How to write company OKRs (Objectives & Key Results)
Published On: September 15, 2022|
Table of Contents
Objectives and Key Results (OKRs)is an organisation’s goal-setting platform to track strategy execution. Once the strategy is set for a specific period you can measure how the progress is and measure the execution accordingly. Defining the goals and strategy is the most valuable time an organisation spends. They set measurable metrics to evaluate how the organization is performing.
To be more specific
Objective – what are we trying to accomplish
Key Results – How are you going to achieve this?
OKRs provide a clear direction and guide the teams to progress on what matters to the business. These OKRs are aspirational and audacious in nature which drives organizations to reach the next level in each period.
An Objective is mostly a statement that communicates what you want to achieve and is time bound
A Key Result is a quantifiable or measurable metric that measures the progress of an objective and helps you understand the speed at which it is travelling and whether is on-track or off-track.
Why should you write OKRs for your company?
To put it simply Company OKRs are the North star of an organization. It guides the team to create their team and individual objectives. This creates focus among the team to indicate the direction in which they should travel.
It is important that the organization starts with the company OKRs which will in turn promote top-down or bottom-up alignment. As objectives are very specific and timebound it helps the team to create OKRs and focus accordingly.
Benefits of having OKR (Objectives & Key Results) in your organization
As OKR framework is a well-proven frame used by organizations like Google, Uber, LinkedIn, and other established organization. The results were exponential. Organizations using OKRs had a minimum of 10x growth.
The benefits are immense. Let us discuss a few to understand the value OKRs bring to an organisation.
OKR framework increases focus as the Objective count is less than 5. Less is more. Keeping fewer objectives increases focus and helps in prioritizing the goals. It helps the team to maintain focus and plan the action accordingly. This kills procrastination and increases focus
OKRs’ very important benefit is increasing alignment and eliminating silos. Using the team and shared objectives help in creating alignment and collaboration. Where possible the team can contribute to the organisation’s overarching objectives. Alignment is the core to decreasing the executions gap
OKRs are transparent in nature to ensure that the entire organization has the visibility to see the organization and team’s performance. This provides the safety net for the teams to create audacious goals without the fear of failure.
OKR and its sibling CFR (Conversation Feedback and Recognition) help us have conversations and communication in one place. Frequent feedback helps in discussing the problem and encourages the team to act. This increases participation and creates trust among the team. This performance conversation is the key to continuous performance management.
Autonomy and Flexibility
OKRs are autonomous and flexible in nature. Teams and individuals can create their own OKRs that they think will ensure success. This motivates the team and increases ownership and accountability. This also helps them perform both qualitatively and quantitatively
Stretch goals or the Moon shots are the keys to OKRs. This allows one to stretch beyond the capability and think out of the box. These moon-shot goals and aspirations are achieved through OKRs. These aspirational goals take the organisation to the next level.
How to Set OKR for your company
It is important to have the OKR Ambassadors finalized before drafting the company-level objectives. Companies should be able to communicate in simple language to the lowest level of the employee and they should be able to relate it to their role.
OKR is a transformational journey, it needs time to getstreamlined. The top thing that comes to mind while drafting the companyobjective is the revenue projection and sales target plan. Preparing those sales target plans is that it does notprovide enough guidance to the team on how they can achieve these targets.
Your company objectives should not be a long list like the onebelow. If we add too many objectives and it will bring down the focus andpriority
Company Objectives can be based on
The strategies that the organization is planning
Technological & market.
The best-written Company Objectives
should not be more than 3 to 5 and
OKRs should be able to guide the entire organization by asking the below questions
What is the core purpose of the company?
Why you are doing what you are doing?
How the products/services are unique from the competition or in the market?
What the company can potentially do better than any of its competitors in serving the customers? And what is missing to achieve that potential.
What are the gaps in moving your products and/or services effectively and efficiently to the customer?
What are the top 3 barriers for your company to achieve higher sales & margin growth?
What insights do you need to get, or hypotheses do you need to validate to effectively generate sustained cash flow & profitability?
7 tips to set OKRs
Let us help you get started with tips that are well-proven while we start with OKR.
Have an OKR coach on Less is more – keep a minimum of 3 objectives and a maximum of 5 objectives
Add 3 to 5 Key Results per objectives
Use quantitative metrics to measure
Communication is key and keeping the conversation open and transparent
Keep it transparent
Foster cross-functional alignment
Use an OKR software
Company OKR examples
OKRs are a growth tool when we create and draft the right OKRs.
Objective 1: Grow and increase our business by 30%
Key Result 1: Grow revenue to $XMn
Key Result 2: Launch the X new product by Q2
Key Result 3: Customer churn to be reduced to X%
Objective 2: Increase customer delight
Key Result 1: Collect feedback from X customers/month
Key Result 2: Increase customer retention to X%
Key Result 3: Achieve NPS (Net Promoter score) from X to Y
Objective 3: Make the company a global player in XYZ product Range
Key Result 1: Raise funding for establishing in the North American Market
Key Result 2: Launch of XYZ product in North American Market by Q4
Objective 4: Build an awesome people culture
Key Result 1: Increase the NPS by X+
Key Result 2: Launch Q&A with the CEO in townhall meetings
Datalligence AI OKR coaches help you set up OKRs for your organizations, team, and individuals. We have coached more than 500+ teams in implementing OKRs successfully. Talk to us today if you have any questions on OKR implementation
1.How are OKRs different from KPIs (Key Performance Indicator)?
OKRis a strategic framework, whereas KPIs measure the status quo. KPI (Key Performance Indicator) are mostly siloed and does not align with the organisational objectives. They help you understand the Business as usual metrics
2.What are OKRs for the company?
OKRs (Objectives and Key Results) are the goal-setting framework that helps the organization in creating alignment and increasing focus. They promote transparency and collaborations
3.How many OKRs should a company have?
Less is more. It is ideal to have 3-5 OKRs per person and 3 to 5 key results per objective.
4.Should CEO have OKRs?
CEOs having OKRs creates safety and trust among the employees. It is ideal that the CEO should have a high level goal defined for the team to align
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