Explaining what OKRs are, is easy. OKRs (Objectives and Key Results) are a management method that breaks down ambitious goals into clear, measurable outcomes and initiatives. As noted in the MIT Sloan Management Review, OKR systems can foster a culture of accountability and adaptability and create organisational alignment.
That sounds a little abstract, so I’ll go into more detail now.
‘The biggest advantage of OKR is that employees identify strongly with the objectives because they have helped to shape them themselves.’ THORSTEN PEUKER (Head of Operations, BPS Systems, Sartorius AG)
This quote reminds me of the Clean Language methodology 🙂 More about that later 😉
OKRs | Objectives and key results in detail
OKRs
An OKR goal is what you want to achieve. Think of it as the direction you are heading in. It is bold and ambitious, but not illusory. It’s inspiring and has the power to unite team members. Goals bring people together and make the idea of working towards a common goal palpable throughout the organisation.
Organisations have many goals, but your goals need to be clear and concise to harness the power of OKRs in the organisation. In addition, we recommend working with quarterly OKR cycles to achieve the best results. At the beginning of each quarter, you should define your OKRs at each level: organisation-wide, team-wide and individual. However, depending on the needs of your organisation, you can adjust certain OKRs on a monthly basis or set larger, overarching goals that you only review once a year.
Key Results
OKR key results are the milestones you achieve on the way to your goals. They define how you will achieve your goals and measure progress.
They are quantitative and tied to a timeline and represent part of the bigger picture – the goal to which they are assigned. Like signposts, these desired outcomes show you whether your team is on the right track and how far you still have to go.
As measurable parts of your vision, key results require balance. They should not be too easy to achieve, but also meaningful enough that the achievement of the goal can be duly celebrated within the team.
How does OKR work?
1. start with your goal (objective).
A preliminary consideration in the team is necessary. What is the intention behind the objective? You can call it a vision. Example: The co-operation between marketing and sales should be improved. The objective could then be Establish a regular exchange between marketing and sales and make communication exemplary.
2. in the second step, the measurability of success is defined via the key results.
In the example above, this could look like this:
In the first quarter, marketing and sales meet 6 times in video conferences.
At the end of the first quarter, there is a report that summarises the results of the video conferences and the resulting possible steps in dealing with customers.
This example is very simplified and its wording could be more clearly focussed on what the end result should be. However, it is already a well formulated OKR because it clearly focuses and prioritises the points described. In connection with the definition of OKRs, it is important that each key result must be measurable and verifiable in its own right.
The OKRs will not be perfectly formulated straight away. This is part of the learning process when working with this system. It is therefore important that both the objectives and the key results are discussed and developed together with other stakeholders.
Which routines are part of the OKR cycle?
In the OKR framework, we differentiate between Strategy, Moals, OKRs, OKR Weekly’s, OKR Review and OKR Restrospectives. These elements run in a rhythm of a fixed cycle. The 3-4 monthly rhythm is the new heartbeat of the company.
OKR Cycle: The iteration cycle in which goals and key results are formulated. In Scrum, this would be the ‘sprint’. Duration: 3-4 months.
OKR Planning: OKRs are planned for the coming cycle Approx. 4 hours per team, optionally followed by a refinement phase.
OKR Weekly: Weekly or fortnightly synchronisation of the teams over the entire cycle, including a progress assessment of target achievement. 30 to 60 minutes.
OKR Review: Internal team review of target achievement. 2-4 hours.
OKR Retrospective: Review of collaboration and the OKR process, identification of areas for improvement. 2-4 hours.
If there are Scrum Masters and/or Product Owners among my visitors, you’ll see that OKR look a bit like the Scrum process 😉
What are moals?
‘Moals’ refer to so-called “mid-term goals”, i.e. medium-term objectives. These are usually defined by managers in order to simplify the bridge from the strategy and vision to the goals for the individual teams. This is because the teams formulate their goals independently. In this way, the collective knowledge of the employees flows into the formulation of the goals.
OKRs vs. KPIs
Both KPI’s and OKR’s have their own place and work best together. KPIs are used to measure past performance, while OKRs help you achieve your future goals.
While KPIs are essentially metrics that reflect your performance, OKRs are a goal-setting framework that helps you improve your performance and thus drive change.
As these frameworks have different objectives and logics, you can either let them co-exist or simply choose the framework you lean more towards, depending on your needs and preferences.
Why OKR?
Professionally implemented and adapted to the individual structures of a company, the OKR method can unfold its many advantages. These advantages of the OKR system include in particular
- Better fit of an overarching corporate strategy with individual employee goals.
- A stronger focus on priorities in the realisation of objectives.
- Higher expectations and more commitment from each team member.
- Better and clearer collaboration between departments and employees.
- Increased willingness to innovate through greater openness to new ideas and ways of thinking.
- Increased growth through participation of all employees in the overall success of the company.
