How to Write OKRs to Set and Achieve Goals Effectively

Did you know that 83% of decision-makers agree that OKRs positively impact an organization?

Objectives and key results help organizations narrow down their goals into a more measurable format, which makes them clearer, more concise, and, above all, more achievable for employees. If you have not yet started using OKRs to set and achieve goals for your organization, you are missing out.

Make your goals more structured and effective for your employees by understanding the key concepts, do’s, and don'ts of OKRs.

Most companies that struggle with low performance of their workforce have a common trait: their goals are abstract and vague.

There are no clear and quantitative goals set for the employees to follow, making it difficult for them to proceed in the right direction.

The relevance of OKRs comes into play in such scenarios. Organizations that make use of OKRs are able to align their goals and objectives with the daily activities performed by employees. This way, a clear system is formed, and managers are able to track the effectiveness of the organization's performance.

According to John Doerr, OKRs have five superpowers which they render to whichever company uses them:

• Focus: OKRs help companies reduce the clutter and focus on the core values that really matter. It helps companies evaluate themselves and identify the benefits they offer the customers. These benefits are then maximized by focusing on such aspects alone.
• Alignment: Since an organization is made up of employees from different backgrounds and departments, the goals of the workforce do not often follow the same line. But with OKRs, the organization is able to align the goals of the company with that of the workforce to create a unified goal.
• Commitment: Each employee has a certain level of commitment to the organization, which usually comes in the form of tasks and projects allocated to each of them. Employees have a commitment to their team and the company as a whole to deliver what is promised. OKRs help employees stick to their commitment. 
• Tracking: The biggest reason why OKR is a favorite choice among managers is because of the effectiveness with which it tracks the progress of activities. 
• Stretching: OKRs have the ability to ‘stretch’ the abilities of an organization by making them achieve more than what they planned to do. 

The effectiveness of OKRs depends heavily on how well the OKRs are structured. In order for employees to achieve the goals, they have to first understand it clearly. Let us look at some of the best practices for writing OKRs:

1. Make Everything Measurable

Even if you create the most ambitious performance plan for employees, if there is no way to measure their progress, then all will be in vain. Managers must keep in mind that the OKRs they set can be quantified and measured at any given time.

It is extremely important as it allows you to measure the progress of the goals. When it comes to timed projects, the measurability of the goal becomes a crucial factor in managing time and resources. 

For example, 

Objective: Increase Monthly Sales Revenue

• Key Result 1: Get 20% more money from sales than you did in the previous quarter.
• Key Result 2: Get 100 new buyers by the end of the quarter.
• Key Result 3: Raise the average order value by 15% compared to the previous quarter.

2. Keep It Clear and Simple

OKRs are to be always kept as simple as possible. Reduce the use of ambiguous words as there is a high chance you might confuse the employees.

Unnecessary use of jargon and super-lengthy sentences create ambiguity among the readers.

Here's an example of a clear OKR:

Objective: Enhance Product Usability

• Key Result 1: Cut by 15% the average amount of time it takes to finish a job in the product.
• Key Result 2: Achieve a usability score of 80 or above on the standardized usability scale.

The goals are stated in these cases in a way that makes it easy for everyone in the company to understand what is being done. There is no scientific jargon or vague language used, and the key findings are clear and easy to measure. This makes sure that the attention stays on getting real results that move the company forward.

3. Align OKRs With Company Goals

While formulating OKRs, managers must make it a point to align the set goals with the overarching goals of the company. If the main objective of the company that year is to focus on growing sustainably, then the goals set for the employees must also reflect the same. For example, 

Objective: Drive Sustainable Growth

• Key Result 1: Raise yearly sales by 15% compared to the previous year.
• Key Outcome 2: Increase market share by putting goods on sale in two new strategic priority areas.

The OKR set by the manager here focuses on the goal of sustainable growth and makes sure that the same reflects on the OKRs as well. 

4. Transparency and Communication

One of the biggest points to consider while dealing with OKRs is to communicate the same with all employees. Rather than providing goals separately to departments and individuals, make it a point to let everyone in on the goals. This way, each employee is able to understand the role they play together with the rest of the employees to achieve the bigger goal.

Managers can hold town hall meetings every three months to talk about OKRs and the company's overall goals. This will help employees understand the company's overall strategic direction.

5. Keep It Challenging but Attainable

As we discussed in the previous section, stretch the goals a bit so that the employees as well as the organization can challenge themselves to reach new heights. OKRs should push teams to do their best work while still being attainable.

