© ZOKRI 2023 All rights reserved | Privacy Policy | Terms & Conditions | GDPR
Welcome to our comprehensive introduction to OKRs (Objectives and Key Results). By reading this guide you will discover the power of this goal setting methodology and how OKRs can transform your team’s performance, drive results, and help achieve the company goals that will win the battlegrounds outlined in your company strategy.
Interested in seeing how OKRs are better managed in our OKR Software, ZOKRI?
We have written this guide as an introduction to OKRs for leaders, managers and employees new to OKR, or for those that are struggling to implement OKRs or what we hear described as “making OKRs stick”.
Objectives and Key Results (OKRs), a brilliant goal-setting framework, were first created by Andy Grove at Intel, as a tool to galvanize his teams with clear, measurable objectives, at a pivotal moment in Intel’s history.
Like many great innovations, Objectives and Key Results (OKRs) were born out of necessity, in the war room of a company where the pace of change was relentless and the stakes high.
Grove, a visionary and a pragmatist, realized the need for a management system that could harness the collective energies of his team and channel them towards the achievement of ambitious goals. Thus, the concept of OKRs was conceived. Objectives, aspirational and bold, would articulate the ‘what’ and come with a ‘why the urgency’ narrative. Key Results, specific and measurable, would outline the ‘success measures’ that tell you whether you’ve reached your destination.
John Doerr, then a young manager at Intel, was deeply inspired by this novel approach. He saw in OKRs a powerful tool that could revolutionize the way organizations set and pursue goals. Carrying the OKR story forward, he introduced the framework to a fledgling Google, where it would go on to become an integral part of the company’s DNA, powering its ascent to global dominance.
Over the years, OKRs have spread across the business landscape, finding resonance in organizations large and small. From Spotify to LinkedIn, from Airbnb to Oracle, companies around the world are leveraging the power of OKRs to drive focus, alignment, and engagement, and in the process, reshaping their strategic narratives.
The magic of the OKR methodology lies in its ability to translate grand visions into actionable steps. By uniting teams under the banner of shared objectives and providing a clear roadmap to success, OKRs have the potential to ignite a strategic revolution within your organization.
In the world of strategic execution, Objectives and Key Results (OKRs) are the North Star. A time-tested methodology, OKRs breathe life into a company’s mission, acting as the vital connective tissue that links the aspirations of individuals and teams to the broader goals of the organization. The potency of this goal-setting framework can be distilled into three essential elements: Focus, Alignment, and Engagement.
Yet, the power of OKRs extends beyond these three facets. Their inherent transparency cultivates a culture of trust, and their commitment to measurable progress fosters accountability.
This unique blend of focus, alignment, engagement, transparency, and accountability is the secret sauce behind OKRs, making them a crucial ingredient in the recipe for organizational success.
It’s no surprise then, that this framework has played a starring role in the success stories of global tech giants like Google and LinkedIn.
By aligning vision, values, strategy, OKRs, KPIs scorecards, and employee behaviors, companies can improve their performance. OKRs without alignment with all aspects of the business and without a focus on executional best-practices run the risk of not having much of an impact, or worse.
Read more about Strategy, OKRs and KPI Scorecards.
Mission & Vision
We all want to be on a Mission. We all want to know what the Vision is.
Values
The values that ensure your Vision can be achieved.
Reinforced via praise and recognition. Measured via analytics in ZOKRI.
Strategic Intent
Things like Revenue, Growth, Profit.
These are never a Strategy. How you improve these is Strategy.
Strategic Pillar
Pillar 1
Strategic Pillar
Pillar 2
Strategic Pillar
Pillar 3
Strategic Pillar
Pillar 4
KPIs
Scorecard
OKRs
Align
KPIs
Scorecard
OKRs
Align
KPIs
Scorecard
OKRs
Align
KPIs
Scorecard
OKRs
Align
People & Process
Aligning the right people, doing the right jobs, in the right way
This simple graphic explains how to write an Objective. You only write one Objective per OKR. You should write a supporting narrative with your Objective explaining why it’s important to make progress on this OKR and why it was chosen.