- Higher work motivation, employee satisfaction and an increased sense of the value of one’s own contribution to the company’s, and therefore also the cusomer, success.
Added value for the organisation as a whole, as opposed to just doing work that is not aligned with goals and values.
The importance of agile cooperation and communication in connection with OKRs
Agile methods have become increasingly important in recent years, especially in fast-moving and dynamic business environments. In combination with the OKR framework (Objectives and Key Results), agile cooperation and communication can make a significant contribution to a company’s success. But why is this the case?
1. flexibility and adaptability
Agile methods promote a culture of flexibility. In an agile environment, teams are prepared to adapt quickly to changes, be it market shifts, customer feedback or new technological developments. OKRs fit perfectly into this culture as they allow goals to be regularly reviewed and adjusted to ensure the team is always on track.
2. transparent communication
One of the basic principles of agility is transparent communication. In regular meetings such as daily stand-ups, sprint reviews or retrospectives, progress is discussed openly. This open communication not only helps to recognise obstacles at an early stage, but also ensures that all team members are always on the same page. This is crucial for the successful implementation of OKRs as it ensures that everyone knows the common goals and understands how their contribution contributes to the overall success.
3. collaboration and teamwork
Agile methods promote strong collaboration within teams. Instead of working in isolation, team members share their insights, support each other and work together towards a common goal. This form of collaboration is also crucial in the implementation of OKRs, as it ensures that everyone pulls together and supports each other to achieve the set goals.
4 Continuous feedback and improvement
Agile teams work in short iterations and strive to continuously improve. Through regular feedback and the ability to react quickly to new insights, teams can constantly improve their way of working and the implementation of the OKRs. This leads to continuous optimisation of processes and a higher probability of achieving or even exceeding the set goals.
Conclusion:
The integration of agile cooperation and communication when working with OKRs can significantly increase the efficiency and success of teams. Flexibility, transparency, collaboration and continuous improvement ensure that the goals set are not only achieved but also realised in a way that guarantees long-term success.
I personally enjoy working with my colleagues in my team(s) because it can be really fun, despite the fact that real challenges often manifest themselves. If I make sure that the culture provides a safe space for my colleagues, everything will be fine.
OKR & KI
I took part in a two-day event organised by the company DigitalBeat (https://digitalbeat.de/), which specialises in artificial intelligence. A great deal of knowledge was imparted and, of course, the topic of prompting was also discussed. It really was a fantastic attendee experience, which I have experienced in my rather long life. I have of course taken countless screenshots which, with the permission of DigitalBeat, I will show for this presentation.
Artificial intelligence has spread like a tidal wave and is here to stay. AI can support us in many situations and it is amazing how diverse the possible applications are. AI can also be a very helpful assistant in Sachwen OKR. The above screenshot shows ChatGPT 4.0 (https://chatgpt.com/g/g-e6772aDdX-okr-gpt). A few prompts have already been prepared there so that users can play around a little 😉
On the left in the sidebar ChatGPT offers the possibility to search for and select plugins (explore GTPs). There is an extra library for OKR. Below you can see only a small selection.
The trick with AI is to write good and detailed prompts (commands) so that the AI knows what you need. I like to compare this to customers who want to buy something but don’t really know what they want and need. Requirement meetings for software are sometimes very challenging 😉
It occurred to me whether AI could be used to write objectives and key results. Of course, it is important that the prompts are created as described above. I just asked ChatGPT if he could do that. The prompts are very basic 😉 ChatGPT is so clever and also helps to add key results to the objective directly and on the fly
And since I’m well-mannered, I always thank ChatGPT very much for their help 😉
My prompt
I have just created a website for a mate about OKR. One page of the site is about OKR and AI. Now I would like to receive 5 prompts from you that are suitable for OKR. As this is just a page with learning content, I don’t have any current objectives. Now I am curious if you can help me with this and I thank you in advance!
ChatGPT
Of course, Rob! I’d be happy to help you with a few example prompts that show how AI can be used in connection with OKRs (Objectives and Key Results). These prompts can serve as inspiration and enrich the learning content on your site. Here are five examples:
Setting objectives and analysing results:
Prompt: ‘Analyse the current business data and propose three key objectives that should be achieved in the next six months. Take into account the company strategy and the current market trend.’
Purpose: This prompt helps to set strategic goals by using AI to help make data-driven decisions.
Creation of key results:
Prompt: ‘For the goal of increasing customer retention by 20%, develop three measurable key results that can effectively monitor progress. Include both quantitative and qualitative metrics.’
Purpose: Here, AI is used to formulate specific, measurable outcomes that determine the success of a goal.
Monitoring progress:
Prompt: ‘Create a weekly reporting format that monitors the progress of established OKRs. Integrate data from different departments to provide a comprehensive overview.’
