If you’re running a business, chances are good that you’ve heard of OKRs, or Objectives and Key Results, by now. Many startups have implemented this goal-setting strategy to help them focus on the things that matter most and stay motivated in meeting their targets.
While OKRs can be effective, they can also be tricky to implement if you’re not familiar with how to set them up properly.
This guide will walk you through three ways to structure your OKRs so that you get the results you want out of your business goals.
1) Convert OKRs into SMART Goals
Do you want to improve your business outcomes?
If so, then you need to consider using the Objectives and Key Results (OKR) framework. The OKR framework can help you create a business strategy, set goals that are specific, measurable, achievable, relevant, and time-bound (SMART) and track your progress over time.
There are many different approaches to set your OKRs, but here are the most popular methods:
- The Traditional Approach, which typically has short-term objectives and long-term objectives;
- Rolling Horizons Approach, which creates a new objective every quarter; and
- Single Horizon Approach, which uses only one objective per year.
These structures allow you to prioritize what is important at any given moment in time. When deciding on the best approach for your company, make sure it aligns with your company’s goal-setting process and timeframe needs.
For example, if you have a very fast-paced environment and want to move quickly towards completing certain tasks, then the Rolling Horizons Approach may be the best fit. However, if you prefer to take more time before executing on certain projects or if deadlines matter less than building up longer term strategies, then use the Traditional Approach or Single Horizon Approach instead.
Once you determine your approach, use an OKR software like Aha!
2) Set Deadlines for Each Objective
If you want your team to achieve its objectives, you need to set deadlines. This will help them stay focused and on track. Plus, it will make it easier for you to measure their progress. You can do this by assigning an objective a specific time frame in which the task should be completed.
For example, if your goal is to launch a new website by December 31st, then the first of 12 goals might be Launch website by December 31st and the second goal might be Grow mailing list to 1,000 people by December 31st.
When setting objectives, it’s important to set deadlines so you can measure progress. This will help ensure that your business goals are on track.The OKR methodology is a great tool for setting and measuring progress against business goals.
There are a few different ways you can do it, and each has its own benefits.
- The first way is to have one big goal with three smaller ones underneath it.
- The second way is to have one big goal with five smaller ones underneath it.
- The third way is to have one small goal with four even smaller ones underneath it.
Whichever method you choose, it’s important that the goals are SMART (specific, measurable, achievable, relevant and time-bound).
3) Set Ownership For Each Objective
One of the most important aspects of setting effective OKRs is ensuring that each objective has a clear owner. This will help ensure that each objective is given the attention it deserves and increases the likelihood of success.
It also gives employees an opportunity to build their skillset and take on new responsibilities, which keeps things fresh at work.
4) Ensure Objectives Have Specific Metrics
If you want your objectives to be successful, they need to have specific metrics attached to them. These metrics should be relevant to what the employee is trying to accomplish so they can measure progress towards their goal effectively.
For example, if you’re working on increasing web traffic to your website then one metric could be the number of visitors. You may also want other metrics like how long visitors stay on the site or how many times they return in order to determine whether or not they are reaching the goal.
Just make sure that everyone knows what metrics to use for their objectives ahead of time so there is no confusion later on.
5) Create Milestones For Every Objective
The last thing you want when assigning goals to your team members is for them to feel overwhelmed by the enormity of it all. To prevent this from happening, break each objective down into smaller milestones throughout the year and assign someone as the point person for each milestone.
Conclusions
There are a variety of ways you can structure your OKRs in order to best achieve your business goals. By taking the time to consider what will work best for you and your team, you can set yourself up for greater success
Keep the following in mind as you create your own OKRs
1) Be specific with deadlines and accountabilities: it is important that everyone understands their responsibilities so they can complete them on time.
2) Keep the setting realistic: have achievable goals and establish strategies for how to accomplish them.
3) Ensure alignment with broader company strategy: make sure that your objectives align with company values so that you know where your efforts will lead.
While implementing new systems or processes, it’s also helpful to get feedback from employees about whether or not these changes are helping them be more productive.