Using OKR for Goal Setting

Jul 7, 2024

Using OKR for Goal Setting

Importance of Clear Goals

  • Clear goals allow focus and measurable results.
  • Defining goals is challenging.
  • OKR (Objectives and Key Results) is a technique to set measurable goals.

Components of OKR

  1. Objectives:
    • What the team wants to accomplish.
    • Clear, memorable, and inspiring goals.
    • Direction for the team.
  2. Key Results:
    • Measurements towards achieving the objective.
    • Should have 3-5 measurable outcomes.
  3. Initiatives:
    • Actions to complete to achieve key results.

Writing OKR

  • Template: We will [Objective] as measured by [Key Results]. We are [Initiatives].
  • Difference between KPI and OKR:
    • KPI: Key Performance Indicator, performance measurement.
    • OKR: Helps understand how to achieve something.
    • KPI monitors performance; OKR drives innovation.

Objectives

  • Meaningful and sets direction.
  • Questions to ask:
    • What’s the most important area to focus on?
    • Why does this goal matter?
    • How to write an inspiring statement?
  • Good Objective: Simple, focused, and inspirational.
  • Example:
    • Poor: Continue improving collaboration between design and customer success team to improve quality of customer service.
    • Good: Enhance product usability by end of 2024.

Key Results

  • Specific numbers and metrics.
  • Questions to ask:
    • How will we know if we are successful?
    • How can we measure impact?
  • Good Key Result: Outcome-focused, not output.
  • Example:
    • Poor: Make product more usable by following user-centered design principles.
    • Good: Achieve customer usability score of 80+ by end of 2024.

Initiatives

  • Actions needed to achieve outcomes.
  • Questions to ask:
    • What do we need to do?
    • Who needs to be involved?
  • Planning Initiatives: Ensure necessary resources and stakeholder involvement.
  • Focus: One objective per quarter is best.
    • Monitor key initiatives with metrics to ensure right direction.

Best Practices for OKR

  • Less is More: Focus on critical things.
  • First Define Strategy, then OKRs:
    • Transparency: Goals should be visible to all.

Conclusion

  • OKR helps teams maintain focus and achieve measurable results.
  • Feedback and discussion are encouraged.