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Difference between Management By Objectives and OKRs (Objectives and Key Results)


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OKR (acronym for Objectives and Key Results) is evolved from MBO, taking the best practices out of it and adding a few on its own. Management By Objectives (MBO) was introduced by Peter Drucker in 1954 while OKR was introduced by Andy Grove in the 1970s.
In essence both, MBO & OKR are Goal setting frameworks. Their basic principle is to evaluate and enhance performance of employees over a period of time.
However, they differ in many ways like the manner in which they measure performance, frequency or their end purpose.

Published in: Leadership & Management
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Difference between Management By Objectives and OKRs (Objectives and Key Results)

  1. 1. How to effectively increase Employee Accountability Nowadays companies use various management philosophies like MBOs or OKRs to execute their strategies. While this does bring along a sense of clarity & purpose to all the employees, is this sufficient to ensure success in the long run? As it turns out, Employee Accountability is as important if not more. Read More
  2. 2. While MBOs have been around for a long time and more popular, OKRs are widely being adopted to suit the changing environment. The management needs to determine which philosophy is more suited to their organisation. Read More