Setting goals is inextricably linked to your organization's performance. Managing these results, also known as performance management, we have described in our previous blogs as breaking down and translating the organization's strategic goals into individual employee objectives. To make this translation, we at Learned work with so-called 'Business Goals'. The underlying methodology stems from the widely used Objectives & Key Results approach, also known as OKR. With this blog, we want to help you successfully implement OKR within your organization.
Want to deploy OKR across your entire organization? Download our free e-guide.
What is an OKR?
The idea behind working with an OKR is creating a clear framework of goals within the entire organization. The goals, also called Objectives, are often qualitative, ambitious, time-bound, and action-oriented. Multiple Key Results are then attached to the Objectives. These must be measurable, lead to an objective assessment, and be challenging but not impossible.
Generally, they are related to topics such as growth, performance, or engagement. They are often numerical, but they can also show whether something has been completed, i.e., a binary 0 or 1. It is important to remember that Key Results are not the same as tasks. Key Results are the outcomes of executing a series of tasks.
How do you use OKR?
- Each quarter you determine the Objectives. Maintain approximately 3-5 Objectives per person. Per Objective, you also determine between 3-5 Key Results. This keeps the total number of Key Results between 9-25, allowing the employee to stay focused. The rule here is: less is more.
- During the quarter, measure progress on individual Key Results. Have employees update progress on a structural basis.
- Be transparent and make the Objectives and progress on Key Results public. This allows colleagues and managers to give feedback on performance.
- Ensure a clear connection between the Objectives of individual employees. Give employees insight into organizational goals so they know their impact on business results.
The best practices
Want to get off to an extra good start with OKR? Check out this list of methods that work best:
- Evaluate the OKR on a quarterly basis. Update progress on individual Key Results on a weekly basis.
- Set no more than 5 Objectives per person per quarter.
- Formulate a maximum of 5 Key Results per Objective.
- Always make Key Results measurable. A Key Result that is qualitatively formulated might be better used as a separate Objective.
- Set ambitious goals that are achievable.
Practical examples
Time to put the best practices into action with some relevant examples. We do this by looking at how OKR are applied in different places within the organization.
Want to see more OKR examples? Download our free mini E-guide
Head of HR
Objective: Implement OKR within the organization
1. Key Result: Have all HR Managers read this E-guide
2. Key Result: Schedule a training session for the various internal departments
3. Key Result: Practice with OKR by creating 3 test cases in Learned
Content Marketer
Objective: Implement the weekly newsletter
1. Key Result: Complete the content strategy for the next 3 months
2. Key Result: Increase the number of subscribers by at least 3% per week and reach 5,000 readers
3. Key Result: Increase the CTR percentage above the industry average of 4%
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