The Essential Guide To OKRs

​​”If you don’t know where you are going, you will probably end up somewhere else.” –Lawrence J. Peter

Goal-setting is critical for the success of an organization. It helps allocate resources efficiently and provides the direction and focus to achieve committed and aspirational goals. 

Most successful and innovative organizations put great emphasis on goal setting. They create both short-term and long-term goals and also motivate their employees to accomplish more by helping them set individual goals. By keeping their workforce aligned towards organizational objectives, they create a competitive advantage and brand positioning in the market.

On the contrary, organizations that do not set goals become stagnant and struggle to keep up with the competition. Further, their employees are not engaged and committed towards the organizational goals. Such companies have high turnover rates, plunging employee productivity, and are low on creativity and problem-solving skills.

In the current scenario, where uncertainty and unpredictability are ambushing businesses, it is imperative for leadership to develop a focused, determined, and goal-driven organizational culture. 

The quandary is, how to do it?

Organizations like Google, Amazon, Spotify, Gates Incorporation, and Zynga are some of the renowned firms that have adopted a goal-setting methodology called OKR, or Objectives and Key Results. 

Companies using Objectives and Key Results

By using this framework, they have reached new heights and created a distinguished position for their products and services in the market. They are able to better organize their resources and create a continuous learning and improvement environment.

By focusing on the most important goals, OKRs help organizations achieve more in less time. It helps in making teams and individuals more accountable towards their goals. Furthermore, it keeps track of employee productivity and creates a communication channel for better collaboration between employees and managers. 

What are OKRs?

OKR, a.k.a., Objectives and Key Results, is a goal-setting and tracking framework that helps individuals, teams, departments, and organizations set and achieve measurable goals. 

It is a collaborative methodology that provides a match between the objectives that organizations want to achieve and the key results that help measure their progress. By tying objectives to small and measurable key results, the framework enhances visibility and provides actionable insights into every employee’s contribution and performance. 

Unlike other goal-setting frameworks, OKRs are clearly defined, making it easier for managers and employees to track progress. By breaking down objectives into small key results, managers can create milestones that help accomplish challenging goals. 

The different qualities of good OKRs, such as qualitative, inspirational, committed, and time-bound, make them immensely useful for every team. That’s the reason the framework has garnered excessive adoption in the last two decades, with everyone from large-scale organizations to budding startups and even NGOs now using it to set their goals.

What are the Components of OKRs?

OKRs are made up of two components: objectives and key results. 

Components of OKRsObjectives are the goals organizations want to achieve in the short or long term. They are clear, informative, qualitative, and inspirational in nature. A well-defined objective helps organizations stay committed to their goals and also aids in resource allocation. 

It is important to note that organizations should have only three to four objectives that they wish to achieve in a specific period. 

Having more objectives can lead to ineffective resource allocation and confusion among employees. Also, it is highly taxing to keep track of too many objectives.

Examples of objectives:

  • Increase employee engagement and productivity.
  • Reduce the average time spent on onboarding employees. 

Key results help measure the progress and achievement of objectives. Every objective is followed by three to four key results that are quantifiable in nature. 

It’s important to note that key results have to consist of activities that are in sync with objectives. Otherwise, they would not harbinger any positive results. Some of the important qualities of key results are that they are measurable, clear, specific, and time-bound.

Examples of key results: 

  • Conduct an employee engagement survey every quarter.
  • Implement an employee engagement tool to increase engagement by 10% per month.


goal setting guide

Types of OKRs

Every organization wants to accomplish more with their workforce. But the distinguishing factor amongst the successful ones and the laggards is how well organizations understand the difference between aspirational and committed goals. 

Based on the types of goals, OKRs are differentiated into two types: aspirational OKRs and committed OKRs. 

Committed OKRs are goals that an organization would want its employees to accomplish anyhow in a given cycle. The commitment percentage of such OKRs is 100%. Also known as “roof shot goals,” they determine the short-term achievement of objectives. 

