Intro

Measuring an organization’s performance is vital to ensuring the survivability and continuous

growth of the organization. The reason is that performance measurement highlights the
performance gaps between the current and projected performance and provides areas for
improvements (AFIs), to close these gaps to achieve the expected results. There are many tools
for performance measurement, such as Critical Incident Technique (John C. Flanagan),
Management by Objective (MBO) (Peter Drucker), and Key Performance Indicators. With the
emergence of the new performance evaluation framework, Objectives and Key Results (OKRs),
this framework has increased in popularity and many leading companies have adopted it, such as
Google, Amazon, Oracle, Adobe, LinkedIn, and many others. Nevertheless, many other
companies believe that performance management cannot be measured with KPIs. This study
focuses on the performance review and management under the concept of Key Performance
Indicator (KPI) and Objectives and Key Results (OKRs) methods, which have been widely
recognized and applied in many leading organizations. [2]

Companywide objectives and key results (OKRs) help align teams ensuring all members are
working toward the same goals. They provide clarity throughout a whole organization to reveal a
company’s most important and current priorities.
That might sound like a simple task, but according to Aaron Levie, CEO and founder of the
enterprise cloud company Box, “At any given time, some significant percentage of people are
working on the wrong things. The challenge is knowing which ones.”
Even those at top aren’t immune to misalignment. Only one-third of 11,000 senior executives
and managers could list their company’s top three priorities, revealed a 2015 survey conducted
by the MIT Sloan School of management and The London business school. That’s a huge
problem. A company can be tugged in too many separate directions over time as departments and
employees make decisions without clearly

What is OKRs
The abbreviation OKR (OKRs) stands for Objectives and Key Results and it is an agile
framework that is used for setting goals in companies. This methodology helps each one in the
organization to focus their daily work with the organization’s strategy and if it used correctly, the
method can lead to more transparency, alignment, focus and agility in an organization.
The powerfulness of the OKR Framework results from the complementary ideas of Objective
and Key Result:
Objective answer the question “What do I want to achieve?”, whereas, Key results used to
answer the question “How do I know that the goal is reached?”. Each of them has their own
characteristics.
Objective characteristics:
 It is qualitative
 It is Simple and easy to understand
 It should be Inspiring and motivating
 There should be 2-4 objectives per team
Key result characteristics:
 It is quantitative
 It is easily measurable
 There should be 1-5 Key Results per Objective
 It is time bound (Quarter, year)

The three main characteristics of OKRs

1. OKR as a framework: OKR provides a consistent syntax for formulating qualitative

objectives and quantitative key results that measure the achievement of the objective.
This makes OKR an instrument that considerably simplifies communication within the
company.

2. OKR as a strategic link: OKRs serve to connect the vision and mission of the company
with the operational business. Bridging this gap is important because it promotes the
feeling of meaningful work (purpose) among all employees.

3. OKR as an agile process: OKR is a continuous process that drives Organizational

Learning and agility throughout the entire company.

The interplay of these characteristics makes the OKR method a powerful tool for modern
performance management and at the same time explains the rapidly growing popularity
of OKRs in organizations of all sizes and industries

OKRs and an agile organizations

Command-and-control style leadership teams become powerless to control change across an
entire organization. Agile companies, on the other hand, give teams the freedom to set goals and
to decide how to reach them.
 Agile teams experiment, fail, and learn as they go. OKRs don’t punish teams for going
after aggressive goals. Instead, they embrace a spirit of continuous learning and
collaboration.
 Agile teams are empowered to make decisions. It is understood they will make mistakes
and learn from them. OKRs function in a similar way: they set a direction without
mandating how the work will be done.
  You can change throughout the year. You may discover that the goal you set for yourself
or your team is no longer relevant. Maybe market forces are now dictating a new
direction. OKRs offer you the flexibility to make these changes. You can change goals
that are no longer relevant. And you can modify tactics that aren’t yielding the desired
results

