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The Okr Guide:: From Strategy To Execution
The Okr Guide:: From Strategy To Execution
Your company is not the only one suffering from it. It’s everywhere. The messy and exhausting
journey of steering people towards a common goal is palpable in every corporate environment.
And sometimes, as a leader, even if you’ve tried everything to take everyone on the same page,
most people in your team are still lost in the woods not knowing how they can effectively bring a
positive impact in the company. Thus, they perform poorly and use the company’s resources
without delivering actual value that will contribute to the goals you’ve set.
The truth is, even if your colleagues would want to contribute to the goals that the company
have set, they seem to lack the needed directions to effectively help. If not, they are
underwhelmed by the degree of undervalued responsibilities that they are given to
contribute to the team. And most often than not, the way organisations are structured is
often not the most empowering environment to encourage employees to take responsibility
and share the initiatives they have in mind.
While the most established organisation in the past century have seemingly benefited from this
common corporate milieu, the best and most profitable are the companies who make their teams
feel valued and the leadership emanates from a top-down and bottom-up structure where the
workforce focuses on contributing to the overall strategy, mission, and vision of your company
genuinely and without being told to do so.
For years, we at Evolution4All, have worked with many companies which had been struggling with
a disarray directionless workforce. Throughout these years, the only winning formula that has
stood the test of time is having a top-down and bottom-up goal setting mechanism that
empowers every member of your team to act based on the best interest of the company. We
believe that the Objective, Key Result Framework is the tool that best embodies this framework.
Imagine a workforce that works together bringing in cumulative and compounding development
and progress in your company’s without the usual leadership strains. Imagine if your team, in their
best abilities, proactively try to complement the long and short term goals of your company with
the enthusiasm to deliver the highest result possible. Imagine a company where your colleagues all
have an internal navigator pointing towards common goals. Think about people who are
wholeheartedly putting in the work to reach ambitious goals by regularly monitoring their
progress. That is the power of OKR.
OKR Overview
If there is something so distinctive about OKR, it is the fact that it is both a goal setting tool and a
management framework that efficiently synchronizes everyone in an organisation to strategically move
towards its short and long term goals.
In a company that is composed of at least 500 people, keeping tabs with everyone is a common challenge
that every growing company faces. A growing workforce also means facing the question of keeping the
teams engaged and motivated to contribute to achieving the long term goals of the company. Given the
traditional structure of companies where goal setting is a process that is solely exclusive to the people in the
top of the organisation, the workforce is left to follow without fully internalising the value of their
contribution to achieving the goals set by their superiors. This is a recipe for a disengaged and unmotivated
workforce. This is also the reason why many employees cannot perform at their best because of the
fundamental disconnect to the work they do. There is no sense of ownership. And when employees don’t
feel this sense of ownership, they eventually disengage from the work they do and feel that they won’t make
that much of an impact in the company.
Also, the plans and goals of a company are often too abstract and high-level that regular employees fail to
grasp the concepts. This makes them feel insignificant and further drifts them away from the fundamental
direction that their company is heading to. Remember that employees are social and thinking beings. We all
have the need to have the sense of purpose. And more often than not, it’s the very reason why we want to
work for specific companies. When we don’t understand the the direction that our work or company is
heading to, this creates uncertainty that will eventually lead to being disengaged from work.
Employees fail to see the big picture and even if they sometimes do, they can barely relate to it. And when
they don’t understand something, this creates uncertainty. The uncertainty creates the gap and eventually,
the gap becomes the very reason why they can’t perform at their very best.
This is where OKR bridges the gap between the very human nature of every workforce of the 21st century
and the strategic goals that a company wants to achieve. The framework aims to unify and synchronise
every member of a company to understand and internalise its long term objectives by letting each person
set and achieve a clearly defined set of targets s/he has to achieve in a period of time. These “set of targets”
are obviously in relation to the long term goal/mission/vision of the company. With each person having an
individual compass to guide his actions in order to contribute to the main objectives of the company, the
workforce operates in a way that everyone complements each other’s work. The workforce, geared with
each individual OKRs, is now a functional cog in a wheel that supports the grand scheme of everything that
the company stands for.
