Writing OKR goals effectively can be an excellent way for business leaders to get their teams on the same page, and improve their chances of reaching their targets. After all, studies have shown that clarifying goals in a written format can make you up to 42% more likely to reach your targets.
Unfortunately, while many organizations have a basic knowledge of what OKRs are and how they work, they don’t always understand how to utilize them correctly.
So, how can organizations improve their chances of creating OKRs that deliver results?
What is an OKR? An introduction
The first step in writing OKR guidelines effectively, is understanding what “OKRs” actually are. The term “OKR” in the business world stands for “Objectives and Key Results”. Writing OKRs essentially a collaborative goal-setting strategy, in which multiple people come together to set targets based on data and forecasts, with measurable results.
OKRs are how companies track progress, encourage engagement around measurable targets, and create alignment between teams. For instance, a OKR for a sales team might be “We will increase sales by [percentage] by [specific time] measured by [metrics]”
Creating OKRs: The Format of OKRs
Compared to other goal-setting frameworks and strategies, OKRs are relatively straightforward. They follow a basic structure that involves starting by establishing the objective, or what you want to achieve, followed by an explanation of how you’re going to measure the results.
For instance, the objective statement for an OKR may be “We want to deliver an amazing customer experience” or “we want to increase brand loyalty by the end of the year”. The “Key Results” part of the statement looks at how you’ll measure whether you achieved your targets. For the case of “We want to achieve customer experience”, your key results could include measuring “customers satisfaction score and NPS rate”.
Learning how to write OKRs effectively means making sure each statement is clear, actionable, time-bound, and measurable. Notably, while each OKR should have a set of “key results”, it’s best to stick to around 2-3 metrics to measure. More results can make outcomes harder to quantify.
How to Write OKRs Effectively: Key Elements
While the exact nature of an OKR can vary from one business to the next, any good OKR should include specific components. Some of the characteristics that make up a good OKR include:
- Measurable: A good OKR is measurable. You should be able to clearly see whether you’ve achieved your objective by measuring the key results. For instance, if you want to improve employee performance, you should be able to track your success by looking at metrics like employee productivity, conversions, and engagement.
- Challenging: Good OKRs should challenge a team. Setting low expectations doesn’t work in this scenario. Instead, it’s important to push employees to do their best, by reaching for higher targets. Make sure the goals are realistic but ambitious.
- Clear: An OKR should be easy to understand. Don’t use complicated phrases and terminology. Ensure everyone in your team can fully understand exactly what they’re trying to achieve, and how their performance is going to be measured.
- Optimized: A good OKR should be constantly upgraded and reviewed based on the knowledge and information you collect in your business. You should touch on your OKRs regularly with teams, and allow them to suggest improvements.
How to Write a Good OKR: Top Tips for Writing OKRs
While every company’s OKRs will vary depending on their specific objectives and processes, they should always be engaging, collaborative, and inspirational. These goals aren’t written in a board room and presented to team members. Everyone should have input in deciding what the goals for the team should be. Here are some quick tips to improve the quality of your OKRs:
- Make sure everyone understands the company goals: Writing effective OKRs always starts with ensuring everyone understands the company’s targets, overall mission, and vision. When everyone understands what the business is trying to achieve, all of your team members can contribute to setting goals that effectively improve your business outcomes.
- Get everyone involved: As mentioned above, writing OKRs should always be a collaborative process. OKRs are bi-directional targets, which include the input of everyone on the team. Call everyone into a meeting to discuss what kind of OKRs you should be setting, and make sure everyone feels as though their voice is being heard.
- Choose the right tools: Technology can be an excellent tool for a company trying to set effective OKRs. Online goal libraries, collaboration and communication tools, project management software and similar solutions are all ideal for keeping everyone on the same track. You can even use tools to track progress towards goals, like Kanban boards.
- Write objective statements: Objective statements are a good starting point for an OKR. They help to clarify exactly what your chosen target is, before you can establish the metrics and insights, you’re going to track to determine whether you’ve been successful. A good objective statement should be a single sentence, with a short description.
- Keep key results simple: Crucially, it’s important not to go over-the-top with too many key results to measure. Think about which specific metrics and outcomes will give you the most insight into whether you’ve achieved your targets or not. Don’t just measure everything that might be related to your objective.
- Plan your initiatives: Once you have a clear basis for your OKR in place, think about how you’re going to put your plan into action. For instance, if your OKR is to improve customer loyalty and achieve an NPS score of 30, your initiative could include conducting multiple NPS surveys with customers and tracking satisfaction rates.
- Monitor consistently: The only way to determine whether you’re actually achieving the right results with your OKRs is to commit to constantly monitoring your results. Find ways to keep track of your metrics, and make sure you regularly connect with your team to discuss the progress you’re making. Update your OKRs when it makes sense to do so.
Finally, remember to celebrate your achievements. When you achieve around 70% of your OKR target, it’s time to start commending your employees. Don’t expect to achieve 100% of your goal before you give your staff any recognition. After all, the best OKRs are constantly just a little out of reach, as this helps to keep your staff motivated and inspired.