As explained by Radonic (2017), the OKR system involves four steps: identify the objective, key
result, actions, and insight. He added that key objectives should be set quarterly and evaluated
quarterly, in which OKRs could be changed from a quarter-based setting to a six-month period of
setting and assessing objectives [11]. He further described 10 major directions when setting
OKRs according to John Doerr:
First: Objectives should be inspirational and motivational, and should clarify how the
accomplishment of the objective will lead the company.
Second: Goals should be ambitious to get accomplished.
Third: Organizations should stimulate highly productive and effective employees through OKRs.
Fourth: It is necessary to have only 4-6 objectives due to the focus factor, and 3-5 key results as a
monitoring tool for objectives.
Fifth: Key results must be measurable, time-oriented, and specific.
Sixth: Determine the responsible unit or person for each of the objectives and key results.
Seventh: OKRs should be set quarterly or semi-annual regarding the size of the company.
Eighth: It is recommended to set a reward for achieving high performances and to further
motivate employees to accomplish higher results each month.
Ninth: The goals should be set by a bottom-up concept. Tenth: OKRs should be transparent to
every organization’s hierarchy levels. [12]
OKR staff
CHALLENGES AND OPPORTUNITIES OF OKRs
Certainly! Here are some possible challenges and device opportunities of implementing OKRs in
a company:

Challenges:
1. Resistance to Change: OKRs require a certain level of openness to change. They
typically involve setting ambitious goals, breaking them down into measurable steps, and
tracking progress over time. This can be a significant departure from traditional goal-
setting methods in which goals are often vague and progress is difficult to measure.

However, change can be difficult for many people and organizations. People may have
become comfortable with the old way of doing things and may resist the idea of trying
something new. This resistance can take many forms, including:

 Misunderstanding: Some employees may not fully understand what OKRs are and
how they work. This lack of understanding can lead to scepticism and resistance to
change.
 Fear: Others may fear that their jobs or responsibilities will change as a result of
OKRs, causing anxiety and resistance to the idea.
 Unwillingness to take risks: Some employees may be sceptical of new initiatives
and prefer to stick with tried-and-true methods, even if they are less effective.
 Lack of trust in leadership: If employees do not trust their leaders, they may be less
likely to buy into new initiatives.

2. Inaccurate Goal-setting: Poorly defined or unrealistic goals can lead to inaccurate

OKRs, resulting in frustration and lack of motivation for employees.
Here are some of the ways that inaccurate goal-setting can be problematic:

 A lack of clarity: If goals are not specific and well-defined, it can be difficult to
understand what is expected, or how to measure progress. This can lead to confusion and
frustration, making it harder for employees to focus on what really matters.

 Unrealistic goals: If goals are set too high or too low, individuals may feel demotivated
or overwhelmed, which can hinder productivity and performance. This can also lead to a
 sense of failure, as people struggle to achieve goals that were not achievable to begin
with.

 Misaligned goals: If goals are set without considering the broader strategic objectives of
the company, individuals or teams may end up working towards something that is not
really important. This can lead to wasted time and resources, as well as a sense of
disillusionment as people struggle to see the larger purpose behind their work.

3. Loss of focus: If there are too many objectives or key results, it may lead to a loss of
focus and priorities in the organization.
One of the biggest challenges in implementing OKRs in a company is maintaining focus on
the objectives and key results. This is because it is common for employees to get side tracked
by other priorities or urgent tasks, which can lead to a loss of focus on the key results.

Here are a few ways in which loss of focus can be a challenge for implementing OKRs in a
company:

 Inability to track progress: If employees are not focused on the key results, it becomes
challenging to track progress regularly. This makes it difficult to determine whether the
company is on track to meet its overall goals.

 Decline in motivation: When employees lose focus, they may become less motivated to
achieve the objectives. This can lead to a decline in productivity, which can negatively
impact the company's overall performance.

 Misalignment with organizational priorities: If objectives are not aligned with the
company's overall priorities, a loss of focus can result in employees working towards the
wrong goals, which can be detrimental to the organization.

To overcome these challenges, it is crucial to maintain a clear focus on the objectives and
key results. Regular check-ins and communication with employees can help keep
everyone on track and aligned with the company's priorities. Additionally, breaking down
objectives into smaller goals and milestones can help maintain focus and motivation
throughout the process.

4. Tracking Progress: It can be challenging for teams to keep track of their progress and
ensure that they are making progress towards their objectives and key results for the
following reasons:
  Identifying the right metrics: It can be difficult to decide on the most important
metrics to track progress towards a particular objective. There might be multiple
potential metrics that could be used, and it might not always be immediately clear
which is the best metric to use.

 Setting realistic targets: Goals need to be set realistically so that they are seen as
achievable rather than overwhelming, which can demotivate employees. However,
setting realistic targets can be difficult since there are often varying opinions and
perspectives on what is realistically achievable.

 Lack of clarity: A lack of clarity around objectives, key results, and performance
indicators can make it difficult to track progress. Employees might be unsure about
what metrics to focus on, how to measure success, or even the overall objective they
are working towards.