An example of a committed OKR:

Objective: Increase outbound sales

Key Result 1: 10% increase in customer revenue

Key Result 2: Close 3 enterprise clients in a quarter

On the other hand, Aspirational OKRs are the stretch goals that push the workforce to achieve more in an OKR cycle. They are also known as “moonshots” because they cannot be accomplished in a given timeframe. 

An example of aspirational OKR:

Objective: Increase sales revenue 

Key Result 1: Close 15 enterprise clients in a quarter

Key Result 2: 30% increase in average customer revenue

As per Google OKRs, a 60–70% achievement of overall OKRs is considered a success. Anything below that indicates that organizations are not realizing their full potential. 

A Brief History of OKRs

OKRs were founded by Andy Grove, the then CEO and cofounder of Intel Corporation, in the 1970s. He incorporated the methodology while working in the company, thereby leading it to enhanced performance and better goal completion. Using this framework, Intel restructured itself into a goal-driven and employee-centric organization.

The concept of OKRs was further popularized by John Doer, an Intel employee. He understood the application and nuances of the framework and shared it with the founders of Google, Larry Page and Sergey Brin, in 1999, while working for a venture capitalist firm. 

Google used the OKR approach to reposition itself as the world leader and grew its revenue by leaps and bounds. Seeing the success of Google and Intel, many organizations have switched from the traditional goal-setting approach to OKRs. 

What are the Benefits of OKRs?

A report by Asana found the following about communicating company’s goals and objectives to their employees:

  • A mere 16% of employees believed that their organization was good at goal-setting and communicating it to different teams.
  • Only 26% of employees understand how their contributions affect the company’s goals. That leaves 74% of employees in a state of complete confusion with no idea about how to add value to organizational goals. 

Benefits of OKRs

The above statistics highlight two important things. The first one is that organizations aren’t communicating effectively with their employees. The second is that the majority of employees have no clarity about organizational goals, how it guides their work on a day-to-day basis or how they contribute to the overall goals of the company they work for.

organizational benefits of using OKRs

To overcome the issues of miscommunication and goal misalignment, organizations are implementing OKRs. It helps in aligning organizational and individual goals and creates a purpose-driven culture. Some of the benefits of OKRs include:

  • Clear direction to employees and leadership
  • Focus on individual and organizational goals
  • The ability to track the progress of different goals
  • Goal-setting leads to higher engagement and productivity
  • Increased transparency, accountability, and dependability in the organization
  • Leads to better resource allocation and utilization
  • Ability to track individual performance

How To Get Started With OKRs?

How to get started with okrsSource:

There are two approaches used in setting OKRs. The first one is a top-down approach, in which the organizational objectives are cascaded down to different departments, and in alignment with them, teams create their own OKRs.

The second approach, bottom-up, is the opposite of the top-down approach. Here, different teams and employees create their own OKRs and try to convince top management to adopt them. The approach usually requires leadership’s rationale and forward-thinking for the adoption of OKRs. 

While most organizations use a mix of both approaches, it is important to follow the OKR process to get substantial results from it. 

The process consists of the following steps:

  1. Involvement of leadership in adopting the OKR methodology
  2. Understanding the ultimate goal an organization wants to achieve is crucial. It could be higher ROI, better retention ratio, enhanced productivity, increased organizational efficiency, and better preparedness for unprecedented challenges
  3. OKR Cadence: Zeroing down on the frequency with which organizations want to set their OKRs
  4. Following a sustainable OKR approach
  5. Write winning OKRs: Writing corporate and departmental OKRs can be challenging. Leaders should take reference from previously used OKRs to kick start the process. They can also get help from an OKR consultant to define the layout of the whole process.
  6. Creating an OKR scoring method to effectively calculate the completion of an objective
  7. Communicate OKRs to the workforce so that they can write OKRs for themselves based on organizational goals
  8. Tracking OKRs through weekly check-ins and quarterly or annual reviews
  9. Fine-tune the process for better results


OKR goal setting expert demo

OKR Best Practices

To get the most out of the goal setting process, it is important to follow some standard OKR best practices. While most organizations spend a considerable amount of time investigating OKRs, there are some specific areas they need to mull over for effective OKR implementation and tracking. 

