Recommended reading: Secrets to Successful Strategy Execution for Growing Startups
OKRs (Objectives and Key Results) are one of the most effective ways to measure progress in your business. Companies like Google and Amazon use this framework to help them reach their goals.
But setting up the perfect OKRs isn’t easy – it takes skill, patience, and a bit of creativity. Here’s how to craft killer OKRs for your business
How to set great OKRs
Let’s get started with writing good OKRs for your business.
Understand the objectives of your company
Before you can start writing great OKRs, it’s essential to understand your company’s objectives. This may seem daunting, but fortunately, there’s a simple approach.
Just think about what you want your junior-most employees to understand. By clearly articulating your company’s objectives, you can ensure that everyone is on the same page and that your OKRs are aligned with your overall goal. So take a deep breath and dive in.
Identify Key Results
Good objective(O) != More key results(KRs). Having too many KRs can hinder your progress toward the O. You’ll split your focus among too many things and not make enough progress on any of them.
Additionally, adding tasks as KRs is a surefire way to set yourself up for failure. This is because tasks need to be done to achieve a KR, but they are not measurable.
As a result, you’ll never be able to tell whether you’re progressing on your objective. So when writing OKRs, be sure to identify critical results that are specific and measurable. This will help you stay focused and ensure that you’re making progress toward your objectives.
OKRs should be defined as a Team
When setting goals, it’s often said there’s no “I” in the team. And when it comes to OKRs (Objectives and Key Results), that adage holds true. The best way to define OKRs is as a team rather than individually or only by a manager.
That’s because OKRs need to be aligned with the company’s or organization’s overall goals, and everyone needs to be on the same page to achieve them. By defining OKRs as a team, you’re more likely to develop a shared sense of purpose and responsibility, and everyone will be clear on what needs to be done to achieve the objectives.
Prepare a statement of OKR
To write the best OKR, you’ll need to start with a strong statement of purpose. This will help ensure that your OKR is clear and concise and accurately reflects your company’s goals and objectives.
OKRs with consistency
Whether you’re a startup or a Fortune 500 company, writing consistent OKRs is essential to achieving your goals. Here’s why: first, it allows you to track progress and identify areas of improvement. Second, it keeps everyone on the same page and focused on the same objectives. Third, it ensures that your OKRs remain relevant and actionable over time.
Schedule your initiatives
You can’t just wing it when it comes to writing great OKRs. You need a plan. And that’s where scheduling comes in. By taking the time to map out your initiatives and priorities, you can ensure that your OKRs are aligned with your overall strategy.
This way, you can avoid the pitfalls of uncoordinated objectives and unrealistic timelines. So don’t procrastinate: sit down and map out your next steps today. Your future self will thank you.
Align your OKRs with Company’s yearly objectives
A company’s yearly objective should be the North Star that everyone in the organization looks to when setting their own goals. However, departments, teams, and individual contributors get caught up in pursuing their objectives rather than aligning with the company’s overarching goal.
This can lead to much duplicate work and wasted effort as everyone tries to move in their direction. The best way to avoid this is to make sure that everyone is crystal clear on the company’s yearly objective and then ensure that their goals are aligned with it.
The difference between OKRs and KPIs
- OKRs (Objectives and Key Results) focus on setting ambitious and aspirational goals for the organization, providing a clear direction and purpose.
- KPIs (Key Performance Indicators) are specific metrics used to measure the performance of processes or activities and track progress toward achieving objectives.
- OKRs are more qualitative and descriptive, emphasizing what needs to be achieved and why it’s essential.
- KPIs are quantitative and numeric, providing tangible data to assess performance and make informed decisions.
- OKRs are typically set quarterly to drive innovation and adapt to changing circumstances.
- KPIs are often monitored more frequently and are used to evaluate ongoing operational performance.
- OKR platform encourages us to stretch goals and learn from failures, fostering a growth mindset.
- KPIs focus on maintaining efficiency and effectiveness in established processes.
So, there you have it. How to write great OKRs that will help motivate and focus your team. It’s not always easy, but following these tips should make the process easier. And if you need some help getting started, don’t forget our best OKR software offers a simple way to create and manage your OKRs.