3/28/2023 0 Comments Skwr fran smart![]() ![]() Time-boundĪ time-bound goal has a start and end date. The only thing that’s still missing is a deadline. This goal is now connected to the company’s larger goal to “expand our market share”. RelevantĪ goal is relevant when it’s consistent with, and leads to, an outcome that contributes toward other organizational goals.įor example: We close 750 enterprise customers in North America to expand our market share. However, it’s still not yet clear why achieving this goal matters. This goal might be difficult but it is possible to achieve. Taking our previous example, since closing 10,000 customers represents an unrealistic target the sales team decides to amend it.įor example: We close 750 enterprise customers in North America. This doesn’t imply that it should be easy. AchievableĪ goal is achievable when it is within the realms of possibility, given the available resources and constraints within your control. Once 10,000 enterprise customers in North America are closed, the goal will be considered successfully achieved. This goal has a target you can measure progress against. A metric should be included, with a target to reach that indicates success.įor example: We close 10,000 enterprise customers in North America. To know when a goal is achieved it must be measurable. However, it doesn’t tell you anything about how success is measured, why it matters, and when it needs to be achieved. This goal has a clear scope (North America enterprise customers) provides a description of what needs to be accomplished (close more of them). It should be understandable for everyone contributing to it.įor example: We close more enterprise customers in North America. How SMART goals work SpecificĪ SMART goal must be specific by providing a clear description of what needs to be achieved. If we take each of these SMART criteria individually, we can look at the details behind setting smart goals. The SMART criteria list five things that a goal must fulfill: In this sense, the SMART criteria and an OKR can be compared as two alternate ways to structure a goal. ![]() Unlike other frameworks which cover strategy creation, organizational hierarchy, and performance management, SMART is a simple structure that describes how to create and measure progress towards goals. SMART is a set of criteria for creating goals, attributed to the work of Peter Drucker and his framework Management By Objectives (MBO). In this video, Perdoo CEO Henrik-Jan van der Pol explains the power of structuring goals as OKRs, using an everyday example: Initiatives do not indicate success success is dependant on progress of Key Results.Initiatives are projects or other activities that you believe will influence your Key Results.They answer the question “What will I do to get there?” Initiatives describe the work done to drive progress on Key Results. Key Results are not things you do, like completed projects or launched products.Įxample: Achieve 400 website leads per month.Key Results are metrics that measure the success of an Objective, like the number of sales ( Get examples for Sales OKRs) or website traffic ( Get examples for Marketing OKRs).They answer the question “How do I know I’m getting there.” Key Results measure progress toward an Objective. ![]() Objectives set a clear direction and are inspiringĮxample: Turn our website into a lead generation machine.They answer the question “Where do I need to go?” At Perdoo, we introduced a third element: Initiatives. You can find a full definition of OKR here.Įxecute strategy and propel your growth with OKRs (and KPIs) Get your FREE Perdoo account How do OKRs work?Ī good OKR consists of two elements: an Objective and one or more Key Results. OKR provides a simple structure and criteria for creating business goals as well as a number of rules and best practices organizations can adopt. Invented by Andrew Grove at Intel and later popularized by Google, OKR has become well known amongst Silicon Valley tech companies and is being adopted by many organizations across the world. Some of the benefits of OKR include, improved focus, increased transparency, and better alignment between teams. OKR is a goal management framework that helps leaders lead their teams from A to B. We’ll break this post into sections, starting with a recap of OKR, a recap of the SMART criteria, and a comparison at the end. If you’re looking to move from SMART goals to OKRs, once you’ve read this post, you’ll have a good idea of where to start. This post will look at the similarities and differences. SMART goals are a popular way of creating goals that many organizations use to achieve success. In this post, we look at how OKR compares to SMART Goals. This is the second of a five-part series examining how OKR compares with other management frameworks. ![]()
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