How to write an OKR: A Step by Step Guide
How to Write OKRs That Actually Work
If you’ve ever felt like your team is busy but not necessarily productive, join thousands of other frustrated leaders across all industries. In a world filled with distraction, constant change, and unexpected obstacles, teams face greater challenges when trying to stay aligned and focused on a shared goal.
While 90 percent of companies fail to align strategies with actionable objectives and noticeable results, successful teams are incorporating OKRs in their workflow to maximize their effectiveness. OKRs, or Objectives and Key Results, are a powerful framework that helps teams focus, align, and achieve measurable success.
Whether you’re new to OKRs or looking to build upon an existing foundation, this guide will break down how to write an OKR that inspires your team to reach new heights and drive impressive results.
What Are OKRs?
OKRs provide a framework for turning big ideas into measurable outcomes. They are composed of two components: objectives and key results.
Objectives are the “what.” These big ideas motivate a team and set a course for action. Think of objectives as big, aspirational goals that align with your organization’s vision, akin to a “North Star.” Teams should brainstorm and establish three to five concrete objectives that inspire action, each spanning 3 to 12 months.
Key Results are the “how.” These measurable outcomes indicate success as a team works toward their objectives. Key results serve as a tool to focus efforts and guide priorities. These metrics reflect the best possible results, not the most probable outcomes. Because key results measure progress, they should appear as quantifiable numbers rather than action items or a task list. Each objective should encapsulate four to six key results.
OKRs serve as more than a goal-setting framework—they’re a strategy and alignment tool for teams rather than individuals. Teams effectively using OKRs stay focused on results and navigate some of the most common challenges in business transformation cohesively and confidently.
How to Write an OKR
Step 1: Start with a Clear Objective
The first step in writing an OKR is defining your objective. A powerful objective should be:
- Aspirational: Ignite excitement amongst your team. Use positive language to inspire and motivate.
- Concrete: State your intentions clearly. Objective should be clear, concise, bold, and significantly relevant to the “why” of the company.
- Time-bound: Decide whether this is a short-term (quarterly) or long-term (annual) goal to measure success and keep the team accountable.
- Action-Oriented: Start every objective with a verb.
- Attainable: While objectives should challenge your team, keep them realist to avoid discouragement throughout the project.
Examples of Strong Objectives:
- “Delight our customers with an exceptional service experience.”
- “Expand our reach in new markets.”
- “Foster a culture of innovation and creativity.”
Step 2: Write Measurable Key Results
After setting an objective, teams must define how they’ll measure success using key results.
Key Results should be:
- Quantifiable: Results should always be measurable. If you can’t measure it, it’s not a key result.
- Aligned: Every key result should directly support your objective.
- Verifiable: At the end of each OKR cycle, anyone should be able to determine if the key result was achieved.
- Aggressive: Set ambitious targets that challenge your team to aim higher.
Examples of Key Results:
For the Objective “Delight our customers with an exceptional service experience”:
- Increase Net Promoter Score (NPS) from 50 to 75.
- Reduce average customer response time from 6 hours to 2 hours.
- Achieve a 90% customer satisfaction average score on post-service surveys.
Tips for Writing Better OKRs
While OKRs are conceptually simple, there is a strategy to create a powerful OKR that resonates with your team.
- Be Specific: Use numbers and clear language. “Increase sales by 15%” is better than “Improve sales.”
- Start with Action Words: Use verbs like “increase,” “reduce,” or “improve” to make your goals actionable.
- Make Them Collaborative: Encourage teams to work together on OKRs for cross-functional success.
- Focus on Value: Always ask, “Why does this matter?” OKRs should drive outcomes that align with your mission.
The Template for Writing OKRs
Use this basic template to write OKRs:
“We will [Objective] as measured by [Key Results].”
For example:
“We will delight our customers as measured by increasing NPS from 50 to 75, reducing response time from 6 hours to 2 hours, and achieving a 90% satisfaction score on surveys.”
Teams should collaborate and take time to define OKRs thoughtfully. When executed well, OKRs not only serve as a guide, but also inspire teams to achieve extraordinary results.
Step 3: Align OKRs Across Teams
Ensure the best results for your organization by aligning your OKRs across cross-functional teams. Aligning OKRs at an organizational level and amongst smaller departmental teams creates an awareness of end goals and strategies. Teams may be able to extend additional support when aware of relevant objectives and key results discussed amongst parallel departments.
Adam Asch, a business strategy and transformation leader, addressed the importance of this open communication at Hyperdrive Agile: Goal Setting with OKRs.
"Anyone in your organization should know exactly at any time what we’re trying to achieve,” said Asch. “Anyone could have a good idea first of all - and that happens all the time. The second thing that happens is we have less confusion. We’re all talking about and walking toward the same goal.”
Asch points out that this cross-functional alignment creates a strategy-focused organization, which turns into an incubator for actionable strategy. This creates a positive ripple effect across the organization.
Consider the following methods when aligning OKRs across teams:
- Co-Create Goals: Brainstorm and involve teams in writing OKRs to ensure buy-in and alignment.
- Share Transparently: Make OKRs visible across the organization to foster accountability and collaboration.
- Tie to Strategy: Ensure every OKR supports the broader vision and strategy of the company.
Step 4: Review and Adjust as Needed
OKRs are not set in stone. Regularly reviewing and adjusting your team’s OKRs ensures they remain relevant and impactful as priorities shift or new challenges arise.
How to track progress on OKRs:
- Regular Evaluation: Schedule weekly or biweekly check-ins to evaluate how you’re tracking toward Key Results.
- Identify Roadblocks: Use reviews to uncover obstacles and brainstorm solutions as a team.
- Refine as Needed: Don’t hesitate to adjust Key Results or even Objectives if circumstances change. The goal is progress, not perfection.
When teams turn review and adjustment into habits, OKRs align better with an organization’s evolving needs. Take the Hyperdrive OKR Health Check to identify any opportunities for improvement in your team’s OKRs.
What’s the Difference between OKRs and KPIs?
When discussing OKRs, questions often arise concerning Key Performance Indicators (KPIs). The two concepts are often interchanged and confused, but when executed properly in tandem, they serve different purposes.
Compare OKRs and KPIs to essential tools you would use on a roadtrip. An OKR is akin to a GPS map - the planned route to a final destination. In business, OKRs define goals and outcomes, outlining key milestones and along the way.
On this roadtrip, a KPI is comparable to a car’s fuel level, temperature, and hazard gauges on the dashboard. Teams should utilize KPIs to monitor the performance of ongoing processes and measure what exists to determine the health of their project.
OKRs and KPIs are best used together. If your KPI measures website traffic, your OKR might aim to grow traffic by 20% in the next quarter. Both OKRs and KPIs are important, but they play distinct roles in your team’s success.
Final Thoughts: OKRs for Agile Teams
Writing an OKR is about creating a shared vision for success. When executed correctly, OKRs inspire teams to focus on what matters most, measure progress meaningfully, and achieve results that move the needle.
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