OKRs, KRAs… they are all the same, right?
They may have similar snappy abbreviations, but they are far from the same. In this blog, we explore what each of these frameworks are for and how they can be used together to boost growth.
What are OKRs?
Just in case you missed our previous blogs, Giant Talk podcast episodes, guides, reports or anything else we post for that matter, we’ll start with defining OKRs! OKRs, or objectives and key results, are what we live and breathe at There Be Giants.
OKR is a goal-setting framework that helps you to achieve ambitious business goals. It is an agile approach to motivating and managing performance in line with business strategy. An OKR is something you want to achieve – the objective. The parameters used to measure success are the Key Results. When used correctly, OKRs are a powerful tool that will encourage a rapid rise in organisational growth.
OKRs are best described as a set of principles and practices that, when combined, can incite business growth, innovation and change. They promote agility and strategic alignment within the business.
A successful OKR framework connects organisational, team and personal objectives to measurable results. Whether you need to shine a spotlight on growth, performance, revenue or engagement, the OKR framework can help you to cultivate business growth.
What are KRAs?
KRAs, or Key Results Areas, are tasks that are critical for an organisation or employee to complete to achieve the business’s objectives.
Each job or project can generally be broken down into five to seven areas of work. These areas will be completed to reach an end goal or destination. But not all of these tasks have an equal level of importance. Some have a much higher priority as they have a bigger impact on reaching the end goal. The areas of work with higher importance are the key result areas.
To determine what an individual’s Key Result Areas are, employees need to list all the areas of work and decide which jobs, if not completed, would result in not achieving the end goal. Employees must also decide which areas are this person’s responsibility. If an area is a high priority and their responsibility, this is their KRA.
Highlighting essential tasks helps employees and teams to concentrate on the areas that will boost productivity and help them to reach desired destinations at a quicker rate.
Can OKRs and Key Result Areas be used together?
Although they are different frameworks, that doesn’t mean they can’t work together. Objectives, Key Results and KRAs complement each other well. Once you have set out your OKRs, KRAs will help you to understand what tasks you need to focus on to reach the OKRs. Using them together will turn your organisational goals from hypothetical destinations to day by day or weekly breakdowns of the tasks needed to achieve what you set out to do.
Let’s look at a real-life example. Your OKR may look like the following:
- Create an engaging community offer to encourage more free trial users.
- Increased free trial users from 50 – 250
- Increased user engagement from 13% to 50%
The Key Result Areas may then look like this:
- Get in touch with all free-trial users on the last day of trial
- Follow up with all free-trial users that did not sign up one week after
- Update CRM to manage follow-up process, ensuring all contacts are followed up
- Promote free trials on social media to encourage new sign-ups
- Collect reviews from users who sign up to a subscription
Using the key result areas framework will improve your daily processes to help you achieve your OKRs. Without marking priority areas, too much time can be spent on insignificant tasks, holding you back from reaching your goals.
Get in touch with a Giant today
Need help implementing a goal-setting framework within your organisation? We can help! Our team will simplify the OKR implementation process and can utilise key result areas in the most efficient way. Book a call with one of our Giants today to get started.