With each Objective you want to write 1 – 4 Key Results, 2 – 3 is most common. These Key Results are the measurable outcomes you’d like to achieve by the end of a period like a quarter. They are often KPIs and ideally are leading indicator bias as lagging indicators move too slowly. You can also blend leading and lagging, trying to act on the leading indicators to drive the lagging one.
The work or what are often called Initiatives or Commitments are how progress on the Key Results is going to be made.
Initiatives take many forms and can be as large as a project, a sprint or epic, a campaign, a launch, or even a collection of tasks. It’s common to brainstorm a list of Initiative ideas as part of the OKR writing process.
The heart and soul of an OKR is the Objective. These are the bold, inspiring goals that dare us to dream bigger, reach higher, and push beyond the boundaries of what we believe possible. They are the rallying cries that galvanize teams and kindle the fires of ambition.
Objectives should come with a supporting narrative that outlines ‘why’ this Objective has been chosen and why it’s urgent that you make progress towards this now. If it’s not urgent and going to make an impact then it’s probably not a good choice of Objective.
Objectives are not fanciful dreams, detached from reality. They should be grounded in strategic intent, tethered to the mission and vision of the organization.
Objectives serve as the foundational pillars of the OKR framework, setting the stage for the measurable actions— the Key Results— that will follow. By beginning with compelling Objectives, we set the tone for a strategic narrative that is both ambitious and actionable.
If Objectives are the North Star, Key Results are the coordinates that chart the course to that guiding light. They are the tangible, measurable steps that mark our progress on the journey towards our ambitious goals.
Key Results are the heartbeat of the OKR framework. They pulse with clarity and specificity, leaving no room for ambiguity of what success looks like.
Key Results tell everyone what success looks like and should be challenging yet achievable, pushing us to stretch beyond our comfort zones without setting us up for failure. In essence, they are the strategic signposts that guide our collective journey, ensuring that every step we take is a step towards our ultimate Objective.
Here are OKR examples that use the more common X to Y Key Result format as well as less common binary, milestone or strategic project based Key Results that are focused on investigation, discovery, innovation and rapid change.
Objective (Aligned with Growth Strategic Pillar)
Scale the number of leads sales are receiving from Marketing
Key Results
Objective
Scale ‘best on the web’ cornerstone content to create traffic that converts to leads
Key Results
Objective
Discover whether AI can speed up how we [PROCESS STAGE].
Key Results
Objective
Try to use AI to solve the challenge of [problem] for our customers.
Key Result
Objective
Evolve our pricing model to move from time to value based model.
Key Results
Objective
Improve patient outcomes through AI-assisted diagnosis and treatment.
Key Results
Objective
Enhance our legal services offering, using AI to improve efficiency and accuracy.
Key Results
When you create Company Level or Strategic OKRs, you can align department, team and cross-functional team OKRs with these. These Strategic / Company OKRs do NOT usually have their own Initiatives / Tasks / Commitments (depending on what you have chosen to call the executional work that drives the progress of OKRs. Their success is driven by the alignment of aligned team and individual OKRs.
As the Marketing OKR example above shows, when you create Team OKRs they can be aligned with or supported by other OKRs. The idea of support and alignment can and normally is be ‘loose’ which means that it you’re not taking a ‘hard’ percentage of a Key Result from the OKR above, like you might see with department and individual sales representative quotas. What companies and OKR coaches have found is rigid and deep cascades do not work well, scale and hamper critical thinking.
If Objectives & Key Results are the ‘what’ you want to achieve, teams and individuals also need to layout the steps or plans ‘how’ a goal will be achieved.
If you want the teams working towards you OKRs to achieve your them and stay focused and resilient, you need to break down the execution of the OKR into steps. There are various names for these steps. Initiatives, Commitments and Tasks are the most common. These can be a mixture of types of executional activities that include:
In ZOKRI you can plan how you will achieve your OKRs using these different types of executional types. Features that make this even more impactful include:
Showing how you will achieve your OKRs is something that happens in team and individual OKRs, not the company strategic OKRs.
In the dance of strategic execution towards achieving OKRs, is the OKR cycle — Plan, Track, Review — and the rhythm that guides our steps. It’s a dynamic process that ensures the pulse of OKRs never fades, keeping us in tune with our objectives and focused on our key results.
