The present work culture is more decentralized than ever before. The workforce is more scattered, and companies are divided into clusters of divisions and specialized teams. In such a scenario, to ensure that everybody is on the same page, and is sharing the exact vision that the company has made, it is inevitable to craft an inclusive and collaborative OKR framework.
What is an OKR framework-
OKR stands for Objectives and key results. It is a goal setting mechanism where a company, team, or individual sets a shared goal and decides the key results through which the goal will be achieved. It defines the direction and action toward the company’s vision.
Here are 10 of the most useful OKR best practices to follow
Staying a step ahead-
Planning and crafting OKRs well in advance should be the priority of the team. It allows the leadership to research the ever-changing market requirement and know the current industry trends. Planning gives you enough time to put in the insights collected from the market and helps in better OKR implementation.
Also, prior planning for the OKRs allow the team to reflect on what worked in the previous quarter and what could be improvised for attaining the key results.
Communicate and define OKRs-
HR teams or in-charge leadership should indulge in enough discussions with other teams and employees before deciding on OKRs. Effective communication can help carve better strategies for OKRs. Leadership should openly discuss the focus area which they want to target for the coming quarter.
There should be enough brainstorming and consultation among the team members so that better results could be achieved. When each employee becomes a part of defining the OKR, they feel a sense of purpose and duty to work in that direction and chase the desired results.
The vision and objective of the company should be a guiding light for the team. Accordingly, there should be two-way communication in the team where each member knows his role and is clear about his contribution.
SMART goal setting-
Your OKR goals should be SMART i.e specific, measurable, achievable, relevant, and time-bound. The objectives should be clear, concise, and well-defined. It should be in line with your organization’s culture and philosophy. Objectives should be actionable and inspirational for the team to work hard for them.
Your goal setting should add value to the company in each timeframe. They should be relevant to the existing market strategy and should provide a transformational result for your company.
Your goal setting should include inputs from the team members. The inputs and ideas given by the employees can help in setting realistic and approachable goals. Also in this case, even if you fail to see the desired results, the team members would not hesitate to stretch themselves for working for the objectives.
To ensure that the team and organization stay focused, keep the number of objectives small. Your objective should be not more than one or two for any quarter and should be direct in its structure.
Measurable key results-
Your key results should be a specified metric that is measurable. You must have a small number of key results so that the team can remember them and can put more focus on them. Make no more than 4 key results for each objective. Keep them simple and time-oriented.
Key results should be outcome-based. Don’t mix it with activities that are done to achieve those outcomes. Your key results should be definite and concrete. Avoid making key results that are abstract and cannot be measured.
For example, empowering a company cannot be a key result as it is a vague idea and unable to be quantified. Rather, publishing a company report or increasing the growth by a certain percentage gives a concrete picture to the mind and thus the real status of the objective achieved.
Try to make it visible to your employees. Transparency in the expected key results can build trust in the team and they will work more confidently. Don’t hesitate to adapt to any positive change which can help in measuring the key result more comprehensively.
A different strategy for different level
Company OKRs follow different OKR model as per the size of the company and the target they want to achieve. The traditional OKR model for implementing OKRs is either a top-down model or a bottom-up model.
A large organization must adopt a top-down model so that there is a clear and transparent flow of OKRs from companies’ higher professionals to ground-level employees. The newer companies that are small in size and still decentralized should adopt the bottom-up OKR model where an individual’s insight and experience can be leveraged for goal setting.
For the better alignment of OKRs according to the quarterly, annual, and weekly cycle companies should adopt the methodology of strategic, high frequency, and tactical OKRs.
Companies or teams should adopt long-term strategic OKRs with a bigger picture in mind where the goals are stretchable. Tactical OKRs should be made to focus on OKRs that are achievable in quarterly time frames. High-frequency OKRs should be made by small teams at each level to plan and review weekly OKRs.
Align company and team goals –
OKRs implementation is successful only if is beneficial for both the team at the department level and the larger organization. Your OKRs should be based on the shared vision of your company and employees. The right alignment will save you from endless post adjustments.
There should be a conscious effort of aligning the OKRs with the company’s long-time goal. Make sure that team and individual OKRs are aligned with the overall goals of the organization. It will help ensure that everyone is working towards a common vision.
You should consider the company vision, its growth strategy, and other teams’ OKR to get your strategic direction.
Transparency-
To establish a goal-setting culture there should be transparency of OKRs in the company atmosphere. Weekly, quarterly, and annual OKRs should be visible to employees of each level. The culture of trust and credibility helps in nourishing an innovative mindset among the employees.
There should be a regular status update about the OKRs and their progress within the team and organization. Honest and effective communication with the team about the shortcomings or strengths of your OKRs is going to help in the long run.
Employee involvement and engagement-
A company can grow when both the leadership and employees are committed to a shared vision. To ensure that OKRs are planned and executed in the best way possible, it’s essential to engage and involve the employees in the whole process of OKRs.
To inculcate a goal-setting mindset among the employees, their valuable insights and suggestions should also be taken into consideration while preparing OKRs. Employee involvement and engagement would not only leverage the expertise of an individual but also motivate them to work better.
You should ensure that the team members know their roles and responsibilities in implementing the company OKRs
Track result weekly or monthly-
For any OKR to be successful it is essential to review and track the progress in specific intervals. A weekly assessment should be in place to track the work done and what is still in pipeline. Weekly assessment help in verifying whether your efforts are showing results or not. Also, it provides the team with the road map for next week.
In the same way, there should be a monthly review and assessment of OKRs. It helps employees reflect on their contribution in chasing the key results. Also, they can prioritize their focus for the next month.
The agenda for the monthly assessment would be to evaluate the status of OKR, whether the goals have been started or stalled or whether there is a new update or not. This practice allows the team to reorganize itself and start with some new insights.
Ensure the completion of the OKR cycle-
A typical OKR cycle includes planning, execution, and retrospect. Create a time-bound roadmap. Read and research the company, industry, and market. Involve all the employees and team members and define your objectives more collaboratively.
Align your objectives with the company’s long-time goal. Decide the OKRs that are to be achieved in a week, month, or year. After completing the time review and re-assess your goals. Adjust or redefine your goals according to the current trends.
Planning a company’s OKRs is a continuous and ever-evolving process. If done and executed correctly, it can empower the growth of the company. Make sure to void Moonshots. Don’t set objectives that are unrealistic and too ambitious to achieve in the desired time frame. Avoid setting groundbreaking goals without any credibility. Unrealistic objectives when remain unachievable can demotivate the team. Also, never craft your OKRs in silos. OKRs can’t be forced on your team. It should be a two-way process where each level of the organization can contribute. Lastly, don’t forget to celebrate the success of your OKR.