The OKR Method: Turning Goals into Real Successes

By Dr. Mario Figlioli for Kulassa, featured in the Marketing and Business

The visionary mind of Andrew Grove, CEO of Intel, this strategy has evolved to become a cornerstone in the business world, adopted by giants like Google and countless small and medium-sized enterprises (SMEs) worldwide. But what makes OKRs so special, and how can they be effectively applied?

OKR Basics OKRs are based on two fundamental concepts: Objectives and Key Results. An Objective is an ambitious but clear goal, aimed to inspire and guide an organization or individual. Key Results, on the other hand, are specific and measurable indicators that demonstrate the achievement of that goal. A classic example might be:

Objective: Increase our company’s presence in the international market. Key Results: Increase international sales by 25% by the end of the year. Establish three new business partnerships in key markets within six months. Launch a global marketing campaign with a 40% increase in international lead generation. This approach not only clarifies what you want to achieve (Objective) but also establishes how success can be realistically measured (Key Results).

Transparency and Collaboration A distinctive element of OKRs is their transparent nature. Everyone in the organization has access to the objectives and key results, from the CEO to the recent graduate. This openness ensures that every team member understands the direction the company is heading and how their work contributes to the achievement of common goals.

Adaptability and Regular Updates OKRs are not set in stone. Recognizing that business is dynamic, this methodology encourages periodic reviews of key results to ensure they remain relevant and realistic. If a key result proves to be unattainable or less critical than expected, it can be adjusted or replaced.

Case Study: Luca Cipriani’s Approach Luca Cipriani, one of the pioneers in introducing OKRs to Italian SMEs, provides a concrete example of this method’s effectiveness. Let’s say one of the SMEs advised by Cipriani aims to “Improve customer satisfaction”. The key results could be:

Reduce the average response time to customers from 24 hours to 12 hours within three months. Increase customer satisfaction score from 4.0 to 4.5 out of 5 within six months. Implement a new customer feedback system, obtaining at least 500 evaluations by the end of the year. Through regular monitoring and the collaboration of all departments, the company can measure progress towards these key results and, if necessary, make changes to ensure the goal is achieved.