There are a lot of articles, videos, and books about Objectives and Key Results (OKRs). Here’s how I talk about OKRs.
OKRs are a tool to help with organizational alignment to focus on what is most important to accomplish in the next three, six, or 12 months. OKRs were popularized by tech companies like Google. As discussed in his book High Output Management, the concept’s genesis came from Andy Groves at Intel. The modern iteration of the idea is discussed in the book Measure What Matters by John Doerr. According to the book, Doerr is the one who introduced the concept to Larry Page and Sergey Brin in the early days of Google.
What are OKRs?
OKRs consist of two main variables:
Objects: These are aspirational and qualitative goals describing WHAT you want to achieve.
Key Results: These quantifiable metrics measure progress and create visibility. They are specific, time-bound, and measurable. To ensure they are on point, the phrase “as measured by” can often be included with Key Results.
Nonprofit organization OKR example: Improve Volunteer Engagement:
Objective: Increase volunteer engagement to boost program effectiveness and satisfaction.
Key Results
- Increase volunteer engagement activity scores by 20% by December 31st.
- Increase new volunteer sign-ups by 10% by the end of 1st Quarter.
- Achieve a 90% volunteer satisfaction rate by the end of 2nd Quarter.
For-profit organization OKR example: Increase Customer Satisfaction:
Objective: Improve customer satisfaction and loyalty.
Key Results:
- Resolve 95% of customer issues within 24 hours by the end of 1st Quarter.
- Increase Net Promoter Score (NPS) from 70 to 85 by the end of the 2nd Quarter.
- Conduct customer satisfaction surveys after each interaction and achieve a 4.5/5 average rating across all product lines by the end of the 2nd Quarter.
OKR Superpowers
In Measure What Matters, Doerr describes four Superpowers of OKRs
- Focus and Commit to Priorities
- Align and Connect for Teamwork
- Track and Accountability
- Stretch for Amazing
OKRs For-profit and Nonprofit Organizations
While the OKR framework can work across all landscapes, the implementation and focus can differ between For-Profit and Nonprofit organizations.
Similarities
- Clarity: Regardless of the type of organization you are in, OKRs bring to what is important and create alignment across teams.
- Results: OKRs track measurable outcomes and focus on the results.
- Agility: Based on the reporting and results, OKRs can quickly adjust to reflect changes in the landscape.
Difference
- Focus: For-profits often focus on revenue, customer satisfaction, or process improvement. In contrast, nonprofit OKRs are frequently mission-centric, prioritizing community impact, fundraising, or volunteer engagement.
- Beneficiaries: Nonprofits align more towards donor expectations and program participants, whereas a for-profit aligns towards shareholder value.
- Resources: Nonprofits frequently face challenges and constraints in funding and staffing. This can require some creative problem-solving to set realistic key results.
Steps to Implement OKRs
- Understand the Purpose of OKRs
- Help others understand that OKRs are a tool for setting and tracking goals, driving focus, alignment, and engagement within the organization.
- Ensure that your leadership team and employees understand the value and purpose of OKRs.
- Often, OKRs are a new idea, so the “Why” is as important (if not more so) than the “What” or the “How”.
- Define the Objective
- Identify a high-level, qualitative goal that highlights an area of improvement or strategic priority for the organization.
- Make sure the objective is aspirational and clear.
- Align Team and Individual Objectives
- The organizational objective will cascade down and inform the team objectives, which will cascade down and inform the individual objectives. If they don’t, you’ll have a misalignment, confusion (probably frustration and lack of engagement), and, likely, miss achieving your objective.
- Set Measurable Key Results
- I have found the most success in using 2-4 Key Results. Some will argue for more, but the value of OKRs is to create focus. “If everything is important, nothing is important.”
- Make sure the Key Results are specific, time-bound, and challenging yet achievable. Including the team in creating the OKRs often provides a better outcome.
- Communicate the OKRs
- I’m an advocate for having as much of the organization/team as possible involved in creating the OKR for greater buy-in from the start. Regardless, once the OKRs are created, transparency and communication are essential. A kickoff meeting or presentation can be valuable.
- One organization I worked on OKRs with, each team completed their OKR launch with a skit describing their objective and key results. It was fun and informative.
- I’m an advocate for having as much of the organization/team as possible involved in creating the OKR for greater buy-in from the start. Regardless, once the OKRs are created, transparency and communication are essential. A kickoff meeting or presentation can be valuable.
- Track and Report on Progress Regularly
- DON’T Overcomplicate this. A simple solution is better than no solution. There are a lot of tools and software platforms out there. While helpful, a simple spreadsheet can get the job done as effectively.
- The important thing is to have a regular cadence (weekly, biweekly, or monthly) to report on progress, address roadblocks, and adjust as needed.
- Evaluate and Reflect
- The person who first introduced me to OKRs would often say, “Win or Lose, watch the tape.” Take time with your team to review the results, discuss successes, and identify areas for improvement.
- Remember “Stretch for Amazing” – even if you didn’t achieve 100% of your goal, how much improvement and/or growth has been realized? Celebrate!
- Iterate and Improve
- Use what you’ve learned from this round of OKRs to help inform and improve your next OKR cycle. OKRs are living tools – not a “set ’em and forget ’em” approach.
- You’re always looking for ways to improve over what you did last time. As you grow and strengthen your OKR proficiency, you’re set up to make more impactful and meaningful OKRs for your organization.
Some Common Mistakes
I’ve led a lot of conversations and OKR implementations. I have had and seen great success. I’ve also made a lot of mistakes. Here are a few things to consider and avoid:
- Don’t Set Too Many Objectives: Focus. Focus on a few priorities to avoid spreading you, your team, your organizations, or your resources too thin.
- Be Specific: Vague Key Results can sometimes sound great, but in the end, you realize you didn’t really know what you were aiming at. Keep Key results specific and measurable to track progress. Remember: “…as measured by…”
- Get Buy-In Early, Often, and Throughout: Engage your team in the process and make sure everyone is bought and supports the idea. As a solo crusade, this can be a heavy rock to push if you’re the only one.
- Align to Culture: Culture is a big deal for me. Your OKRs have to align with who you are as an organization. Don’t just copy/paste an OKR you found online. What does your organization need? How do you think/talk/solve that need?
- Reporting on Progress: Drive on this until it’s an automatic habit. Regularly review and update on the progress of your OKRs to maintain momentum. In the midst of a problem or setback is the time to discuss it and solve it – not after.
OKRs are a proven methodology for:
- Achieving focus and clarity
- Creating alignment within the organization, teams, and locations
- Provide visibility and transparency on progress, problems, and successes
- Encourage a growth mindset and stretch your team and organization to achieve great things
OKRs can help you translate your vision into actionable steps. Start small, learn and adjust, and watch your organization grow.
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