OKR framework
Objectives and Key Results (OKR) is a goal-setting methodology that helps organisations establish and execute strategy. This framework works by focusing employees and their efforts on accomplishing common goals.
Benefits of OKR include
- a better focus on results that matter,
- increased transparency, and
- better (strategic) alignment.
An OKR is made up of
- The Objective informs you where you want to go,
- Key Results. which are the outcomes you need to get to your objective, and
- Initiatives, which are all the projects and tasks that will help you achieve your Key Results.
The framework includes a set of guidelines that employees can use to prioritise, align, and track the results of their activities. OKR assists organisations in bridging the gap between strategy and execution, allowing them to shift from an output-based to an outcome-based work style.
If your organization is a car, the Objective is your destination, the Key Results show if you’re heading in the right direction, and the Initiatives are what you’ll do to get your car moving.
Objective
“What I want to have accomplished”
An objective is a statement about something you want to accomplish in the future. An Objective determines the direction.
Examples: Create a more goal-oriented culture; Empower our support team to be more self-sufficient; Be the highest-ranking in the country.
Key Result
“How I’m going to get it done?”
A measurable outcome required to achieve the Objective. It contains a metric with a start and target value. Key Results measure progress towards the Objective — like an indicator of progress towards your Objective.
Examples: Win 10 new clients worth $10M in bookings by the end of March; Get an NPS of 8 or higher for the next 5 events; Launch 3 new products.
Initiative
“What will I do to get there?”
All of the projects and tasks that will assist you reach a Key Result.
Examples: Secure budget approval; Complete technical specs for new product; Complete proposal for new client.
Atlassian offers the following check-list for setting OKRs:
- Put the customer first
- Don’t skimp on ambition
- Tie OKRs to larger company goals
- Just enough Os and KRs is enough
- If you can’t measure it, it’s not a good KR
- KRs are outcomes — not tasks
- Assign KR owners
Read more about preparing for OKRs and finding the right cadence at Perdoo
Kit Hindin
Activator, facilitator, entrepreneur, futurist, designer and strategic thinking partner.