Setting Your OKRs
Companies and individuals always set goals. For example, our new year resolutions. The issues with setting goals is that most of the times, the tracking and follow up of these are not followed by anyone. One proven goal setting technique has been the use of OKR’s, having been successfully adopted by big companies such as Google, Facebook, Netflix, Twitter to name a few.
In this blog, we will look a bit more in depth on the following:
What is OKR?
Why Use OKR?
Mistakes of OKR
OKR Building Blocks
What is OKR?
Objectives and Key Results (OKR) is essentially a goal setting framework. It is an approach in order to create alignments on the goals, rather than having separate non-relevant goal to the overall objective.
One of the biggest difference of using OKR from other goal setting techniques is that OKR’s are a faster pace goal setting method. They are frequently set (usually every quarter), frequently tracked and evaluated. If a more laid back approach is for you, then OKR’s are not for you!
As the name suggest, OKRs will be made up of objectives and key results, with usually 2-5 key results for each objectives.
Objectives
Memorable, short, inspirational, engaging and a qualitative descriptions of what you want to achieve. When creating objectives, remember it is needed to motivate the team
Key Results
Sets of metrics to measure progress. It also needs to be easy to remember
OKRs can be easily made with a simple formula:
Objectives are what you want to achieve and the key results are how we get to the objectives.
An example of the formula in use is as follows:
I will control my emotions better as measured by reading 10 books about controlling emotions in 3 months, and trying to smile when I'm angry.
Why Use OKR?
There are many benefits to using OKRs, benefits which has been why it has become extremely popular amongst fortune 500 companies to implement OKRs in their workplace. If used right, below are some of the benefits OKRs can give:
Agility
OKRs have shorter goal cycles, which means adjustments can be made faster. This also means the organization is in a position for better adaption to change. This will help spur information for the future
Reduction of Goal Setting Time
As we can see above, the formula is incredibly easy to understand and use. This allows the goal setting process to be quicker, and cheaper
Engagement
Rather than use a top down approach, the bottom up of OKR allows employees to be engaged and connected to the company and its missions and objectives.
Autonomy & Accountability
Teams are free to choose how to achieve their OKRs, allowing them to be responsible for their objectives and success. With the transparency of OKR, this will also mean all of the company will know each team’s goal, thus allowing mutual obligation for success
Clearer Communication
Transparency and the simplicity of the goals allows all to understand and follow the goals and needs of each department and individual
Mistakes of OKR
As with any other strategies or methods, when implemented companies or individuals may make mistakes or misinterpretation. Below are some of the most common mistakes of using OKRs:
Non-Measurable
Every key result should be measurable. When setting OKRs, be sure to know how to measure the KR
Too Many
Some may go gung-ho and create an extensive list of all objectives and key results. This should not be the case! OKR should represent the top priorities!
Creation in Isolation
It is important communication take place when setting OKRs, with team discussion and discussion with direct managers
Set & Forget
OKRs have to be tracked, adapted where needed and implemented. It is not something to make for the sake of making and forget
Compensation:
OKR should not be implemented with ANY employee motivation tool. OKR is a management tool!
OKR Building Blocks
One mistake not mentioned above that many companies tend to make when implementing OKRs are trying to follow how Google implement OKRs. Every company and every department within a company may implement OKR differently, depending on where on the lifespan they are at, as well as consideration of their capabilities.
OKR Building Blocks
We will not go through the building blocks, however what each capabilities mean and why they are each of the level above:
Responsive Rhythm:
This is the start of the capabilities as it allows organization to respond and adapt quicker, partly due to the need and partly due to the length of OKR implementation from the organization. For this capability, the following normally takes place:
The organization is in an uncertain environment or looking to innovate
straightforward and actionable goals with rapid feedback
OKR should be embedded in the work routine
Engaged Autonomy:
This gives more freedom for the path and the value added. It is important more value based results are being implemented, rather than activity based results. For this capability, the following normally takes place:
Connection of employees with the organization’s strategy
People need to not only feel accountable but connected to the results and care!
OKRs are public to all within the company
OKR is simultaneously top down and bottom up
Aligned Ambition:
This capability is build around ambitious goal where success is now not hitting 100%, but rather around 70-80%. For this capability, the following normally takes place:
Goals are aligned with all of the bosses goals, with a 360 alignment
The reward structure will not punish ambitious failures
Targets are bold and ambitious that are just beyond the threshold of what seems possible and make the team rethink
Within an organization, they may be at different capabilities of OKR, which is perfectly fine. It is important when implementing OKRs to realize tha one size does not fit all!
Looking to start your own personal OKR, or implement it in the workplace? Download our free template to get you started on using OKRs:
https://docs.google.com/spreadsheets/d/1g5xQ835cqjui_kBufuW0iwK_3Sgo4pcO/edit?usp=sharing&ouid=102978476184455511014&rtpof=true&sd=true
If you would like to know more about OKRs, click below to see and download our training on Setting Goals Using OKRs!
