OKR

What is OKR or the OKR method?

The OKR method (short for objectives and key results) is a method for linking your organization's objectives, OKRs, to measurable results. This OKR method is designed to help organizations set and achieve key goals. With OKRs, it becomes easier to communicate strategic goals internally so everyone knows what the direction is and employees themselves can align their goals accordingly.

Simply put, two questions must be answered:

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

The OKR method can help companies stay on track in a rapidly changing industry, while encouraging innovation. Accordingly, an example of an industry that uses the OKR method widely is that of technology companies. OKRs support a goal or vision, should be measurable, transparent, flexible and ambitious. In addition, OKRs invite employees to work together toward a common goal. Note: OKRs are never linked to compensation or performance reviews.

How do you use the OKR method?

OKRs begin with the organization's mission and vision. They usually contain three (in small organizations) to five (in large organizations) high-level objectives, along with three to five key, concrete, specific and measurable actions for each objective. To link goals to measurable outcomes that provide direction, OKRs are always defined at three levels: corporate level, team level and personal level. There should be no ambiguity about the measurability of these goals. In short, what is the goal, what key results hang from it and what initiatives support the goals? In the model below, we simply explain how the OKR method works and OKR is explained.

Objectives

It all starts with formulating the "objectives. These are long-term goals that stem from the mission and vision of the organization. Often objectives are set on an annual and quarterly basis. Key features of 'objectives' and working with goals/OKR are:

1. Aligned
   Objectives should always align with organizational goals and support the ultimate goal of the organization.
2. High Impact
   Objectives should always be things that, if you achieve them, will have a huge positive impact on the entire organization. Achieving group objectives should be a cause for celebration.
3. Time-bound
   By setting short-term "objectives," you create focus. This not only helps you quickly discover what is and isn't working, but also allows you to change course when necessary.

Key results

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

1. Specific and measurable
   Key results must be specific and have a clearly defined scope. They are always measurable and include a starting and ending point. These can be numbers, as well as percentages or values.
2. High impact
   Key results should reflect a big change. Something the rest of the organization will notice if you achieve this objective. Think big! If they are too easy to achieve, they are not challenging enough.
3. Influential
   Key results are not action items. They should be something you have no control over but can influence. A good example is writing 3 landing pages. That is a task, and therefore not a good example of a key result. Achieving 2,000 views on a landing page is a better example. This is not something you have control over, but it is something you can influence.

Initiatives

Finally, you set 'to do's' to achieve your key results. These are also called initiatives. The main characteristics of initiatives:

1. Specific
   An initiative should always be specific. The scope must be clearly defined and the owner must clearly know what to do to tick off this to do. The initiative must include concrete verbs such as write, launch, visit.
2. Within control
   Where a key result is not an action item, an initiative is. Therefore, you must have full control over these initatives. This means that you can complete them and that they are not dependent on anything or anyone else.

Alignment is key!

In the OKR method, the overarching goals are clear and how they will be achieved from underlying departments, teams and individuals. That insight is crucial if you want to stay on track. But that insight is not easy to get. With the Treams platform, everyone always has insight into goals and into individual and team contributions. We'd love to show you how that works!