How to Write Effective Goals and OKRs

Do you think setting goals is easy?

All you do is jot down items that you’d want to achieve and there you go; your goals!

Well, not quite. It’s very normal as one does not always achieve the goals one sets, and one does not always convert their big dreams into reality.

Goal setting is quite tricky, which is why the idea of OKRs (Objectives and Key Results) exists. But, what are the OKRs, and how to write OKRs to craft effective working goals?

OKRs are a magical goal-setting framework that helps businesses set high goals and execute strategies more effectively. To your surprise, 83% of the surveyed companies agree that OKRs have a positive impact on their organization. 

80% of companies have OKR coaches (or OKR masters or a similar role) to oversee and manage the OKR process. Companies like Google, Netflix, and Twitter often use Goal Management methodologies like OKRs to create alignment and measure goals & objectives in your organization.

Here, we will explore the usual challenges people face when they intend to pursue big goals and provide useful guidance on how to form effective objectives and key results.

So, if you want to step up your game to make your dreams come true, keep a close eye.

 

Are OKRs and KPIs different?

OKRs and KPIs are two different performance measurement frameworks that enable tracking and achievement of goals.

OKRs 

OKRs focus on setting clear and ambitious objectives and the key results to track success. Objectives are qualitative statements describing what you want to obtain, while key results are measurements for the objectives which are specific, timely, and quantitative data.

In most cases, OKRs act as guides, inspire teamwork, and align the organizational processes. Typically, OKR is a crucial tool for enhancing focus, agility, and constant progress.

KPIs

However, KPIs are measurable, defined measurements that are used to judge an organization’s, department’s, or person’s performance. In comparison to this, KPIs are used to monitor operations that are ongoing, as well as to ensure that an organization is achieving its strategic and operational targets.

KPIs are also different from OKRs which are usually rigid and may not change that often. Such tools are used for evaluating many aspects of a business such as financial performance, customer satisfaction, operational efficiency, and employee productivity among others.

 

Summing up with OKRs V/S KPIs

As we sum up, OKRs mainly serve to set ambitious objectives and measurable key results for focusing, motivating, and aligning the teams towards continual improvements. Unlike KPIs which encompass specific metrics that track current performance towards the goals of organisation strategies or operations. A combination of OKRs and KPIs is usually used by companies in performance management.

 

How To Write Good OKRs and Goals For Your Business? 

1. Start with a clear objective

The initial part of writing OKRs is to specify a clear objective. Objectives should be motivating, clearly stated and linked to your organization’s vision and strategy. The question “What do we want?” should be answered. 

Use this template to write your OKRs - I will [objective] as measured by [key result].

2. Ensure measurability

Identify Key Results that are specific and realistic for every objective. Such measurable results show whether the objectives are attainable or not. You can use the SMART Goal Setting Framework to ensure the measurability of your objective. You can create a Goal in Kroolo, set your priorities for multiple projects, and track the progress of each task.

3. Set ambitious targets

OKRs are supposed to extend and test your organization or team. The best way to approach this is to set ambitious yet achievable goals. Make them neither too hard nor too simple, for the best OKRs inspire growth, innovation, and improvement.

4. Align with organizational goals

Make sure that your OKRs are in line with the bigger organizational objectives and approach. This alignment ensures everyone sees how their work contributes to the company’s success as a whole. According to OKR Impact Report 2022, More than 60% of companies conduct OKR check-ins at least bi-weekly to ensure their organizational goals are in alignment with their approach.

5. Keep OKRs transparent

According to Haufe Talent, 78% of employees who use OKRs are satisfied with their jobs. So, disclose your OKRs to your team, department, or company and train them to use them as this makes collaboration successful. Such a framework helps team leaders and project managers give constructive feedback and owing to that team takes responsibility for their own actions, decisions, and results.

6. Regularly review and update

OKRs are not static. In fact, they require discipline and commitment from management and should be reviewed on a regular basis, like every quarter. With inconsistent use of OKRs (1 to 3 cycles per year), the performance can increase to 3%. Importantly, don’t forget to celebrate successes and reset your goals based on the outcomes received.

