Simple and Effective, How To Implement YOUR Strategy with OKRs

60-90% of strategic plans never fully launch due to poor execution [1]. This is not because of poor decision making or executive stupidity; implementation really is difficult. It requires everyone in the organisation to have full comprehension of the company’s objectives and commitment to achieving them, all activities must be purposeful and non-conflicting, and the organisation must have the necessary resources and capability to actually execute these activities. Whilst a strategy is necessary for commercial success, it is pointless if not executed. So how can we make sure we achieve what we set out to? Objectives and Key Results.

What are Objective and Key Results?

Objective and Key Results (OKRs) is a goal setting framework that simplifies all of the above challenges, introduced by Andy Gove in his book High Output Management [2], where it was then implemented by Intel and Google. Since then, the framework has evolved and is considered a major contributor to the success of the following brands due to its impact on ensuring organisational alignment, creating measurable results and stimulating motivation whilst remaining relatively simple.

Brands who use OKRs


At its core, the OKR framework is used to set, track, and measure objectives that are aligned throughout the organisation. Objectives are directional, answering what do we want to achieve? and are deliberately ambitious as they are intended to stretch the organisation into achieving outputs beyond expectations. Key results are quantitative, measurable outcomes that define the success criteria for achieving the objectives. They are specific, time-bound and data-driven, providing clear metrics for tracking progress. Each objective should have 2 to 3 key results and, due to the aspirational nature of objectives, should never be fully achieved. Key results achieving greater than 80% attainment should be reevaluated and stretched. The obvious question here is won’t 80% become the new 100%? It is important the management team motivate employees to strive for 100%, OKRs should stretch the organisation beyond expectation.

 

Example of an OKRFigure 1 - Example of an OKR


The main advantage of OKRs is their ability to maintain strategic alignment throughout your organisation as they cascade from the corporate strategic objectives down to individual teams, ensuring all activities are purposeful, simplifying the implementation of your strategy. Figure 2 illustrates a basic OKR framework on a school cupcake supplier. The commercial, ESG, operations and HR team objectives directly relate to the organisation’s objectives above them, ensuring activities carried out by these teams are directly impacting the company’s goals.

Example of OKR framework

Figure 2 - Example of OKR framework


So, how do we create OKRs?

1. Define Scope
Before creating OKRs, there are a few factors to consider. Firstly, what is the scope of your OKR strategy? Do you want to cascade them throughout your whole organisation or just one function? Who will create and monitor the OKRs? What are the timeframes for key result appraisal? Do you have all the data available to monitor your KRs? Additionally, software can be extremely useful for OKR tracking as well as visualising the cascade, I have linked some options below in reference [3]. If this is a route you want to take, what is your budget?

2. Setting Objectives
It is typically beneficial for everyone working towards the OKRs to be involved in their creation as it strengthens ownership. Often this is done in a collaborative setting using the objectives from the layer above or the existing strategy as a guide. Remember, these should be ambitions.

3. Defining Key Results
For each objective, set two to four key results. These should be specific, quantifiable metrics that indicate progress toward the objective. Reflective of the objective, KRs should also be ambitious where a 70% attainment is realistic. Make sure the KRs are based on attainable data!

4. Next Layer
OKRs cascade down through the organisation, ensuring every individual and team's objectives are aligned to the overarching company objectives. Continue steps 2 and 3 according to your scope.

5. Data Collection & Tracking
Data collection is integral to the OKR framework. This is often collected and inputted on a monthly basis to provide a reliable trend to base regular check-ins and reviews on, which are typically conducted quarterly. This can be done in Microsoft Excel however there are OKR tools that make this simpler, see reference [3] for examples.

6. Cadence & Continuous Improvement
OKRs represent the strategic cadence of your organisation, forcing regular strategic and operational reviews and acting as the core monitoring system for organisational performance. These reviews are typically conducted on a quarterly basis, serving as opportunities to assess progress, adjust strategies and provide support where needed.
Cadence of OKRs

Figure 3 - OKR cadence

OKRs foster a culture of continuous improvement, allowing organisations to learn and adapt rapidly. Failures are seen as opportunities for growth, and successes are celebrated. OKRs are extremely valuable as they simplify the most complicated aspect of business strategy, used by startups and established corporates alike. If OKRs are of interest to you, please feel free to reach out for further information and support on workshops or Microsoft Excel OKR tracking worksheets.
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