 Varying priorities: While OKRs can help align efforts throughout an organization,
differing priorities can still impede progress. It's important to ensure that everyone
understands the company's goals and objectives, but there are often different
objectives within a department or team that can create conflict and make tracking
progress more difficult.

 Inadequate tracking tools: Without adequate tools for tracking progress, it can be
difficult to measure progress against each key result, update metrics consistently, or
monitor progress in real-time.

Overall, to effectively track progress towards implementing OKRs in a company, it's

important to establish clear metrics and targets, communicate this to employees,
prioritize objectives, monitor progress closely, and provide the necessary resources
and tools to achieve those goals.

5. Aligning Objectives and Key Results: Aligning objectives and key results (OKRs)
can be a significant challenge for companies implementing OKRs for several reasons:

 Ambiguity: Setting objectives and key results may be ambiguous, making it difficult to
align them with company goals. Managers should ensure that the objectives and key
results are specific and measurable so that they can be effectively aligned.

 Misalignment of objectives: Ensuring that all the objectives align with the company's
overall objectives and vision can be difficult. Misalignment may mean that individuals
 and teams focus on their objectives rather than the company's objectives, leading to a lack
of cohesion and collaboration.

 Resistance to change: Some people may resist changing their current goals and
processes, making it difficult to align objectives and key results. Managers must ensure
that employees understand the benefits of the new OKR system and are motivated to
work towards company goals.

 Lack of communication: Communication is essential when implementing OKRs. If

there is a lack of communication, individual objectives may not align with the company’s
objectives. Encouraging regular communication between employees and managers can
solve this challenge.

 Unrealistic expectations: Expectations should be realistic, or else it may be challenging

to align them with realistic objectives. Managers should work with employees to create
objectives that are challenging yet achievable.

In conclusion, alignment of objectives and key results can be a significant challenge

when implementing OKRs in a company. However, by overcoming these obstacles,
businesses can align their teams towards achieving the company's objectives

To overcome these challenges, it is important to communicate clearly with employees about the
benefits of OKRs, provide training and resources to help them understand the process, and
involve employees in setting goals and tracking progress. Additionally, it may be helpful to work
with leaders and stakeholders in the organization to build support for OKRs and create a culture
of continuous improvement.

Opportunities:
1. Clarity of Goals: OKRs provide employees with clear objectives and key results,
reducing ambiguity and aligning everyone towards the same goal. When a company has
clear, specific, and measurable goals, it becomes easier to define objectives and
determine the key results necessary to achieve them. Here are a few ways in which clarity
of goals can be a device opportunity for implementing OKRs in a company:

 Better alignment: With clear goals, each employee understands how their objectives and
key results contribute to the company's overall goals. This alignment ensures that
 everyone works towards a common goal, leading to increased productivity and overall
success.
 Clear priorities: Clarity of goals helps companies set clear priorities, which is crucial for
effective OKR implementation. When everyone understands the company's top priorities,
it becomes easier to set objectives and key results that align with them.
 Measurable progress: Clear goals provide a benchmark against which progress can be
measured. This ensures that objectives are specific, measurable, and achievable, and key
results are focused on outcomes that support the goals.
 Improved communication: With clear goals, employees are better equipped to
communicate their progress towards their objectives and key results. This can help teams
work together more efficiently and proactively address any challenges they encounter
along the way.

Overall, clarity of goals is crucial to the success of OKRs in a company. By ensuring that
everyone is working towards a common goal, setting clear priorities, measuring progress,
and improving communication, companies can effectively achieve their objectives and
drive growth and success.

2. Motivation: The use of OKRs can increase employee motivation by providing them
with more ownership and transparency in their work. Certainly. OKRs (Objectives and
Key Results) is a framework that helps organizations set goals and track progress in
achieving those goals. Motivation, on the other hand, is an important factor that drives
employees to work towards those goals. Therefore, motivation can be a significant device
in implementing OKRs in an organization. Here are some ways that motivation can help:

 Increases Employee Engagement: When employees are motivated to achieve the goals
set by the organization, they are more likely to be engaged in the process of achieving
those goals. This engagement can lead to increased focus and better productivity.

 Facilitates Better Communication: Motivation can open up communication channels

between employees and superiors. When employees are motivated, they are likely to ask
questions, seek feedback, and collaborate more effectively, leading to a better
understanding of the goals and how to achieve them.

