OKR Best Practices
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This document provides best practices for setting OKRs (Objectives and Key Results). It recommends setting 3 qualitative objectives with quantifiable success measures, such as onboarding 20 new customers or reducing costs by 2%. OKR progress should be tracked on a scale of 0-100%, with 70% achievement considered good. Objectives and key results should be limited to 3 per objective. OKRs should be planned monthly or quarterly with the end state in mind and aligned across teams and the organization's overall goals. Transparency and accountability are important - objectives should be visible to all and each team is responsible for their key results.
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- 2. Set qualitative objectives & quantifiable success measures Examples: • Onboard 20 new customers by the end of Q4 • Reduce operational cost by 2% by the end of Q4 • Improve developer productivity by 2% by the end of Q4et 20 new customers by the end of Q4
- 3. Stay focused & keep the OKRs limited to 3 OKRs – 3 high level objectives Under each objective 3 key results
- 4. OKR progress Track OKR progress wrto % (0~100%) The approach 70% achievement considered to be good & keep investing in it < 30% means evaluate - pivot your direction or chose to do something different for next quarter
- 5. OKR Planning • Follow monthly or quarterly OKR planning keeping the end state in mind.
- 6. OKRs Alignment • Ensure OKRs are aligned to overall goal of the organization and complementary to the subsystems & partnering teams.
- 7. Transparency • Transparency makes objectives visible across all levels and shows everyone how they align with the rest of their org and motivates each other to accomplish org level objectives.
- 8. Accountability Senior management is responsible for the organization’s objectives and key results. Each team is responsible for the key results of each objective they’ve been given. Hold each team accountable for achieving their objectives. Retrospect to learn & improve continuously.