As businesses grow, they have the difficult task of keeping teams focused on a common goal. However, each group of employees has their own set of priorities, and providing them with the support they require to achieve corporate objectives is not always straightforward. Goal setting, as a critical component of any performance management strategy, enables firms to overcome the obstacles associated with workforce scaling. The OKR technique is a popular goal-setting framework that corporations use to create and track progress at various organizational levels. When utilized properly, OKRs foster innovation, connect teams, and establish a clear way forward for businesses.

According to Bernard Marr and Co, OKRs, or Objectives and Key Results, are a straightforward technique that enables an organization to accomplish goals by developing defined and quantifiable activities, as well as communicating and monitoring progress toward those actions.

While there have been numerous goal-setting frameworks throughout history, Andy Grove, a management scientist at Intel, established OKRs in the late 1990s and Google popularized them. Today, OKRs underpin the operations of hundreds of businesses ranging from Spotify and Amazon to the Navy. According to a study OKRs describe significant, highly desirable, and measurable outcomes that you wish to attain during a specified time period. Typically, this period is a quarter.

OKRs assist firms in managing performance in five fundamental ways:

  • Alignment: OKRs bring everyone on the same page in terms of what teams are doing, why they are doing it, and how their work advances the organization.
  • Prioritization: OKRs are used to bridge the gap between bigger goals and the daily labor required to attain those goals. Employees will be better able to prioritize their day-to-day duties and long-term projects as a result.
  • Transparency: In order to cultivate transparent business cultures, OKRs must tell everyone about the effect and priorities of teams as well as individuals across the organization, from the CEO down to the intern.
  • Accountability: Using OKRs, you can hold people accountable for meeting performance standards and eliminating any grey areas about who is responsible for achieving specified objectives.
  • Employee empowerment: OKRs demonstrate the impact of employees’ efforts and instill a sense of responsibility in them towards their progress.


OKRs are an effective goal-setting framework for businesses of all sizes because of their fundamental structure and practical application. Here’s a quick rundown of how they function.

OKRs segment goals into accomplishments and supporting actions. They are organized around two fundamental issues:


Where am I trying to go?

The Objective is the overarching objective of an organization, a team, or an individual. Typically, objectives are qualitative in nature and establish the direction for what each level of the organization wishes to accomplish in a specified amount of time.


How am I going to get there?

The Key Results are the quantifiable outcomes that must be met in order to accomplish the target –– sort of like a “to-do list” for completing an overall goal. Key Results aid in progress tracking and are typically metric-driven.


Qualities of a Successful OKR


When compared to other goal-setting frameworks, the OKR technique distinguishes itself by taking an unconventional approach to balancing ambition with reality. They are also intended to promote transparency and responsibility at all levels of the organization, including the team and individual levels.

The objectives should be challenging and Ambitious; a challenging target has the effect of inspiring individuals at all levels of your business to think bigger.

A measurable endpoint should be established for key accomplishments; providing goals with a defined endpoint allows organizations to accurately assess how far they have come.

OKRs should be transparent; ensuring that they are visible across businesses fosters a feeling of accountability and provides teams with the information they need to make educated decisions.



A Step-by-Step Guide to Implementing OKRs


When it comes to defining goals, there is no such thing as a “one size fits all.” When a company decides to implement an OKR program, there are various phases that must be completed before, during, and after the program’s implementation.

1. Designing an OKRs Program


Identifying how they will configure OKRs in their goal-setting system before launching is essential for organizations to ensure that they build a process that meets their requirements. In the next section, we explain the factors that organizations should consider before implementing an OKRs program.

Mission, Vision, & Strategy


Companies should clearly identify their goal, vision, and business strategy before launching an OKR program, so that their OKRs can serve those objectives. You should create OKRs that are translated from your strategy, drive the achievement of your vision, and are consistent with the broader mission of the organization.



The method to goal-setting that a firm takes should be dictated by the business context in which it operates. Companies should analyze various areas of their day-to-day operations before defining objectives and key performance indicators (OKRs), such as headcount, organizational structure, legacy procedures, and so on.



If you’re bringing OKRs to your organization for the first time, a recommended practice is to begin with a focus on directional alignment rather than exact alignment. Because dependencies increase the possibility of bottlenecks, we propose that businesses avoid making things more complicated than they need to be.



When human resources professionals are the only ones responsible for adopting and administering OKRs, it conveys the message to the rest of the organization that OKRs are merely an administrative process. In order for an OKRs plan rollout to be successful, it must have the support of senior executives in the public arena.


2. Rolling Out Your OKRs Program


Employee Involvement


Despite the fact that it may not be possible to have all employees participate in every aspect of the OKR-setting process, employees should be aware of who is responsible for setting and tracking OKRs at each level, what projects and metrics they should prioritize, why the organization is introducing a new goal-setting process, and how their work connects to the business overall.

Workforce Training


Because goal setting is a taught rather than an intrinsic ability, firms must provide adequate training to employees on how to create high-quality OKRs. Workshops (for executives, managers, and employees) are an excellent way to introduce newcomers to the OKR technique and to promote alignment across the organization in subsequent cycles.



Tracking OKRs can be a difficult procedure for businesses of all sizes. Internal tools have been developed by organizations such as Google. Others employ ad hoc approaches such as spreadsheets, and an increasing number of businesses utilize dedicated goal-tracking software to ensure that OKRs are transparent and measurable.


3. Administering OKRs


Grading OKR


Grading is the method by which organizations evaluate their performance against their OKRs objectively. OKRs are graded on a 0.0 to 1.0 scale. Each critical result is scored separately, and the average of the critical results is used to determine the grade for each associated objective.

If you consistently receive a perfect score on your OKRs, this is an indication that you should be setting more ambitious goals. Similarly, if you routinely achieve a score of less than 0.3 on your goals, it may be time to reassess your aims and important results.

Sharing Progress


Meetings to review OKRs are critical. At the start of each quarter, all levels of your business should convene to discuss how they performed in relation to the OKRs established at the start of the previous goal cycle. Managers and direct reports should incorporate OKRs into their one-on-one sessions.


Finally, if you’d like to learn more about WorkCompass and how our performance management software can benefit your organization. Please get in touch today and request a demo.