Every business requires effective objectives management to be realistic both at the employee and management level. The OKRs have gained popularity among the most innovative companies to connect workers with organizational objectives.
The strategy has also helped eradicate silos in various departments and enable the comfortable establishment of the company’s most important matters. Below you will find a guide on all aspects involved in OKRs as well as some of the OKR examples to look at as you internalize the idea.
What is OKRs Framework?
OKRs stands for Objectives and key results, a goal-setting methodology that enables organizations to identify performance indicators and strategies to achieve their goals. The formula involves identifying what to do and the elements you will use to measure.
In other words, the formula is: I will ( _ ) as measured by ( _ ).
The first blank is the objective which represents something you want to achieve. The second blank is the result which essentially should be more than three and should be measurable.
Importance of OKRs
- Prioritizing- Having specific objectives helps align the most important tasks and remain on track on what needs to be done.
- Teamwork– Sometimes, it can be challenging to work toward the same goal, especially when different objectives are not aligned. Notably, employees may not see the bigger picture, hence using OKRs to enhance collaboration and accomplish high-level and individual goals.
- Accountability- It would be hard for a company to improve what it can’t measure. Besides, it would be hard to motivate employees whose objectives are not tracked. Therefore, holding individuals accountable through the OKRs framework helps boost them as it is easier to follow the performance.
Considerations When Setting Up OKRs
- Timing- You need to set your goals in a time-bound manner and evaluate to acquire sufficient feedback to be applied in the process. Therefore, goals should be monitored continuously in quarterly processes allowing time for planning, evaluation, and execution.
- Deployment- The best way to deploy the framework by stages to ensure that objectives are broken down and provide feedback for improvements.
- Connect to performance- It is critical to set thresholds for success to differentiate the framework from the performance review process.
- Culture- consider your workplace culture before enforcing the OKRs as it would make or break the system. Cultivate a culture where every stakeholder feels comfortable and developing through learning from their mistakes.
Okrs Examples to Look At Company Level
Objective: Improve customer acquisition
- 20-day average conversion for customers
- One month average conversion rate for next six months.
- Increase referred customers to 100 monthly.
Objective: Increase qualified leads in quarter 3
- Respond 100% to requests within a week
- Receive 300 inbound monthly
- Contact 100 potential leads in two months.
There are several examples of OKRs you can learn from, but these set the idea for you depending on the organization’s type. Implementing the framework is critical for your business as it will help in different sectors that will help you achieve objectives and enhance profitability.