Setting goals that are too easy or too hard can discourage or overwhelm teams. Find the right mix that encourages growth without making people expect too much.

Just like how there are certain things that you must do in order to create an effective OKR, there are certain things you must steer clear of as well. Let us now take a look at what these are:

Setting Too Many Objectives

Overloading teams with too many goals can dilute focus and hinder progress on priority tasks. It’s crucial to streamline objectives to maintain clarity and focus, allowing teams to invest their efforts into achieving key outcomes effectively.

Overestimate How Much You Can Accomplish

Avoid setting overly ambitious OKRs that may lead to unrealistic expectations and potential burnout. Establish challenging, yet achievable, goals to keep teams motivated without overwhelming them.

Confusing OKRs with KPIs

OKRs and KPIs serve different purposes; OKRs focus on setting and achieving broad goals while KPIs measure specific performance metrics. Misunderstanding their distinct roles can lead to misaligned objectives and diluted strategic efforts.

Inter-Departmental Competing Goals

Competing goals across departments can obstruct organizational progress. Promote inter-departmental collaboration by ensuring all teams are aligned with the organization’s overarching objectives and understand how their tasks interconnect.

By recognizing these pitfalls and strategically setting OKRs, organizations can enhance productivity and achieve significant advancements.

Drive Results With OKRs

Your employees are your biggest assets.

In order to make the most of them, you need to provide them with clear instructions. OKRs help you with this. If you are wondering whether or not your OKRs are effective, you can quickly conduct an employee feedback survey with ThriveSparrow and gauge the effectiveness of setting OKRs in your organization.

ThriveSparrow also serves as a robust OKR software that can streamline the process of setting, tracking, and achieving goals for various organizational roles.

• Managers can use ThriveSparrow to align team goals with company-wide objectives, ensuring that everyone is working towards the same strategic goals. The platform helps track progress in real-time and provides insights into performance metrics, keeping teams focused and accountable.
• Organizations can leverage ThriveSparrow to foster transparency, enabling cross-departmental collaboration and making OKRs visible to everyone. This increases accountability and helps align efforts toward a unified vision, ensuring sustainable growth and higher employee engagement.

By using ThriveSparrow, companies can:

• Set measurable, clear OKRs that align with strategic goals.
• Monitor progress and course-correct in real time.
• Promote transparency and teamwork across departments.

With these capabilities, organizations can achieve:

• Improved goal alignment.
• Enhanced accountability across teams.
• Measurable business growth and increased performance.

Use ThriveSparrow to empowers leaders and teams to collaborate more effectively and drive real, measurable results.

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FAQs on Writing OKRs

1. What Is a Good Example of OKRs?

Good OKRs are measurable, clear, and aligned with company goals.

For example:

Objective: Increase Monthly Sales Revenue.

• Key Result 1: Achieve 20% more sales than the previous quarter.
• Key Result 2: Acquire 100 new customers by the end of the quarter.
• Key Result 3: Increase average order value by 15%.

2. What Is a Good OKR Format?

A good format keeps objectives simple and measurable. Each objective (whether organizational, team, or individual) should be paired with atleast 2-3 specific key results that define success.

For example:

Objective: Enhance Product Usability.

• Key Result 1: Reduce task completion time by 15%.
• Key Result 2: Achieve an 80+ score on the usability scale.

3. What Are the 5 Elements of OKRs?

The five core elements include:

1. Focus – Narrowing down to the most important goals.
2. Alignment – Ensuring team goals are in line with company objectives.
3. Commitment – Employees commit to achieving their OKRs.
4. Tracking – Regularly monitoring progress toward key results.
5. Stretching – Setting ambitious goals that push employees beyond their comfort zone.

4. How to Write Up OKRs?

1. Make Everything Measurable: Ensure that each OKR can be quantified and tracked. This allows managers to assess progress and make adjustments as needed.
2. Keep It Clear and Simple: Use straightforward language without jargon, so employees can easily understand their objectives.
3. Align OKRs With Company Goals: Ensure that individual and team OKRs support the larger strategic goals of the organization.
4. Promote Transparency and Communication: Share OKRs across departments to ensure everyone understands how their work contributes to the company’s success.
5. Keep It Challenging but Attainable: Set ambitious goals that stretch the team’s capabilities, while remaining realistic enough to prevent burnout.

These steps ensure that OKRs are focused, aligned, and achievable.