Updated: Jul 18, 2020 at 3:16am
Created: Jul 18, 2020 at 12:31am

What are OKRs?

OKR (Objectives and Key Results) is a goal-setting framework that creates alignment and engagement around measurable goals. OKRs help articulate what weโ€™re trying to achieve and how weโ€™ll know weโ€™re getting there. The goal is to ensure everyone is going in the same direction, with clear priorities, in a constant rhythm.

OBJECTIVE: What we want to achieve

An inspiring, desired future state.

  • Consistent with our values
  • Generates pride, sense of accomplishment
  • Qualitative

KEY RESULTS: How we'll get there

A measurable, time-bound, ambitious step toward an Objective

  • Reflects our top priorities

Setting & Grading OKRs

Typically, companies set yearly & quarterly OKRs and grade them at the middle, or on a monthly basis. Ideally, company should have real-time dashboard of OKRs (using spreadsheet or software) that everyone can browse.

OKRs can be designed to be cascading, where the company-level OKRs are supported by department/team-level OKRs, and these are supported by individual OKRs.

  • 0.7 achievement of KR is considered "satisfactory / on-track"
  • 1.0 achievement of KR is "exceeding expectations / over-achieved the stretch goal"

You can grade using the OKR using the amount of progress.

For example, if the beginning CARR of the period is $2M and you want to get to $2.5M this quarter, you can grade the KR based on the progress you made on the progress scale.

  • 0.7 base goal = $500K (= $2.5M - $2M)
  • 1.0 stretch OKR goal = $714K (= 500 / 0.7)
  • If you closed $400k to-date, you are at 0.56 (= 400 / 714)

Also tracking sentiment on a weekly dashboard helps keep the momentum going and also keep people focused on the priority.


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