1. What are OKRs?

Objectives and Key Results (OKRs) are a goal-setting framework that assists teams in establishing measurable goals. While many organizations set goals, only 16% of knowledge workers believe their companies effectively set and communicate these goals.

Goals consist of two components: Objectives and Key Results.

• Objectives represent the "what." They outline the desired outcome or destination.
• Key Results detail the "how." They serve as the roadmap for achieving your Objectives.

Marissa Mayer, former CEO of Yahoo, once remarked: "It’s not a Key Result unless it has a number."

Key Results must be quantifiable and measurable, regardless of the objectives you pursue. They create a clear benchmark for determining whether a goal has been successfully met, allowing teams to track their progress easily using a percentage system. For example, a Key Result could be "reduce average load time by 30%."

Setting clear objectives and measurable key results not only keeps you on course but also enhances your job satisfaction, as these small victories build confidence in your abilities and clarify expectations.

Establishing OKRs with intentionality is akin to confidently answering the challenging questions: “What should we do next? How should we go about it?”

2. Why OKRs?

In an interview with Harvard Business Review, five key benefits highlight the efficacy of OKRs in our daily lives.

1. Focus: OKRs compel us to make critical decisions upfront. By limiting each objective to no more than seven and each objective to five key results, we prioritize what's most important for the upcoming months. This focus differentiates OKRs from other goal-setting methods by highlighting initiatives that can create the most significant impact while postponing less urgent tasks.
2. Alignment: Once the objectives are established, the real work begins. As teams transition from planning to execution, they align their daily activities with the broader organizational vision. This alignment is invaluable, as companies with highly-aligned employees are more than twice as likely to excel.
3. Commitment: With focus and alignment, commitment naturally follows. Agreed-upon OKRs are usually accompanied by schedules and resource planning to ensure timely delivery. Transparency among team members regarding their objectives fosters consistency and strengthens team dynamics.
4. Tracking: Consistent progress tracking is crucial. While OKRs don’t necessitate daily updates, regular reviews are essential to mitigate slippage and enhance product outcomes. In my previous team, weekly performance updates proved effective for generating tangible results and served as reference points for evaluating quarterly performances.
5. Stretching: This aspect is critical for achieving ambitious goals. OKRs inherently encourage individuals and organizations to reach beyond perceived limits.

As John Doerr notes, "Larry Page of Google is the high priest of 10x-ing everything, stretching further. He’ll say, ‘I’d rather have the objective be to go to Mars, and if we fall short, we’ll get to the moon. This is how you make moonshots.’"

Can we say that the benefits of OKRs provide us with the F.A.C.T.S. we need?

3. How do We Write OKRs?

To apply this knowledge, let’s consider a football example:

In this scenario, the general manager of the team might have a single Objective: Generate more revenue for the owner.

His two Key Results will help achieve that Objective. These Key Results can become the Objectives for his team members. For instance, ‘Win the Super Bowl’ becomes an Objective for his Head Coach, who then defines his own Key Results. Similarly, the second Key Result, ‘Achieve 88% stadium capacity,’ becomes the Objective for the Head of Public Relations.

As illustrated, the Key Results for each Objective cascade down through the organization. The Head Coach's team consists of Offense, Defense, and Special Teams, while those under the Head of PR include Scouts, Media Staff, and Publicity Agents — all with specific objectives and key results.

When crafting our own OKRs, we must emphasize metrics-driven, impactful, and clear objectives:

Objectives: 1. Objectives should inspire significant achievements, with no more than five total. 2. Objectives must be articulated in clear, unambiguous terms, making it evident to outsiders when an objective has been met. 3. Objectives should describe a state rather than an activity, e.g., ‘achieve 99.9% uptime’ instead of ‘improve uptime.’

Key Results: 1. Key Results define the success criteria for an objective, ideally around three per objective. 2. Key Results should describe states rather than activities, e.g., ‘hire 3 engineers’ instead of ‘continue hiring.’ 3. Key Results must be quantifiable and easily verifiable, e.g., public dashboards, test coverage scores, etc.

Grading Exercise: At the end of the quarter, how do we evaluate our performance? The team can initiate a simple grading exercise:

• A five-minute review at the cycle's conclusion (e.g., quarterly).
• Aim for a Key Results success rate of 60% to 70%.
• High grades consistently suggest objectives may not be ambitious enough.
• Low grades should be viewed as data points rather than failures.

Aiming for a 60% to 70% success rate encourages competitive goal-setting with manageable risk. If 100% of Key Results are consistently met, it’s time to reassess those Key Results.

Summary

OKRs can be shared throughout the organization to enhance visibility and align efforts. Typically set at the company, team, and personal levels, consider these guidelines:

• Objectives should be ambitious, bordering on uncomfortable, e.g., ‘win the Super Bowl.’
• Key Results must be quantifiable milestones that advance the objective, e.g., ‘average a 25-yard punt return.’
• Objectives and Key Results will be graded at the end of the quarter.
• Both teams and individuals should have transparent OKRs.

OKRs are not: - Used in annual evaluations, unless voluntarily. - A to-do list; objectives describe intent, while key results quantify success. - A substitute for sprint planning; OKRs inform sprint planning without constraining it.

I hope you found valuable insights into goal-setting and Google's approach to achieving success — regardless of the scale of your current objectives. Share your thoughts in the comments about what works and what doesn’t.

To our collective growth!

References

And additional resources you may find valuable.

• [1] What are OKRs by Asana: https://asana.com/resources/okr-meaning
• [2] The Benefits of OKRs from “Measure What Matters”: https://www.whatmatters.com/faqs/benefits-of-okrs/