Some of the OKR best practices listed below will be useful for HR leaders in charting out an efficient OKR process.

  • Use a mix of aspirational and committed OKRs
  • Set an ultimate goal for using the OKR framework
  • Involve employees in the OKR setting process
  • Introduce OKRs to different teams
  • Use a mixed bottom-up and top-down approach to set OKRs
  • Do not interlink performance reviews with OKRs
  • Reviewing OKRs quarterly to track progress

OKR Examples for Different Teams

Many organizational leaders and departmental heads find it challenging to create OKRs. But with a clear understanding of the OKR process, experience, and due diligence, it is possible to create objectives and key results that can make a positive impact. Moreover, examples of OKRs can help clarify the process further. The below links to OKR examples will help in compiling them for different departments and teams.

OKR Mistakes to Avoid

It is common for organizations that are just starting with OKRs to make mistakes. Any major change in an organization requires learning, persistence, and adaptation. 

For OKRs to be successful, organizations need to simultaneously work on their goals and their culture. 

Some hiccups in the first few quarters are always expected, but as an organization adapts to the framework, it becomes easier to implement and track OKRs. 

In addition, companies should take care to avoid these common OKR mistakes and avoid inconsistencies in the process.

  • Don’t be stagnant: The ability to gauge the need for change or adopt a goal-setting framework is the first step towards the progress.
  • Don’t overcommit: Setting too many OKRs per quarter can distract teams from the most important organizational goals.
  • Net setting measurable key results can harm the overall process.
  • Setting and forgetting OKRs: It can severely harm the motivation and committedness of the workforce, who might see the leadership as indecisive.
  • Don’t copy previous OKRs: Make sure that the goals you are setting are a true reflection of what you want to achieve.
  • Appoint an OKR Champion: This person should drive the whole process
  • Employ OKR software: Not using OKR software to have a real-time check on the progress of goals can lead to a downfall.
  • Don’t create OKRs in silos: For goals to be successful, you have to consider input from various teams, departments, and employees. 
  • Do not confuse OKRs with KPIs.

OKR Template: Setting, Scoring and Tracking Goals

To simplify the process of goal setting, scoring, and tracking OKRs, organizations use OKR templates. It helps in creating a synergy between the leadership and different teams. Furthermore, it provides greater visibility into the system and uncovers actionable insights to accomplish goals. 

OKR goal setting templateImage: Goal Setting Template

OKR scoring templateImage: Goal Tracking Template


OKR scoring and tracking templates

How Does Engagedly’s OKR Platform Help?

OKRs are a powerful framework for setting ambitious yet achievable goals and tracking progress towards them. However, implementing OKRs effectively can be challenging. Engagedly’s OKR module helps organizations overcome these hurdles, offering a comprehensive and user-friendly platform to:

Streamline Goal Setting and Alignment:

  • Cascading Objectives: Break down overarching organizational objectives into smaller, measurable goals for teams and individuals. This ensures everyone understands how their work contributes to the bigger picture, fostering alignment and ownership.
  • Collaborative Goal Creation: Encourage managers and employees to work together in defining objectives and key results. This promotes buy-in, improves understanding, and increases the likelihood of success.
  • SMART Goal Framework: Guide users in crafting Specific, Measurable, Achievable, Relevant, and Time-bound goals. This ensures clarity, focus, and a roadmap for achieving desired outcomes.

Enhance Transparency and Visibility:

  • Real-time Progress Tracking: Provide clear dashboards and progress updates that show how teams and individuals are performing against their OKRs. This fosters accountability, allows for course correction when necessary, and motivates continued effort.
  • Open Communication and Feedback: Facilitate ongoing communication around OKRs, enabling teams to share progress, address challenges, and celebrate achievements. This fosters collaboration and a sense of shared purpose.
  • Cross-functional Alignment: Make goals and progress visible across departments, encouraging collaboration and synergy between teams working towards common objectives.

