The other white meat in the world of goal tracking
In the business world, there are many different ways to measure goals; two popular methods are SMART goals and OKRs. Much like SMART goals, OKRs requires action and a measurable outcome. OKRs comprise an objective—a clearly defined goal—and one or more key results—specific measures used to track the achievement of that goal. The goal of OKR is to define how to achieve objectives through concrete, specific and measurable actions.
The biggest difference between SMART goals and OKRs is that OKRs are frequently set, tracked, and re-evaluated, usually quarterly. OKR is a simple, fast-cadence process that engages each team’s perspective and creativity. Creating alignment in the organization is one of the main benefits. The goal is to ensure everyone is going in the same direction, with clear priorities, in a constant rhythm.
"The key result has to be measurable. But in the end, you can look, and without any arguments know: Did I do that or did I not do it? Yes, or No; It's that simple."
OKR Goal Formula
I will ________ as measured by ____________.
A proper goal has to describe both what you will achieve and how you are going to measure its achievement. The key words here are “as measured by,” since the measurement is what makes a goal a goal. Without it, you do not have a goal; all you have is a desire.
The best way to explain the structure of an OKR:
I will (Objective) as measured by (this set of Key Results).
So, as the name implies, OKR has two components, the Objective and the Key Results:
OKR structure is very simple:
Objectives are memorable qualitative descriptions of what you want to achieve. Objectives should be short, inspirational and engaging. An Objective should motivate and challenge the team. You start by defining 3-5 key objectives on company, team or personal levels. Objectives should be ambitious, qualitative, time-bound and actionable by the person or team.
Key Results are a set of metrics that measure your progress towards the Objective. For each Objective, you should have a set of 2 to 5 Key Results. More than that and no one will remember them. Under each Objective, define 3-5 measurable results. Key results should be quantifiable, achievable, lead to objective grading and be difficult, but not impossible. OKR results can be based on growth, performance, or engagement. Often they are numerical, but they can also show if something is done or undone.
All Key Results have to be quantitative and measurable.
“If it does not have a number, it is not a Key Result."
EXAMPLE
First of all, we need an Objective. An example might be “Improve internal employee engagement and job satisfaction.” This sounds great, but how would you know if the engagement and job satisfaction is improved? Remember, without measurement you don’t have a goal.
That is why we need Key Results. How can we measure if we are improving? Having fun days and interviewing staff would be two good options. Do our employees feel so good about working with us that they would tell other people about how awesome this place is to work?
This example would be:
O: Improve internal employee engagement and job satisfaction
KR: Conduct 3 monthly "Fun Friday" all-hands meetings with motivational speakers
KR: Interview 48 employees on their needs for improving our work culture.
KR: Reach weekly employee satisfaction score of at least 4.7 points
Key Results are crucial. Most of all, they define what we mean by “Improve internal employee engagement and job satisfaction.” A second team or company could use the same Objective with different Key Results.
How to use OKRs?
Once defined, communicate your Objectives and Key Results to everyone. If needed, tune the wording together so everyone has a common understanding.
As people start working, they will update their result indicators regularly - preferably weekly. An objective is considered done when 70-75% of its results have been achieved. If 100% of the results of the objective get done, it may not be ambitious enough.
Review OKRs regularly, as needed. Be flexible. If your company, team, or personal goals change, feel free to change the OKRs as well. No process should be more important than common sense and everyday business.
OKRs may be shared across the organization with the intention of providing teams with visibility of goals to align and focus effort. OKRs are typically set at the company, team, and personal levels.
Although SMART goals and OKRs will help you achieve your desired results, it is important to pick one format and stick with it. For anyone to truly be successful, goals must be set and met. In the next part of this series, we will discuss the benefits of using OKR’s as well as common mistakes and tips for writing better goals.