If you read my last blog, where I discussed defining your win, you may be asking, what’s next? In order to effectively navigate from where you are today to your ultimate goal, you’ll need a systematic way of prioritizing your efforts. This is where I introduce the concept of Objectives and Key Results (OKRs).
OKRs are a management methodology that help to ensure everyone in an organization focuses their efforts on the most important issues. Some of the most successful companies in the world are using OKRs as a management methodology, including Amazon, Facebook, Google, GoPro, Slack, Spotify and many more.
THE BASICS
Objectives
What you want to accomplish. These should be the most important things that the company wants to accomplish over the time period. They are significant and aspirational. They communicate action and must be supported by the entire organization. Example: SpaceX will send a man to Mars.
Key Results
How you will accomplish your objectives. These are specific, actionable, and reportable. They need to be clearly measurable and need to have a specific deadline. Example: SpaceX will build a lunar module weighing under 40,000 pounds by the end of the year.
NEXT STEPS
The next steps would be set the time period for your Objective cycles. Most established companies set Objectives every quarter. For newer companies whose innovation cycle is much faster, I recommend setting Objectives monthly.
Once time periods are established, work with your team to develop Objectives that are aggressive and advance the organization toward your end goal. It’s vital to get input from your team and a best practice for OKRs is that 50% of the Objectives should come from the bottom up. The organization should set 4–5 Objectives for the time period with 3–4 Key Results per Objective. Each division of the organization should have a stake in delivering results to move the Objectives forward.
It’s important that each Key Result has a measurable attached to it, so that progress can be easily reported throughout the time period. This ensures that everyone in the organization knows the exact status of each OKR at any time. Key Results should be regularly reported. At the end of the time period, repeat the process of setting OKRs that advance the organization toward their win.
If you have any questions or comments, leave them below!