Drive Continuous Improvement and Development:

  • Data-Driven Insights: Analyze OKR data to identify trends, patterns, and areas for improvement. This allows organizations to refine goal-setting practices, resource allocation, and development initiatives for future success.
  • Regular Goal Reviews: Encourage regular check-ins and adjustments to OKRs throughout the cycle. This ensures flexibility and adaptability to changing circumstances and ensures goals remain relevant and achievable.
  • Goal-Based Development Plans: Align individual development plans with OKRs, ensuring skills and competencies acquired directly support achieving organizational objectives.

Engagedly’s OKR module goes beyond simply setting and tracking goals:

  • Improved Employee Engagement: By providing a clear roadmap for success and empowering individuals to contribute, OKRs boost employee engagement and motivation.
  • Enhanced Performance Management: OKRs seamlessly integrate with performance reviews, providing a holistic picture of individual and team contributions and facilitating objective feedback.
  • Organizational Agility: The flexibility and adaptability of OKRs enable organizations to respond effectively to changing market conditions and seize new opportunities.

Engagedly’s OKR module is more than just a software; it’s a catalyst for organizational transformation. By streamlining goal setting, fostering transparency and communication, and driving continuous improvement, it empowers organizations to achieve their full potential and navigate the path towards success.

Final Thoughts

The current dynamic and unprecedented business challenges offer both threats and opportunities for organizations. Sustainability in today’s world requires taking smart decisions and being goal-centric. Companies that are leveraging technology for decision-making and performance management are reaping the benefits of higher ROI and productivity. The OKR methodology can help companies set strategic goals and become highly efficient at utilizing their valuable resources. 

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Understanding OKRs: Best Practices and Benefits

Occasionally, you hear about organizations gaining popularity owing to their performance and achievements. However, the real story of how they got there is rarely told. To elaborate, some of the most recognizable brands, like Google, Apple, and Amazon, began with objectives and they all had one commonality: they all used the OKR (Objectives and Key Results) approach or OKR best practices.

When properly enforced, the OKR framework aligns organization, team, and employee objectives with quantifiable outcomes.

According to Google co-founder, Larry Page, OKRs have the potential to lead to “10x growth” in the long term.

OKRs are a straightforward yet effective method for establishing objectives and monitoring progress. Techniques that other businesses have tested and improved should also be beneficial to your company — when you follow the tried-and-tested OKR best practices.

Continue reading to understand the best practices of OKR for your teams! Managers and executives may use OKRs to enhance accountability, openness, and alignment of objectives with performance in their businesses.

Differentiating factors of OKRs and their effectiveness

Setting goals, a fundamental component of every performance management strategy, assist organizations in increasing their productivity. OKRs are a common goal-setting framework that organizations use to establish and monitor achievement at various organizational levels. OKRs foster creativity, unify teams and establish a clear roadmap for organizations to reach the next level when applied successfully.

Most often, OKRs are specified quarterly (a 3-month cycle). Andy Grove, “The Father of OKRs,” created this framework in the 1970s. Later, Google applied this structure with great success and saw exponential growth. Thousands of enterprises, from Apple to Amazon and the United States Navy, use OKRs today.

OKR structure framework’s primary objective is to align employees, working company-wide, to direct their efforts toward clearly stated objectives. OKRs apply on a global, department, workgroup, and/or team level.

Also Read: The Ultimate Guide To OKRs And Templates

Why do most organizations prefer OKRs?

OKR best practices provide a tangible method for measuring progress. In addition, they provide the flexibility to fulfill your goals. They enable you to concentrate on outcomes rather than micromanaging the execution of activities.

Other important reasons for employing OKRs include:

— Improving collaboration by aligning individual efforts with shared objectives

— Increasing employee commitment and motivation.