The whole OKR cycle is managed seamlessly in ZOKRI, with every step streamlined and notifications, alerts and chases all ensuring you have a single-point-of-truth on how the organization is performing and where help is needed.
The first beat of the cycle is planning. This is when we set our objectives and key results for the upcoming period, whether it’s a quarter, a half-year, or a year. It’s a collaborative process that engages the whole team, sparking conversations about our priorities, capabilities, and aspirations.
Next comes tracking. As we embark on our journey towards our objectives, we periodically check our progress against our key results. This regular check-ins and OKR team meetings act as a pulse keeps us on track, alerting us to any roadblocks or detours and enabling us to adjust our course as necessary.
The final beat in the cycle is review. At the end of the period, we take a step back to assess our performance. We celebrate our victories, learn from our setbacks, and gather insights to guide our next OKR cycle. The review process is not about assigning blame but about continuous learning and improvement. This stage is often called a Retrospective.
The OKR cycle is a relentless rhythm, a cycle of planning, tracking, and reviewing that keeps us aligned with our goals and committed to our journey. It ensures that our OKRs are not static but dynamic, constantly evolving with our needs and aspirations.
Crafting effective OKRs is an art, a delicate balance between ambition and realism, between inspiration and execution. It’s about setting goals that spark the imagination while grounding them in the practicalities of measurable progress. Here are some guiding principles to help you master this art:
The first step in writing an effective OKR is to envision your objective. What is the grand ambition you’re striving towards? This objective should be bold and inspiring, a rallying cry that aligns and motivates your team.
Once you’ve set your objective, it’s time to define your key results. These should be clear, specific, and measurable. If it can’t be measured, it can’t be managed. Your key results should provide a tangible roadmap towards your objective, tracking progress in a meaningful way. However, not all Key Results use metrics that are moving a number from X to Y. There are other types you should be familiar with like Strategic Project / Initiative progress and ‘Learning’ goals.
Your OKRs should align with the broader mission and vision of your organization. They should not exist in isolation but be firmly embedded in the strategic narrative of your company. There are different OKR alignment approaches and the ZOKRI team can help you choose the right one for you.
When writing your Key Results, if you’re being ambitious use labels like ‘Aspirational’ to let everyone know the target is a ‘Stretch’. If you need and expect to hit the Key Result – 100% then label it as ‘Committed’. These labels make it clear how ambitious you have been and create a ‘Success Level Zone’ where over a certain level of progress would be seen as successful.
The process of crafting OKRs should be collaborative. By involving your team in the process, you ensure buy-in and engagement, creating a sense of shared ownership and commitment.
Writing effective OKRs is a journey, not a destination. It requires practice, patience, and a willingness to learn and adapt. But with these guiding principles, you’re well on your way to mastering the art of OKRs.
Becoming really good at goal setting means ensuring the right thought processes, conversations and checks have been carried out before starting to work towards its achievement.
ZOKRI can do these checks as part of its customizable OKR proposal and sign-off workflows. These can be made optional or mandatory as part of the OKR creation workflows your OKR leads and coaches can define. Or why not create your own process and questions?
What are the benefits of having a question like these built into your OKR process and software?
Having a systemized approach to OKR creation makes it easier for teams to learn how you want OKRs to be thought about, planned, socialized, and eventually worked towards. The key benefits of a process like the one above being:
With organizational culture, OKRs are one the threads that bind teams together. They weave a pattern of focus, alignment, and engagement, transforming the way we work and interact with each other. Here’s how OKRs can positively shape your team culture:
OKRs act as a compass, guiding our collective energies towards what truly matters. They help us distill the essential from the noise, ensuring that our efforts are not scattered but concentrated on the objectives that drive value.
OKRs foster a unity of purpose, aligning individual efforts with team goals and organizational objectives. This shared sense of direction strengthens the bonds between team members, enhancing collaboration and synergy.
When every team member can see how their work contributes to larger organizational goals, a sense of ownership and engagement is kindled. OKRs democratize strategy, making every team member a strategic partner in the journey towards our objectives.
