OKRs Essentials Cheat Sheet

OKR OKR Structure Simplified WHERE Strategic Goals These are your broad, long-term strategic direction. WHAT Strategic Goals ESSENTIALS CHEAT SHEET Annual Company-wide Objective Long-Term Focus A short, one-sentence phrase. Has impact—states what you need to achieve & why. Starts with a verb. Annual in nature. Created by the Executive Team What is an OKR? OKR O O Company-wide Objective Company-wide Objective HOW Key Results/Department Objectives Starts with a verb. Created by Department VPs, Refined by the Executive Team Objectives are annual organization-wide goals with tangible, unambitguous outcomes. The successful achievement of an objective must KR KR Key Result Becomes Department O Key Result Becomes Department O KR Are Metric results: annual metric with quarterly target. Key Result Created by Individuals Aligned to Department Objectives Individual Key Results Starts with a verb. Key Results Key Results are the “hows” an 5 OKR Tips KR KR Individual Key Result Individual Key Result KR The Rule of 3-ish No more than 3-5 “areas of focus” per team and per person. Anymore becomes difficult to manage. Quarterly results as a metric or deliverable. Created by individuals. Individual Key Result #Aspirational: stretch KR to create the future. OR #Committed: realistic KR that is achievable. Executive Team The Quarterly OKR Cycle Directors/Managers Individual Team Members Inspire, Align, Empower. Focus on inspiring language to empower & align. OR Are Effort results: initiative with quarterly milestone. Becomes Department O HOW provide clear value for the organization. Objective will be achieved. KRs are the inputs or deliverables to achieve the output (Objective). KRs describe deliverables or results, not activities. Championed by a manager or director. KPIs can be identified. OKR stands for Objective and Key Results. Create Company OKRs + Q1 Focus Create Department Os KPIs are Special KRs Create Q1 Individual KRs Individual Progress Check-in 1:1 Review or Team Review Monthly Metric Review Report Q1 Results & Create Q2 OKRs 1:1 Review or Team Review Quarterly Review & Refresh + Q2 Focus KPIs are key metrics to deliver against our revenue or profitability targets and should be someone’s KRs. Jettison Business as Usual 1st Friday 2 nd Wed. 2nd Friday OKRs create transformational results. Resist OKRs that list core job duties. Top Down, Bottom Up Set Company-wide OKRs and Department Os as an executive team. Ask staff to set their Key Results to support any Objective. Last Week of December Q1 - January, February, March First Week of April Review KPIs Weekly Review KRs Monthly Review & Refresh Quarterly Reviewing KPIs weekly keeps everything in tfocus. Review individual KRs during monthly 1:1s. Refreshing department & individual KRs quarterly creates agility. 1 Set Up Your Aligned Company-wide OKRs 3 Have Your Staff Create Aligned KRs The first step is to set the Company-wide Objectives and identify the 3 to 5 The final step is to have individuals create quarterly Key Results aligned to high priority annual goals. Objectives should align to Strategic Goals. Department Objectives (Organization-wide Key Results). Pro Tips on Developing Key Results: Team members should create their own Key Results and align them to the Department Objectives. Individual Key Results should be annual with Note: there are likely more than 3 company-wide Os. quarterly targets, or quarterly deliverables. In either How: Provide everyone a worksheet with Department Os to add 3 KRs. case, individual Key Results have quarterly focus How: Planning workshops that generate Objectives OR Set up Mural posters with Os at the top and everyone adds their KRs. and targets. Who: Executive Team OR Do it in the OnStrategy app. Identify which are #aspirational, meaning it’s a Where: In Mural or OnStrategy app. Planning Points: Identify company objectives from your high priorities, stretch result and creates the future. The remaining Who: Staff members are #committed, meaning they are realistic and including the “must delivers” for the first or second half of the year. No more Where: In Mural or OnStrategy app. achievable. than 3 to 5. Questions to identify your Objectives: Planning Points: KRs are annual with quarterly targets or quarterly Start each KR with an action verb and continue the deliverables. Identify which are #aspirational. The remaining KRs are sentence with a description of what will be #committed. delivered with evidence of completion. • What do we want to achieve? What must we achieve? • If others read the objective, will it inform their choices? 2 Set Company-wide KRs (Department Os) The second step is to set the Company-wide Key Results. These Company-wide Key Results are also the Department Objectives. Example OKR Stacks WHAT WHAT Example Objective #1: Improve our sales performance across the whole team. Example Objective #2: Support the sales team by bringing in as many qualified leads as possible. Pro Tip: We recommend the Otrganization-wide Key Results are the Department Objectives—it’s just easier. HOW Who: Executive Team How: VPs or Directors populate Key Results after the Org-wide Os are HOW Key Result (Department Objective): Maintain a sales Key Result (Department Objective): Produce 3 new pipeline of qualified leads valued at least $500K quarterly. case studies targeting new customer segments.t. created. Refine them with the whole Executive Team to gain alignment. Where: In Mural or OnStrategy app. HOW HOW Planning Points: Company-wide KRs are Department Os. KRs are Individual Key Result: Increase close rate Individual Key Result: Revise the standard sales annual with quarterly targets or quarterly deliverables. Identify which from 22% to 27% this quarter. deck and talk track to reflect updated products. are #aspirational. All the rest are #committed. Pro Tips on Developing Key Results HOW HOW KRs are the inputs to achieve the output, meaning Key Results are Individual Key Result: Increase scheduled calls Individual Key Result: Double webform how you’ll achieve an Objective. per sales rep from 3 per week to 6 per week. leads on case study pages this quarter. A good KR describes a deliverable or a result, not activities. If your KRs include words like "maintain," "strive," "continue to," or "participate" these are activities. Start each KR with an action verb and continue the sentence with a description of what will be delivered with evidence of completion. HOW HOW Individual Key Result: Grow average deal Individual Key Result: Host 2 sales training size from $10K to $12K. sessions with our sales team this quarter.