Purpose: This prompt helps automate progress reports so teams can continuously monitor their progress.
Risk assessment and management:
Prompt: ‘Identify potential risks that could affect the achievement of set OKRs and suggest preventative measures to minimise these risks.’
Purpose: AI helps to recognise risks at an early stage and develop countermeasures.
Optimisation and adjustment of OKRs:
Prompt: ‘Analyse the progress of OKRs to date and suggest adjustments or optimisations to ensure targets are met by the end of the quarter.’
Purpose: This helps to flexibly adjust the OKRs if progress stagnates or new challenges arise.
These prompts can inspire your buddy and his website visitors on how AI can be supportive in the OKR process. Good luck with the website! If you have any further questions, please don’t hesitate to contact me.
My prompt
Can you please also create ‘general’ business OKRs for me? For different areas. Gladly five again and thank you very much
ChatGPT
Of course, Rob! Here are five general business OKRs that can be used across different business areas. These OKRs are formulated to be applicable across different businesses and industries:
1. improve customer satisfaction
Objective: Increase customer satisfaction and customer loyalty.
- Key Result 1: Increase the Net Promoter Score (NPS) from 70 to 80 within the next 6 months.
- Key Result 2: Reduce the average response time to customer enquiries from 24 hours to 12 hours.
- Key Result 3: Increase customer satisfaction rating on support tickets from 85% to 90%.
2. increase sales growth
Objective: Sales growth through the development of new markets and products.
- Key Result 1: Introduction of three new products or services within the next quarter.
- Key Result 2: Increase sales in new markets by 15 % within 6 months.
- Key Result 3: Increase average customer lifetime value by 20% through upselling and cross-selling.
3. improve the efficiency of internal processes
Objective: Optimisation of internal business processes to increase efficiency.
- Key Result 1: Reduction of the average project completion time from 8 weeks to 6 weeks.
- Key Result 2: Automation of at least 30% of repetitive administrative tasks within 3 months.
- Key Result 3: Increase in employee satisfaction with regard to work processes from 75% to 85%.
4. promote employee development and retention
Objective: To promote employee development and reduce staff turnover.
Key Result 1: Increase the participation rate in internal training and development programmes to 90%.
Key Result 2: Reduce employee turnover from 10% to 5% in the next year.
Key Result 3: Introduction of a mentoring programme in which at least 50% of employees participate.
5. increase brand awareness
Objective: Increase brand awareness in the target group.
- Key Result 1: Increase in social media followers by 25% within the next 6 months.
- Key Result 2: Increase press coverage of the company by 30% compared to the previous year.
- Key Result 3: Doubling of organic website traffic through content marketing measures within one year.
These OKRs are flexible and can be customised according to a company’s specific needs and objectives. Good luck with the application, and if you need further support, I am happy to help!
Other tools besides, or with ChatGPT
Other tools, if not all participants have ChatGPT at their disposal (unimaginable, but there are things you don’t realise 🙂 )
What are OKR tools?
OKR tools are software or platforms that allow you to set, track and manage your OKRs and help you plan and monitor your goals. They offer features such as dashboards, automatic progress updates for transparency and alignment, and performance insights. Using these OKR tools makes the OKR process more efficient and ensures that everyone is moving in the same direction to achieve the goal.
Below is a list of different options. I have focussed on finding solutions that are free of charge.
Let’s start with the simplest. A DOCX document and a Google Sheet (an Excel format from Google) The embedded files can be edited. Click on the arrow icon and the file will open in the Google Cloud. To call up this icon, hover over the document. You will find it at the top right of the frame where the document is embedded. If working in the Google Cloud is uncomfortable, the views below offer enough inspiration to do it yourself
DOCX
Google Sheet
Unfortunately Google Sites does not accept the embedding of Sheets & Excel files. So I am forced to offer a screenshot. Here is the URL to the sheet in the cloud https://docs.google.com/spreadsheets/d/1Cdxqi-ekquSzMrHvoRXlLYEcBUo5xdcDpTw_QSCBMHc/edit?usp=sharing (Anyone who receives this link has the right to edit).
The table below shows a few examples
Miro
Miro https://miro.com/de/ is a smart tool for collaborative work in real time. Working together in real time has many advantages. The participants are in a ‘different’ environment, cooperation is encouraged, it is visual and therefore also a kind of gamification.
There are different templates for all objectives and this also applies to OKR https://miro.com/de/templates/okr/
If you enter ‘Miro OKR’ in the browser, you will find many results. And…. 😉 There will soon be AI for Miro. It is aptly named Miro AI. ChatGPT can already be linked to MIRO 🙂 https://miro.com/marketplace/open-gpt/
Hier ein Preview! 😉
I would suggest to open this image with the right mouse button in a new tab, because then you will see a full screen image
This was an excursion into the possibilities offered by OKRs. I hope you enjoyed reading 😉
