OKR -KRA - Goals

OKR (Objectives and Key Results) and KRA (Key Result Areas) are frameworks used to define goals, measure performance, and align individual, team, and organizational efforts. They serve different purposes but can complement each other effectively. Let’s break down their meanings, differences, relationship, and how they relate to a Sprint Goal in detail:

1. What is OKR?

OKR stands for Objectives and Key Results:

• Objective: It’s a clear and inspiring goal you want to achieve. It’s qualitative, ambitious, and time-bound. Objectives should motivate and align people towards a common aim.
• Key Results: These are specific, measurable outcomes that define success in achieving the objective. They are quantitative and have measurable targets. Each Objective typically has 2-5 Key Results that indicate progress toward the goal.

Example:

• Objective: Improve customer satisfaction by the end of Q4.
• Key Result 1: Increase Net Promoter Score (NPS) from 60 to 75.
• Key Result 2: Reduce customer support response time from 24 hours to 6 hours.
• Key Result 3: Achieve a 90% satisfaction rate in customer feedback surveys.

In this example, the objective is the broad goal of improving customer satisfaction, and the key results are the measurable milestones that will signify progress toward that goal.        

2. What is KRA?

KRA stands for Key Result Areas:

• KRAs define the broad areas where an individual or team is expected to focus their efforts. They outline the primary responsibilities or deliverables required in a particular role.
• KRAs are not always strictly measurable but indicate the critical areas where a person’s performance should be directed. They act as guidelines for what needs to be accomplished.

Example: For a Customer Support Manager, KRAs could include:

• KRA 1: Customer Query Resolution.
• KRA 2: Maintaining High Customer Satisfaction.
• KRA 3: Team Training and Development.

Each of these KRAs highlights the areas where the Customer Support Manager should focus their time and effort, such as ensuring queries are resolved quickly, keeping satisfaction levels high, and improving the skills of their team.        

3. Relationship Between OKR and KRA

• Focus vs. Measurement: KRAs define the focus areas or responsibilities of a role. OKRs take this focus and turn it into specific, measurable goals.
• Strategic Alignment: KRAs help identify what is important for a role or department, while OKRs align those areas with broader organizational goals.
• Complementary Nature: While KRAs provide a general idea of the areas a role should prioritize, OKRs help in achieving tangible outcomes within those areas by making them actionable and measurable.

Example of the Relationship: Suppose a Customer Support Manager has the following:

• KRA: Maintaining High Customer Satisfaction.
• OKR: Improve customer satisfaction by the end of Q4 (Objective), with specific key results like increasing NPS and reducing response time.

The KRA indicates that customer satisfaction is a critical focus area for the role, and the OKR sets a concrete target for improving satisfaction over a specified period.        

4. How OKRs and KRAs Relate to a Sprint Goal

In Agile, a Sprint Goal is a short-term target set for a specific sprint (usually 2-4 weeks), guiding the development team’s efforts and providing focus on what needs to be achieved during that sprint.

• OKRs & Sprint Goals:
• KRAs & Sprint Goals:

Example: Let’s bring it all together with a practical example:

• KRA for a Product Manager: Drive user engagement and retention.
• OKR for Q4:
• Sprint Goal for a 2-week Sprint:

Here, the Sprint Goal is aligned with the OKR and focuses on a small, manageable task that contributes to the bigger picture of increasing user engagement. It takes a specific piece of work that fits into the broader strategy defined by the OKR. The Product Manager’s KRA around user engagement and retention ensures that the Sprint Goals remain relevant to the overall focus of their role.

5. Summary:

• KRAs are broad focus areas or responsibilities, helping to outline what a person or team should work on.
• OKRs turn these focus areas into specific goals with measurable outcomes.
• Sprint Goals are short-term targets that help teams take actionable steps toward achieving those broader OKRs.

In essence, KRAs define where to focus, OKRs define what to achieve, and Sprint Goals define how to achieve those goals incrementally through sprints. This alignment ensures that daily efforts contribute to larger organizational objectives, fostering a strategic and focused approach to achieving outcomes.