectives and define key results to achieve those objectives. This helps to maintain the team's focus and alignment on the company's strategic objectives.

How are OKRs established?

• OKRs are established by defining specific, measurable, achievable, relevant and time-bound (SMART) objectives. Then, key results are defined that will enable the achievement of these objectives.

How is progress in OKRs assessed?

• Progress on the OKRs is assessed by periodically reviewing key results and comparing them to set targets. This is done by measuring key performance indicators (KPIs) and assessing progress towards key results.

What is the typical timeframe for OKRs?

• The typical timeframe for OKRs is quarterly. However, this may vary depending on the needs and culture of the company. The important thing is to establish a timeframe that allows for the definition and evaluation of objectives and key results in an effective manner.

OKR AND KPI ARE TWO DIFFERENT TOOLS USED IN BUSINESS MANAGEMENT.

OKR (Objectives and Key Results) focuses on setting ambitious and measurable goals to motivate and align teams, and then tracking progress through key results. The idea behind OKR is that ambitious goals can motivate and engage employees, and that tracking key results can provide rapid feedback and enable adaptation and learning.

On the other hand, KPIs (Key Performance Indicators) focus on measuring and monitoring the performance of a business in terms of specific goals and key metrics. KPIs are used to evaluate the effectiveness of actions taken by a company and make necessary adjustments to improve performance.

While OKRs focus on long-term goals and motivation, KPIs focus on measuring and monitoring the effectiveness of actions in a shorter timeframe. Both tools are useful in business management, but are different in their focus and purpose.

OKR. Objectives & Key Results aligning all members of a company around a common focus.

WHY USE OKR?

• TO INCREASE PRODUCTIVITY

We may know what the objectives are, but what activities are best suited to achieve them?

• FOR MORE MOTIVATION

We are happy to achieve what we set out to do. And if our objectives are aligned with those of the company, even more so.

• TO FEEL A SENSE OF PARTICIPATION AND INVOLVEMENT

Working together in a collaborative way we can achieve great results.

• TO UNDERSTAND THE VALUE OF TEAMWORK

Each person's objectives are aligned with those of his or her team and the company.

• TO ACHIEVE FULL TRANSPARENCY

The goals of everyone in the company are public and always visible.

• FOR BETTER PERFORMANCE MANAGEMENT

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Do you want your time to be more efficient? This system helps you to know if the job is well done:

• TO FOCUS ON WHAT REALLY MATTERS

This methodology sheds light on the way to find the right direction.

• TO CLARIFY PRIORITISATION

We focus our efforts on not getting carried away by the urgent, on knowing how to say 'no' to that which does not add value.

• TO ACHIEVE CONTINUOUS IMPROVEMENT

Every day is a challenge. We believe that self-evaluation is the best way to grow as a professional.

THE EXPERIENCE OF USING OKR:

• "Your work counts and with OKRs it becomes visible". María González, Co-founder of Routive.
• "OKRs give the team more independence and the possibility to make better decisions. Javier Jiménez, Co-founder of Tot-em.
• "OKR has made it easier for us to work remotely. Now we all have more autonomy, you don't wait to be told what to do". Pablo Postigo, Co-founder of FrontityK