Objectives and key results
What are objectives and key results?
Objectives and key results, also known as OKRs, are a framework commonly used by HR teams and managers to set clear, focused goals and track employee progress. As part of the OKR framework, HR teams and managers set objectives that highlight what employees need to achieve and define key results, which are specific and measurable outcomes that indicate success in achieving those goals.
Why should HR teams adopt OKRs?
Here are some of the most common reasons why your organization should experiment with OKRs:
Set clear expectations
The OKR framework helps define clear goals for employees so that they know what truly matters and what needs to be prioritized. The key results also provide a roadmap that guides employees toward success.
Keep everyone aligned
Within the OKR framework, goals are often set for employees based on company-wide objectives. This ensures that all employees are working towards a common objective and a shared purpose based on their roles and job responsibilities.
Make it easy to track progress
Since key results are measured and defined upfront while setting goals, it becomes simpler for HR teams and managers to track employees' progress toward their goals and offer timely, constructive feedback.
Improve employee engagement
As employees have a clear idea about what they're working towards and how their hard work contributes to the organization's overall vision and mission, they feel more connected, engaged, and motivated to bring out their best selves to work.
What is the difference between OKRs and KPIs?
OKRs and KPIs (key performance indicators) are both related to an employee's overall performance, but they are quite different in how they are used in an organization. OKRs are goal-setting frameworks often used by HR teams to keep employees focused and aligned with organizational goals by setting ambitious objectives and specific, measurable results. In contrast, KPIs are metrics used to track the ongoing performance of employees and the organization. They are often used to track if employees are achieving the specific targets set for them. While OKRs help define what you want to achieve and offer a clear roadmap that highlights how you can move towards success, KPIs tell you how well you’ve been performing in your role.
Are OKRs related to performance reviews?
No, OKRs are not an inherent part of performance reviews. But, some organizations do use the OKR framework to understand their employees' key priorities, how they've been progressing, and how well they've aligned their performance with the organization's overall goals. They use these insights to guide performance-related decisions along, with several other aspects of performance reviews, including self-reviews, manager reviews, multi-rater feedback, competency evaluation, and skill-building.
How can I adopt the OKR framework for my team?
Here's a five-step guide that'll help your organization adopt the ORK framework seamlessly:
Step 1:
Clarify the basics to start with a strong foundation. A well-structured OKR framework will have three to five objectives, and each objective will have two to four key results that'll help you track progress and measure success. The goals need to be ambitious, meaningful, and a little hard to achieve—but also realistic—whereas key results need to be easy to track.
Step 2:
Understand the company-wide objectives and key priorities to set goals that align well with your organization's broader goals. Collaborate with your C-level leaders to identify the key goals for that particular financial year or the quarter you're focusing on.
Step 3:
Involve your managers and employees to identify the top priorities and set goals that will keep everyone moving in the same direction. Ensure that OKRs are visible to everyone in your organization to encourage cross-functional collaboration.
Step 4:
Once you set OKRs, encourage managers to check in with your employees every 15 days or once a month to check progress, overcome roadblocks, and offer feedback that'll help them improve.
Step 5:
At the end of the OKR cycle, evaluate and identify if your employees have achieved all the key results. Recognize achievements and determine what went wrong to keep improving your OKR framework.
What is an example of the OKR framework?
If your organization's broader goal is to improve its market presence and take its brand visibility to the next level, OKRs for the marketing team could look something like this:
Objective:
Increase brand awareness and audience engagement in Q1
Key results:
- Make website traffic increase by 25%
- Increase social media followers by 10% across all channels
- Leverage PR to gain at least 2 mentions in prominent publications
- Publish 6 blog posts for the most searched domain keywords