KPIs & OKRs

OKR : Objectives and Key results

Effective tool for mapping between key objectives and reflecting on quantitative measurements that quantify the goals, keeping your eyes open on the target.

 The key benefit on the OKR is setting quantitative goal, so that each section and department in the enterprise, can set its strategy to achieve the objective from their point of view.

The key pillars of the OKR are:

• Objectives: 

  • • which is clear statement, understood by all stakeholders

• Key results: 

  • • The quantitative measurements used to formulate the objectives

Example:

Objective: Establish a mobile solution by the end of September

• Key Result 1: Complete product development by Aug 30.

• Key Result 2: Achieve 95% customer satisfaction in beta testing.

• Key Result 3: Generate $50,000 in revenue from the product within the first quarter
  
  

KPI: Key Performance Indicators

KPIs are measurable values demonstrating how effectively an organization, team, or individual is achieving specific objectives. KPIs help monitor performance and assess whether goals are being met over time 

The key Characteristics of KPIs:

• Measurable: KPIs are quantifiable metrics, making performance tracking straightforward.

• Specific: They are closely tied to particular objectives or outcomes.

• Actionable: KPIs provide data that can be used to make decisions or take corrective actions.

• Time-bound: They are measured over a specific period, such as monthly, quarterly, or yearly.

• Relevant to the context

• Variety: Has different point of view to attain

Example:

• Objective: Improve customer service satisfaction.

• KPI: Achieve a customer satisfaction score (CSAT) of 90% or higher within 6 months.

KPIs are essential tools in performance management, allowing organizations to track and improve their effectiveness.

OKR and KPI Operation model

In order to have a successful model in enterprise architecture, you should have the following:

• OKR as-is Model: current objectives and initial achievements should be clear, to be the baseline for the model, to have a clear assessment of the impact you have conducted

• OKR to-be Model: determination of the achievable targets, as mentioned before 

• Collaborative Strategy Model

  • • Determine the involvement matrix of organization sectors and departments

    • Determine strategy for each to achieve the goals

    • Have consolidated strategy

• KPIs as-is model: determination of the current KPIs, should be clear, to be the baseline for the model, to have a clear assessment of the impact you have conducted, in addition, to be related directly to improve the objectives 

• KPI to-be model: determination of the KPI targets, as mentioned before 

• Operational Strategy Model

  • • Have more focus on operation detailed plans

    • Determine the involvement matrix of organization sectors and departments

    • Determine a strategy for each to achieve the KPI

• Example:

  • • Objective: Revenue Increase 

    • OKR: Increase revenue by 25% by the end of the quarter

      • • Sales team: Increase the number of leads by 50% than current

        • Software team: Reduce the number of critical issues by 75% by the End of September 

        • Marketing team: conduct 2 marketing campaigns on social media before the season 

• RGY assessment approach:

  • • With each OKR/KPI, you should define the following:

      • • Review interval period to guarantee that you are on track

        • Red values (Not accepted values) and the strategy for handling

        • Yellow values (Mid accepted values) and the strategy for handling

        • Red values (Accepted values) and the strategy for handling