Three Steps to Implement Objectives and Key Results in Your Business

Objectives and Key Results (OKRs) are utilized by numerous companies, ranging from large organizations like Google to smaller businesses and nonprofits. This goal-setting framework is used by businesses to drive alignment, execution, and focus, all of which can contribute to building growth and success.

However, to reap the benefits of using OKRs, it is essential to understand how to implement this framework correctly. After all, it isn’t entirely uncommon for businesses to do this wrong. Fortunately, this post outlines three key steps to follow to do just that.

1 – Set Objectives and Key Results

When you first decide to implement OKRs in your business, it is crucial to establish a practical foundation. This means understanding your entire business strategy and vision to ensure the OKRs align well before defining key results for each objective. It is best to set three to five measurable and specific key results that indicate progress, but they should not be considered a to-do list.

Specific actions and initiations are your next focus. These aspects should be defined clearly to ensure the key results are achieved. You might set goals that appear challenging, but they must also be achievable. If you achieve 100% on all OKRs, it indicates that they are too easy to meet. Instead, you should aim to score around 70%, as these OKRs are deemed “aspirational.”

2 – Communicate OKRs Clearly

Focusing efforts on what matters most is vital, so the second step is communicating Objectives and Key Results efficiently. When communication is clear, all team members understand the goal and their role in achieving it, leading to a more unified and productive organization. Your team can then allocate resources and prioritize tasks that have the most significant impact, preventing wasted effort.

The “why” must be explained at the very beginning of this process. This means conveying the high-level company objectives and priorities in such a way that everyone understands. The contribution of OKRs to the larger vision should be detailed, not just what they are, as this ensures everyone is on the same page. 

It is essential to schedule regular check-ins to review progress throughout this process. This will provide the opportunity to identify obstacles and adjust as required. 

3 – Track and Manage Progress

As previously mentioned, adjusting the plan is often necessary to ensure all progress continues. This is why you must keep track and manage OKR progress. Not only will this keep your team focused and working toward the same organizational goals, but it also enables data-driven decision-making. These decisions may include identifying potential roadblocks and developing pivoting strategies, as well as allocating resources more effectively.

When using an OKR methodology, it is essential to choose a dedicated tracking method, such as an Objectives and Key Results software or a detailed spreadsheet, to consolidate all goal-related data in one place. This can be automated at times; some tools automate score calculations, while others provide reminders to help users stay on track. Either way, all OKRs must have measurable metrics and Key Performance Indicators (KPIs) that are easy to understand and interpret.

To conclude, applying OKRs in your business can be challenging to begin with. A lot of planning is required, but the benefits you reap will be well worth the effort. Follow the three steps outlined in this post to achieve that.