 Supports Accountability: When employees are motivated and invested in achieving

their goals, they are more likely to take responsibility for their actions and be accountable
for their results. This can lead to a culture of ownership and accountability, which is vital
in achieving OKRs.
 Encourages Creativity and Innovation: Motivated employees are more likely to be
creative and innovative in finding ways to achieve their objectives. This can lead to new
and better ways of doing things, which can improve organizational performance and
outcomes.
 In conclusion, motivation can be a powerful device to facilitate the implementation of
OKRs in an organization. By supporting engagement, communication, accountability,
creativity and innovation, motivation can help turn the goals set by an organization into a
reality.

3. Focus: OKRs can assist companies to focus on the most important objectives and key
results, ensuring that all resources and effort are directed towards the most critical areas.
Certainly! Focus is a critical element in implementing OKRs (Objectives and Key
Results) in a company, and it can provide several opportunities for device manufacturers.
Here are some ways:

 Prioritize objectives: Focus can help companies prioritize their objectives and align
them with the overall business strategy. For instance, device manufacturers can focus on
specific OKRs like improving product quality or increasing customer satisfaction by
using customer feedback. With a clear understanding of the objectives, device
manufacturers can allocate resources and prioritize initiatives that align with their focus.

 Measure progress: When companies focus on specific OKRs, they can measure their
progress and determine whether they have achieved their objectives. The key results
provide a measurable way to assess progress, and tracking progress can help device
manufacturers stay motivated and identify potential roadblocks.

 Increase accountability: By focusing on OKRs, device manufacturers can improve

accountability and ensure that everyone in the organization is working toward the same
goals. When people know what is expected of them and how their performance will be
measured, they are more likely to take ownership of their work and strive to achieve their
objectives.

 Foster innovation: A clear focus on key objectives can also help device manufacturers
foster innovation. By identifying a clear set of goals, teams can focus on developing
creative solutions to achieve them. This kind of focus can encourage experimentation and
risk-taking, leading to innovative ideas and breakthrough technologies.

Overall, focusing on OKRs can provide device manufacturers with a structured approach
to achieving their objectives and driving business growth. By having a clear set of
objectives, teams can work together to develop innovative solutions while being held
accountable for their progress. This can lead to improved product quality, increased
customer satisfaction, and ultimately business success.

4. Collaboration: The implementation of OKRs can facilitate greater collaboration,

teamwork, and communication amongst employees.
 Certainly! Collaborating with team members and other departments within the company
can be a powerful tool for implementing Objectives and Key Results (OKRs). Here are a
few reasons why:

 Shared ownership - When team members collaborate on setting OKRs, they have a
shared sense of ownership and accountability. This helps to ensure that everyone is
working towards the same goals and is invested in their success.

 Broad perspective - Collaboration allows team members to share their ideas and
perspectives, which can help to identify new opportunities and potential roadblocks. This
can lead to better planning and execution of OKRs.

 Clear communication - By working together on OKRs, team members can ensure that
everyone has a clear understanding of their roles and responsibilities. This can minimize
misunderstandings and prevent duplication of effort.

 Cross-functional alignment - OKRs can help to align different departments within a

company towards a shared objective. When team members collaborate on OKRs across
departments, they can ensure that everyone is working together towards the same goal.

Overall, collaboration can be a powerful tool for implementing OKRs in a company. It

can help to ensure shared ownership, provide a broad perspective, ensure clear
communication, and promote cross-functional alignment.

5. Accountability: OKRs help companies to hold their employees accountable for their
work, ensuring that they are contributing to the overall success of the organization.

OKRs (Objectives and Key Results) are a popular goal-setting framework that can be
used by a company to drive focus, alignment, and accountability towards achieving their
objectives. Here are some ways in which OKRs can help with accountability in a
company:

 Clarity of objectives: OKRs help to clearly define the objectives that need to be
achieved. This makes it easier to understand what is expected of each employee and how
their work will contribute to the success of the company. When everyone is clear about
their objectives, they are more likely to take ownership of their work and be accountable
for their results.
 Measurable results: Key Results in OKRs are measurable, which makes it easier to track
progress towards achieving the objectives. This provides a clear way to measure whether
employees are meeting their targets and helps to identify areas for improvement. When
employees are aware that their progress is being monitored, they are more likely to feel
accountable for their performance.
  Regular check-ins: OKRs require regular check-ins to review progress and make
adjustments as needed. This creates a culture of continuous improvement and helps to
ensure that everyone is working towards the same goals. When employees are
accountable for reporting on their progress, they are more likely to stay focused on
achieving their objectives.
 Transparency: OKRs are typically shared with everyone in the company, which creates
transparency around what everyone is working towards. This helps to create a sense of
accountability across the organization, as employees are aware of what their colleagues
are working on and how it contributes to the company's overall objectives.

