OKR's methodology or how large companies manage work

You are probably wondering, what is the OKR’s methodology? Well, OKR’s stands for Objectives and Key Results. It is a term created by former Intel CEO Andrew Grove, back in 1999 and has proved to be a great help as a work management methodology in large companies and also in small ones. Do you want to know what it consists of and what its advantages are?

What is the OKR’s methodology or Objectives and Key Results work management?

This method of work indicates that all departments should pursue the same goals. Its main purpose is to define these goals that are intended to be achieved as well as to communicate the results within the company. This organizational system is essential for all teams in a company to go together to the same direction. And no, it is not just for large multinationals, in small or medium-sized enterprises it is also very useful.

If we unravel the term Objectives and Key Results, we have…


Here you have to ask yourself two things: where do you have to go? and how and when are you going to know you are there?

Goals mark the direction in which to steer the steps. For example:

  1. Be a benchmark of the sector in the market.
  2. Increase sales of this product line.


Key results

OKR’s define how to achieve the above goals and indicate whether you are already near them. Continuing with the example above…

Objective 1: To be a benchmark of the sector in the market.

  • KR 1: Improve SEO positioning.
  • KR 2: Higher subscribers to the newsletter.

Objective 2: Increase sales of a particular product line.

  • KR 1: Increase orders by 30%.
  • KR 2: Halve the shipping time of the order.


Steps to implement OKR’s methodology in a company

Implementing this methodology that has led many companies to success is neither as complicated as it seems nor as simple as setting common goals. To go the right way, we will have to follow these steps:

Set concise and specific goals

Goals and objectives must be perfectly defined, so that all members of the organization will be able to be aware of them and participate in both their elaboration and their achievement.

Set deadlines as required by the objective

The deadline for reaching the goal should not be too long or too short as a result of mistakes. The times for this must be reasonable, for example, quarterly. In this way you can evaluate the results obtained from time to time in order to make the appropriate changes.

The whole company must know OKR’s

OKR’s methodology says transparency is key. If each team and each member shares goals, objectives and methodology, the margin of error will be scarce. Moreover, that sense of belonging turns out to be the best of motivations.

Analyze and measure results

The effort should be maximum, no one doubts it, but what needs to be measured and analyzed in detail are the results obtained. Go back to the list before your goals. Have they been fully achieved? Use data to improve processes and share with all teams the successes and aspects to improve. Thanks to this analysis, concrete decisions can be made to help the organization stay on track.


The main benefits of OKR’s methodology

The benefits of OKR’s methodology are:

  • A great feeling of belonging to the company and commitment to it.
  • By working together to achieve common goals, the results are much better.
  • Enables accurate and smooth communication.
  • Indicators are created to measure progress.


At IBMH we are always aware of proposals that, like the OKR’s methodology, help optimize management models.

If your goals include improving the profitability of your hardware imports, feel free to contact us. We will tell you everything our Strategic Purchasing Management Office in China can do for your business.