How To Create OKRs

Fundamentals

Objective

• Objectives are clear, high-level goals that your team wants to achieve.
• They should be inspirational and aligned with the company’s mission and values.
• Objectives answer the “what” your team is striving for.

Key Results

• Key Results = These can be both leading / lagging indicators. They are turned into SMART goals (with a due date).
  • Leading Goals = Leading goals are short-term, actionable objectives that focus on the activities or behaviors that drive progress toward the larger objectives.
    • Examples:
      • Eat 5x healthy meals daily.
      • Work out 6x a week, every week.
  • Lagging Indicator = Lagging goals are long-term outcomes that are the result of achieving leading goals.
    • Examples:
      • Lose 0.5kg by 24/07/2024.
      • Hit 3 plates on bench by 28/07/2024.

Example

XX

Process

Step 1: Set The Quarterly Objectives

• Ensure the objective is one that moves the needle.
• It should have a clear end date.

Step 2: Define Key Results

• Each Objective should have 3-5 Key Results that are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
• These can be a mix between leading and lagging indicators.

Step 3: Align Your OKRs With The Team

• OKRs should then be aligned with the client or team, with the Key Results being the main actions to be taken over the next quarter.

Step #3.1: If Key Results require additional steps, then break them down into their own cascading OKRs.

• If the OKRs require a series of steps, then Key Results can turned into Cascaded OKRs.
  • Example: KR #1: Perform a content audit by {DD/MM/YYYY}
    • Objective: Perform a content audit by {DD/MM/YYYY}
      • KR #1: Set up content audit sheet for client by {DD/MM/YYYY}.
      • KR #2: Extract insights from content audit by by {DD/MM/YYYY}.
      • KR #3: Add content audit insights to presentation by by {DD/MM/YYYY}.
      • KR #4: Send to QA Officer for approval by {DD/MM/YYYY}.
      • KR #5: Present to client by {DD/MM/YYYY}

Step 4: Fortnightly Check-Ins

• Schedule weekly OKR check-in meetings to track progress. Discuss any blockers and adjust strategies if necessary.

Step 5: Mid-Quarter Review

• Halfway through the quarter, conduct a formal review of OKRs. Assess what’s working, what isn’t, and adjust Key Results if needed.
• Collect feedback from the team on the OKR process. Use this feedback to improve future cycles.

Step 6: End-of-Quarter Evaluation

• At the end of the quarter, evaluate each Objective and its Key Results. Discuss what was achieved and what wasn’t.
• Use a scoring system (0.0 to 1.0 scale) to measure success:
  • 0.0-0.3: Little progress
  • 0.4-0.6: Moderate progress
  • 0.7-1.0: Substantial to full achievement
• Reflect on why some KRs were achieved and others weren’t. Document lessons learned.

Step 7: Planning for the Next Quarter

• Hold a meeting to discuss learnings and start planning OKRs for the next quarter.
• Carry over or refine objectives that are still relevant.

---

Example Quarterly OKR Cycle:

• Week 1-2:
  • Draft and finalize Objectives.
• Week 3:
  • Define Key Results and align across teams.
  • If necessary: Create additional OKRs to be delegated if additional steps are required.
• Week 4:
  • Kick-off meeting and start of the quarter.
• Week 5-8:
  • Fortnightly check-ins
• Week 9:
  • Mid-Quarter Review.
• Week 10-12:
  • Continue execution with adjustments.
• Week 12: (End of OKR cycle)
  • Schedule OKR evaluation.
• Week 13:
  • End-of-Quarter Evaluation and planning for next cycle.