Management by Objectives or MBO is a strategic management tool, and a goal-setting management framework to align the organization around specific objectives. The core principle of MBO is to clearly define organizational objective to align management with employees across the organization.
OKR is a goal-setting management system ideated by Andy Grove, during his tenance as CEO of Intel. As explained in the book “Measure What Matters” written by entrepreneur and venture capitalist, John Doerr, the OKR framework consists of four key elements: focus and commit on priorities, align and connect for teamwork, track for accountability and stretch for amazing.
| MBOs | Intel OKRs |
| “What” | “What” and “How” |
| Annual | Quarterly or Monthly |
| Private and Siloed | Public And Transparent |
| Top-down | Bottom-up or Sideways |
| Tied to Compensation | Mostly Divorced from Compensation |
| Risk Averse | Aggressive and Aspirational |
Read next: What Is OKR? The Goal Setting System To Scale Up Your Business
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