— Enabling managers to provide effective performance evaluations and constructive criticism.

Also Read: Have You Set Effective OKRs For Your Customer Success Team?

OKRs’ approach to driving business success

Companies can utilize OKRs in five fundamental ways to manage performance:

  1. Arrangement

OKRs ensure every employee understands what agendas and objectives teams are working on; their purpose, and how they can contribute to the company’s success.

  1. Establishing priorities

OKRs fill the void between high-level objectives and everyday tasks. This provides employees with the ability to prioritize daily chores and long-term ambitions.

  1. Openness

OKR best practices build transparent organizational cultures by apprising everyone, from the CEO to the intern, about the priorities and goals of multidisciplinary teams.

  1. Accountability

OKRs outline the responsibility and goals of each employee and eliminate any ambiguity about who is accountable for achieving certain objectives.

  1. Trust and confidence

OKRs allow employees to see the results of their efforts and feel in control of their own progress.

Are the objectives and the key results the same?

No, the objectives and the key results differ in concept and definition. We have described each of them individually so that you can get a better understanding of them.

  1. Objective

An objective is a desired accomplishment and hence, conveys the “what” has to be achieved by employees. By nature, thus, an objective is both decisive and realistic. It is measurable, distinct, and should be obvious whether a goal has been achieved. Most significantly, an objective must provide unambiguous and specific value to an organization. 

  1. Key Result

A Key Result is associated with an objective and offers an understanding of how well an organization is performing and whether it is on the intended track to meet its objectives. It’s a measuring stick for the milestone or the target (objective). An objective should preferably include no more than five key results.

An example of differentiating objective and key results for a marketing team is:


Increase market growth, compared to Q2, 2021.

Related Key Results:

  • Expand lead generation pipeline by 15% 
  • Increase email marketing campaigns by 2X
  • Increase social media read by 3X
Also Read: What Are Objectives And Key Results (OKR)?

A step-by-step implementation guide of OKR best practices

Setting objectives is not a one-size-fits-all approach. To implement an OKR management framework successfully, an organization must plan out a variety of processes before, during, and after implementing the OKR checklist. Given below are some step-by-step guidelines for implementing OKR practices.

Goal, vision, mission, and strategy

In order to get the most out of an OKR program, organizations need to clearly understand their goals, mission, vision, and business strategies. OKRs should be based on your goals and business strategies; serve as a vehicle for fulfilling your vision, and be consistent with your overall mission statement.

Make sure the OKRs are simple

Ensure that OKRs are simple to understand and achievable. Too many objectives may make prioritizing and implementation difficult. Hence, begin by making OKR objectives separately for an organization and its teams. Ideally, each team should have a maximum of five objectives and three Key Results per objective.

Familiarizing employees with best practices of OKR

The ability to establish goals is a taught rather than being an intrinsic talent, thus, organizations must offer employees with sufficient directions on how to set achievable OKRs. Workshops are an excellent tool for helping newcomers to get familiarized with the OKR process.

Analyzing essential elements before developing OKRs 

The business environment of an organization should define its methodologies for achieving objectives. Before developing OKRs, businesses should analyze several facets of their day-to-day operations, including headcount, management structure, and business processes.

Employee Participation

Occasionally, it may not be possible to include every employee in every step of the OKR-setting procedure. Employees should understand who is accountable for defining and monitoring OKRs at each level; which projects and KPIs they should prioritize; why the company is implementing a new goal-setting process, and how their work relates to the business.

Allow employees to contribute to the development of their own OKRs

Empower employees to actively participate in their own OKRs in order to foster autonomy. This may enable individuals to concentrate on initiatives that pique their interests; maximize their skill sets and advance their careers. Their supervisors may help ensure alignment with departmental and corporate OKRs, as well as fulfilling business requirements.

