Most organizations use the OKRs framework to set and achieve targets. The framework has proved effective in creating measurable goals and aligning them with the business objectives.
Besides, organizations can track these objectives’ achievements across the board as they are broken down to every member and are timed. However, the most critical part is to implement the framework to get the full benefits.
But What Are OKRs?
OKRs stands for Objectives and Key Results, a methodology to determine the effective way of setting up and achieving goals. In most cases, the framework is used by the company, teams, and individual employees.
The objective part of the OKRs defines what the company or the individual wants to achieve and should be ambitious, actionable, time-bound, and qualitative.
On the other hand, the Key Results represent the strategy you will use to measure the objective’s progress, and they should be achievable and measurable. Ideally, there are three to five critical results under each goal.
Establishing Effective OKRs
As you will see from the OKR examples below, writing effective OKRs requires a simple formula with definite objective and measurable results. However, you have to consider the following best practices whenever you are establishing OKRs.
- It is advisable to always set time frames for your objectives to identify individual and team performance progress. The timeframe should be realistic and aligned with the overall company objectives.
- The objective you set should be ambitious and inspiring to keep your employees motivated and focused.
- Every individual or department in your company should have at least three objectives for desired results.
- The Key results should have measurable outcomes. The outcomes help you determine the department’s performance and progress towards its goal.
- Ensure that you have around three critical results for each objective.
Practical OKR Examples
The following OKR examples will help you understand the application and implementation of the frameworks.
The first example is an OKR framework that best suits an HR department.
For instance, the HR department may want to improve employee satisfaction in the workplace. The OKR should look like this:
The department will; Provide a friendly employee experience for workers in the year 2021.
The objective will be measured by;
- Interact with at least ten employees every month through interviews to understand their problems and needs.
- Increase monthly employee Net Promoter Score (NPS) score from 40 to 75
- Conduct team-building games each month
The second example involves an entire company, and these types of OKRs have broad objectives that managers and employees commit to.
These OKRs also define the company’s key priorities.
For instance, if a company wants to improve the customer experience for regional hospitality awards, they can draft OKRs that look like this.
The company will: improve customer service by the end of the third quarter of 2021.
This will be measured by;
- Resolve critical issues in under an hour.
- Quicken data processing on the hotel’s app by 40% compared to the first quarter.
- Achieve an NPS of 50 or above in the second quarter.
Using OKRs such as those provided in the examples will help you attain your objectives in a timely and realistic manner.