OKRs are quickly gaining traction as one of the most powerful and agile ways to maximize corporate performance. One of the main reasons is that the return on investment in terms of the value-to-effort ratio is extremely high. OKRs are nimble and straightforward to implement, and typically generate huge returns for adopters. To give a better sense of what an OKR looks like and how they work, there are links below to several OKR videos.
Here is a look at just a couple of generic OKR samples (one for the private sector, one for the not-for-profit sector):
Great OKRs always start with the overall strategy for archetype context. For optimal results, a strategy map can be used. To be considered best practice, an OKR initiative is usually comprised of these steps:
- Formulate the overall strategy (a strategy map is recommended);
- Decide on the general OKR structure (layers, teams, etc.);
- Create quarterly objectives (to answer “What do we want to accomplish?”);
- Create the appropriate set of key results for each objective (to answer “How will we know if we accomplished the objective?”);
- Compile a list of the key tasks and activities that need to be undertaken in order to be successful with each OKR;
- Verify vertical alignment; and,
- Verify horizontal alignment.
The benefits are numerous, and include (but are certainly not limited to):
- Superior formulation of strategy;
- Better execution of strategy;
- An excellent springboard to superior performance management;
- Improved communication of strategic efforts; all which lead to,
- Enhanced management credibility.
If you are interested in finding out more about OKRs, start right here.