{"id":18427,"date":"2022-05-05T07:00:08","date_gmt":"2022-05-05T05:00:08","guid":{"rendered":"https:\/\/pasiona.com\/okr-methodology-what-it-is-and-how-to-implement-it-in-our-company-part-1\/"},"modified":"2023-11-21T16:03:56","modified_gmt":"2023-11-21T14:03:56","slug":"okr-methodology-what-it-is-and-how-to-implement-it-in-our-company-part-1","status":"publish","type":"post","link":"https:\/\/pasiona.com\/en\/okr-methodology-what-it-is-and-how-to-implement-it-in-our-company-part-1\/","title":{"rendered":"OKR methodology: What it is and how to implement it in our company \u2013 Part 1"},"content":{"rendered":"

This article is part of a series of three articles dedicated to OKRs, given that it is a fairly specific topic and that for a few years it has been used more and more assiduously in the business world we have chosen to separate it so that its understanding is more effective. So let’s start at the beginning.
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OKRs vs KPIs. What are they?<\/h2>\n

OKRs represent a powerful and flexible tool to define corporate objectives and at the same time measure their progress across all the areas involved.<\/strong><\/p>\n

As Andy Grove, one of the historic founders of Intel, quoted, “There are people who work too hard to get too little.” Or, in other words, they dedicate efforts to wrong objectives or are not properly focused. The key here is to be clear, first of all, the goal to achieve. As an organization, as a team or individually. And, secondly, and equally important, is to know if all the effort made is focused on achieving the planned objectives, and not others.<\/p>\n

Even in companies that have KPIs and mechanisms to measure performance and results, without a correct alignment they will not be of much use. Let’s take an example:<\/p>\n

We want to go from Barcelona to Madrid by car. We know that the journey is 600 km, the speed of the car and the capacity of the tank, which is full and the costs of gasoline. We go out and we look at the speed during the journey, the gasoline that remains, the consumption etc. and all the indicators are in order and we see that we will arrive in 4h, 3h, 2h, 1h … and it is when we should see the outskirts of Madrid that we read that we are at the height of Clermont-Ferrand, halfway to Paris.<\/p>\n

What went wrong? Neither the KPIs nor the indicators noticed anything strange because they mediate speed, time, consumption… And we were within the right parameters. The indicators were fine, but the objective was still to be established, with the goal to be achieved, which was to go to Madrid and not to Paris.<\/p>\n

If all the indicators were positive… Why have we failed? Perhaps these indicators were not aligned with the objective, or the objectives were different by department. This does not happen with the OKR methodology.<\/strong><\/p>\n

This is when we want to talk about OKRs, which in English stand for “objectives and key results”.<\/p>\n

A bit of history of OKRs<\/h2>\n

Although we have been hearing about OKRs for a few years, they are not a recent concept. Here’s a bit of their chronology:<\/p>\n