When I first introduced the Objectives and Key Results (OKR) planning framework to my 300-person organization, I dived deeply into various resources on the subject. From John Doerr's insightful book Measure What Matters to YouTube videos detailing how even Sting used OKRs to combat malaria, I absorbed every piece of guidance I could find. I then designed a comprehensive training program to ensure our team embraced OKRs effectively right from the start. Correct adoption is critical, as poorly implemented OKRs can easily devolve into a simple list of tasks, a pitfall common in older goal-setting frameworks.
In this post, I share with you some of that research along with tools that can help you measure OKRs. The beginning of the year is a great time for companies to reassess how they are tracking their goals or OKRs.
Understanding OKRs: The Backbone of Goal-Setting
Objectives and Key Results (OKRs) are a goal-setting framework designed to help teams and organizations focus on what matters most. OKRs are an effective leadership tool for communicating what you want to accomplish and what milestones you’ll need to meet in order to accomplish it. OKRs are used by some of the world’s leading organizations to set and enact their business strategies.
OKRs consist of two main components:
Objectives: Ambitious, qualitative goals that define what you want to achieve.
Key Results: Quantifiable outcomes that indicate progress toward your objectives.
How to Set Effective OKRs
Define Clear Objectives: Identify priorities that align with your organization’s mission and vision.
Focus on Measurable Results: Ensure key results are specific, measurable, and time-bound.
Limit the Number of OKRs: Avoid spreading your efforts too thin by concentrating on 3-5 key objectives.
Ensure Alignment: Align team-level OKRs with organizational goals to maintain focus and direction.
Example OKRs
Here are a few examples to illustrate different types of OKRs and how they can be leveraged in various industries as well as for personal growth.
O: Improve company website.
KR1: Redesign visuals and layout of website.
KR2: Increase loading speed by 20%.
KR3: Reach 1 million monthly visitors.
KR4: Increase average visit times by 20%.
O: Create the lowest carbon footprint in our industry.
KR1: Supply Chain and shipping infrastructure 100% zero waste.
KR2: Pay 100% carbon offset for calculated carbon dioxide emissions.
KR3: 25% of material is compostable.
KR4: 75% of material is biodegradable.
O: Run a 10K in under 50 minutes by June.
KR1: Go for a run 3x/week for at least 30 minutes.
KR2: Increase distance of run by 1 mile every week.
KR3: Increase mile speed by 5 seconds every week.
Common OKR Mistakes
Writing good OKRs takes time and requires practice. Your OKRs should be developed in alignment with your teams and undergo multiple checks and drafts.
There are a few common mistakes to avoid when writing OKRs:
Avoid Status Quo: OKRs should aim for change above maintaining the status quo.
OKR not equal to KPI: OKRs are not the same as having KPIs (Key Performance Indicators) or Goals. OKRs are used to measure change, wheras KPIs are used to measure health of a system.
Aspirational: While OKRs need to be attainable, they also need to be ambitious and stretch a team rather than make success a surety.
Measuring OKRs
Effective OKR measurement involves:
Regular progress tracking through check-ins or updates.
Analyzing outcomes at the end of the OKR cycle.
Celebrating achievements and identifying lessons learned.
The Andy Grove method of grading OKRs is a simple “yes” or “no” approach. Did you meet it? Or did you not? Most organizations prefer a bit more detail in their grading, so they’ll use a “Red, Yellow, Green” system where red means “we failed,” yellow means “we made progress,” and green means “we met our goal."
Google’s grading method provides the most detail, using a percentage scale (0.0 - 1.0) to give each Key Result a number score at the end of the cycle. They average the scores of the Key Results to determine that Objective’s overall score. (source)
However, as impactful as OKRs can be, managing them effectively often requires the right tools. Whether you’re leading a startup, an agile program, or a global enterprise, these tools can simplify the process, enhance collaboration, and improve transparency across your organization.
Best Tools for Managing OKRs
Here, we explore some of the best tools for managing OKRs, categorized by their features, usability, and suitability for various organizational needs.
Jira Align: Agile at Scale
Jira Align, part of the Atlassian suite, bridges agile execution with strategic planning, making it ideal for scaling OKRs across large organizations.
Features: Agile metrics and reporting, strategy and portfolio alignment, and customizable OKR dashboards.
Best For: Enterprises adopting Agile methodologies at scale.
Why Choose Jira Align: It effectively connects high-level strategic goals with day-to-day agile activities. The tool’s robust reporting features provide visibility into progress across departments and teams.
Cons: Complex setup process and steep learning curve for teams unfamiliar with agile frameworks.
Profit.co: Comprehensive and Customizable
Profit.co provides a balance of simplicity and advanced features, making it suitable for both small teams and large enterprises.
Features: Pre-designed OKR templates, in-depth analytics, and integrations with tools like Salesforce and Slack.
Best For: Organizations looking for a mix of beginner-friendly features and advanced customization options.
Why Choose Profit.co: Its step-by-step guidance on setting OKRs simplifies the onboarding process, while its custom analytics cater to power users. This balance makes it versatile for diverse industries.
Cons: Advanced configurations may require additional time to set up.
ClickUp: The All-In-One Solution
ClickUp’s highly flexible platform allows teams to manage OKRs alongside project management, time tracking, and other workflows, offering a centralized hub for productivity.
