OKRs helps employees understand how their actions contribute to the success of the organization. And it’s one of the most powerful ways to drive business results.
In fact, research shows that when companies use OKRs, they see significant improvements in employee engagement, productivity, and customer satisfaction.
Why use OKRs?
Objectives and Key Results (OKR) is a popular goal-setting system used by many of the world’s leading companies. OKRs are used to set ambitious goals, measure progress and keep teams aligned with the overall objectives of the organization.
OKRs are made up of two parts: objectives and key results. Objectives are qualitative goals that focus on what you want to achieve. They provide direction, inspiration and focus. Examples of objectives include “Grow sales by 30%” or “Improve customer satisfaction by 5%”.
Key results are the measurable outcomes that you will use to track progress towards your objectives. They are quantitative targets that help you determine whether or not you’re on track to reach your goals. Examples of key results include “Increase average order size by 10%” or “Generate 100 new leads per month”.
The key to success is to set clear and measurable objectives and key results that are achievable, but also challenging and inspiring.
1 Start by defining what success looks like
To start, define what success looks like. This will help you determine how much effort you need to put into each goal. If you think that achieving one of your goals will take more than three months, then you should probably break it down into smaller pieces.
Know Your Priorities: Prioritize your objectives and key results so that you can focus your efforts on the most important tasks and goals.
2 Set SMART Objectives: Make sure that each OKR you set is Specific, Measurable, Achievable, Relevant, and Time-bound.
Track Progress Regularly: Make sure to track your progress regularly and adjust your OKRs accordingly. OKRs also provide a framework for tracking progress and ensuring that teams stay focused on the most important objectives. This can be done through regular check-ins and reviews of progress, as well as adjusting objectives and key results as needed.
Communicate Often: Communicate often and openly with your team about their progress and any changes that need to be made.
3 Focus on the right metrics
If you’re using OKRs as part of your performance management system, then you need to focus on the right metrics. There are two main ways to measure success: by comparing actual results against goals (or KPIs) and by comparing actual results against previous years.
4 Create a culture of accountability
To make sure that everyone is held accountable for meeting their goals, you should establish clear expectations and hold people accountable for achieving them. This means setting realistic goals and making sure that employees understand what they need to do to meet those goals. You also need to ensure that there is a clear process for measuring progress towards these goals.
Provide Resources & Support: Ensure that you provide the resources and support your team needs in order to reach their OKRs.
5 Review & Refine: Review your OKRs regularly and refine them as needed to ensure that they are still relevant and achievable.
Celebrate Successes: Celebrate successes and recognize achievements as your team reaches their OKRs.
