What are OKRs?
OKRs, or Objectives and Key Results, is a goal-setting framework that helps organisations set, track, and achieve their goals. This approach, championed by companies like Google, LinkedIn, and Twitter, creates alignment and engagement around measurable goals.
- Objective: This is a clearly defined goal, which is qualitative and inspirational. It's the "what" you want to achieve.
- Key Results: These are the specific, quantifiable deliverables that will determine the success of the objective. They are the "how" you're going to achieve the objective.
How to Build OKRs in an Organisation?
- Align on Objectives: At the start of the planning period (typically quarterly), the team aligns on 3-5 key objectives. The objective should be ambitious and inspiring.
- Define Key Results: For each objective, define 2-5 key results. These should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
- Cascade OKRs: OKRs should be cascaded from the top down, so that each team and individual's OKRs align with the company's overall objectives.
- Transparency: Share OKRs across the organization. This helps create alignment and ensures everyone understands how their work contributes to broader company goals.
- Track and Adjust: Regularly review progress and adjust as needed. It's critical to maintain flexibility as business needs change.
How do OKRs Work in Practice?
In practice, OKRs promote focus, alignment, engagement, and transparency within an organisation.
- Focus: By limiting the number of objectives and key results, OKRs encourage teams to focus on the most critical initiatives.
- Alignment: Cascading OKRs from top to bottom ensures that every team and individual's work is aligned with the company's overall goals.
- Engagement: OKRs promote employee engagement by showing everyone how their work contributes to broader company goals.
- Transparency: OKRs are shared across the organisation, promoting transparency and cross-functional collaboration.
Examples of OKRs
Objective: Improve customer satisfaction
Key Results:
- Reduce customer support response time to under 2 hours