Objectives & Key Results, or OKR’s, is a goal-setting framework used by companies like Google, LinkedIn, and Intel. It remains such a popular goal-setting framework because it splits the company’s strategy into WHAT & HOW.
It works by simply asking yourself:
WHAT would I like to accomplish?
HOW will I accomplish it?
The Objective is the WHAT, while the Key Results act as the HOW.
OKR’s help you shift your business from a culture of reactivity to proactivity, giving your entire team an ‘on the business’ focus. Your team will not only know what direction your business is heading, but they will be active participants in creating it.
How do OKRs work?
Let’s break down the two essential parts: the Objective & the Key Results.
When setting an Objective, a CEO, or top leadership must ask themselves, “What will help our company be more successful?” or “What do I want to accomplish within the next year?” By defining the What, you set an objective for your organization.
The Key Results are the actions of How to make the goal happen. Try thinking about How each department can contribute to the company’s overall success or How you can accomplish the goals you set for the next year.
Each What, or Objective, should have at least three, clear How’s, or Key Results, to them. The Objective can be ambitious, but your Key Results should always be a realistic plan on how to achieve the ambitious objective.
Things to keep in mind when creating your OKRs
OKRs are not a to-do list, but a framework for you to consider what really matters to your business; and how you can achieve the success you set out to have.
Be sure to ask yourself when setting OKR goals:
Are they ambitious?
Objectives are goals that you strive to achieve for your organization. They are ambitious things that might not be achievable, and that is the point. You are not doing it right if you are meeting your OKRs regularly. It would be best if you were coming close to fulfilling the Objectives every time but not completing them each time.
Are they measurable?
Your Key Results should always be something that can be measured. If they cannot be measured, they are too vague to be a key result. The measurability helps show if you actually accomplished the part of the goal you set out to achieve.
Are they transparent?
The entire organization should have visibility into the OKRs set by the CEO and Leadership teams. This way, everyone can see what is happening and how they individually contribute to the company’s success. This is motivating and provides the necessary clarity to make your strategy a reality.
Learn more about the OKR framework here!