Check out 10 examples of OKRs and see how this methodology works

OKR stands for Objectives and Key Results.

This management methodology spread quickly among companies after Google started using it in 1999. Some say that it was so successful that the company started to grow dizzyingly from this period.

This OKR example at Google is just one of many success stories.

But before we show you some hypothetical examples of OKRs, it’s critical to understand how they work and how they can help in modeling organizational processes.

 So what are OKRs?

With larger and more complex organizations, company strategic plans and goals often become abstract and lose meaning for employees, even discouraging teams.

The goal of OKR is to precisely define how to achieve objectives through concrete, specific and measurable actions.

Thus, nobody is lost in doing something that isn’t needed and can instead focus on the activities and results that they need to achieve.

With tangible tasks and defined goals, employees understand much better what each one should be doing.

And to determine this, we need to use the two parts of the OKR acronym:

• Define the Objectives.
• Define the Key Results.

So examples of OKRs will be quite helpful at this point.

Let’s say you have a perfume franchise.

More than 100 stores spread throughout the country.

As CEO of the company, you could set 2 objectives:

1. Increase the number of stores by 20%
2. Increase profit by 10%

See how these two objectives answer the following question:

Where do I want to go?

To define Key Results, you need to answer the following question:

How will I know if I’m getting there?

Simply answering: By checking out how many new stores I’ve opened, or analyzing the numbers from financial indicators, means absolutely nothing!

It is necessary that the Key Results (which can be compared with KPIs) determine the progress of the actions that will lead to the objectives, for example:

Objective 1: Increase the number of stores by 20%

Key Results:

• Select 40 new franchise candidates by March
• Train 30 of them before June
• Sign contracts with 25 of them before September
• Open 20 stores before December

Now, if you keep track of those numbers throughout the year, you’ll know if you’re getting there.

Similarly, for the other objective:

Objective 2: Increase profit by 10%

Key Results:

1. Implement a supplier registration reverse auction system and save 10% on purchases
2. Outsource the distribution fleet to stores and reduce costs by 25%
3. Launch seasonal campaigns on Valentine’s Day, mothers and fathers days and double the revenue from the past year.

Again, your employees know exactly what they have to do to achieve the goals, how they will be controlled, and what actions need to be developed.

Do you see how easy and transparent everything has become?

 8 more examples of OKRs for businesses

We’ve already given 2 examples of OKRs that can be defined by the top management of a company.

But one of the great advantages of using the OKR methodology is that it can be staggered for lower hierarchical levels, so the whole company pursues the same end goals, but using specific Key Results for each role.

Thus, the Key Results of one, become the goal of the immediately lower level.

Here’s how it works with these examples from our perfume franchise:

 Examples of OKRs derived from Objective 1:

So, the Key Results expected by the CEO were these:

1. Select 40 new franchise candidates by March
2. Train 30 of them before June
3. Sign contracts with 25 of them before September
4. Open 20 stores before December

And they could be distributed as follows:

Examples of OKRs for the HR Team

HR Objective 1: Select 40 new franchise candidates by March

Key Results:

• Receive 500 resumes before January
• Select 60 interview candidates by February
• Choose 40 of the interviewees before March

Examples of OKRs for the Training Team:

Training team Objective 2: Train 30 of them by June

Key Results:

• Develop new materials and PPTs by April
• Give an intensive 1-month course before May
• Select at least 30 of those who completed the course by June

Examples of OKRs for the Legal Team

Legal Objective 3: Sign contracts with 25 of them before September

Key Results:

• Collect documents and registration information by July
• Send draft contracts by August
• Have at least 25 contracts signed by September

Examples of OKRs for the Operations Team

Operational Objective 4: To open 20 stores by December

Key Results:

• Assist the 25 franchisees to choose business points by September
• Buy materials and start renovations by October
• Open at least 20 new stores by December (before Christmas!)

As you can see, it is clear to everyone what needs to be done and how their results will be measured. And this can go on indefinitely to the lowest level, making it much easier to manage teams.

Shall we look at 4 examples of OKRs for Objective 2?

 Examples of OKRs derived from Objective 2:

Examples of OKRs for IT Staff

IT Objective 1: Implement a reverse auction registration system and save 10% on purchases

Key Results:

• Develop a new system before March
• Perform testing and integration by April
• Launch the new reverse auction system before the end of June

Examples of OKRs for the Logistics Team

The Logistics Team Objective 2: Outsource the distribution fleet to stores and reduce costs by 25%

Key Results:

• Sell the whole existing fleet before February
• Search for suppliers and offers by March
• Implement outsourcing in March

Examples of OKRs for the Marketing Team

MKT Objective 3: Launch seasonal campaigns on Valentine’s Day, Mothers and Fathers days and double revenue compared to past years.

Key Results:

• Define a briefing for agencies and submit it by January
• Analyze campaigns until March
• Operate on the above-mentioned dates

As you can probably tell, the Key Results above are more of an ‘achievement’ (milestones) style than numbers so that we can create one more OKR for the finance team:

Examples of OKRs for Finance Staff

Financial Objective: Advise the other teams to achieve the indicated financial results

Key Results:

• Double revenue on seasonal dates compared to the past
• Reduce logistics costs by 25%
• Save 10% on purchases

So, it’s easy to understand that to implement an OKR methodology in a company, process automation software is fundamental in helping to define and understand Key Results in an agile and real-time way.

Check it ou this OKR infographic