In this ultimate guide, I'll cover everything your need to implement OKR the right way in 7 simple steps.
Nailing your OKR Implementation will help you unlock growth sooner and have your team embrace it. Mess it up and they will be frustrated and disengaged. First, let's understand why OKR Implementations fail.
Why do OKR Implementations often fail?
It's pretty simple....
Too often, teams don't buy into OKRs. They don't see the benefits, they lack support, and they're left to struggle alone. Sometimes, the OKRs themselves are poorly defined, leading to frustration and disengagement. Even good OKRs can fail if not tracked and embedded properly. This leads to frameworks that people either ignore or resent.
What is OKR?
For the uninitiated, let's do a quick recap. OKR stands for Objectives and Key Results. It’s a goal-setting framework that originated at Intel in Silicon Valley. Andy Grove created it to help Intel outmanoeuvre competitors during a critical period. The OKR framework aligns teams and focuses their efforts on crushing their goals, a strategy that led Intel to success. You can harness this same power for your business.
The Seven Steps
1. Get your team bought in with a clear "Why" statement
The first step is getting clear on why you’re implementing OKRs. Ask yourself these questions:
- Why OKR?
- Why now?
- How will the team benefit?
If your team doesn’t understand how OKRs will help them, they won't be interested.
2. Choose Your Pilot Group
If you're a small startup, you might implement OKRs across the entire business. For larger organizations, start with one or two teams. This focused approach allows you to test and refine the process.
3. Appoint an OKR Champion
Each team should have an OKR Champion. This person ensures the team has the necessary support and resources. They facilitate workshops and tools and act as a liaison if issues arise. Having a champion in each team ensures everyone stays aligned and motivated.
4. Identify the Problem to Solve
Before setting OKRs, identify the most critical problem your team needs to solve. This should be a significant issue that, when addressed, will drive growth or efficiency. Focus on just one problem to maintain clarity and direction.
5. Set Your OKR
Setting your OKR is usually done during a 2 hour OKR Setting workshop. We have an in depth article on how to run an OKR workshop, however the key things you need to capture include:
- Objective: Define what you want to achieve.
- Why: Explain why this objective is important now.
- Key Results: Set 2-5 measurable metrics to track success. These should be leading indicators that you can influence within the quarter.
- Key Result Champions: Select an advocate for each Key Result to ensure the team maintain focus on it.
- Capture initiatives for each Key Result: List out the things you need to do to achieve the Key Results. These can be projects, actions and activities.
Remember, this is a team effort, not something dictated by managers.
6. Track Weekly
Track your OKRs weekly to maintain momentum and accountability. Again, we have a deeper explanation and templates on our OKR Check in and Tracking article. In short, during your weekly check-ins, discuss:
- Confidence scores for each key result
- Progress made over the past week
- Focus for the upcoming week
- Any blockers or support needed
This regular tracking ensures issues are addressed promptly, and progress is consistently monitored.
7. Reflect and Improve
At the end of the quarter, score your key results and conduct a retrospective. Discuss what worked, what didn’t, and how the process can be improved. Set the expectation that the first OKR cycle won’t be perfect, but each iteration will bring improvements.
Recap
- Start with why: Clarify the purpose and benefits.
- Choose pilot groups: Focus your initial efforts.
- Appoint champions: Ensure each team has a dedicated supporter.
- Identify problems: Focus on one critical issue.
- Set OKRs: Define clear objectives, key results, and initiatives.
- Track weekly: Maintain momentum and accountability.
- Reflect and improve: Continuously refine the process.
Getting help
Want to fast track the process and set yourself up for success if someone whose implemented OKR successfully with 1000's of businesses and teams?
Grab 15-minutes with me here and I can run you through how we do it to get results fast (and make it a load of fun).