Streamligning and organization in both strategy and execution is the golden question in any business.
For years, companies like Google, Dropbox, LinkedIn, and Spotify have all used OKRs to acheive just that - to great success.
So, what are OKRs?
Objectives and Key Results is, in short, a goal setting framework. Its aim is to create alignment in the organization by fostering independent engagement – and still be measurable when it comes to tracking progress.
It’s not a silver bullet – it’s a way to think through your strategy, question your motivations, and create a common focus for the entire organization.
The OKR framework consists of two parts: objectives and key results.
Objectives are where you start. It’s a clear, aspirational statement that can inspire and motivate your organization. OKRs are stretch goals, that is they focus on something beyond business as usual. Great OKRs are easy to understand, inspirational and a bit vague. They’re also the basis of forming your key results.
Key Results are derived from your Objective. If your objective is your end goal, Key Results are how you get there. Great key results, are measurable, objective – and easy to see if you’ve done them. Each objective will have between 3-5 key results attached.
For example:
Objective: Have the happiest customers in the world
Key results
The objective is vague but it provides focus across the organization. This particular objective creates key results that affect multiple departments: Products, Sale, Marketing, and Support
The OKR framework is an iterative process. OKRs are typically set on a quarterly basis and reviewed regularly to track progress, adjust strategies, and maintain focus.
Setting great OKRs start with a great strategy. Your strategy is the overall direction and long-term vision for the organization.
OKRs typically change quarterly making them too short term to provide long term guidance. The purpose of OKRs is to translate the strategy into actionable and measurable goals: it’s a way to bridge strategy and execution. So strong strategy, mission and vision are your foundation for great OKRs.
The process of setting objectives is a collaborative discussion and the goal is to create alignment. This is also when you set your OKR-frequency, that is when do you expect to have acheived this goal. This short-term. An OKR-cycle is typically 3 months, then the process is evaluated and a new objective is set.
Once there is a strong company objective, each department then defines how they can help the organization get there.
Objective: Increase customer satisfaction by enhancing product experience and support services
Tasks and initiatives aren’t as such part of the framework, but each key result will often result in a plan of tasks and initatives. These are defined and managed in the individual teams.
Deciding how often you check in on progress should be done upfront. What level are we checking in and who’s responsible for updating the progress? Most companies do weekly or bi-weekly check-ins. The focus isn’t on performance evaluation but rather on identifying and mitigating potential roadblocks.
he important part of OKRs is that it facilitates a conversation and provides a clear goal for the organization to work towards. However, it's essential that progress on key results is regularly checked and updated.
By clearly defining what you aim to achieve and how you will measure success, OKRs provide a structured approach to goal setting that encourages transparency and accountability. Implementing OKRs can help you stay on track and ensure that every team member is working towards the same strategic goals. The key to successful OKRs lies in setting ambitious yet achievable objectives and regularly reviewing progress to adapt and improve. Start small, learn from your experiences, and gradually scale your OKR practices to unlock the full potential of this goal-setting methodology.
