Updated: Mar 5
It is exciting to have big dreams, ones that can change your life. However, getting to even the first milestone will be plenty of work, and you would need to take several steps to make it a reality. When dreams are big, you have to organise your time since you cannot achieve everything in one go. Having a system is also crucial if you have several people working on one massive goal. To achieve a big idea, you need a clear direction.
Objectives, a mainstay in management, help people accomplish goals. A person with objectives is no longer only a dreamer. He has a path forward. Besides objectives, people also need indicators of success or the need for revision.
In management, these are 'Key Results', which are project milestones that track people's or teams' progress. Here are a few reasons why Objectives and Key Results or OKRs are essential for success, especially in an organisation.
What Are the Objectives and Key Results?
OKRs or Objectives and Key Results are goal-setting tools that help individuals and teams to set ambitious, quantitative results. OKRs let you create alignment among your tasks or with other people and track your progress. OKRs let people push their limits, track progress, and reassess the work they had done so far.
This type of goal-setting requires you to demand more from yourself. It is essentially a big bet on yourself or your team. Even if you don't achieve the goal, you can finish more than what is possible otherwise. It helps you get out of your comfort zone and learn how to do more.
What Do OKRs Look Like?
OKRs are not just lists of things to do. It consists of high-level objectives and key measurable results, both of which have components. Create an OKR by defining three to five high-level objectives. It is crucial that these objectives feel slightly out of reach, so you or your team can push yourselves to achieve more. After clarifying your objectives, write three to five measurable, time-bound, and specific results.
For example, suppose you want to create an OKR around starting a blog for your baking supplies store. The goal shouldn't be to do keyword research for your first posts; that is a common goal you have to meet at all costs. A good objective would be to be the number one source of baking inspiration and recipes in your state within one year. It is measurable, can be uncomfortable, and has a timeline.
The key results you write should mark your success while setting the ground for new objectives. Here are sample key results for launching a successful baking blog:
Get an average of 1,000 website visitors per month.
Increase the percentage of returning visitors to 30 per cent.
Get a domain rating of 40 or better on the blog.
Keep in mind that you should only have three OKRs at most. Also, regular reviews of your OKRs are essential; you can have these yearly or quarterly, depending on your needs.
How Do You Grade Your OKRs' Effectiveness?
Scoring is a vital part of the process of using OKRs. Self-reported grades help you keep yourself on track and is how you can succeed with OKRs. Typically, managers use a scale of 0.0 to 1.0, with 0.7 to 1.0, meaning the team or individual achieved all the goals. A score of 0.1 to 0.3 means they made no meaningful progress, while a score of 0.4 to 0.6 means they made progress on some of the goals.
Ideally, people want to have a score that indicates a completion rate of 60 to 70 per cent. Anything higher means the goals are likely too easy for the worker or the team. Meanwhile, anything lower means the goals might need recalibrating, or the people involved need more training.
Achieving your goals can feel good, but it is not the only thing that matters when working for an organisation. You need to work with others and push yourself so that you can achieve more for the company. OKRs are an excellent framework for growth and for helping teams collaborate.
If you're keen to start your OKR journey with your teams sooner rather than later, we have some programs and training that can help:
The 8-Week OKR Quick Start - An 8-Week Program that will help your teams drive radical value for your customers and business.
OKR Learning & Training - Up your game with on-demand training, live workshops and custom in-house sessions.
Design your company's success today—contact us for enquiries!