OKRs are a goal-setting method that pairs a clear goal, called the Objective, with around three measurable Key Results that prove you achieved it. They are usually set each quarter, and unlike KPIs, which monitor the ongoing health of the business, they drive a specific change.
Step by step
- 1
Choose a few objectives
Three to five company objectives per quarter at most, written in plain language that motivates the team, such as getting our customers to come back.
- 2
Write measurable key results
Each key result is a number from and to, such as raising the share of customers who buy a second time from 20% to 30% during the quarter.
- 3
Tell results from tasks
Launching a loyalty program is a task, not a result. The result is what changes in the numbers because of it, and the tasks follow as an action plan.
- 4
Link team goals to company goals
Each department writes its objectives and key results to serve the company's objectives, and agrees them with senior management rather than just receiving them.
- 5
Check in weekly
A short review of each key result's progress, what is blocking it, and what needs to change in the tasks.
- 6
Score and learn at quarter end
Record what was achieved and why, and what carries over to the next quarter, and do not use them as a tool for performance appraisal and bonuses, so the team does not set easy goals on purpose.
Turning OKRs into a long task list, or setting ten objectives in one quarter, scatters the team's effort so none of them is achieved.
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