Setting goals is an important part of any successful business. But how do you ensure that your team is working towards the same objectives? The answer is Objectives and Key Results (OKR). OKR is a goal-setting system used by companies like Google, Spotify, and Walmart to create alignment and engagement around measurable goals. OKR is a simple, fast-paced process that involves the perspective and creativity of each team.
It was first developed by Intel and extended to other Silicon Valley companies, with Google adopting it in 1999. OKR uses a market-based approach that is simultaneously ascending and descending, with the company establishing strategic OKRs that each team should use to draft their tactical OKRs. The main objective of OKR is to create alignment in the organization. To do this, OKRs are public to all levels of the company, so everyone has access to each other's OKRs. This helps ensure that everyone is going in the same direction, with clear priorities, at a steady pace.
OKR also takes an agile approach, with shorter objective cycles allowing companies to adapt and respond to change. Companies adopting OKR reduce time spent setting goals from months to days, investing their resources in achieving their goals rather than setting them. When setting objectives and key results, focus on the goals you know you can achieve in a given time frame. Break Key Results Into Smaller Goals and make a plan to measure them along the way.
Establishing OKRs helps your team achieve more than you thought possible while continuously learning. It's important to separate OKR from compensation and promotions so employees don't feel like they're risking their bonus if they set ambitious goals. The philosophy behind OKR is that if the company is always achieving 100% of the objectives, it's too easy. Instead, OKR aims for bold and ambitious goals. In addition to aspirational goals, OKR believes in allowing the team to set challenging goals that make them rethink the way they work to achieve maximum performance. The usual recommendation is that only 60-70% of these goals be achieved on average. But that doesn't apply to all OKRs, as some goals need to be predictable.
That's why it's important to understand the difference between moonshots and roofs when setting objectives and key results. Adopting OKR is a journey, not an event. It's hard to get over the moon when you need the bonus to pay for your children's college. The OKR system isn't just for digital companies; it can be used by any organization looking for alignment and engagement around measurable goals. To get started with OKR, first explain and clarify the direction at the company level so teams have enough information to write their OKRs for a quarter. Once the drafts are ready, each team must present them to the rest of the company and answer any questions that may arise. For each objective, decide on some key results that, when achieved, would confirm that you have achieved the goal.
Use OKR software to help you understand the goal system and measure if you are adding value, not if you are delivering tasks. Finally, monitor your progress regularly so you can reach your objectives and key results. With Weekdone's OKR software, you can easily set up connections between company and team objectives and complete them with key results that indicate whether you've achieved your goals. By using Objectives and Key Results (OKR), companies can create alignment in their organization while achieving more than they thought possible.