Finally, the creation of successful OKRs entails motivation, quantifiable, target goals that are concurrent to enterprise objectives coupled with giving the teams an enabling environment to embrace responsibility and ownership.

However, they should be simple, clear, and aimed at stimulating expansion, innovativeness, and continuous improvement. It is important to conduct regular reviews and make OKRs adaptable to ensure their relevance and effectiveness in creating success. Done well, however, OKRs can be a very effective way of helping organizations realize strategic objectives and improve overall performance.

 

5 Examples of OKRs 

OKRs are effective when they are specific, measurable, and targeted to the goals that apply to the entity. Here are five OKR examples to give you an idea of how they can be structured:

Objective 1: Boost user education and support

• Key Result 1: Introduce an all-encompassing knowledge base with 100 articles and resources.
• Key Result 2: Securing an 85% user satisfaction score during user support interactions.
• Key Result 3: An increase of 25% in the average monthly attendance of webinars and training sessions.

 

Objective 2: Expand service offerings

• Key Result 1: Provide three new features or services targeting small teams with customized needs.
• Key Result 2: Create and introduce a loyalty scheme to enhance the retention of gig workers and freelancers. The same will see an increase in the rate of customer retention by 15 percent.
• Key Result 3: Increase revenue from upselling and cross-selling of new additional services to existing customers by ten percent.

 

Objective 3: Strengthen community engagement

• Key Result 1: Targeted outreach and engagement initiative aimed at increasing the number of active community members by 25%.
• Key Result 2: Conduct monthly webinars or workshops for freelancers, gig workers, and other small teams of 100 persons on average.
• Key Result 3: The blog posts will increase by up to 20% which will foster online discussions and forums.

 

Objective 4: Brand awareness and market penetration in the target market

• Key Result 1: Increase website traffic by 30%.
• Key Result 2: Increase social media followers and engagement by at least 20%.
• Key Result 3: Gain an additional 10,000 subscribers to the company’s newsletter through email.

 

Objective 5: Improve user onboarding experience

• Key Result 1: Increase the completion rate of the onboarding process for freelancers and gig workers by 20%.
• Key Result 2: Cut down the time required for small teams to open their accounts by 30%.
• Key Result 3: Increase conversion of initial users on the tutorial to 25%.

 

Why You Should Use OKR Framework?

Having everyday work connected to team and company objectives is essential in harnessing the advantages of OKRs. This link is made when the key results are aligned with the objectives so as to realize the larger goals. Nevertheless, the benefits of OKRs emerge if they are applied to routine business operations complemented by suitable tools to align them.

1. Centralized alignment

For instance, OKR tools such as Goals in Kroolo enable you to establish, track, and monitor your goals or key results together with your daily tasks and projects on a single platform. This helps in ensuring that every team member sees his/her contribution towards achieving the broadest objectives.

2. Real-time progress tracking

These instruments enable real-time progress tracking. So, whether it's you, your colleague, or your Team, goals OKR management has been made so simple with Kroolo. With few clicks, goal key results can be tracked in a seamless dashboard. It's a perfect smart goal-tracking software for your business. Sign up today to start a free.

3. Prioritization and focus

Using OKR tools, teams can find out which task and project should be carried out so that it coincides with the main aims. Teams can avoid unnecessary or time-consuming work and concentrate on the most urgent and challenging assignments.

4. Efficient communication

The most important success factor for working with OKRs is communication. You can create a channel or chat in threads by putting goals and tasks in the same place. With our Goal Management Software, you can create multiple goals, discuss your daily tasks, and plan your strategic objectives without switching to any other tool.

5. Flexibility and adaptation

Working in an agile manner can significantly improve performance.

According to a global survey by McKinsey, companies have successfully adopted agile methodologies to improve performance significantly at the workplace. It’s a fact that the OKR tool is flexible enough to adjust to any changes that may occur at any time.

Such tools even make it easier to realign goals and key results where daily work or some other factors require adjustment within objectives. This altogether maintains agility at the workplace, helping team leaders and project managers improve their team’s productivity.

6. Enhanced visibility

OKR tools provide a top view for a leader or a manager on how daily work relates to corporate objectives. This improves the vision and makes decision-making, resource allocation, and performance assessment easier.