What Are OKRs?

OKRs (Objectives & Key Results) is a method used for aligned goal setting and progress tracking across the organization.

An objective is a goal, and the key results measure progress in the achievement of that goal.

From a Beginners Guide to the OKR Framework: “OKR stands for Objectives and Key Results, a framework to define objectives and track outcomes. They are meant to set and communicate strategy and goals for a specific period of time for an organization, teams, and team members. At the end of the time period, OKR provides us a mechanism to evaluate how well the objectives have been executed. This feedback helps us to plan better moving forward. The primary goal is to connect company, team, and personal objectives to measurable results.”

Essentially, Objectives tell us where we want to go and Key Results help us know if we are getting there.

Why Do Companies Use OKRs?

• OKRs provide total transparency into company, department, team, and individual goals and progress. OKRs help everyone know what they are expected to achieve and how they are measured. This helps ensure everyone is heading in the right direction. Being able to see company, department, team, and individual (including the CEO’s) OKRs eliminate confusion, duplicate or conflicting work, and help create employee engagement. It’s simple but powerful.
• Because OKRs can (and should) be aligned to other OKRs (for example, a department OKR can align to a company OKR) you can be confident that the initiatives and goals people are focused on are pointing in the same direction - towards the company objectives. It’s important that everyone is rowing the boat together towards your big goals and OKRs help you do that.
• OKRs help everyone focus on the most important initiatives, and in that way, help staff to be accountable to themselves, their peers, and to leadership. Because OKRs are visible, everyone knows when goals are achieved, and when they aren’t. Hopefully, you often hit your goals. But sometimes you won’t. OKR transparency creates a culture of honesty and makes it safe to be open about how we are doing. People can be honest in their assessment of why an objective was missed and how to do better the next time around.
• OKRs can facilitate agility. When you have a quarterly OKR cadence, you can review the past quarter to assess how you did and make adjustments for the coming quarter to set your course for success. This agility helps you stay relevant and adaptable to the needs of the business.
• OKRs can help companies create a culture of execution, improving overall performance and goal attainment.

Who Creates OKRs?

Typical OKR Cadence

OKRs are set quarterly, reviewed monthly, and updated weekly.