OKR Byte #1 – Thinking Physics – Vectors, Scalars & OKRs

Apr 02, 2022
OKR Byte #1 – Thinking Physics – Vectors, Scalars & OKRs

The most frequent question asked by my clients is about crafting OKRs. Here is a thumb-rule I use for crafting OKRs.

Committed Vs. Aspirational OKRs vs. KPIs

Growth is a vector having magnitude and direction. The underlying strategies and goals attacking growth are also vectors. Let’s call them “attack vectors”.

Let’s say the direction is northwards (growing revenue) and your current status, could be status and should be status are 3 points (A, B and C) in space .

An attack vector AB is a committed OKR (a.k.a roofshot) and, if you want to leap, the attack vector AC is an aspirational OKR (a.k.a moonshot).

KPIs are scalars (magnitude only). For example, “Maintain 2 hours TAT for priority tickets” (or) “Complete 90 demos for Q4”.

Any KPI can be abstracted to an OKR provided they add direction (and value) to your attack or growth vector. For example, Reduce TAT for Priority tickets from 4 hours to 2 hours saving $200K in churn and support costs.

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