Overall, OKRs can help to create a culture of accountability in a company by providing

clarity around objectives, measurable results, regular check-ins, and transparency. When
everyone is working towards the same goals and is held accountable for their
performance, the company is more likely to achieve its objectives and be successful.

In general, implementing OKRs can provide a range of challenges and opportunities. By

identifying and addressing these challenges while maximizing on the opportunities,
companies can ensure that their teams are aligned and on track to achieve their objectives
and key results.

To overcome these challenges, it is important to communicate clearly with employees about the
benefits of OKRs, provide training and resources to help them understand the process, and
involve employees in setting goals and tracking progress. Additionally, it may be helpful to work
with leaders and stakeholders in the organization to build support for OKRs and create a culture
of continuous improvement.

Overall, inaccurate goal setting can be a significant challenge for implementing OKRs in a
company. To overcome this, it is important to ensure that goals are specific, realistic, aligned
with strategic objectives, and assigned to specific individuals or teams. This will help to foster a
sense of ownership and accountability, while also ensuring that everyone is working towards the
same overall objectives.
Twiga foods OKR
One company in East Africa that has successfully implemented OKRs is Twiga Foods. Twiga
Foods is a Kenyan B2B supplier of groceries and fresh produce to small and medium-sized
retailers and vendors. The company uses OKRs to align its employees with the company's
objectives and ensure that everyone is working towards the same goals.

Twiga Foods has set up an OKR framework that is implemented throughout the organization.
The company ensures that every employee understands the objectives and the key results that
need to be achieved for each quarter. They also involve their employees in the process of setting
objectives and key results, so that everyone feels ownership and accountability towards the
goals.

One of the objectives set by Twiga Foods is to increase their market share of the informal sector.
To achieve this, they set key results such as increasing the number of registered vendors,
improving the vendor experience, and reducing the delivery time of goods. This objective and its
key results are broken down into teams and individuals, with each team and individual
responsible for achieving specific key results.

Twiga Foods uses visual tools and dashboards to track progress towards each objective and key
result. This makes it easy for employees to know how they are contributing towards the
company's goals and track their progress. The company also celebrates successes and milestones
achieved by teams and individuals, creating a sense of motivation and reward for good work.

Through the use of OKRs, Twiga Foods has achieved significant growth and expansion in the
East African region. The company has been able to expand its services to other countries in East
Africa, such as Tanzania and Uganda. Its success with OKRs has also led to the adoption of the
framework by other companies in the region.
The difference between OKR and KPI
On the strategy management front, we always hear questions like “What is the difference
between KPIs and OKRs?”, “Which one is better, KPIs or OKRs?”, “How do they work
together?” . There are no easy and straight forward answers to these questions as each approach
has its pros and cons and it all depends on the organization’s complexity and the overall strategy
rhythm. In many organizations, both KPIs and OKRs may coexist as they complement each other
within the overall strategic performance management system. [1] [Association for Strategic
Planning: https://www.strategyassociation.org/blogpost/1921222/3 68216/OKRs-vs-KPIs-
Sponsored-Content].
The difference between OKR and KPI is quite evident for those who have learned to manage
Objectives and Key Results. However, sometimes even the most experienced run the risk of
confusing them.
KPIs are autonomous metrics that indicate whether performance meets expectations or not. They
are used for ‘naked and raw’ measurement, but they have no communication quality regarding
the path and purpose.
Whereas in the case of OKRs, O (Objective) is the direction and the KRs (Key Results) are the
milestones that describe whether you are making progress and to what extent. In practice, they
are enhanced KPIs, because they consist of a qualitative element O and a quantitative element
(KR).
In summary, they are complementary tools: on the one hand, the KPIs monitor performance and
identify areas for improvement; on the other hand, the OKRs improve processes and drive
innovation.
Example difference between OKR and KPI A non-profit association wants to collect data to
monitor its cash registers and user participation. To do this, set the following metrics:
KPI 1 = How much are the monthly donations
KPI 2 = How many members participate in charity events
KPI 2 in turn can become an OKR with the aim of increasing the involvement of people:
O = Become a point of reference for our community
KR 1 = Increase the number of registered members by 20% by the next quarter
KR 2 = Organize at least two events open to the public by the end of the third quarter to attract
new members/donors.
The OKR declares both what the association wants to achieve and how it intends to get there
because the change objectives are combined with time based measures.

