Five Recommended Categories for OKRs: A Comprehensive Guide

Objectives and Key Results (OKRs) are a critical tool for driving growth and alignment in organizations. They help teams set ambitious goals, track progress, and ultimately achieve success. When it comes to defining OKRs, it is essential to focus on the right categories that can make a significant impact on your organization. In this comprehensive guide, we will explore the five recommended categories for OKRs and share valuable insights from industry experts. These categories will help you establish a strategic framework and drive actionable results for your business.

1. Product Development and Innovation
2. Customer Success and Retention
3. Sales and Revenue Growth
4. Operational Excellence
5. Employee Engagement and Culture

1. Product Development and Innovation

Product development and innovation are crucial for maintaining a competitive edge and staying relevant in the market. OKRs in this category should focus on driving product improvements, launching new features, and exploring new market opportunities. Some examples of OKRs for this category include:

• Increase product adoption rate by 15% within the first 48 hours after launch
• Launch two new innovative features that address customer pain points by the end of Q2
• Improve product quality by reducing the number of critical bugs by 20% in the next quarter

As Pallavi Vanacharla, Vice President of Product Marketing at New Relic, points out, "PMM OKRs depend on your answer to questions such as - what is the stage of the product lifecycle? Do you own all of product marketing or a specific PMM function? What are the business goals and objectives this year? etc." (source: Pallavi Vanacharla, New Relic, Vice President Product Marketing)

2. Customer Success and Retention

Happy, loyal customers are essential for long-term business success. OKRs in this category should focus on improving customer satisfaction, reducing churn rates, and driving customer advocacy. Examples of OKRs for this category include:

• Increase customer satisfaction score (CSAT) by 10% by the end of the year
• Reduce customer churn rate by 5% in the next two quarters
• Implement a customer advocacy program that generates 20 new case studies by Q3

Kevin Wu, Senior Director of Product Marketing, Solutions & Category at Airtable, emphasizes the importance of aligning OKRs from the top to bottom with an app built on Airtable to ensure customer success. (source: Kevin Wu, Airtable, Senior Director of Product Marketing, Solutions & Category)

3. Sales and Revenue Growth

Revenue growth is the lifeblood of any business, and OKRs in this category should focus on driving sales performance, increasing market share, and expanding into new markets. Examples of OKRs for this category include:

• Increase sales win rate by 10% in the next quarter
• Grow market share in targeted segments by 15% by the end of the year
• Enter two new international markets and generate $1M in additional revenue by Q4

Ryan Goldman, Global VP Marketing at MOLOCO, highlights the importance of tracking key performance indicators (KPIs) for sales and revenue growth, such as MQL-to-SAL conversion rate and contribution margin for newly targeted segments. (source: Ryan Goldman, MOLOCO, Global VP Marketing)

4. Operational Excellence

Operational excellence ensures that your organization runs efficiently, minimizes waste, and maximizes resources. OKRs in this category should focus on improving processes, reducing costs, and driving cross-functional collaboration. Examples of OKRs for this category include:

• Reduce operational costs by 10% by implementing process improvements in Q2
• Improve cross-functional collaboration by launching three joint projects between sales and marketing in the next six months
• Increase employee productivity by 15% by implementing a new project management tool by Q3

Sarah Khogyani, Head of Product Marketing at Coinbase, advises teams to set a key result that they have direct influence or impact on, ensuring that their investment of resources succeeds at supporting the overall objective. (source: Sarah Khogyani, Coinbase, Head of Product Marketing, Cloud)

5. Employee Engagement and Culture

A positive work culture and engaged employees are critical for overall business success. OKRs in this category should focus on enhancing employee satisfaction, promoting diversity and inclusion, and supporting professional development. Examples of OKRs for this category include:

• Increase employee engagement score by 10% by implementing a new feedback system in Q2
• Improve diversity and inclusion by increasing the percentage of underrepresented groups in leadership by 5% in the next year
• Launch a professional development program that results in 80% of employees completing at least one training course by Q4

In conclusion, focusing on these five recommended categories for OKRs will help you create a strategic and actionable framework that drives meaningful results for your organization. By setting ambitious goals and tracking progress, you will be well-equipped to achieve success and foster a culture of continuous improvement.