{"id":14178,"date":"2020-09-12T09:19:57","date_gmt":"2020-09-12T13:19:57","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=14178"},"modified":"2020-09-12T21:53:54","modified_gmt":"2020-09-13T01:53:54","slug":"okr-methodology","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/okr-methodology\/","title":{"rendered":"OKR Methodology: How to Use Metrics for Results"},"content":{"rendered":"\n<p>What is the OKR methodology? How does the OKR process work, and why should you adopt OKRs into your business model?<\/p>\n\n\n\n<p>The OKR methodology is a way to set and follow business goals using a metrics system that relies on objectives and <a href=\"https:\/\/www.shortform.com\/blog\/key-results-measure-what-matters\/\">key results<\/a>. The OKR model has numerous benefits. <\/p>\n\n\n\n<p>Keep reading to learn how the OKR methodology works, and how you can implement it in your own business.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Identify Your Objectives<\/strong> With The OKR Methodology<\/h2>\n\n\n\n<p>The first step of the OKR methodology is figuring out the \u201cOs,\u201d your objectives. Every individual and team in the company will have their own <a href=\"https:\/\/www.shortform.com\/blog\/product-principles\/\">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<p>In the OKR system, 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?\u201d<\/p>\n\n\n\n<p>You can\u2019t do everything. Answering these questions gets you focused on the few things that <em>have <\/em>to get done for the company to succeed. These are your <strong>objectives<\/strong>.<\/p>\n\n\n\n<p>Your biggest priorities in the OKR methodology, the goals that everyone in the organization is working toward, are your <strong>organization-level objectives<\/strong>, or company-wide objectives.&nbsp;<\/p>\n\n\n\n<p>Once you\u2019ve identified your organization-level objectives, <strong>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. In the OKR system, this synergy is important. <\/p>\n\n\n\n<p>At each tier, focus on <strong>three to five objectives<\/strong>. Any more than this, and your focus will be too dispersed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Identify Key Results<\/strong><\/h3>\n\n\n\n<p>After you know your priorities in the OKR methodology, your objectives, you can start to plan <a href=\"https:\/\/www.shortform.com\/blog\/how-to-achieve\/\">how to achieve<\/a> them. Key results are the steps that get you there. <strong>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<h2 class=\"wp-block-heading\"><strong>Align and Connect: How to Use the OKR Methodology<\/strong><\/h2>\n\n\n\n<p>Use these general guidelines to help your team or organization stay aligned in the OKR process.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Allow individuals to set roughly half of their own objectives and most of their key results.<\/strong> People who choose their goals take more responsibility toward getting themselves there.<\/li><li>For the objectives that come from the top, you as the manager should <strong>clearly demonstrate how the employee\u2019s objective connects to the company\u2019s top priorities.<\/strong><\/li><li>Use meetings to reiterate why certain <a href=\"https:\/\/www.shortform.com\/blog\/what-are-objectives-and-key-results\/\">OKRs are<\/a> important.<\/li><li>Encourage cross-departmental OKRs for horizontal alignment. When different departments depend on one another to meet objectives, <strong>make sure those dependencies are explicit.<\/strong><\/li><\/ul>\n\n\n\n<p><strong>How to Implement OKRs for tracking in the OKR system:<\/strong> OKRs are always measurable, and at the end of each OKR cycle you score them. This is an important part of the OKR model. These scores help you <a href=\"https:\/\/www.shortform.com\/blog\/track-your-progress\/\">track your progress<\/a>, and they indicate when you need to double down on a particular goal or when you should revise or abandon it.<\/p>\n\n\n\n<p>Unlike traditional business goals, OKRs aren\u2019t set in stone. OKRs are \u201cliving, breathing organisms,\u201d and there are three phases to tracking an OKR\u2019s life cycle: setup, midlife tracking, and wrap-up.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Setup Phase<\/strong><\/h3>\n\n\n\n<p>The setup phase is when you decide what cloud-based system you\u2019ll use to track your OKRs, determine the length of your OKR cycles, and designate your \u201cOKR shepherd.\u201d Refer to \u201cChecklist: Focus and Commit\u201d in Chapter 4. All of these actions will make tracking possible in the next phase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Midlife Tracking Phase<\/strong><\/h3>\n\n\n\n<p>Studies show that people are motivated by tangible signs of their progress toward a goal, and that <strong>making progress can be more motivating than receiving a bonus, receiving public recognition, or even achieving the goal itself.<\/strong><\/p>\n\n\n\n<p>But for progress to be motivating, people need to see it. This is why midlife check-ins are so important. During this phase, employees check-in with their managers to discuss their OKR progress.<\/p>\n\n\n\n<p>Ideally, check-ins happen weekly, monthly, quarterly, and annually. The frequency of these check-ins will depend on the length of time needed to achieve each key result, the quality of communication in the team, the size of the group, how geographically spread out it is, and current business needs. In addition to one-on-one meetings with employees and managers, teams and departments should meet regularly to evaluate progress toward objectives they share.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>CFRs: The Tools of Continuous Performance Management<\/strong><\/h3>\n\n\n\n<p>Just as OKRs are your tools for implementing Doerr\u2019s improved goal-setting system, <strong>CFRs are your tools for implementing a <a href=\"https:\/\/www.shortform.com\/blog\/continuous-performance-management\/\">continuous performance management<\/a> system.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>C: Conversations<\/strong> between employees and managers<\/li><li><strong>F: Feedback<\/strong> both from and to managers and among peers<\/li><li><strong>R:<\/strong> <strong>Recognition<\/strong> from peers and managers for small and large contributions toward goals<\/li><\/ul>\n\n\n\n<p>In the OKR model, OKRs and CFRs reinforce one another. You need both the hard data of OKRs and the interpersonal relationships fostered by CFRs for your company to thrive.<\/p>\n\n\n\n<p>Another benefit of the OKR methodology is that it&#8217;s easy ti implement, as long as you follow the OKR process and you create strong <a href=\"https:\/\/www.shortform.com\/blog\/okr-goals\/\">OKR goals<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the OKR methodology? How does the OKR process work, and why should you adopt OKRs into your business model? The OKR methodology is a way to set and follow business goals using a metrics system that relies on objectives and key results. The OKR model has numerous benefits. Keep reading to learn how the OKR methodology works, and how you can implement it in your own business.<\/p>\n","protected":false},"author":5,"featured_media":14185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[121],"class_list":["post-14178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-measure-what-matters","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>OKR Methodology: How to Use Metrics for Results - Shortform Books<\/title>\n<meta name=\"description\" content=\"How does the OKR methodology work? 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