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OKR stands for Objectives and Key Results -- a goal-setting framework used by companies like Google, Intel, Spotify, and LinkedIn to align teams and drive measurable outcomes.
The beauty of OKRs is their simplicity. They force clarity about what matters most and make progress visible to everyone.
| Aspect | Traditional Goals | OKRs |
|---|---|---|
| Cadence | Annual | Quarterly |
| Direction | Top-down | Bottom-up + Top-down |
| Transparency | Manager only | Company-wide |
| Measurement | Subjective | Quantitative |
| Ambition | Achievable targets | Stretch goals (70% = success) |
| Linked to compensation | Yes | No (ideally) |
Objective: Deliver a world-class onboarding experience for new users
| Key Result | Target | Type |
|---|---|---|
| Increase Day-7 retention from 35% to 50% | 50% | Metric |
| Reduce time-to-first-value from 12 min to 5 min | 5 min | Metric |
| Achieve onboarding NPS of 60+ | 60 | Metric |
Objective: Establish a strong presence in the mid-market segment
| Key Result | Target | Type |
|---|---|---|
| Close 15 new mid-market accounts | 15 | Count |
| Achieve $500K in mid-market ARR | $500K | Revenue |
| Reduce mid-market sales cycle from 90 to 60 days | 60 days | Efficiency |
| Bad (Task) | Good (Outcome) |
|---|---|
| Launch redesigned homepage | Increase homepage conversion from 3% to 5% |
| Send 10 outreach emails/day | Generate 50 qualified leads per month |
| Hire 3 engineers | Reduce deployment cycle from 2 weeks to 3 days |
Tasks describe activities. Key Results describe outcomes. You can have a task list underneath each Key Result, but the KR itself must be measurable.
Limit to 3-5 Objectives per team per quarter. If everything is a priority, nothing is. The discipline of choosing what NOT to pursue is just as important as choosing what to focus on.
If you consistently hit 100% on all Key Results, your targets are not ambitious enough. OKRs are designed to push teams beyond their comfort zone.
When bonuses depend on OKR scores, people sandbag their targets. Keep OKRs separate from performance reviews to maintain ambition and honesty.
| Score | Meaning | Action |
|---|---|---|
| 0.0 - 0.3 | Failed to make real progress | Investigate root causes |
| 0.4 - 0.6 | Made progress but fell short | Identify blockers |
| 0.7 - 0.8 | Stretch target nearly hit -- this is success | Celebrate and iterate |
| 0.9 - 1.0 | Fully achieved | Was it ambitious enough? |
The sweet spot for most Key Results is 0.6 to 0.7. Consistently scoring 1.0 means your goals are too conservative.
| Tool | Price | Best For |
|---|---|---|
| Spreadsheet (free) | $0 | Small teams, getting started |
| Weekdone | $90/mo (team) | SMBs, simple tracking |
| Gtmhub (Quantive) | Custom | Enterprise, advanced analytics |
| Ally.io (Microsoft Viva Goals) | Included in M365 | Microsoft ecosystem |
| Perdoo | $200/mo | Mid-market, strategy alignment |
For teams just starting, a shared spreadsheet is perfectly fine. Do not let tool selection delay your OKR adoption.
| Week | Activity |
|---|---|
| Last 2 weeks of quarter | Draft next quarter OKRs |
| Week 1 | Finalize and publish OKRs |
| Weekly | Quick confidence check (5 min in team standup) |
| Week 6 | Mid-quarter review and adjustment |
| Week 12 | Score OKRs, retrospective, begin next cycle |
OKRs are not a silver bullet, but they are one of the most effective frameworks for creating alignment, focus, and accountability across an organization. Start with clear Objectives, measure with honest Key Results, and iterate every quarter. The framework gets better the more you practice it.
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