{"id":13389,"date":"2020-08-28T09:42:55","date_gmt":"2020-08-28T13:42:55","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=13389"},"modified":"2020-09-12T21:47:52","modified_gmt":"2020-09-13T01:47:52","slug":"okr-framework","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/okr-framework\/","title":{"rendered":"The Ultimate Guide for Building an OKR Framework"},"content":{"rendered":"\n

What is an OKR framework, and how do you build one? How can an OKR framework help you achieve your goals<\/a>?<\/p>\n\n\n\n

The OKR framework is the first step to establishing and following through on your OKRs. Having an OKR framework will help you work through this process.<\/p>\n\n\n\n

Learn more about creating an OKR framework below.<\/p>\n\n\n\n\n\n\n\n

OKR Framework Step 1: Focus and Commit<\/strong><\/h2>\n\n\n\n

Create OKRs at the organizational level, the departmental level, the team level, and the individual level. At each tier, create no more than 5 sets of objectives and key results<\/a>. Limiting the number of OKRs keeps you focused on what matters most.<\/p>\n\n\n\n

This OKR superpower has two facets: 1) focus on your priorities, and 2) commit to the OKR process<\/a>. We\u2019ll look at \u201cfocus\u201d first.<\/p>\n\n\n\n

There are 3 steps to creating OKRs that focus your attention<\/p>\n\n\n\n

  1. Identify your objectives<\/li>
  2. Identify your key results<\/li>
  3. Check the quantity and quality of your OKRs<\/li><\/ol>\n\n\n\n

    OKR Framework Step 2: Identify Your Objectives<\/strong><\/h3>\n\n\n\n

    The first step of the objective and key results framework is figuring out the \u201cOs,\u201d your objectives. Every individual and team in the company will have their own objectives and key results<\/a>, but in order for these OKRs to be meaningful, they need to align with the organization\u2019s highest objectives, so start with these.<\/p>\n\n\n\n

    To determine your organization\u2019s highest objectives, ask, \u201cWhat are the most important tasks we need to accomplish in the next three months, the next six months, and the next year?”<\/p>\n\n\n\n

    You can\u2019t do everything. Answering these questions gets you focused on the few things that have <\/em>to get done for the company to succeed. These are your objectives<\/strong>.<\/p>\n\n\n\n

    Your biggest priorities, the goals that everyone in the organization is working toward, are your organization-level objectives<\/strong>, or company-wide objectives. <\/p>\n\n\n\n

    Once you\u2019ve identified your organization-level objectives, departments, teams, and individuals<\/strong> can identify their own objectives. These objectives often feed into and support organization-level objectives, so determining them is a matter of starting with the top objectives and figuring out what sub-goals you need to meet to achieve them. (We\u2019ll cover how to create this alignment in the next chapter.)<\/p>\n\n\n\n

    At each tier, focus on three to five objectives<\/strong>. Any more than this, and your focus will be too dispersed.<\/p>\n\n\n\n

    Identify Key Results<\/strong><\/h3>\n\n\n\n

    Next in your objective and key results framework, you’ll need to identiy key results. After you know your priorities, your objectives, you can start to plan how to achieve<\/a> them. Key results are the steps that get you there. For each objective, decide on three to five key results<\/strong>\u2014sub-goals that are specific, measurable, and time-bound, and that collectively ensure you\u2019ll attain your objective.<\/p>\n\n\n\n

    The three sets of key results (KRs) below are all proposed paths toward the objective of winning the Indy 500. What differentiates the strong key results from the weak and so-so key results?<\/p>\n\n\n\n

    Weak KRs<\/strong><\/td>So-So KRs<\/strong><\/td>Strong KRs<\/strong><\/td><\/tr>
    Objective: <\/strong>Win the Indy 500.KR #1: Achieve a faster lap speed.KR #2: Decrease time during pit stops.<\/td>Objective: <\/strong>Win the Indy 500.KR #1: Achieve a lap speed that\u2019s 2% faster.KR #2: Decrease time during pit stops by an average of 1 second\/stop.<\/td>Objective: <\/strong>Win the Indy 500.KR #1: Achieve a lap speed that\u2019s 2% faster.KR #2: Decrease time during pit stops by an average of 1 second\/stop.KR #3: Decrease pit stop errors by half.KR #4: Spend 1 hour\/day practicing pit stops.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    The Problem with the Weak KRs:<\/strong> These key results are measurable, but they aren\u2019t specific. How much <\/em>faster does your lap speed need to be to win the Indy 500? By how much time <\/em>do you need to decrease pit-stop length?<\/p>\n\n\n\n