Defining OKRs in advance before each quarter

Start establishing OKRs prior to the beginning of the quarter, particularly company-level objectives. Developing team OKRs may also require significant work, preparation, and consensus. 

In addition, you will need time to outline the strategies and programs that you will implement to achieve success on the Key Results. It is ideal to prepare OKRs two weeks before the beginning of the quarter. This way, you will be prepared when the OKR cycle begins.

Integrating Departmental OKRs with Organizational OKRs

OKRs for a specific department are distinct from those for the whole organization. However, they must align to support the organizational objectives to produce optimal outcomes. You can start working as a team today by using Engagedly’s solution (OKR/Goal Alignment platform), which offers you the best functionalities and ideas to create OKR for both department and organization.

Dedicated goal tracking software to maintain the quantitative nature of OKRs.

Tracking OKRs may be a difficult procedure for businesses of any size. To keep OKRs transparent and quantifiable, you may use a goal tracking software, which includes OKR performance evaluation tools and a specialized goal-tracking program.

Also Read: Know Why Your Organization Should Start Using An OKR Software
Evaluating OKRs through a grading system

Grading is the method through which organizations assess OKR performance objectively. OKRs are scored on a scale, ranging from 0.0 to 1.0. Each key outcome is rated, and the average of those grades is used to determine the grade for each goal.

If an employee consistently receives a perfect score on your OKRs, create more challenging objectives. Similarly, if an employee frequently scores less than 0.3 on your goals, it may be time to revise your objectives and key outcomes.

Sharing Developments

Meetings to review OKRs are crucial. Every quarter, employees, managers, and higher management should meet to review OKRs achievement, established at the beginning of the previous goal cycle. Managers’ review of feedback and management of direct reports should include OKRs in their one-on-one sessions.

Reward your employees for achieving OKRs

Reward your team after they have successfully met their OKRs at the end of a quarter since recognition is more like positive reinforcement. However, note that OKRs work as an efficient tool for goal alignment than for employee performance appraisal. Use OKRs with other assessment elements, such as agile metrics and workplace behavior, to analyze team success.

Analyzing to get insight and make corrections

Grading is an objective assessment, while learning is the process of examining success and failure within the OKR cycle. Evaluation of OKRs should occur often, but each cycle should also involve a more in-depth analysis of what went well; what did not go well, and what lessons may be transferred to the following cycle.

Top advantages of adopting the best OKR practices

  • Determine how the planned progress aligns with the mission, vision, strategies, and key objectives
  • Align and link your employees to your organization’s objectives
  • Make better judgments that are more effective and well-founded
  • Provide each team and employee with clear guidance
  • Increase productivity by concentrating on your objectives
  • Analyze the underlying reasons why goals are not met and work on them with the corrective measures
  • Enhance allocation of resources and their efficiency
  • Achieve transparency, accountability, and clarity.
  • Utilize weekly updates to gain perspective and understanding
  • Measure regular progress toward objectives
  • Manage accomplishment and execution with increased responsibility and transparency
  • Your goal-setting approach may help employees to feel more empowered and engaged
  • Enhance executive-level visibility and openness across the company
  • Establish clear and explicit objectives
  • Identify and document cross-functional linkages across teams

Summing up:

The OKRs framework is a potent instrument for assisting organizations in defining objectives and the corresponding quantifiable activities. Here are some concluding recommendations for making OKRs work for your organization:

  • Keep your OKR checklist simple and adaptable
  • Use the lessons learned from previous OKRs to iterate, design, and build new OKRs.
  • Establish OKRs periodically – preferably quarterly, or set OKRs at least every six months.
  • Ensure OKRs are aspirational, quantifiable, and transparent
  • Use technologies that facilitate and prioritize OKR tracking

To understand more about OKR best practices or how Engagedly software can enable you to better organize, measure, and accomplish your objectives, check out its features and book a demo. You can chat with one of our OKR specialists about your organization’s OKR or management requirements. 

Want to know how Engagedly can help you manage your hybrid employees better? Request us for a demo.

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