That being said, here are some of the most common qualities
that encapsulate the characteristics of OKR as a framework:
Goals become agile. OKR is meant to be simple. OKR embraces transparency. OKR is dynamic.
The goals in OKRs are never It’s very straightforward. The Since one of the goals of OKR OKR doesn’t shy away
designed to be static, stale, or simplicity ensures that no one is to embrace alignment and from changes. It sways
even rigid. The objectives will be confused if they happen synchronicity, transparency is with the needs of your
should adapt to many to read an OKR in a corridor. an essential element. organisation. Albeit, it also
changing factors inside the make sure that everyone is
organisation. The regular on the same page with
reviews also ensure that this every change made.
framework will never go stale.
OKR is a bi-directional goal-setting. OKRs embraces ambitious goals. OKRs welcomes failure
It’s a top-down and bottom-up goal setting By aiming for the stars, OKRs with open arms.
model that everyone should embrace in a facilitate the extra stretch that Since the framework is only effective
company. Top-down because the main everyone needs in order to grow in a when the workforce stretch their
objectives of the companies are formulated company. So even if an employee capabilities to the very limit, failure is not
by key executives. Bottom-up because falls short from his OKRs, it would something people frown upon. It gives
even though the missions, visions, and still be a performance that will be the employees environment they need
other long term goals are formulated from well-appreciated because it’s a given to grow. By setting ambitious goals and
the upper level of the organisational that OKRs are almost an impossible not discouraging failure, progress is
structure, the workforce’s OKR which start task. achieve without them even knowing it
from the bottom, ensures that everything that they’re actually making significant
will be carried out. development.
A usual OKR is composed of 3 to 5 high-level Objectives. Under these objectives are 3-5
Key Results which signify that if achieved, that means that the Objective is also
accomplished. The key results should be measurable through a defined set of standards,
result, indicators, or scores. During the assessment period of OKRs, the key results is best
assessed by using a numeric scoring system between 0 and 1.0. Let’s dig further. . .
Objectives
The O in OKR stands for Objective. For the company, the whole process of setting OKR
starts with creating three to five (3-5) key objectives. These are ambitious goals at the
organisational level. Your departments will also set their own objectives and so as the
teams under the departments and the members of each team. Structurally, each
department, teams, and individuals, should base their objectives in the structural level they
belong. For example, a department will base its objectives on how it can help the company
reach its main objectives. The teams in that department will also set objectives based on
how they can help the department fulfil its objectives. The objectives of each team
member is also anchored in helping the team fulfil its team objectives. It’s a trickle down
effect with a clear alignment structurally speaking.
Key Results
Key Results are signifiers that an objective is accomplished. Ideally, 3-4 measurable Key
Results should be under one objective. This enables everyone to evaluate each objectives
using the key results. The key results are in turn evaluated using an internal scoring system
set by your company. The scoring system for each key result, makes it easier to determine
if the Key Result has been achieved or not.
But how does it look structurally? Here at Evolution4All, here’s how we see it:
In this diagram you can see the following:
MID-TERM-GOALS – Mid-term goals (so-called MOALS) are the link between the
company mission and the OKR. They are usually defined for one year.
OKR PLANNING – At OKR Planning the respective objectives and key results become
defined for the entire cycle and at all levels. This is done both top-down and
bottom-up.
OKR WEEKLY – The OKR Weekly helps to synchronise the implementation of the
OKR framework and supports self-responsibility as a solid ritual
of the teams during the cycle. The weekly should only take about 15 minutes and
should give an overview of the current status of the OKR.
OKR REVIEW – Review meetings are used to determine the degree of achievement at
the end of an evaluation cycle. The scoring should be consistent with team standards.
OKR RETROSPECTIVE – During a retrospective, the teams analyse the OKR process
from a systematic point of view. What did the team learn? What should be improved
in the next cycle?
OKR COACH – As experts, coaches, facilitators, change agents are OKR Coaches
responsible for the smooth implementation of the OKR framework in the company
and support their teams in the Definition of OKRs and other regular events.
2 Creating Objectives
You can lead a brainstorming session with your teams. Using the predetermined
Company Objectives, you can ask the team in each department on how they can
contribute in achieving the Company Objectives. You have to encourage them to
step out of their comforzones. Their objectives should be aspirational and
something that is connected to their role inside the company. The objective,
although ambitious, should still be measurable.
