In modern offices, MBOs can quickly seem dated, even demotivational. OKRs move the focus away from the individual and from goals adapted to a single person, and take a look at the broader team, planning project goals that create measurable results. You work hard to meet those goals, and depending on how well this is achieved, you receive some measure of compensation. Goals are set at the beginning of the year, shared only with yourself and your manager. You’ve very likely experienced the MBO scenario in your workplace annual review and Key Performance Indicators (KPIs). MBOs directly impact compensation, OKRs do not.MBO scores can take on a variety of forms OKRs are always measured in numbers, e.g., by dollar, by percent, etc.MBO goals are for each individual, not for an overall team like OKRs.Check-ins of an OKR are quarterly, not yearly like an MBO.While OKRs derive from MBOs, the following differences mean that OKRs can affect a team in a completely different way: What’s the difference between OKRs and MBOs? Doerr went on to author “Measure What Matters” in which he details the power of the framework. Many other hugely successful businesses have since adopted the OKR methodology. Originally conceived by Grove, he based OKRs on the work of Peter Drucker, now thought of as a key founder of modern management techniques, who created “MBOs” or “Management by Objectives.” OKRs were popularized by venture capitalist John Doerr, also an Intel employee, who coined the term OKR after hearing Grove lecture on them.Īfter leaving Intel, Doerr introduced the OKR framework to a small start-up called Google, where it served as a vital tool for growing it into one of the world’s most successful companies. Your objective is what you want to achieve, and your key result is what you need to do in order to do so. OKR stands for “Objectives and Key Results,” i.e., your goal, and the results which serve as steps towards successfully meeting that goal. Developed by Andy Grove, ex-CEO of Intel, the OKR framework allows for goals to be set and then evaluated. If you and your team are using set goals and to-do lists then you might want to know about OKRs.
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