How to Set Winning OKR Objectives?
Setting objectives is the start of an OKR process that is followed by desired key results. Without objectives, it’s impossible to measure success. But how do you set objectives that are specific, measurable, achievable, relevant and time-bound? But, first, why is it important to set winning OKRs?
Why is writing winning OKRs essential?
Setting objectives is key to any successful organization, yet many organizations struggle to create effective objectives. One reason for this is that they fail to set winning OKRs. A successful OKR would be SMART – specific, measurable, achievable, relevant, and time-bound. Creating winning OKRs is imperative when implementing them across the organization.
It offers a clear sense of what needs to be accomplished and how their contribution will be measured. Additionally, it ensures that everyone is working towards the same goal. Regardless of the approach – top-down, bottom-up, or a combination of the two, winning OKRs will stay true to the need for alignment between the company’s goals and the goals set forth for the workforce.
Organizations often find themselves struggling to achieve their goals. It can lead to employee frustration and the company failing to achieve its desired results. Creating winning OKRs is not always easy, but it is worth the effort. By creating clear and concise objectives, you can ensure that your company is on the right track to success.
How to set up wining OKRs?
Be specific
When setting objectives, it’s essential to be as specific as possible, i.e., including as many details as possible, so there’s no confusion about what you’re trying to achieve. Here’s an example:
The goal is to increase market share by 5% over the next quarter.
O: Develop a marketing plan to increase brand awareness and reach.
KR1: Increase web traffic by 10% through targeted SEO and SEM.
KR2: Generate 100 new leads through online and offline channels.
KR3: Close five new deals with clients in our target market.
Make them measurable
Objectives should be measurable to track progress and know when you’ve achieved them. It could mean setting a target number or percentage or a specific deadline. An example of setting measurable objectives for an OKR could be as follows:
O: Increase sales by 10%
Task: Implement a new marketing campaign that leads to 10% more sales.
Measurement: Compare sales figures from the same period last year.
Make them achievable
It’s essential to set objectives that are achievable so that you don’t get discouraged when trying to reach them. This doesn’t mean making them easy but rather setting realistic goals that you can achieve. For instance:
O: To increase sales by 10% in the next quarter.
KR1: Achieve 10% growth in sales in the next quarter.
KR2: Maintain current gross margin percentage.
KR3: Achieve 10% growth in new customer acquisition.
Make them relevant
Objectives should be relevant to your overall strategy to help you achieve your long-term goals. This means they should be aligned with your company’s mission and values, i.e., increase brand awareness.
O: Increase brand awareness
KR1: Increase social media followers by 20%.
KR2: Increase website traffic by 14%.
KR3: Increase brand mentions by 22%.
Keeping the previous factor of achievable objectives in mind, you would have specific numbers based on your current brand status.
Make them time-bound
Objectives should have a specific timeframe to track progress and know when you need to achieve them. This could be a specific date or a certain number of months or quarters.
Here’s an example:
O: Increase sales by 10% in the next quarter.
KR1: Increasing the number of sales calls made by 10%.
KR2: Increasing the number of new leads by 10%.
KR3: Increasing the conversion rate by 10%.
KR4: Increasing the average order value by 10%.
By following these tips, you can set specific, measurable, achievable, relevant, and time-bound objectives. It will help you create and implement a winning OKR process and achieve your goals.
What happens if OKRs are not all they should be?
If OKRs are poorly written, the results can be disastrous. Poorly written OKRs can lead to confusion and frustration among team members and ultimately lead to the failure of the entire OKR system. For instance, OKRs would defeat their purpose if the goals are vague or unrealistic. The employees will not have a point of focus, nor will they know the direction to take. You would be setting them up for failure with unrealistic expectations. The team would feel like they are not sure what they are supposed to be working towards, which can ultimately lead to a lot of wasted time and effort.
Furthermore, poorly written OKRs can also lead to a lack of accountability. If team members do not clearly understand what they should be doing, holding them accountable for their results is tricky. This can ultimately lead to finger-pointing and a blame game and can ultimately derail the entire OKR process.
Final thoughts
Overall, poorly written OKRs can have equally poor consequences. The reverse is also true, although writing winning OKRs alone is not enough. But, it is the right first step toward meeting your objectives. The art and skill of writing OKRs can set you on track, making the journey that much clearer. Therefore, it is imperative to ensure that OKRs are well-written and clear for every employee before implementing them.
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