OKR (Objectives and Key Results)

What are OKRs?

OKR, an abbreviation for Objectives and Key Results, is a goal-setting methodology that helps organisations define and track their goals. OKRs are designed to create focus, clarity, and measurability in an organisation’s work, whether it involves strategic goals or specific projects.

The method is based on two main components:

• Objectives: A clear and inspiring description of what you want to achieve. The objective should be motivational and provide the team with a direction.
• Key Results: Measurable indicators that show what success looks like and whether the objective is being achieved. Each objective is linked to 2–5 key results to ensure focus and clarity.

OKRs are a tool often used by companies to create alignment and transparency throughout the entire organisation. By regularly tracking and adjusting the goals, organisations can ensure they are on the right track and adapt to changes.

Why use OKRs?

Using the OKR method offers several benefits for organisations that want to create clear goals and measure progress. Here are some of the main advantages:

• Focus and prioritisation: OKRs help teams to focus on the most important goals and prioritise the right activities.
• Measurable success: By linking key results to each objective, it becomes easy to track and measure success.
• Increased transparency: OKRs make it possible to share goals and progress within the organisation, which creates a common direction.
• Adaptability: Since OKRs are often used in short cycles (e.g., quarterly), organisations can quickly adjust their goals based on new insights and changing conditions.
• Engaged teams: Employees feel more involved and motivated when the goals are clear and linked to the organisation’s overall vision.

How do OKRs work?

Implementing OKRs is about creating a structure where teams and employees can define and track their goals effectively. Here are the basic steps for working with OKRs:

1. Setting OKRs
   When you start setting OKRs, it is important to define both the organisation’s overall objectives and the specific goals for each team. Here are some tips:
   • Define inspiring objectives: A good objective should be clear, challenging, and engaging.
   • Create measurable key results: Each objective should be linked to 2–5 key results that are specific, measurable, and time-bound.
   • Involve the team: OKRs should be developed in collaboration between management and the teams to ensure they are relevant and realistic.
2. Example of an OKR
   To better understand what an OKR might look like, here is an example:
   • Objective: Improve the customer experience on the website.
   • Key Result 1: Increase customer satisfaction (CSAT) from 80% to 90% within six months.
   • Key Result 2: Reduce the website loading time from 3 seconds to 2 seconds.
   • Key Result 3: Increase the conversion rate on the homepage from 5% to 8%.

OKR vs KPI – What’s the difference?

OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) are often used together, but they serve different purposes:

• Aspect: OKR / KPI
• Purpose: Sets ambitious goals and measures progress / Tracks stable and recurring metrics.
• Timeframe: Often shorter cycles (e.g., quarterly) / Continuous measurement over time.
• Focus: Development and change / Status and performance.
• Use: Inspires improvement and innovation / Ensures the business operates as planned.

While OKRs are forward-looking and challenging, KPIs are more static and are used to monitor existing processes. Together, they can create a balanced strategy for both development and operations.

How to implement OKRs in the organisation

Implementing OKRs requires a clear strategy and commitment from both management and employees. Here are some steps for a successful implementation:

• Train the team: Start by training leaders and teams in what OKRs are and how they work.
• Create a clear vision: Define the organisation’s long-term goals and break them down into short-term OKRs.
• Start small: Implement OKRs in one team or department as a pilot project before scaling up.
• Follow up regularly: Have weekly or monthly meetings to track progress and identify obstacles.
• Use digital tools: Tools like Trello, Asana, or specialised OKR platforms can help to visualise and track goals.
• Evaluate and iterate: After each OKR cycle, you should evaluate the results and adjust the strategy to ensure the goals remain relevant.

Benefits of working with OKRs

Using OKRs as a goal-setting tool provides organisations with several significant benefits:

• Clear priorities: All employees know what is most important to focus on.
• Better team engagement: When employees are involved in setting goals, they feel a greater sense of ownership over the results.
• Faster adaptation: OKRs make it easy to adjust course when conditions change.
• Stronger collaboration: By sharing OKRs within the organisation, teams can work together towards common goals.

OKRs (Objectives and Key Results) are a powerful tool for setting goals, measuring success, and creating clarity in an organisation’s work. By using OKRs, companies can define ambitious goals, measure progress, and adapt quickly to changing conditions. The difference between OKRs vs KPIs is clear: OKRs focus on development and innovation, while KPIs ensure that the business operates as planned.