All businesses have objectives. These can occasionally be internal, like creating a fantastic culture. Sometimes they are internal objectives, like providing a wonderful experience for your customers. But achieving those goals takes more than putting your intentions out into the universe — you need a plan.
You need to understand how to write OKRs and if you’re wondering how to write OKRs that work, you’re in the right place. In this article, we’ll take you through:
- The format of an OKR
- What are good OKRs and bad ones
- How to draft useful OKRs
So let's dive straight in!!
What are OKRs
OKRs, or Objectives and Key Results, is a goal-setting framework used by organizations to define and track their objectives and the outcomes they aim to achieve. OKRs provide a structured approach for setting and measuring goals, fostering alignment, transparency, and accountability within teams and across the organization.
OKRs ensure that an organization's leaders, teams, departments, and individual contributors are on the same page. Every stakeholder can prioritize tasks and projects and understand how their daily work contributes to the same overarching goals thanks to the OKR goal-setting framework.
Few tips to get started
- Start small to test the framework.
- Involve leaders and key stakeholders for support.
- Provide training and resources for teams.
- Focus on a limited number of objectives.
- Craft specific and measurable key results.
- Empower teams to set their own OKRs.
- Schedule regular check-in meetings to review progress.
- Celebrate achievements to motivate teams.
How do you set an OKR?
OKRs are among the easiest tools for almost every type of business when it comes to goal-setting frameworks.
Writing an OKR that works starts with an objective statement that is time-bound, goal-oriented, and actionable.
For example:
Then, as you work toward the goal, use key results to gauge your progress.
It's important to keep your key results concise, quantifiable, and actionable when writing them. There isn't a set formula for how many key outcomes an objective must have, but a good guideline is to aim for 3 to 5.
Here is an illustration of 3 important outcomes for the final goal mentioned above:
It doesn't necessarily mean you're tracking better if you add more key results. In terms of key results, less is more. 3 to 5 key results will keep your team on track and moving forward as a unit.
How To Write A Good OKR?
Writing effective Objectives and Key Results (OKRs) involves creating clear and actionable goals that guide your team or organization toward success. Here are five points to consider when crafting good OKRs:
- Clear and Specific Objective (O):
Start with a concise and specific objective that outlines what you want to achieve. It should be inspiring, motivating, and easy to understand for everyone involved. Make sure it's aligned with your company's or team's overall mission and strategic goals.
- Measurable and Achievable Key Results (KR):
Key Results are the measurable outcomes that determine whether you've achieved your objective. They should be specific, quantifiable, and realistic. Ensure that each Key Result is something you can track and measure objectively, as this will help you gauge progress and success accurately.
- Ambitious yet Attainable:
While your Key Results should challenge your team to strive for excellence, they should also be attainable. Setting goals that are too easy won't drive innovation and growth, but setting goals that are too ambitious can lead to frustration and burnout. Find a balance between pushing boundaries and ensuring feasibility.
- Alignment and Relevance:
Your OKRs should be aligned with the larger goals of your organization or team. Ensure that they contribute directly to your overall mission and strategy. This alignment ensures that everyone is working toward the same vision and prevents misdirection of effort and resources.
- Regular Tracking and Review:
OKRs are not static; they require continuous monitoring and adjustment. Set up regular check-ins to review progress, discuss any challenges, and adapt your strategies if needed. Transparency in tracking and sharing progress encourages accountability and collaboration.
What are the different types of OKRs
The three types of OKRs —Committed, Aspirational, and Learning—are variations in how objectives and key results are approached. Here's a breakdown of each type with examples:
Committed OKR
Committed OKRs are the core goals that an organization or team is fully committed to achieving within a specific time frame. These are the objectives that are essential for the organization's success and have a high degree of confidence in achieving.
Example:
Objective: Increase monthly revenue for Q3 2023.
- KR 1: Achieve $1.5 million in revenue by the end of Q3.
- KR 2:Increase the average transaction value by 15% compared to last quarter.
- KR 3:Acquire 500 new customers by the end of Q3.
In the above example, the objective is to increase revenue, and the key results are specific, measurable outcomes that directly contribute to achieving that objective. These goals are considered committed because the organization is fully dedicated to achieving them.
Aspirational OKR:
Aspirational OKRs are more ambitious and challenging goals that an organization or team aims for, even if they aren't entirely sure they can achieve them. These goals push the boundaries and inspire teams to strive for greatness.
Example:
Objective: Become a market leader in sustainable fashion by Q4 2023.
- KR 1:Increase brand awareness by achieving 30 media features and interviews.
- KR 2:Launch an innovative eco-friendly clothing line with at least 20,000 units sold.
- KR 3:Partner with three major environmental NGOs to promote sustainable fashion.
In this example, the objective is aspirational, as becoming a market leader in a specific industry requires substantial effort and may involve some degree of uncertainty.
Learning OKR:
Learning OKRs focus on acquiring new knowledge, exploring new opportunities, or experimenting with new approaches. They are about learning and growing rather than solely achieving outcomes.
Example:
Objective: Explore the potential of AI integration for customer service enhancement.
- KR 1:Conduct a comprehensive survey of AI solutions in the customer service sector.
- KR 2:Run pilot tests of AI-powered chatbots in handling customer inquiries for two months.
- KR 3:Analyze customer feedback and derive insights to improve AI integration strategy.
In this case, the objective is centered around learning and experimentation to understand the potential benefits and challenges of implementing AI in customer service. The emphasis is on gaining insights rather than guaranteed results.
How To Track OKRs
Tracking OKRs is a critical step in ensuring that progress is being made toward achieving the desired outcomes.
Set clear and measurable objectives
The first step in tracking your OKRs is to ensure that your objectives are clear, specific, and measurable. Each objective should have one or more key results that define how progress toward the objective will be measured. Without clear and measurable objectives, it will be difficult to track progress and determine whether you are on track to achieve your desired outcomes.
Use OKR software or goal-setting software
There are several OKR software or goal-s