OKR Examples

Company Level OKRs

Objective 1: Create financial strategy for the next 3 years

Key results:

1. Finalize budget by Q4 FY 2017-2018
2. Active discussions with 25 VCs by Q4 FY 2017-2018
3. Raise $350 M seed funding in first round

Team Level OKRs

Objective 1: Establish a network of VCs to assist funding

Key results:

1. Set meetings with 80 VCs by Q4 FY 2017-18
2. Active discussions with 25 VCs by Q4 FY 2017-18

Objective 2: Finalize budget for Q4 FY 2017-2018

Key results:

1. Meet all department heads of the organisation to discuss requirements for coming year
2. Identify loss areas and reduce unnecessary expenditure by 80% by Q4 2017-18
3. Analyze market conditions and forecast budget for immediate future

Discussion:

The first KR does not have any measurable outcome. It could be better phrased as “X amount required by Q4 FY 2017-18 as discussed with all department heads”. In the third KR, make sure there is a specific due date instead of writing ‘immediate future’

Objective 3: Identify profitability of all products for previous financial year

Key results:

1. Determine key drivers of growth by analyzing existing customers feedback
2. Compare with competitors products to understand price difference
3. Create a comparison chart to determine which products have the highest saleability

Discussion:

Identify profitability of all products is vague objective. It could either mean for the current month, quarter, year or even overally profitability since it has been introduced in the market. To make sense of this objective modify it to, “Identify which company products are in demand in current FY and the reasons behind it”

The KRs too need to be more precise. They could be as follows:

1. Pricing and primary feature of product are key drivers of growth as analysed from customers feedback in Q1 of 2017-18
2. Comparison with competitors products done in last quarter of FY 2016-17 reveals price difference of X amount
3. Of the 6 company products, product A and B have the highest saleability in Q1 and Q2 FY 2017-18

Objective 4: Increase the efficiency of bookkeeping process

Key results:

1. Utilize advanced tools and techniques to eliminate errors
2. Hire qualified bookkeepers with knowledge of the ever-changing compliance norms
3. Prepare a monthly report to avoid loss of data

Individual Level OKRs

Objective 1: Create and finalize accounts payable by Q4 2017-18

Key results:

1. Gather invoices for every transaction conducted in the previous quarter
2. Identify duplicate receipts to avoid causing errors in calculation
3. Submit final report to head of department for approval

Discussion:

The objective appears to more of a KR whereas the KRs are generic and lean more towards being tasks. The objective for this individual instead could be “Submit final report to head of department for approval” and one of the KRs could be “Create and finalize accounts payable by Q4 2017-18.”

Another KR can be added that does not contribute directly to the objective but could help the individual improve his or her skills. For example, “Improve analytical and reporting skills by joining relevant online courses”

Objective 2: Reduce excess expenditure by Q4 FY 2017-18

Key results:

1. Identify departments and process where repeated losses occur
2. Suggest alternatives for overpriced goods/dealers to reduce expenditure

Discussion:

Modify the first KR to “Identify departments and process where repeated losses occurred in last 6  months of FY 2016-17.”

For the second KR, there needs to be collaboration with the Purchasing Department to discuss alternatives for overpriced goods/dealers to reduce expenditure. As it is not the responsibility of individuals of the finance department to find alternatives.