OKRs cultivate a culture of transparency, where goals and progress are visible to all. This openness fosters trust and accountability, breaking down silos and encouraging open communication.
By tying key results to measurable outcomes, OKRs instill a culture of accountability. When progress is trackable and visible, team members are more likely to take ownership of their tasks and responsibilities.
OKRs are more than a goal-setting framework; they are a culture-shaping tool. By embedding OKRs into your team culture, you can create an environment that is focused, aligned, engaged, transparent, and accountable – a fertile ground for collaboration, innovation, and high performance.
Like any potent tool, OKRs are not without their challenges. But these challenges are not roadblocks, rather stepping stones towards mastery. With the right approach, these common hurdles can be overcome, paving the way for a successful OKR journey.
The fewer OKRs you have the more likely you are to achieve them, so choose your OKRs wisely based on impact, resources available. Work in serial as opposed to creating too many OKRs and diluting focus and attention, roadmapping OKRs you might want to resource at a later date.
The allure of audacious goals can sometimes lead to overambition. Striking a balance between aspiration and realism is crucial. Remember, key results should stretch your team but not strain them to the point of exhaustion or demoralization.
Aligning OKRs with broader organizational objectives can be a challenge, especially in larger teams or organizations. This requires clear communication of the organization’s vision and strategic goals, and a collaborative OKR-setting process that includes all levels of the organization.
Keeping the team engaged with OKRs over time can be tricky. Regular check-ins, celebrating progress, and recognizing contributions can help maintain enthusiasm and commitment.
While OKRs aim to foster transparency, some team members may feel uncomfortable with this level of openness. Building a safe and trusting team culture, where transparency is viewed as a strength rather than a threat, is key to overcoming this challenge.
In an OKR framework, not meeting a key result is not a failure, but a learning opportunity. Encouraging this mindset shift can be challenging but is essential for fostering a culture of innovation and continuous improvement.
OKR challenges are part and parcel of the journey. But with perseverance, collaboration, and a learning mindset, these challenges can be transformed into stepping stones towards a more focused, aligned, and high-performing team.
Embarking on the OKR journey is akin to setting sail on an ocean of possibilities. With the right preparation, navigation, and perseverance, you can harness the power of OKRs to drive your organization towards its strategic goals. Here’s a roadmap to help you navigate the waters of OKR implementation:
Begin by educating your team about OKRs. Share the benefits, the process, and success stories from other organizations. This will help build understanding and buy-in, setting a firm foundation for your OKR journey.
Strategy, KPI Scorecards, Check-ins, priority and issue sharing, team meetings with set agenda are all concepts and ways of working that will ensure your OKRs are achieved.
With your team on board, it’s time to set your first OKRs. Remember the principles of effective OKRs: make your objectives inspiring and your key results measurable and achievable. Ensure alignment with your organizational vision and strategic pillars and goals.
Once your OKRs are in place, establish a system for tracking progress. Regular check-ins and team meetings will help keep the momentum going and enable timely course corrections. Celebrate progress to boost morale and engagement.
At the end of the OKR cycle, review your performance, asking questions like:
Use these insights to refine your OKRs for the next cycle.
Implementing OKRs is not a one-off event, but a continuous journey of learning and improvement. With each cycle, your mastery of OKRs will grow, bringing you closer to your strategic goals.
The OKR journey may have its challenges, but with the right approach, it can be a transformative voyage. By implementing OKRs in your organization, you can foster a culture of focus, alignment, transparency, and accountability, steering your organization towards a brighter future.
The journey to OKR success is a trek worth taking, and just like any worthwhile expedition, having the right tools and resources can make the journey smoother and more rewarding. Here are some essentials to pack in your OKR toolkit:
ZOKRI streamlines the process of setting, tracking, and reviewing OKRs. It provides a centralized platform for OKR management, enhancing visibility, collaboration, and organizational alignment.
Books like “Measure What Matters” by John Doerr provide in-depth insights into the world of OKRs. Articles and blogs from leading management consultancies and OKR practitioners can also offer valuable tips and best practices.
Many organizations and thought leaders offer webinars and training courses on OKRs. These can be a great way to build your team’s understanding of OKRs and learn from experts in the field.
