Objectives and Key Results (OKRs) combine a goal with measurable metrics to determine specific outcomes. Here’s a guide on how to use OKRs effectively, incorporating the latest techniques and trends.
Understanding OKRs
Objectives:
- Define what needs to be achieved.
- Describe the desired outcome.
Key Results:
- Outline measurable outcomes that indicate when the objective has been met.
Company-Wide and Team-Specific OKRs
Company-wide OKRs set overarching goals for the entire organization. Team, department, and project-level OKRs focus on the specific outcomes each group needs to achieve to support the organization.
OKRs and Project Management
Using OKRs can help clarify project goals and define the necessary deliverables. Project-level OKRs establish the project scope, allowing teams to decline requests that don’t align with their objectives. They also motivate teams by setting challenging, yet achievable goals.
Creating OKRs for Your Project
Setting Objectives
Project objectives should be:
- Aspirational: Challenging and inspiring.
- Aligned: Supporting organizational goals.
- Action-oriented: Encouraging initiative.
- Concrete: Easy to understand.
- Significant: Making a meaningful impact.
Examples:
- Build the most secure data security software.
- Continuously improve web analytics and conversions.
- Provide top-performing service.
- Develop a universally-available app.
- Increase market reach.
- Achieve top sales among regional competitors.
To shape objectives, ask:
- Does this help achieve the project’s overall goals?
- Is it aligned with company OKRs?
- Is it inspiring and motivational?
- Will it make a significant impact?
Developing Key Results
For each objective, create 2-3 key results. These should be:
- Results-oriented: Focusing on outcomes, not tasks.
- Measurable and verifiable: Clearly defined metrics.
- Specific and time-bound: With deadlines.
- Aggressive yet realistic: Challenging but attainable.
Examples:
- Achieve X% new signups in the first quarter post-launch.
- Increase advertiser spend by X%.
- New feature adoption rate of at least X%.
- No more than 2 critical bugs reported per Sprint.
- Maintain newsletter unsubscribe rate at X%.
To shape key results, ask:
- What metrics define success?
- How can we measure achievement?
- Are they specific and time-bound?
- Are they ambitious yet realistic?
Best Practices for OKR Development
- Develop 2-3 key results per objective.
- Document OKRs and link them in your project plan.
- Regularly review and adjust OKRs as needed.
Communicating and Tracking OKRs
Sharing OKRs
Ensure your team understands and aligns with the OKRs by:
- Sharing digital documents.
- Presenting in meetings.
- Posting on internal websites.
Assign owners to each key result to increase accountability.
Measuring Progress
Regularly check-in and track progress. Use scoring systems to evaluate success:
- Simple scoring: Yes/No approach (achieved or not).
- Advanced scoring: Scale of 0.0 to 1.0 (e.g., Google’s method).
Scoring Expectations:
- Aim for an average score of 0.6 to 0.7 on the 0.0–1.0 scale.
- For percentage-based scoring, target 60-70% achievement.
Schedule Checkpoints:
- Monthly check-ins and end-of-quarter evaluations help keep the team on track and aware of their progress.
Conclusion
OKRs are powerful tools for defining and measuring your project’s success. To effectively use OKRs, share them with your team, assign ownership, regularly measure progress, and schedule consistent check-ins. This ensures your team remains motivated and aligned with project goals.