    The Problem with the So-So KRs:<\/strong> These key results are better because they\u2019re measurable and<\/em> specific. In the beginning, many of your KRs will look like these, and that\u2019s fine. But there\u2019s still a problem. Achieving a faster lap speed is relatively straightforward, but how <\/em>do you decrease your pit-stop time? The strongest KRs answer how<\/em>.<\/p>\n\n\n\n

    Quantity and Quality OKRs<\/strong><\/h3>\n\n\n\n

    Pair \u201cquantity OKRs\u201d (make ten sales calls) with \u201cquality OKRs\u201d (earn two new orders). This ensures that you don\u2019t sacrifice the quality of your product or service in the name of meeting your ambitious quantitative goals.<\/p>\n\n\n\n

    Quantity Objective<\/strong><\/td>Quality Objective<\/strong><\/td>Result<\/strong><\/td><\/tr>
    Process 10x more vouchers this quarter<\/td>Make 10% fewer errors in voucher processing<\/td>Processing is more efficient<\/td><\/tr>
    Custodial staff cleans 3,000 square feet per hour<\/td>Custodial staff receives an average quality score of 8 or higher.<\/td>Office buildings are cleaner and cleaning takes less time<\/td><\/tr>
    Developers create three new product features<\/a> by Aug. 14th<\/td>Testing finds fewer than five bugs per feature<\/td>Code for features is cleaner<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Checklist: Focus and Commit<\/strong><\/h3>\n\n\n\n

    Once you\u2019ve focused your priorities, you need to commit to the OKR process. Use this checklist to set up an objective and key results framework, use the OKR system and get your entire staff to commit to it.<\/p>\n\n\n\n

    Start with the Executive Team and Upper Management <\/strong><\/h4>\n\n\n\n

    Use the company\u2019s mission statement and strategic plan to create top-line OKRs. There are three reasons to start at the top, and to start small:<\/p>\n\n\n\n

    1. Executives and managers need to know their own OKRs before their direct reports can align their individual goals with those of the company. Often, organization-level key results will trickle down the hierarchy, becoming the objectives of departments, who will then create their own key results to meet those objectives.<\/li>
    2. In the beginning, implementing OKRs won\u2019t be a smooth process. Work out the biggest kinks before you continue the rollout to other tiers. It may take several phases before you implement OKRs company-wide.<\/li>
    3. You need to establish buy-in. Employees won\u2019t commit to the process if their bosses don\u2019t publicly model and commit to it. Establish your own commitment first before asking for anyone else\u2019s. To this end, create your own personal OKRs, independent of your team\u2019s OKRs.<\/li><\/ol>\n\n\n\n

      Decide on the Length of Your OKR Cycle <\/strong><\/h4>\n\n\n\n

      While individual objectives may have their own deadlines, your team should be operating according to the same general goal-setting schedule, or OKR cycle. For most companies, there are two OKR cycles, quarterly and annual, running simultaneously. Annual cycles are for long-term OKRs, and quarterly cycles are for short-term OKRs that support the longer-term objectives.<\/p>\n\n\n\n

      A quarterly OKR cycle is appropriate for businesses in markets that change quickly, such as technology. The short time frame of three months per quarter helps create a sense of urgency and deter procrastination. But the timeframe of your OKR cycle will depend on your particular business and field. Your OKR cycle might be monthly or semi-annually.<\/p>\n\n\n\n

      Choose a Cloud-Based Management System<\/strong><\/h4>\n\n\n\n

      In order to effectively track OKRs<\/a>, you first need a place to store and share them. General-purpose software, such as Microsoft Word, can only get you so far. One Fortune 500 company had to completely revise their OKR system after starting with Word: They realized that quarterly goals in Word from all 82,000 employees resulted in 328,000 distinct Word files annually. These files were public, but did anyone have the patience to read them? If nobody knows your OKRs, are they really transparent?<\/p>\n\n\n\n

      A better system is a cloud-based OKR system, many of which include mobile apps, analytic tools, automatic updating, and integration with other services. (Shortform note: Cloud-based OKR systems include WorkBoard<\/a>, Ally<\/a>, Culture Amp<\/a>, Asana<\/a>, and many others.)<\/p>\n\n\n\n

      The benefits of a cloud-based OKR system:<\/p>\n\n\n\n