If you’re looking for personalized guidance on your OKR journey, ZOKRI’s OKR coaches can provide tailored advice and support, helping you navigate the challenges of OKR implementation.
Embarking on the OKR journey with ZOKRI can accelerate your path to success. As you harness the power of OKRs to drive alignment, focus, and performance in your organization, these resources can be your trusted companions, guiding you towards your objectives.
The OKR journey is not a sprint, but a marathon. It’s a journey that beckons us towards greater focus, alignment, and performance. It’s a journey that challenges us to dream big, yet remain grounded in measurable progress. It’s a journey that transforms not just our work, but the very fabric of our organizational culture.
The path may be filled with challenges, but every step taken is a step towards mastery. With each OKR cycle, our understanding deepens, our alignment strengthens, and our performance soars. And with the right tools, resources, and mindset, we can navigate the hurdles and keep moving forward.
The power of OKRs lies not just in reaching our objectives, but in the journey itself. The journey that sparks a culture of transparency, accountability, and engagement. The journey that unites us in a shared vision and purpose. The journey that redefines what we can achieve as a team, as an organization.
So, as you embark on your OKR journey, remember: it’s not just about the destination, but about the journey. A journey that can transform your team, your organization, and indeed, your world.
Implementing OKRs successfully delivers significant strategic and operational benefits, driving organizational performance and growth.
OKRs provide a framework for organizations to articulate, communicate, and measure strategic objectives. This enhances strategic focus by ensuring that all effort and resources are directed towards the most impactful initiatives.
OKRs establish a clear line of sight from individual tasks to organizational goals. This alignment enhances collaboration, breaks down silos, and drives collective success.
OKRs foster a culture of openness, where goals and progress are visible to all. This transparency boosts trust, encourages dialogue, and strengthens accountability.
With short-term objectives and frequent progress measurement, OKRs enable organizations to respond swiftly to change. This agility allows organizations to stay competitive in a dynamic business environment.
By driving strategic focus, alignment, transparency, and agility, OKRs power an organization’s journey towards its strategic goals, catalyzing growth and success.
The business case for successful OKR implementation is robust, promising significant benefits in terms of strategic focus, team alignment, transparency, agility, and ultimately, performance and growth.
You can propel your organizations towards success and growth using OKRs, or Objectives and Key Results.
Because of your commitment to transform your strategy into actionable, measurable steps that guide us towards your vision.
OKRs are your roadmap. They provide the direction and the milestones that tell us whether you are on the path to success or if you need to recalibrate your route. However, this roadmap is only as good as the objectives and key results it outlines – they must reflect what truly matters to your organization.
You do this by focusing on three key principles: sharing, transparency, and frequent discussion.
Sharing OKRs is crucial because it cultivates a culture of ownership and engagement among team members. When everyone has access to the OKRs, they understand how their efforts contribute to broader objectives. This visibility encourages accountability and motivates individuals to strive towards the shared vision.
Transparency is equally important. It fosters trust and nurtures an open culture. When OKRs are transparent, everyone in the organization knows what the goals are, how success is measured, and what role they play in that journey. This clarity helps to align efforts, eliminate confusion, and drive focused action towards achieving shared objectives.
Lastly, frequent discussions about OKRs keep them alive and relevant. Regular check-ins and meetings allow teams to identify obstacles, celebrate progress, and learn from setbacks. This encourages a culture of continuous learning and adaptation, which is vital for the growth and resilience of any organization.
You build organizations that are focused, aligned, and agile. You foster a culture of trust, accountability, and continuous learning. You ensure that everyone is rowing in the same direction, towards the shared vision. You significantly increase our chances of not just reaching our goals, but of fulfilling your purpose – your ‘why.’
OKRs that measure what truly matters, and are shared, transparent, and regularly discussed, are not just tools for goal setting. They are powerful drivers of growth and success for any organization. Harness their potential to create a world where everyone feels connected to their work and understands their contribution towards the bigger picture.
Company
Unlock your company’s true potential with ZOKRI
© ZOKRI 2023 All rights reserved | Privacy Policy | Terms & Conditions | GDPR