Features: Customizable dashboards, goal and task tracking, and integrations with hundreds of tools.
Best For: Teams seeking a versatile tool that combines OKRs with other productivity tools.
Why Choose ClickUp: Its adaptability enables organizations to tailor the platform to their specific needs, whether it’s for goal setting, tracking deliverables, or managing sprints. The all-in-one approach minimizes the need for multiple tools.
Cons: Extensive feature set may overwhelm new users, and setup can be time-consuming.
Betterworks: Enterprise-Grade Performance
Betterworks focuses on linking OKRs with performance management, making it a preferred choice for large enterprises looking to align individual and organizational performance. It is also the tool recommended by John Doerr.
Features: Continuous performance feedback, progress reviews, and goal alignment across teams.
Best For: Enterprises aiming to integrate OKRs with performance evaluations.
Why Choose Betterworks: Its performance management capabilities ensure that OKRs are tied to employee growth and accountability. The platform’s advanced analytics help leaders measure impact and adjust strategies effectively.
Cons: Premium pricing and complexity may not suit smaller teams.
Weekdone: Simplicity and Alignment
Weekdone offers an intuitive interface designed to make OKR adoption seamless for teams of any size. Its focus on simplicity and team alignment makes it an ideal choice for those just starting with OKRs.
Features: Weekly check-ins with visual progress tracking, engagement insights, and OKR scoring systems.
Best For: Small to mid-sized teams looking for a user-friendly and affordable solution.
Why Choose Weekdone: The tool’s weekly check-in feature ensures ongoing communication and alignment within teams, promoting accountability. The clear visualizations help team members stay on the same page without needing complex setup or training.
Cons: Limited customization options and lacks advanced integrations for larger organizations.
Microsoft Viva Goals: Collaboration-First Approach
Formerly known as Ally.io, this tool combines powerful OKR features with seamless collaboration tools, making it a strong choice for remote or cross-functional teams.
Features: Integration with Slack, Microsoft Teams, and other popular platforms; customizable dashboards; and strong alignment tools.
Best For: Enterprises using Microsoft ecosystems or those prioritizing collaborative workflows.
Why Choose Ally.io: The tool’s integrations with commonly used platforms ensure that OKRs remain front and center in daily operations. Its real-time updates and shared dashboards foster transparency and accountability across teams.
Cons: Higher cost compared to similar tools and may require training to utilize fully.
WorkBoard: Execution Excellence
WorkBoard is designed to help leaders accelerate OKR adoption and execution in fast-moving teams, making it a strong choice for high-growth startups.
Features: Real-time OKR tracking, quarterly business reviews, and built-in coaching modules.
Best For: Startups and fast-paced organizations looking to scale quickly.
Why Choose WorkBoard: Its focus on execution ensures that OKRs translate into measurable business results. The coaching features make it easier for teams to adopt and refine the OKR framework.
Cons: Limited offline capabilities and may lack some advanced integrations.
Lattice: Performance and Engagement
Lattice is a popular platform that integrates OKR tracking with performance and engagement tools, making it ideal for organizations aiming to create a people-centric culture.
Features: Goal tracking, performance reviews, engagement surveys, and feedback tools.
Best For: Organizations prioritizing employee development and engagement alongside OKRs.
Why Choose Lattice: Its integration of OKRs with employee performance management ensures that individual goals align with company objectives. The platform’s engagement surveys and feedback tools foster a transparent and supportive work environment.
Cons: Can be expensive for smaller teams and may require onboarding support.
Spreadsheets: Low-Cost Simplicity
Excel or Google spreadsheets remain a cost-effective and accessible option for managing OKRs, especially for smaller teams or organizations just starting with the framework.
Features: Fully customizable templates, simple data entry, and calculation tools.
Best For: Small teams or those with limited budgets.
Why Choose Excel: Its familiarity and versatility allow users to create and track OKRs without needing specialized software. Templates can be easily shared and updated.
Cons: Manual tracking can become time-consuming, and collaboration features are limited compared to dedicated OKR tools.
Choosing the Right Tool for Your Needs
When selecting an OKR tool, consider the following factors:
Team Size and Structure: Choose a tool that fits your team’s size and organizational complexity.
Integration Capabilities: Ensure the platform integrates with your existing workflows and software.
Ease of Use: Prioritize user-friendly interfaces to encourage adoption.
Customization Options: Look for tools that adapt to your unique processes and goals.
Scalability: Select a solution that grows with your organization.
By matching the tool to your team’s specific requirements, you’ll unlock the full potential of OKRs and create a culture of continuous improvement and success.
Is your organization new to OKRs or looking to implement a company-wide goal setting framework. I can help your team leverage OKRs the right way for accelerated business success. Set up a strategy discussion call with me.
Frequently Asked Questions
What are OKRs, and why are they important?
OKRs, or Objectives and Key Results, are a goal-setting framework that helps organizations align their efforts with strategic objectives. They consist of ambitious, qualitative goals (Objectives) and measurable outcomes (Key Results). OKRs are essential because they:
Foster alignment across teams and departments.
Encourage transparency and accountability.
Drive focus on the most impactful initiatives.
Provide a structured approach to track progress and adapt strategies.
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