5 Getting feedback.
Initiate to get feedback from other department, teams, and other executives. It’s
a good practice that will minimise the possibility of having a blind spot.
6 Scoring
Scoring is essential for OKRs. Usually, the widely accepted scoring system is a
number between 0 to 1. If your team scores a .7 in a KR evaluation, it is better
than having a 1. A perfect score means that you’ve set the objective of the KR too
low and should be adjusted next time.
The OKR framework is meant to have ambitious yet measurable goals. This
keeps a culture of progress and helps everyone to keep aspiring to achieve
higher heights.
InfoGraphics: OKR in Bullets
History
1954 - Peter Drucker invented Management by Objectives or MBO. It’s the predecessor
of Objectives in OKR.
1974 - John Doerr joined Intel where he learned about OKRs. When Doerr become an
advisor to Google, he introduced OKR to Google.
OKR was introduced to the founders of Google, Larry Page and Sergey Brin, by
Doerr. These two implemented OKR to Google which up to this day is still in use.
Soon after Intel and Google, OKR was then adopted by hundreds of companies and
organisations follow suit Zynga, Sears, Twitter, Oracle, and so much more.
Composition
Objectives - Typical 3 to 5 high-level goals under which 3-5 key measurable results are listed.
Key Results are signifier that the Objective is accomplished.
The said key results is popularly measured using a sliding scale between o to 1.
Organisations should include OKR as part of quarterly planning and progress review.
No specific regular time to set OKRs. It can be done on a monthly or annual basis
depending on the internal cadence of an organisation.
Each cycle has many opportunities for improving teamwork, communication and strategic goals.
40% 24%
Gallup in 2016, only 40% of 24% of “Workers are Actively
millennials feel connected to the Disengaged”. Actively disengaged
visions and goals of the company workers - people who demoralise other
they work for. workers who are making an effort to
achieve results for a company.
12-15% 50%
Gallup in 2016, only 40% of 50% of employees quit jobs to get
millennials feel connected to the rid of their managers - Gallup survey.
visions and goals of the company
they work for.
13% 58%
Worldwide, employee engagement 58% of executives see their
is only 13% according to Gallup. Performance Management
framework fail to increase Employee
Engagement
OKR at Nasa
Another ultimate OKR example is the one set by former US President John F Kennedy when they
decided to put a man on the moon. The project was called “Moonshot Goal” and their OKR was
continuously evolving for 10-25 years until they achieved their ultimate goal in 1961.
OKR at Amazon
Amazon is another big company that has adopted OKR in their operation. One of the key driving
factor for the adoption of OKR was the sheer number of workforce of the company that often lead
to many miscommunication, unmet expectations, management strains and confusions.
OKR at LinkedIn
For LinkedIn, OKR is a tool that gives everyone inside the company the sense of urgency. According to
LinkedIn CEO Jeff Weiner, they can focus better on what matter most using OKR because of the short
and long term timelines for the respective objectives they set for the company.
OKR at Twitter
Twitter primary use of OKRs is on the side of transparency and communication. They make sure
that there’s a way for everyone to see and check on what others are working on.
Advantages Of Using OKR
Studies have already shown that companies which use OKR tend to have a
more effective workforce. OKR addresses many organisational concerns
such as the following:
OKRs provide organisations with clarity so they can focus their resources.
People are encouraged to focus on results and not the tasks. This means they are
trained to know the difference of providing result rather just doing things blindly.
The creation of OKR is a way to tap into the collective intelligence of an organisation.
Proactive Qualities of OKRs
Strategic goals are cascaded from The company are encouraged to OKRs provide organisations
top-down to bottom up in an share its objectives to the with clarity so they can focus
organisation. employees and the employees from their resources.
the bottom are empowered to align
their actions to the objectives of the
company.
Alignment between the company The performance are always There culture of excellence is
and the workforce. ensured to be measurable. encouraged by empowering
employees to go beyond their
comfort zone.
Regular assessments and check ins People are encouraged to focus on The creation of OKR is a way to
foster the culture of accountability. results and not the tasks. This means tap into the collective intelligence
they are trained to know the difference of an organisation.
of providing result rather just doing
things blindly.
