Objectives & Key Results (OKR) are a powerful and effective method for goal- and results management that helps companies prioritize the most important tasks in order to achieve their goals.
OKRs are an effective way of converting your company's strategy, vision, mission and values into clear goals. Every organizational activity is linked to the attainment of these goals.
OKRs helps companies stay focused, and makes it easier to prioritize activities that will help the company in the future, both in the short and long term.
OKRs are a unique method gets your company to consciously focus on value-creating activities. If you're not careful, it's easy to lose focus! Requests must be dealt with, important deadlines are approaching, and distractions are lining up. We at Futureworks know all about it.
With OKRs you'll clairify your company's long-term goals. These goals are then broken down into short-term sub-goals and value-creating activities.
Not only does this give employees a greater degree of ownership related to your main goals, but it raises awareness which directly contributes to a better corporate culture, increased performance and a higher degree of independence and a sense of responsibility.
By constantly focusing on the most important tasks, your co-workers avoid being dragged into urgent, but not important issues, and questions that "constantly arises" cease to appear. Futureworks ensures ownership of what matters most and through clear focus, your organization will enjoy increased performance, better leadership and improved business management.
Objectives are the major overarching goals that are meant to define:
We recommend setting 3-5 Objectives per key area or team. Objectives should be:
Objectives set the course for your company. Combined with strategy, vision, mission and values, clear OKRs are one of the most important tools to ensure good leadership and continuous progress.
Key Results should define how your company will reach its goals. What are the most important results that we need to accomplish? Each Objective should consist of 3-5 Key Results.
The Key Results should specify which activities lead to the greatest results.
We recommend 3-5 Objectives per year, then 3-5 Objectives per quarter within each area.
Each Objective should typically have 3-5 Key Results which upon completion will ensure that we reach each our Objectives.
Yearly Objectives do not necessarily need to have Key Results. Yearly Objectives are guidelines for how Quarterly Objectives should be set by the organization every quarter. They provide a strategic direction for what the organization should focus on quarter by quarter.
Objectives and Key Results should normally be set for the whole year and the upcoming quarter. You may also use OKRs for a project period divided into appropriate time periods.
We recommended following up on the status of all OKRs on weekly basis. Here the owner of each OKR gives a short status report on a scale from 1-10 (confidence score) on how sure he / she is that the Key Results / Objectives will be reached in time. A module for this is avaialble in our system.
Futureworks also has a risk analysis feature for each Objective that provides an assessment of probability and consequence. This is an excellent management tool.
At the end of each quarter, the company should analyze the annual OKRs, then check out the last quarter's OKRs. Next it's time to set the upcoming quarter's OKRs, for the company and each department or area.
To make this easy and efficient, we have designed a simple template / agenda for weekly, monthly and quarterly OKR meetings.
"Our leaders, some of our great institutions, are failing us. Why? In some cases it's because they're bad, or unethical. But often they've taken us to the wrong objectives. This is unacceptable. How are we going to correct these wrongs? How are we going to chose the right course? Today I'm going to share with you what really makes a difference. How and why [great teams] set meaningful and audacious goals. The right goals, for the right reasons."