02 Mar
Settings OKRs, aka Objectives and Key Results, needs some orientation, strategy and planning. Here, we have answered some common questions covering the creation and implementation of an OKR strategy to ensure its success.
- How do I create an OKR strategy for my company?
- Are there any common mistakes companies make, when implementing OKRs?
- Who qualifies to act as the OKR implementation Head?
- How do we rollout OKRs?How do we create quality OKRs, specifically when deciding the Key Results?
- Name the top 5 mistakes of companies which saw their OKR implementations fail?
- Can OKRs replace my Performance Appraisal system?
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OKR expands to Objectives and Key Results which is a performance framework favoured by some of the most successful organizations, including Google. Effective OKR implementation requires a little orientation, prior information, planning and strategy. If you happen to have any questions in this regard, we address set of frequently asked questions.
How do I create an OKR strategy for my company?
Start with deciding the overall aspirations, priorities and pain points that you want to drive for the business over the next one year. Once identified, the next step is to stream line these into 3-4 annual objective statements that will act as goal posts for the entire organization. Once you have the big picture on where you are headed, break them down to annual and quarterly objectives and determine how the results will be measured to create the key results.
Growth can be measured as numbers, percentages, and deadlines. Make sure they are very specific and that they support the overall objectives. Then you may start creating Individual OKRs which support and work towards meeting team and company OKRs. Remember to set ambitious goals, as the aim is to reach as high as possible rather than to pluck low hanging fruits and claim high bonuses. Follow a process of grading OKRs, once the set time frame ends. Let’s say, your original goal was to take one of your processes digital by 100% and you have achieved 50%, your OKR would then be graded at 0.5 and so on.
Once the initial set of OKRs are graded, repeat the process by setting even more OKRs and keep them as challenging as possible to set the business taking significant strides forward.
Are there any common mistakes companies make, when implementing OKRs?
With any new undertaking, there’s a possibility of making some mistakes. Some of the most common among them are:
- Having too many Objectives or Key Results
- Key Results are not quantifiable
- OKRs align, unlike the earlier goal-setting exercises which followed an irreversible, one-way flow starting at the top and allowing no feedback to be incorporated.
- Not identifying an OKR implementation champion at all, or not choosing someone with influence over people and knowledge of the business, to drive the implementation.
- Having teams which are not trained on OKRs right and are unable to define their own OKRs right.
- Adopting OKRs across the organization without adopting any change management process.
- Failing to marry your OKRs with your weekly (or monthly) business reviews.
- Coupling OKRs or goals with employee compensation
Who qualifies to act as the OKR champion?
Organizations are made up of departments and teams that work together on common goals and objectives. The OKR Champion is usually a team or department member who has very good knowledge of the actual work that is being done by the teams or departments. The OKR Champions’s role includes designing the OKR process, driving adoption, maintain OKR platform and to be the go to expert.
How do we rollout OKRs?
OKRs can be rolled out across the entire company at the same time Here are a few steps to confidently start the journey:
- Secure buy-in from senior leadership
- Design organizational OKRs with an annual plan in mind
- Define a maximum of 5-7 objectives with max 3 key results for each objective
- Have clear timeline & appoint an ambassador
- Ensure effective communication so that everyone understands the OKR methodology
- Use technology for better results
- Reflect on successes and failures
How do we create quality OKRs, specifically when deciding the Key Results?
It is not easy to create quality OKRs but some of these inputs will make it easier.
- Everyone needs to trained right on the concept of OKRs.
- Top managers can use an expert consultant’s help for this.
- The functional heads and managers would then train their teams.
- Share the guidelines for creating OKRs with everyone.
- Share inputs on conducting reviews.
- Reward anyone who drafts good OKRs and managers for good reviews.
Name the top 5 mistakes of companies which saw their OKR implementations fail?
- Failure to understand that top management’s OKRs need to be complete before being cascaded to the next level.
- Lack of alignment across an individual, team, and company goals
- Setting too many OKRs in a quarter/month
- Not setting stretched goals.
- Linking OKRs to compensation
- Expecting results within 2 quarters without waiting for the system to mature.
Remember that implementing OKRs takes time, and results cannot be expected immediately. Focus on enabling everyone to understand the concept of OKRs and add them to every business review. Ensure communication, collaboration and transparency on OKRs.
Can OKRs replace my Appraisal system?
OKRs set ambitious goals. Treating them as only your appraisal system will have people refusing to accept the stretched Key Results. People look for easily achievable key results so that they can claim a big bonus, when they overachieve. Best approach is to not link OKRs with compensation and only track and measure them to ensure that teams achieve organization objectives.
Learn more about Best practices for OKR implementation and how then enhance organisation performance in the following blog posts