Some Templates and Examples
Now that you understand the value and power of OKR, let’s seem OKR in action. Below are
some powerful and effective OKR templates fe.
OKR Template
Company Name
Objective
Fulfillment
Company Objective One Progress 23%
Measurable Key Result1 10%
Measurable Key Result2 20%
Measurable Key Result3 40% Objective
Fulfillment
Company Objective Two Progress 15%
Measurable Key Result1 5%
Measurable Key Result2 15%
Measurable Key Result3 25% Objective
Fulfillment
For example, if your company’s objective is to develop the business’ reputation and improve
the Customer Relation Department, you can say that your objective should include
measurable elements that signify those goals. Example:
Key Results that signifies success of the objective above can be:
KEY RESULTS:
KEY RESULTS:
KEY RESULTS:
KEY RESULTS:
Company: Deverus
Industry: HR
Source: https://blog.weekdone.com/deverus-improved-collaboration-combining-okrs-weekly-ppp-reporting/
Company: BMAT
Industry: Music
Source: https://blog.weekdone.com/bmat-when-your-company-grows-weekdone-lets-you-get-closer-to-everyone/
Company: Humanitec
Industry: Saas
Source: https://blog.weekdone.com/humanitec-creates-alignment-objectives-key-results/
Company: Exxact Corporation
Industry: Hardware/Software
Source: https://blog.weekdone.com/exxact-corporation-simplifies-with-goal-setting/
Failure to achieve OKR doesn’t mean that you have to revise it. You can only do so in times of an
extreme event or reason to justify revision.
You will notice the positive changes of OKR after 3-4 cycles. Be patient.
A well-designed OKR implementation plan makes it easier for your company to adapt to this
framework. This is why it’s recommended to work with an OKR coach.
OKRs though ambitious and inspiring should still possess the following: Specific, Measurable,
Attainable, Realistic/Relevant and Time Bound (SMART).
Company and departmental OKRs should be clearly communicated down to the very bottom of
organisational structure. It’s better for it to be rephrased if not properly understood by other
employees. Again, one of the goals of OKR is to communicate the goal of the company to all of its
employees.
Ideal score for Key Results is between 70% and 75%. Anything above means you’ve set a very easy
low goal.
Review the OKR regularly. Most companies would review their OKRs with their regular
reports. Annual, Midterm, Quarterly and even Monthly are the most common regular
review timeline.
Objectives answers the question “What?” The Key Result corresponds to the “How?” When
the “hows” are achieved, so is the “what.”
Objectives are strategic themes. Key Results are the tactical means.
Setting Key Performance Indicators are also a good means to measure Key Results.
Avoid the following mistakes in setting your own OKRs. These practices lower the
effectiveness of this framework.
Don’t use OKR as a task list. OKR measures the value delivered of each employee in an
organisation, not the number of tasks accomplished.
Don’t set too many OKRs. It will overwhelm everyone in your team and won’t deliver the
focus embedded in the system of OKRs. Set only the top three top goals of the company in
a period of time.
Follow the Top-Down approach when setting OKRs. Team OKRs should be aligned with the
Departmental OKR. Department OKRs are aligned with the Company’s OKR.
Don’t set and forget. Continuously review your OKR and ask for a progress report on regular
meetings. Goals are only goals without measurable actions.
Here at Evolution4All, we created 3 transformative core products
that promises to deliver the goal setting evolution that every
modern day company should have:
All of these products are designed to help your company adopt the powerful framework of
OKR seamlessly with the guidance of an expert. We will literally hold your hands and
implement and facilitate these programs so your company can actualise the fullest of its
potential. Unlike other management consulting firm, we don’t charge by the hour or day. We
charge based on the result we deliver. All of our programs are an investment that will deliver
tangible result and exponential development.
In order to fully visualise the power of OKR, we created this short report to help you get
acquainted with the potential impact of OKR to your company. Regardless of the challenges
that you’re facing now, it is essential that you take action now and face it head on. And one of
the best ways to do this is to unify your team using the OKR framework.
Please read this report thoroughly and if you have any question, feel free to reach out and ask
questions using this contact form. Additionally, we published numerous articles about OKR on
our site and we highly suggest that you cross reference to it for in-depth discussion on the
different facets of OKR.