Does your organization struggle to execute lofty goals? Maybe a lack of internal alignment drives a perpetual carousel of strategy shifts. Or maybe your annual goals feel out of sync with day-to-day operations. You’re not alone.
Nearly half (46%) of companies believe they’re performing below average in the strategic execution of their goals—which translates into missed opportunities, wasted resources, and employee disengagement. But it’s not too late to turn things around.
With goal management frameworks like Objective and Key Results (OKRs), you can clearly define and meet your goals while forging a culture of alignment and accountability to propel your organization toward success in the second half of 2023 and beyond.
What is the OKR framework?
The OKR framework follows a basic formula: ”We will achieve (X objective) as measured by (Y key results).” This commonly used methodology encourages you to set ambitious goals, like becoming the go-to resource for professionals in your vertical by building a robust knowledge base and an engaged community.
Meanwhile, your key results act as quantifiable metrics that track progress toward your objective. In this instance, your key results might be to launch a knowledge-sharing platform with at least 100 industry-specific articles or guides, increase the platform’s community engagement metrics by 30%, and establish partnerships with two industry influencers or organizations to promote the platform and expand reach.
In an effective OKR framework, corporate-level OKRs establish strategic direction for the organization, while department-level OKRs align team efforts with high-level company goals. Personal or team-level goals support and contribute to achieving departmental goals, ensuring alignment across the organization.
OKRs made simple: Answering your top questions
Companies like Adobe, Meta, and Deloitte are champions of the OKR framework. But 71% of corporate leaders believe their organization has yet to master OKRs, often due to frequent changes in strategy, a lack of alignment or support of the business strategy, and a disconnect between day-to-day operations.
That’s why alignment and transparency are essential to reap the benefits of OKRs, from improved focus to increased accountability among teams. Now, let’s dive into some FAQs to provide you with guidance on how to successfully adopt the OKR framework and meet organizational goals:
- How can I align my OKRs with my company’s values? Rather than establishing OKRs and connecting them to your high-level strategy after the fact, use your company’s mission and vision to inform your objectives. This approach provides direction and ensures goals are relevant; it also boosts employee engagement by giving teams a clear sense of how their efforts align with the company’s vision.
- Who should be involved with OKRs? Our data found that business leaders with above-average strategic performance involve more people and levels of the organization with OKRs. Assigning OKRs to multiple levels of the organization—like company-level, department-level, and team-level—helps you simultaneously push forward strategic, organization-wide objectives and day-to-day changes.
- What does an effective OKR cycle look like? Your timeline for developing, executing, measuring, and evaluating OKRs is critical to your success. Our data shows that the most effective OKR cycles occur on a quarterly basis to avoid time-constrained monthly cycles and help teams revisit their goals as organizational priorities shift. You can also leverage a hybrid approach that aligns objectives to an annual cycle and tracks short-term progress with quarterly key results. But regardless of the length of your OKR cycle, frequent check-ins are crucial for aligning and enhancing your strategic execution—even if you only set aside 10-15 minutes in an existing, weekly team meeting.
While OKRs don’t follow a one-size-fits-all approach, all successful OKRs start with a clearly defined vision, mission, strategic objective, and key results. From setting the right timelines to involving the right stakeholders, each seemingly minor detail related to OKRs can make or break your organization’s ability to achieve its goals. Let’s embrace the power of well-crafted OKRs to set the stage for continuous improvement and propel us toward our goals with confidence.
Casey Carey is chief marketing officer at Quantive.