What are OKRs?
OKR Definition
OKRs stands for Objectives and Key Results, a goal-setting framework used in businesses and organizations to align and measure progress towards specific and measurable objectives. OKRs consist of an objective, a quantifiable key result, and a fixed rythm to set and align OKRs across teams. They help teams focus their efforts, track progress, and make data-driven decisions.
OBJECTIVES = where do we want to go?
- Big themes for the quarter
- Set max 5 of them to focus, less is more
- Should be bold and easy to understand
KEY RESULTS = how do we know if we are getting there?
- How does success of your "O" look like and how to measure it?
- Must be clearly measurable at the end of the OKR cycle
- Set max 5 of them to focus, less is more
- Stretchy, but reachable
INITIATIVES = what will i do to get there?
- Tasks or milestones
- Your individual contribution
FOR US
- Reach our vision and strategy
- Concentrate on the right things
- Handle growth
- Improve focus
- Better transparency
- Align dependencies across teams
FOR YOU
- Understand the big picture and how you are able to contribute
- Clarity on what other teams and colleagues are working on
- Know what to focus on
- Measure success and learn from it
- Change things and improve the way you work as a team
- Have a voice, give input, try out new things and influence directions
Quarterly OKRs examples (Q1)
end of
March, we
want to...
O: We want to
keep the team
world class
O: We want to
improve supply
chain costs
O: We reinforce
our business
lead sourcing
O: Hola, we
are in business
in Spain!
as
measured
by...
KR 1: less than
one un-planned
leaver
KR 1: reduce
COGs of
top 5 products
by 10%
KR 1: 1500 new
leads (500 per
month) via video
ads with
positive margin
KR 1: 6 open
positions filled
(3 onboarding, 3
contract signed)
KR 2: employee
satisfaction
index up one point
to 8/10
KR 2: bring down
overall storage
and transport cost
by 5%
KR 2: new
sourcing channel
via WhatsApp
is ready-to-use
KR 2: team is
in full operation
in our new office
KR 3: 360 degree
feedback system
launched
KR 3: improve
margin rate from
11% to 15%
OKR best practice
OKRs will be a fixed part of our regular meeting rythm.
Set and forget - without regular follow-up and progress updates we will never achieve our OKRs.
Changing OKRs during the quarter dilutes focus, so we won´t change halfway.
OKRs describe outcome/ results and not tasks.
OKRs are not a list to show how busy you are.
OKRs are about the step changes of what your team is doing and not about daily activities (business as usual).
Dependencies between teams need to be aligned with OKRs.
