OKR stands for Objectives and Key Results. It is a collaborative methodology and a widely spread strategy for goal setting within the best and high growth organizations. The purpose of OKRs is to connect company, team, and personal goals to measurable results while having all team members working together in one unified direction.
OKRs were first introduced and defined in Intel by Andy Groove. And nowadays OKRs are a fundamental piece for guiding organizations like Google, LinkedIn, Intel, Zynga, Sears or Oracle.
An Objective represents WHAT you want to achieve. Objectives are qualitative goals. They have to be ambitious and set the direction and focus of the company, team or individual in a period of time. The objective has to be significant and action-oriented but challenging: the principle of inspiration.
The Key Results define HOW you are going to achieve that Objective. Key Results have to be specific, time-bound, and metric-driven; measurable and verifiable. They have to show the path to reach the objective.
The Objective is the desired outcome and the Key Results are the measurable steps or “pieces” required to achieve that outcome. It is necessary to define enough and relevant KRs that, when reached, produce the outcome.
Initiatives are a list of tasks and assignments to execute in order to achieve the key results milestones. They are things that you do, and the owners of Initiatives must have full control over completing them. This means completing them should not be dependent on something or someone else.