One of the most important skills that a modern leader can possess is the ability to align their entire workforce to the big vision of the company, that’s why talking about how OKR works is very important!
In this article, we will explain how OKR works. Objectives and Key Results (OKRs) is a phenomenal goal-setting framework that many organizations utilize. It’s a simple, easy, straightforward, and results-driven system.
Companies like Intel, Google, Amazon, Spotify, and many others have been using OKRs for years. It has been described as an effective tool that promotes accountability, transparency, productivity, and engagement among employees from to bottom. This framework helps leaders to keep everyone on the same page.
OKRs will work for your company if properly implemented. However, one of the biggest challenges in adopting this framework is getting started. In order to start the right way, there are some vital steps that will allow you to successfully implement OKRs.
This article contains a checklist that you can use as a quickly accessible reference to writing your own Objectives and Key Results. The way you write your OKRs really matters. This is because they are not just about goals. They also provide a framework for strategy and execution.
Putting more effort into writing OKRs as a team can give room for innovative goals. The framework also serves as a communication tool for conveying strategy to your entire team.
You need to familiarise yourself with the framework’s two major components. The first component is focused on your goals, while the other talks about key results.
In understanding how OKR works, you need to know the qualities of a good objective. One quality should be qualitative goals. The goals should be clear and unambiguous. Another quality is that the objective should align with your corporate strategy as well as the company’s goals.
Setting objectives can be a difficult task. Companies that have adopted OKRs know how tempting it can be to organize a great number of objectives at every possible level. Below are the key questions that you should be able to answer when setting relevant effective objectives.
If you want we prepared a Cheatsheet on how to write good objectives, download it below.
Key results are the backbone of any OKRs. Without specific, measurable KRs, it will not be an easy task for anyone in your company to realize their objectives. Therefore, understanding how OKR works entails knowing how to write key results.
Simply put, KRs are quantitative indicators of whether the objectives have been achieved. They are not KPIs. Key results are the specific steps you should take in order to reach your objectives. Generally, KRs should adhere to the SMART guideline.
Below are the questions that you should be able to answer when writing KRs.
Before proceeding with the following examples and templates, be mindful that there is no universal approach for all possible uses and cases. The sample below is only a guideline for wording your OKRs. You can change this anytime.
Sample Template:
We plan to succeed in ___(OBJECTIVE)_____, as measured:
by _____KR_____,
by _____KR_____,
by ____KR______.
We plan to achieve this by __DATE__.
Check out the following examples of OKRs:
Example #1
Objective: Increase employee engagement.
Key Results:
Example #2
Increase production by 40%.
Key Results:
Example #3
Objective: Improve the new marketing process
Key Results:
The success of your OKRs process greatly depends on how you write them. The guidelines, examples, and tips in this post will surely go a long way in improving your OKRs writing skills.
If you liked this article and you are looking for a way to align everyone in your organization, let’s have a call or simply download our OKR Guide. We also offer OKR consulting and OKR training, but our approach differs from other companies, we believe OKRs should be fully integrated with your product development.