When it comes to goal-setting, it's important to understand the difference between objectives and key results. Objectives are the overarching goals that you want to achieve, while key results are the measurable outcomes that indicate how close you are to achieving those goals. It's important to note that key results don't become objectives when assigned to another person. So, how do you go about setting objectives and key results? First, you need to dream big and set ambitious goals.
However, it's important to be realistic and increase your goals gradually. When referring to the objectives of the team and the function, your key results should be precise numbers or ranges from good to bad. It's also important to review your objectives and key results (OKRs) on a quarterly basis. This will help you stay on track and make sure that you're making progress towards your goals.
Automation can also be helpful in this regard, as it can help streamline processes and make goal-setting easier. When setting OKRs, it's important to recognize all of the functions of your team, even if they're not as exciting as others. This includes administrative functions such as accounting and GDPR compliance. It's also important to set multiple key outcomes for each goal, usually between two and five.
The number of objectives or key results may differ depending on the time frame (annual) and level in the organization (company, department, team, individual). When key results can be measured, it's easy for the team to see their progress and determine if they have achieved their goal or not. A goal is successfully met when its key results reach an average of 60-70% of the established goals. Teams should also provide their trust scores and updates on their OKRs in order to have open conversations about their likelihood of achieving their key results. Overall, understanding the difference between objectives and key results is essential for successful goal-setting.
By reviewing their objectives and key results every 3 months, teams have 4 opportunities a year to respond to changes in the real world.