What is an OKR, or the OKR method?

The OKR method (short for 'objectives and key results') is a way of linking your organisation's goals, the OKRs, to measurable results. It is designed to help organisations set and achieve the goals that matter. OKRs make it easier to communicate strategic goals internally, so everyone knows the direction of travel and people can align their own goals with it.
Put simply, two questions need answering:

• What do I want to achieve?
• How will I know whether the goals have been achieved?

The OKR method can help companies stay on course in a fast-moving industry while encouraging innovation at the same time. Technology companies are a good example of an industry that makes heavy use of it. OKRs support a goal or vision and should be measurable, transparent, flexible and ambitious. They also invite people to work together towards a shared goal. One caveat: OKRs are never tied to compensation or performance appraisals.

How do you use the OKR method?

OKRs start with the organisation's mission and vision. They usually contain three (in small organisations) to five (in large organisations) high-level objectives, each with three to five important, concrete, specific and measurable actions. To link objectives to measurable results that give direction, OKRs are always defined at three levels: company level, team level and personal level. There should be no ambiguity whatsoever about how these goals are measured. In short: what is the objective, which key results hang from it, and which initiatives support it? The model below explains simply how the OKR method works.

Objectives

It all starts with formulating the objectives. These are long-term goals that follow from the organisation's mission and vision. Objectives are often set annually and quarterly. The most important characteristics of objectives, and of working with goals and OKRs, are:

1. Aligned Objectives should always be in line with the organisation's goals and support its ultimate purpose.
2. High impact Objectives should always be things that, once achieved, have an enormously positive effect on the whole organisation. Hitting a shared objective should be a reason to celebrate.
3. Time-bound Setting objectives for the short term creates focus. That not only helps you discover quickly what does and does not work, it also lets you change course when needed.

Key results

Once the objectives are formulated, it is time to attach key results to them. Key results always have a clear link to the objective. Always ask yourself: 'if I achieve this key result, will it move my objective?' The most important characteristics of key results:

1. Specific and measurable Key results should be specific and clearly scoped. They are always measurable and have a starting point and an end point. These can be numbers, percentages or values.
2. High impact Key results should reflect a significant change, something the rest of the organisation will notice when you hit it. Think big. If they are too easy to reach, they are not challenging enough.
3. Within your influence Key results are not action points. They should be something you do not control but can influence. Writing three landing pages is a good example of what a key result is not: that is a task. Reaching 2,000 views on a landing page is a better example. You do not control it, but you can influence it.

Initiatives

Finally, you draw up the to-dos that will deliver your key results. These are known as initiatives. The most important characteristics of initiatives:

1. Specific An initiative should always be specific. The scope has to be clearly defined and the owner has to know exactly what to do in order to tick it off. An initiative should contain concrete verbs such as write, launch, visit.
2. Within your control Where a key result is not an action point, an initiative is. You should have full control over your initiatives, meaning you can complete them and they do not depend on anything or anyone else.

Alignment is key

The OKR method makes it clear which overarching goals exist and how the departments, teams and individuals beneath them are going to reach them. That insight is crucial if you want to stay on track. It is not easy to come by, though. With the Treams platform, everyone has a permanent view of the goals and of individual and team contributions. We would be glad to show you how it works.

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