Objectives are a cornerstone of effective goal setting, especially within the Objectives and Key Results (OKRs) framework. This methodology helps individuals, teams, and organizations define what they want to achieve and how they’ll measure their progress. Understanding What Is An Objective is crucial for setting achievable goals and driving meaningful results.
The OKR system is utilized globally, from burgeoning startups to established corporations, to streamline strategy execution. Let’s break down the objective within OKRs, exploring its definition, characteristics, and examples.
Objectives and Key Results: Decoding the OKR Framework
The OKR framework revolves around two core components: Objectives and Key Results.
Objectives
An Objective is a concise description of what needs to be achieved. It should be significant, concrete, action-oriented, and ideally, inspirational. A well-defined objective serves as a compass, guiding efforts and preventing unfocused execution. It provides clarity and direction.
Key Results
Key Results define how progress towards the objective will be measured. Effective Key Results are specific, time-bound, ambitious yet realistic, and, most importantly, measurable and verifiable. They provide tangible benchmarks that can be tracked throughout the designated period, typically a quarter. At the end of the period, Key Results are evaluated to determine whether they have been met.
Where an Objective can be long lived, rolled over for a year or longer, Key Results evolve as the work progresses. Once they are all completed, the Objective is achieved.
Writing Effective OKRs: A Practical Approach
OKRs are typically documented with an Objective at the top, followed by 3-5 supporting Key Results. This structure clarifies the goal and how its success will be measured. Another way to articulate an OKR is through a statement:
“I will (Objective) as measured by (Key Results).”
For instance: “I will improve the website’s user experience, as measured by a 70% user satisfaction score, a 1-second page load time, and a 1% error rate.”
The Origin and Evolution of the OKR Methodology
The OKR methodology was pioneered by Andy Grove at Intel, later popularized by John Doerr, who introduced it to Google in 1999. Since then, it has been adopted by numerous high-profile organizations, including Google, Allbirds, Netflix, and Code for America.
Doerr’s introduction of OKRs to Google’s founders centered around this Objective and Key Results:
- Objective: Build a planning model for their company
- Key Result 1: Finish my presentation on time.
- Key Result 2: Create a sample set of quarterly Google OKRs.
- Key Result 3: Gain management agreement for a three-month OKR trial.
This initial framework laid the foundation for Google’s strategic planning and contributed significantly to its subsequent success.
OKR Examples: Bringing the Concept to Life
Exploring real-world examples can help solidify understanding and inspire effective OKR planning.
Example 1: City of Syracuse, NY
The city of Syracuse, New York, aimed to “achieve fiscal sustainability” with the following OKR:
- Objective: Achieve fiscal sustainability.
- Key Result 1: Reduce the general fund budget variance from 11% to 5%.
- Key Result 2: Spend 95% of authorized capital project dollars by the end of the fiscal year.
- Key Result 3: Spend 95% of grant dollars for grants from prior fiscal years.
Example 2: Allbirds
Allbirds, a sustainable clothing company, focused on environmental responsibility with this OKR:
- Objective: Create the lowest carbon footprint in our industry.
- Key Result 1: Supply chain and shipping infrastructure 100% zero waste.
- Key Result 2: Pay 100% carbon offset for calculated carbon dioxide emissions.
- Key Result 3: 25% of material is compostable.
- Key Result 4: 75% of material is biodegradable.
Example 3: Museum Development Team
A museum development team seeking to expand its membership base could use this OKR:
- Objective: Attract younger, more diverse season ticket holders.
- Key Result 1: Increase our “$30-under-30” membership enrollment by 100%.
- Key Result 2: Land mentions on the accounts of 5 local Instagram influencers.
- Key Result 3: Get 25% response rate from a direct mail campaign to diverse ZIP codes.
- Key Result 4: Attract 75 non-members per month to live artist talks.
Example 4: Personal OKR
An individual aiming to improve their fitness could set this OKR:
- Objective: Run a 10K in under 50 minutes by June.
- Key Result 1: Go for a run 3x/week for at least 30 minutes.
- Key Result 2: Increase distance of run by 1 mile every week.
- Key Result 3: Increase mile speed by 5 seconds every week.
Types of OKRs: Committed, Aspirational, and Learning
OKRs can be categorized into three main types: committed, aspirational, and learning.
- Committed OKRs: These are commitments that are expected to be fully achieved by the end of the cycle.
- Aspirational OKRs: Also known as stretch goals or “moonshots,” these are ambitious goals that may not be fully achievable but drive significant progress.
- Learning OKRs: These are used when the primary goal is to learn something new and gain insights that can inform future objectives.
Objectives can also be set from a top-down or bottom-up perspective. Top-down OKRs are set by leadership and cascaded down, while bottom-up OKRs originate from employees, fostering creativity and ownership.
The F.A.C.T.S. of OKRs: Key Benefits
John Doerr emphasizes the F.A.C.T.S. when discussing the benefits of OKRs:
- Focus: OKRs help teams concentrate on a small set of carefully selected priorities.
- Alignment: They align goals across the organization with top-level priorities and the overall mission.
- Commitment: OKRs foster a collective commitment to agreed-upon priorities.
- Tracking: They enable teams to monitor progress and make adjustments as needed.
- Stretching: OKRs encourage teams to set ambitious goals and drive significant change.
Avoiding Common OKR Mistakes
Writing effective OKRs requires practice and iterative refinement. Common mistakes to avoid include:
- Setting too many objectives
- Creating vague or unmeasurable key results
- Failing to track progress regularly
- Not aligning OKRs with overall company goals
OKR Grading: Measuring Success
OKRs are graded at the end of each cycle to assess progress. Different grading methods exist, ranging from a simple “yes” or “no” to a more detailed percentage scale. Google uses a percentage scale (0.0 – 1.0) to score each Key Result, then averages the scores to determine the Objective’s overall score.
Conclusion
Understanding what is an objective is foundational to leveraging the power of the OKR framework. By setting clear, ambitious objectives and defining measurable key results, individuals, teams, and organizations can drive focus, alignment, and meaningful progress toward their goals. The OKR methodology provides a structured approach to goal setting, enabling organizations to achieve high levels of performance and impact.
