An OKR consists of an Objective, which defines what we want to achieve, and Key Results, which are specific measures used to track the achievement of that objective.
|Objective||This is a clear, concise statement of what we want to achieve. Objectives should be ambitious, inspiring, and engaging.|
|Key Results||These are measurable, time-bound actions that advance the objective. Key results typically include hard numbers.|
How to Set Good OKRs?
Writing good OKRs is essential at work; making OKRs effective ensures that the work gets done correctly and on time. This is why we share some tips when setting good objectives and key results that we recommend every professional to follow:
- Set clear, specific objectives.
- Define measurable vital results.
- Make sure OKRs are ambitious yet achievable.
- Align OKRs across different levels of the organization.
- Regularly review and update OKRs.
You also might enjoy the 3 rules for setting OKRs:
- Simplicity: The best OKRs are simple and easy to understand.
- Alignment: OKRs should align with the company's strategic goals.
- Measurable Outcomes: Key Results should be quantifiable, observable, and verifiable.
Examples of OKRs
OKRs, or Objectives and Key Results, are a goal-setting framework many organizations use to define and track objectives and their outcomes. Here are several examples of professional OKRs that you can use as inspiration:
Objective: Increase our market share in the mid-tier segment.
Key result 1: Increase sales in the mid-tier segment by 25%.
Key result 2: Launch two new products targeted at the mid-tier segment.
Marketing team OKRs
Objective 1: Improve brand recognition.
Key result 1: Increase website traffic by 30%.
Key result 2: Increase social media engagement by 50%.
Objective 2: Strengthen brand presence.
Key Result 1: Increase social media followers by 30% by the end of the year.
Key Result 2: Achieve a 20% increase in brand mentions in industry publications.
Key Result 3: Launch a new corporate social responsibility initiative with 1000+ participants.
HR team OKRs
Objective: Improve employee satisfaction.
Key result 1: Decrease employee turnover rate by 10%.
Key result 2: Increase employee satisfaction scores by 20%.
Objective 2: Enhance employee engagement.
Key Result 1: Reduce employee turnover rate by 20% by year-end.
Key Result 2: Implement a new employee training program with a 90% participation rate.
If you need you look for additional ideas when setting HR OKRs, you might look for our HR SMART goals examples.
Product team OKRs
Objective: Improve user experience.
Key result 1: Decrease app loading time by 15%.
Key result 2: Increase user retention by 20%.
Development team OKRs
Objective: Improve code quality.
Key result 1: Reduce code bugs by 20%.
Key result 2: Increase code review coverage by 30%.
Sales teams OKRs
Objective: Increase sales volume.
Key result 1: Increase the number of sales calls by 20%.
Key result 2: Increase the average deal size by 10%.
Startup Team OKRs
Objective: Increase revenue growth.
Key Result: Increase quarterly revenue by 15% compared to the previous year.
Key Result: Launch 2 new products with a combined revenue target of $1M by Q2.
Key Result: Increase annual subscription renewals by 20%.
Support team OKRs
Objective: Improve customer satisfaction.
Key Result: Achieve a net promoter score (NPS) of 8.5 out of 10 by Q4.
Key Result: Reduce customer complaint rate by 25% by year-end.
Key Result: Increase customer retention rate by 10% in 12 months.
Engineering teams OKRs
Objective: Improve system reliability.
Key result 1: Decrease system downtime by 10%.
Key result 2: Increase system load capacity by 20%.
Customer success teams' OKRs
Objective: Improve customer satisfaction.
Key result 1: Decrease customer support response time by 15%.
Key result 2: Increase customer satisfaction score by 10%.
IT Departments OKRs
Objective: Improve operational efficiency.
Key Result: Reduce operating costs by 10% by the end of the year.
Key Result: Implement automation in 3 key operational processes by Q3.
Key Result: Decrease average product delivery time by 15%.
Objective: Increase community impact.
Key result 1: Increase the number of people served by 20%.
Key result 2: Increase volunteer hours by 15%.
What is the difference between OKRs and KPIs?
While OKRs and KPIs are both used to measure performance, they serve different purposes.
- OKRs (Objectives and Key Results): These are used to set, track, and achieve goals. They are typically qualitative, ambitious, and time-bound. They help to answer the question, "Where do we want to go?"
- KPIs (Key Performance Indicators): These are used to measure ongoing performance or business operations. They are typically quantitative, realistic, and not time-bound. They help to answer the question, "How did we do on a scale?"
Why should OKRs be unique?
OKRs' ability to create alignment and engagement around measurable goals makes them unique. They enable teams to focus on big bets and achieve more than they thought possible. They also foster transparency within organizations.
What are the common OKR Mistakes?
There are not many mistakes you can make when writing OKRs. Probably the most common is not to set up any of them, however, here are 3 additional ones that we would like to highlight:
- Setting too many OKRs.
- Setting unattainable key results.
- Not aligning OKRs with the company's strategic goals.
What are the key books about OKRs?
The topic that we're expanding on is one that large dynamic organizations like Google, Intel, and LinkedIn have implemented successfully. Andy Grove populated the framework and then championed it by Google. If you want to know more specific cases and practical implementation steps, we do recommend the following books that will help you to understand the framework better:
- "Measure What Matters" by John Doerr
- "Radical Focus: Achieving Your Most Important Goals with Objectives and Key Results" by Christina Wodtke
- "OKR: Objectives & Key Results - Driving Focus, Alignment, and Engagement with OKRs" by Paul R. Niven and Ben Lamorte
- OKRs are a powerful method for setting and tracking goals at every level of an organization.
- The key to effective OKRs is to align them with the company's strategic goals and to make them measurable.
- Reviewing and updating OKRs over the long run will transform your organization into a champion of the industry.