The metaphor
Let’s look at OKRs and KPIs as a metaphor. Imagine your organization is a car and you’re
driving that car towards a destination (your Mission and Vision). Your KPIs are what you’ll find
on your car’s dashboard, like the fuel gauge and engine temperature gauge. They prevent the
engine from overheating and make sure you won’t run out of gas, which are all things that you’ll
constantly need to watch. OKRs are like your roadmap, they’ll guide you to your destination.
OKRs are temporary, they’ll change from time to time. Once you’ve passed a landmark towards
your destination, you’ll focus on the next one. [13]

How do you measure OKRs?

The measurement of OKRs is all in the quantitative elements or the key results that we decide to
measure because they are important and functional to growth. The evaluation of objectives and
key results is progressive, although only at the end of the period set for O is it possible to do a
complete review. It is an opportunity to understand what went well, what didn’t work, and what
to improve for the next OKR cycle. OKR software provides up-to-date data and scores, in this
way each person knows how they are doing and at what point the OKR teams throughout the
organization are. Beyond the calculation, it is important to understand what the numbers mean.
“Not everything that can be counted, counts.” (A. Einstein)
Grading OKR Andy Grove often reminds us that there is no grey area for the KRs: the result is
always binary, that is Yes or No. Nothing better than a sports metaphor to clarify the concept.
You are a scout for a Serie A football team. The club is on the hunt for potential ‘crack’ and set
this OKR:
O = Find the best talents in South America to strengthen our nursery
KR 1 = View potential recruits by participating in at least 25 games in the Quarter
KR 2 = Contact 30 of the best players viewed
KR 3 = Make an appointment with the agents of the 10 best talents
On your OKRs measurement sheet at the end of the mission, write these data:
Have I participated in 25 matches? No
Did I contact 30 players? Yup
Have I made an appointment with the agents of the 10 best talents? No
But what does this data mean? Is the evaluation positive or negative? The answer is in numbers
and to translate words into numbers, a scale is used, the OKR grading, which goes from 0
(failure) to 1.0 (100% of the target). The scale reads like this: 0.0 to 0.3 red light = no real
progress achieved from 0.4 to 0.6 yellow light = we have made progress, but we have not
completed the goal 0.7 to 1.0 green light = we have delivered and achieved the expected
progress.
Let’s go back to the example of the football scout. You have not seen 25 games but only 20, the
others have been suspended or were not in unreachable places. A score of 0.8 is more than valid.
You’ve contacted the 30 players expected from KR 2, so you deserve a full 1.0. You have not
made an appointment with 10 agents, as foreseen by KR 3, but with 5 and 0.5 you are in the
yellow zone. The numerical review is now complete, but to make the numbers tell the whole
truth you need to proceed with an additional level of analysis. The key result with the lowest
value is the number of agents contacted. If among the latter you managed to make an
appointment with the attacker’s agent chased by all the other talent scouts, having him signed,
then the 0.5 takes on another value.
Quoting John Doerr in the book Measure What Matters:
“The focus of the method of objectives and key results is to work all on the right things.”

Intro

Measuring an organization’s performance is vital to ensuring the survivability and continuous

growth of the organization. The reason is that performance measurement highlights the
performance gaps between the current and projected performance and provides areas for
improvements (AFIs), to close these gaps to achieve the expected results. There are many tools
for performance measurement, such as Critical Incident Technique (John C. Flanagan),
Management by Objective (MBO) (Peter Drucker), and Key Performance Indicators. With the
emergence of the new performance evaluation framework, Objectives and Key Results (OKRs),
this framework has increased in popularity and many leading companies have adopted it, such as
Google, Amazon, Oracle, Adobe, LinkedIn, and many others. Nevertheless, many other
companies believe that performance management cannot be measured with KPIs. This study
focuses on the performance review and management under the concept of Key Performance
Indicator (KPI) and Objectives and Key Results (OKRs) methods, which have been widely
recognized and applied in many leading organizations. [2]
History
Actually, also the idea of OKRs has come a long way already. Already in 1968, back then CEO
of Intel, Andy Grove, developed the Management by Objectives framework from Peter Drucker
into the model of OKRs. In 1974, John Doerr joined Intel, got to know OKRs and took them
with him, when he joined Kleiner Perkins Caufield & Byers – one of the first major investors in
Google. Doerr introduced OKRs to the founders of Google, Larry Page and Sergey Brin, who
implemented them in their organization, which still uses OKRs today.