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OKRs- Objectives & Key Results

Why OKRs Advantages

o OKRs whether team or individual are for operational excellence ONLY. Individual
compensation sessions should be separate from OKRs
o Transparency. Its important because employees want to know how they are being
evaluated and want to know that they are making conscious choices. Employees tend to
be more productive when they know exactly whats expected of them
o Clear direction individuals and teams vision and direction should match. OKRs ensure
operational efficiency and that your teammates are on the right path
o Realistic and aggressive at the same time
o Help prioritize and lead to better results
o Quantified work raises the bar. Recording goal data and its progress increases
motivation and productivity amongst employees
o It empowers employees and drives a culture of accountability and high performance
o Goals turn aspirations into tangible commitments and measurable outcomes
o Distinguishes between vision and short term executions
o Aligns goals across team and reduces duplication of tasks
o Connects individual employees work to overall business
o OKRs retains top talent
o Allows cross-departmental collaboration

Getting Started - Some Dos and Donts

o Team OKRs, individual OKRs or Company OKRs? Team OKRs are highly effective
o Limited number of OKRs help team stay focused. Best practices encourage setting four
to six objectives and five or fewer key results for each objective.
o OKRs review in order to follow up on the progress every week or two weeks,
depending on the timeline of OKRs. One way to discuss team OKR reviews is in Team
meetings and individual OKRs in 1:1s
o Use an application/software to manage OKRs
o OKRs should reflect S.M.A.R.T goals (specific, measurable, attainable, relevant & time
bound) but rather than always being attainable, OKRs can be aspirational
o The most difficult step for many organizations is committing to the OKRs process.
Businesses should identify an OKR champion who fully understands the benefits of the
approach and can help teams that may be having difficulty getting started or staying on
track. This person is often a chief executive, line-of-business leader, operating officer or
human resources professional
o 60% of objectives should come from bottom up in order to avoid top-down dictation
that hampers motivation and aspiration
o Mostly, OKRs are set quarterly with review every two weeks. However the length
depends on what suits the company the best
o A company decides if they want to score the OKRs. OKRs are not the same thing as
performance evaluation and should not be tied together
o In cases where companies have chosen not to score goals, employees take time for self-
reflection. They think deeply about what they achieved and did not achieve before
setting a next set of goals
o A company needs to work on avoiding some potential issues that might arise:
1. Lack of support across the entire organization For OKRs to be effective, goals must be
supported by the entire organization. Every team and working group should agree on
goals and priorities
2. Lack of accountability just setting goals isnt enough. Goals must be measurable or
have quantifiable targets. From shipping a certain number of products to hitting a release
schedule, teams have to be able to track and measure the goals they set
3. Lack of reality, especially timing Goals should be aggressive yet realistic. Individuals
and teams should stretch, but not to the point of breaking.
4. Lack of risk OKRs should not be tied to bonus payments. Organizations should think
about using OKRs to build a bold, risk-taking culture.

Starting point (Objective and Key Result)


I will _______ as measured by _______

OKRs extend to operational excellence through the following Five Goal Science Pillars:

1. Connected
2. Supported
3. Adaptable
4. Progress-based
5. Aspirational

RACI Methodology
For creating collaborative relationships between and across teams, practice RACI for role clarity. It
means who will be Responsible, Accountable, Consulted and Informed:
Responsible:

Who takes the action


Person who completes a particular goal or leads the person who completes the goal
Responsibility level is determined by individual who is Accountable

Accountable:

Person with decision authority


Only one A per goal

Consulted:

Kept in the loop


Person consulted for input, information, insights and perspectives before a final decision is
made
Two-way communication

Informed:

One-way communication
Normally after activity has been performed, or decision has been made
Useful Links to get acquainted with OKRs:

1. https://docs.google.com/document/d/1OHpQOvZz76_10ebJP2AKvvXUF3H9yd6FC89F5jS4mks/e
dit?pli=1#heading=h.5f7zvopg83bh (includes a template to start with)
2. https://weekdone.com/resources/templates/okr-report-spreadsheet-template
3. https://www.betterworks.com/resources/
4. https://blog.weekdone.com/personal-story-of-setting-okrs-as-a-team-manager-guide-with-
examples/
5. https://www.atiim.com/okr-goals-examples/
6. https://www.atiim.com/blog/7-reasons-why-google-uses-okrs-and-why-you-should-
too/?utm_campaign=quora&utm_medium=referrall&utm_source=quoraanswer
7. https://www.atiim.com/blog/how-to-use-kpis-with-okrs/ (OKRs and KPIs together)
8. https://www.perdoo.com/blog/okr-vs-kpi/ (OKRs and KPIs together)
9. https://www.linkedin.com/pulse/kpis-vs-okrs-what-difference-stephen-lynch (OKRs & KPIs)