A definitive guide to OKRs
OKRs are a management tool that helps you achieve your company's strategic goals, which can be anything from growing sales by 20% to increasing retention of customers.
OKRs are short-term goals that are measurable, achievable and aligned with the company's strategy. These goals should be focused on what needs to be done in order for your organization to reach its objectives—whether it's increasing customer satisfaction or improving customer retention rates (or both).
OKRs aren't a replacement for a business plan; they're meant as an ongoing framework for prioritizing projects throughout the year so they're aligned with each other across departments and teams within an organization.
How to set OKRs
OKRs are a simple way to set goals for your team, whether it’s a small project-based team or an entire organization. They allow individuals and teams to focus on what matters most, while still giving each person the freedom they need to grow as a person and contribute towards the greater good.
OKRs were developed by Intel in the 1960s as part of their “total quality management” (TQM) program, which was intended to help companies improve their products through continuous improvement (CI). The goal of CI is simple: You want your customers/users/employees happy with what you offer them—but how do you know if they're happy? That's where CI comes in! By tracking metrics such as defects per million units manufactured (DPMS), customer satisfaction ratings and employee turnover rates, companies can identify areas where changes need made so that nothing falls through the cracks; this allows executives who oversee these operations more confidence about making wise decisions concerning their business strategy going forward."
OKR best practices
As you know, OKRs are a simple yet effective way to set your company's short-term goals. So how do you get started?
- Make sure your OKRs are concise and measurable. They should be specific, measurable and achievable (SMART). For example, if you're trying to increase sales by 10% this quarter, then your goal is “Increase sales by 10% this quarter."
- Align with your company's strategy. Your organization may have defined a long-term vision or mission statement that outlines what it wants its customers/stakeholders/employees/etc., but now it's time for something more concrete—the next step toward achieving those lofty aspirations!
- Aim high but don't set impossible expectations; if there are no limits on where we can go then all we're left with is "no" (see number 1 above).
Why is it important to tie OKRs to company strategy?
OKRs are a way to align your team with the company's strategy. They help you focus on what matters most and prioritize your work so that you can ensure that it gets done, which in turn leads to success for all involved.
OKRs also help you measure your progress, which is critical if you want to be able to see how well things are going as they're happening (and not after they've already happened). This allows managers and employees alike to make adjustments where needed in order for things like planning or budgeting processes not just work out smoothly but also get better over time—all while keeping everyone focused on what matters most: making sure each person contributes positively toward achieving long-term goals!
How to make sure your company doesn't fall into the common traps of OKRs
OKRs are a great way to define your company's goals, but they're not the end-all be-all. In fact, there are several common traps you should avoid when setting up OKRs:
- Make sure that you know what an OKR is before creating one. If you don't know what an OKR is, then don't create one! You can find out more about this here: https://www.youtube.com/watch?v=aGmCm6Ij8xU&feature=youtu.be&t=2h35m27s
- Make sure your OKRs are SMART (Specific and Measurable). An example of an SMART goal would be "Increase revenue by 20%." The second part of this goal—measurable—tells us how we'll measure whether or not our company has achieved it; for example: "We will increase revenue by 20% in the next quarter." This means that if we meet our goal and increase our revenue by 20%, then we've succeeded! But if we don't meet our target because something else happened instead (like another company bought out theirs), then all bets are off!
- Be ambitious with your goals and keep them realistic at all times; otherwise people won’t take ownership over their own progress because no one will see any results from their hard work except themselves...and maybe even then only after months have passed without any change whatsoever."
Can OKRs be used for teams?
OKRs can also be used by teams. If you have a team of employees, for example, each member is responsible for setting goals that are aligned with their role and responsibilities within the company. This helps them stay focused on what matters most within their work experience and allows them to make sure they're achieving those goals on a regular basis.
OKRs are great because they help teams align around specific outcomes while keeping everyone focused on the same thing—helping customers achieve their biggest business objectives through technology innovation or other initiatives that benefit consumers across multiple industries or geographies (i.e., "I'm going to fix our customer retention rate by improving conversion rates").
How can I hold myself accountable while working on my goals?
- Keep a journal of your progress.
- Share your progress with your manager.
- Make sure you are tracking the right metrics, and that they're easy for you to understand. If you're using OKRs in an organization where people are already tracking their work in spreadsheets or Trello boards, make sure they're also logged into Asana so they can see how well their OKRs align with other aspects of their job responsibilities.
- Use a tool like Asana to keep track of all aspects of your life (and not just OkRs!)
The biggest advantage of using OKRs is that they keep you aligned with what matters most in your organization.
The biggest advantage of using OKRs is that they keep you aligned with what matters most in your organization. They help you prioritize your work, stay focused on the most important tasks for the day, and ensure that each person's actions align with company goals.
We hope this article has shed some light on the power of OKRs. There are so many benefits to adopting a strategy-based approach, but it’s important to remember that the best way to learn is through experimentation and experience. When you get stuck, don’t be afraid to try something different—you never know what might work better!