Authored by: Project Healthcare Entrepreneurs-in-Residence: Brian Dailey, Haley Devlin, Jason Moore, and Carrie Nall
Imagine a goal-setting system that helps your team align, focus, and achieve real results. At Stratasan, we started using Objectives and Key Results (OKRs) in 2019, and over the next three years, we tripled in revenue. This framework, used by companies like Google, provides a clear structure for setting priorities and measuring progress.
In this guide, we’ll walk through how you can use OKRs to create focus, drive accountability, and reach ambitious goals.
Let’s get started.
1. What Are OKRs and Why Do They Matter?
Unlike traditional goal-setting methods such as SMART goals or KPIs, OKRs create a culture of transparency, accountability, and alignment. They ensure that everyone in the organization is working toward common, clearly defined priorities that push the business forward.
Objectives:
- Ambitious, qualitative, and inspiring.
Key Results:
- Measurable, time-bound, and outcome-driven.
2. Best Practices for Setting OKRs
A. Keep It Focused
The fewer objectives, the better. Overloading your team with too many OKRs dilutes focus and execution. Instead, prioritize the most impactful goals that will drive meaningful progress.
Example: Google’s early OKRs focused solely on search dominance, a strategy that helped propel them to market leadership.
B. Foster Cross-Functional Collaboration
OKRs shouldn’t exist in silos. Aligning objectives across teams enhances coordination and prevents conflicting priorities. A well-balanced mix of company-wide and individual OKRs ensures a unified vision.
C. Track for Accountability
- Conduct regular check-ins and grading to assess progress.
- Utilize OKR dashboards and tracking tools to maintain visibility.
- Avoid the “set-and-forget” trap by integrating OKRs into weekly or monthly business reviews.
D. Stretch for Ambition
- Set “moonshot” objectives—goals that challenge your team to stretch beyond their comfort zone.
- Find the right balance between aspirational and committed OKRs to drive innovation and resilience.
3. How to Set Effective OKRs: A Step-by-Step Guide
Step 1: Define High-Level Objectives
- Align objectives with the company’s mission and strategic goals.
- Keep them inspiring, clear, and actionable.
- Example: Instead of “Improve customer satisfaction,” use “Deliver a seamless onboarding experience.”
Step 2: Craft Measurable Key Results
- Ensure key results are specific, time-bound, and outcome-driven.
- Avoid vague metrics like “increase engagement.” Instead, use measurable results such as “Increase daily active users by 20%.”
Step 3: Align OKRs Across Teams
- Departmental and individual OKRs should tie back to company objectives.
- Foster buy-in by involving employees in the goal-setting process.
- Encourage bottom-up contributions to ensure everyone has a hand in shaping the company’s direction.
Step 4: Implement a Review and Grading Process
- Set quarterly check-ins to evaluate progress.
- Use a grading scale (0.0 to 1.0) to assess outcomes.
- Treat missed key results as learning opportunities rather than failures.
4. Common OKR Mistakes and How to Avoid Them
- Setting too many OKRs, leading to diluted focus.
- Confusing OKRs with task lists—OKRs should focus on outcomes, not just activities.
- Measuring effort instead of results—ensure key results are outcome-driven.
- Lack of leadership buy-in, which weakens alignment across teams.
- Failing to adapt OKRs as the business evolves—objectives should be dynamic and responsive to change.
5. Real-World OKR Examples
Example 1: A Tech Startup Scaling Product Adoption
- Objective: Increase user retention.
- Key Results:
- Improve onboarding completion rate from 60% to 85%.
- Reduce churn rate from 15% to 10%.
- Achieve an NPS score of 50+.
Example 2: A Sales Team Boosting Revenue
- Objective: Drive revenue growth in Q3.
- Key Results:
- Close $500K in new deals.
- Increase average deal size from $10K to $15K.
- Shorten sales cycle from 45 to 30 days.
OKRs are a Game-Changer
OKRs are a game-changer for businesses looking to grow and scale with intention. By setting ambitious objectives, aligning key results with measurable outcomes, and maintaining a disciplined review process, you can turn vision into reality. Whether you’re a startup or an established company, embracing OKRs will sharpen focus, drive accountability, and lead to breakthrough results.
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