OKRs: What are objectives and key results? | gloo
OKRs | Objectives and Key Results
The Answers to those Burning Questions
Have you ever asked yourself? "What are OKRs, and why should I care?" Objectives and Key Results or OKRs are proven to increase employee engagement, drive innovation and help you and your business achieve your desired results. However, before launching, it needs serious consideration. There is no 'faking it.' You either accomplish an Objective by achieving key results or don't. Therefore if you are interested in transforming your organisation by adopting OKRs, let us clarify the concept of OKRs by answering some burning questions.
What are OKRs
Objectives and Key Results, or OKRs, is a goal-setting methodology for organisations, teams, and individuals to set ambitious goals with measurable results.
What is an example of an OKR?
Objective: Become the market leader in Europe
Key Result 1: Hire 35 new personnel in Sales and Marketing
Key Result 2: Achieve $25M in total European sales
Key Result 3: Produce localised marketing material in our top four geographical markets and three new adjacent segments.
Who invented OKRs?
What determines a good OKR?
Six questions to consider before creating an Objective
- What is my company's mission?
- What is my company's focus for this year?
- What is the team trying to achieve?
- Is this a key priority, or can it wait until the following year/period?
- Will I need to change any of my regular routines to implement this OKR?
- Will anyone else see the significance of this OKR?
What are the benefits of using the OKR methodology?
The benefits of OKRs are at a Company, Department/Functional, Team and Individual level.
For example, at a Company level, the benefits are:
- Helping everyone to see the big picture
- Focuses everyone on the top priorities
- Provides visibility and draws out cross-functional dependencies
- Improved collaboration amongst departments, teams and individuals
At a Department level, the benefits are:
- Resource planning and allocation
- Problem-solving through improved collaboration
- Helping decision-making through enhanced visibility and data
At a Team level, the benefits are:
- Encourages co-operation and teamwork
- Promotes peer to peer and peer to manager conversations
- Provides clarity on what everyone is working on
- Provides clear direction for the team
At an individual level, the benefits are:
- Increases motivation and productivity
- Strengthens a sense of belonging - "see how you fit into the bigger mission purpose and goals of the company."
- Improves accountability and autonomy
What are the differences between OKRs and KPIs?
- OKRs are a goal-setting methodology that translates your strategy into an action plan. KPIs are the metrics that evaluate the success of your organisation.
- For example, OKRs communicate a specific result. KPIs measure performance.
- Additionally, KPIs tend to remain in place for long periods. OKRs are often changed based on goal priorities, market shifts, etc.
What's the role and responsibilities of an OKR Champion
- Ultimately to increase the chance of a smooth and successful OKR adoption across the organisation. Which would include:
- Employee onboarding
- Optimising the OKR process (over time) so that it meets the needs of the business
- Facilitating OKR training
- Selecting the right OKR tools and systems
- Driving OKR adoption
What is the best approach to launching OKRs?
Be clear on why you want to adopt this goal methodology.
Set the company's direction
Share the top-level OKRs for your organisation.
Pick the right OKR management tool
For example, tools such as Quantive
Appoint your OKR champion and define your implementation plan
Define the process
Establish and set an OKR process for your organisation.
Cascade company-level OKRs throughout the organisation
Adopt strong delegation practices. Use the OKRs deployment as an opportunity to ignite, engage and empower your employees. That will act as an excellent mental safety net, helping your team learn and grow through the OKRs process.
Encourage and provide regular updates
Set regular meetings to discuss your OKRs progress
Conduct session reviews
At the end of each performance cycle.
Still have any burning questions on OKRs?
If your goals are clear, you have a plan for where your business should be, and your people can work towards achieving that goal. How can anyone work towards specific and measurable success if you don't have this? If you don't, you'll find yourself working on the wrong things and not seeing the level of growth you want for your business. So instead, invest in your business by investing in your goals.
All clear? Take gloo's quick OKR quiz below! 👇
If you would like a deeper understanding of OKRs then checkout our OKRs Ultimate Guide.
If you have any follow up questions or would like to learn more, feel free to get in touch. Alternatively, you can check out our other growth curated content in the growth hub section of our website.