- Set goals for short periods of time (usually for a quarter). Longer the periods, harder it is to adapt and improve.
- Keep the objectives simple, straightforward and easy to understand. Easier the Objectives are to understand, easier it will be to align with other objectives
- The objectives should be aspirational. More aspirational the objectives, the more impact they will carry.
- OKRs should drive alignment within the organization and in between teams & between employees. OKRs shouldn’t be created in silos.
- In order to achieve alignment and participation, OKRs should be set in a transparent manner.
- Define Key Results that are quantified and measurable.
- Track your progress regularly. Without consistently measuring the progress, it won’t be possible to achieve your OKRs.
- Detach OKRs from Rewards. To drive aspiration, the employees must feel secure and not worry about compensation impact. OKRs are not an employee evaluation tool, it’s a management tool.
- Don’t set more than 3-4 Objectives max per level (e.g. per department, per employee)
- Only keep 3-5 Key Results (maximum) per Objective. Key Results must measure the value (impact) it drives to be effective.
Example 1:
O: Improve Customer Experience
KR 1: Decrease the time taken to answer a call by 20%.
KR 2: Increase first contact resolution by 10%.
KR 3: Improve Net Promoter Score from X to Y.
Example 2:
O: Successfully Launch Version X Of Our Product.
KR 1: Get ____(number) of signups with demo of version X.
KR 2: Achieve sign up to a trial ratio of over 25% as compared to the previous version.
KR 3: Achieve 50% more trial-to-paid conversions as compared to previous version