EXECUTION is what matters most! As the Noah Rule says:
"Predicting rain doesn't count, building an ark does."
Most organizations are familiar with KPI’s, or Key Performance Indicators. KPI’s can be great for measurement, but they’re standalone metrics — they may tell you when a measure is good or bad, but they don’t necessarily communicate context or what direction your team needs to go in.
OKR’s, which stands for Objectives and Key Results, provide that much needed direction and context. The Objective describes what you want to accomplish, and the Key Results describe how you know you’re making progress. Since KPIs are measurable, they can make great Key Results. In other words, rather than talking about OKR’s versus KPI’s, think of them as complimentary.
In the end, it all boils down to one thing — are we just selling fads or actually wanting to improve the way the organizations work by making the business thrive and the employees happier and more engaged?
This is where OKR’s comes into play.
O = Objectives are the “WHAT” ... They’re the most important things you can accomplish in the next 30-90 days ... an O-Objective is simply what is to be achieved. By definition, Objectives are significant, concrete, action-oriented, and inspiring. When properly designed and deployed, they’re a catalyst for clear visualization and effective execution.
And KR = Key Results are the “HOW” … They are the benchmarks by which you’ll track progress towards accomplishing your Objectives. Key Results benchmark and monitor how we get to the Objective. Effective KR’s are specific and timebound, aggressive and realistic, and measurable and verifiable. You either meet a key result’s requirements or you don’t. There are usually 3-5 Key Results per Objective.
The 5 superpowers of OKR’s:
The acronym FACTS explains the 5 superpowers of OKR’s.
Focus – OKR’s explain what matters most. If we try to focus on everything, we focus on nothing.
Alignment – Transparency and top-down alignment of goals, brings meaning to work and sense of ownership, fostering engagement and innovation.
Commitment – Transparent goals create a social contract and establishes accountability.
Tracking – OKR’s are driven by data. Periodic check-ins and continuous reassessment enables progress measurement that matters.
Stretching – Create a culture that takes intelligent risks testing our limits and affording the freedom to fail.
““If the heart doesn’t find a perfect rhyme with the head, then your passion means nothing.
The OKR framework cultivates the madness, the chemistry contained inside. It gives us an environment for risk, for trust, where falling is not a fireable offense- you know, a safe place to be yourself.
And when you have that sort of structure and environment, and the right people, magic is around the corner.””
Teams often set lofty goals, often to impress leadership or as part of appraisal checklists, without establishing any actionable commitments or a clear path for how to get there. Leaders who assume teams will figure it out are delegating strategy, not enabling execution. This leaves teams rudderless.
Teams need to align around a pragmatic plan for how to get there. Teams should clearly understand the underlying problem, which levers to leverage, and which solutions (initiatives) to pursue to effectively pull those levers forward.
OKR’s are great vehicle to turn audacious mission or purpose (the WHY) into actionable goals and milestones (break up big into small manageable actionable initiatives). They’re the most important things you can accomplish in the next 30, 60 or 90 days (future state in a specified amount of time).
OKR’s can fall under 3 categories:
Committed (need to be achieved fully) – Committed OKR’s are the goals that all agree need to be achieved 100% and are key to success.
Aspirational (stretched) – Aspirational OKR’s push us to be audacious. We may only make it to 70%, but 70% of a big, audacious goal gets you much farther than just 10% of a mediocre goal.
Learning (exploration) – Learning OKR’s are explorations or experiments to prove or disprove a hypothesis. Learning OKR’s delivers intelligence on how to move forward.
Effective OKR’s (Objectives + Key Results) represent meaningful change, improvement, and growth. Most goal-setting frameworks fail by not bridging the gap between strategy and execution. OKR’s bridge the gap between strategy and execution by providing a clear framework that clarifies the What (Objectives) and How (Key Results).
OKR system is a collaborative goal-setting protocol for Companies, Teams, and Individuals. The motto is: Be Better Every Day.
As John Doerr states in his TED talk below: “OKR’s are not a silver bullet. They cannot substitute for sound judgment, strong leadership, or a creative workplace culture. But if those fundamentals are in place, OKR’s can guide you to the mountaintop.”