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How to write correctly OKRs and avoid the most dangerous errors

 

How to write correctly OKRs is the argument that we will elaborate today. If you followed me along my path, starting with the in-depth guide on OKR what they are, you will know that OKR is the acronym for Objective and Key Results, otherwise translated as “Objectives and Key Results”.

Why am I going back to talking about what are OKRs? For two reasons: I would like to continue the discussion we started together and, above all, it intrigues me to understand why an OKR methodology is successful.

And the successful OKR method is receiving an ever-increasing amount of it, since it is considered by large companies and major organizations as an effective tool for defining the strategy, through a very linear process:

  • Direction = Definition of the goal and direction to follow
  • Milestones = useful milestones to measure progress vs direction set
  • Communication = clear and shared communication of what you want to achieve.

The OKR method is used collaboratively by teams to define ambitious goals, to be pursued through measurable results.

okr method

When the organization (division, department, or team) sets goals, even very challenging ones, by setting agreed and measurable milestones, it pushes the people involved to keep the focus on priorities, channeling the energies on the aspiration for great results.

Conversely, wrong OKRs can threaten business strategy by setting an imprecise direction, measured by irrelevant metrics. Resulting in a waste of time and money.

Here we are: are there wrong OKRs? Yup! It is the ones just described that can pose a danger to the strategy. For this reason, in this article I will focus on how to correctly write Objective and Key Results, taking a cue from successful examples and highlighting the OKR errors to avoid.

 

OKR what are they and why do the people like them?

 

Bold goals, measurable key results, sharing the work plan, and, in the case of ambitious and long-term goals, even the vision.

Here are the ingredients of the success of OKRs: a methodology that puts people, teams, and organizations in the right conditions to visualize the objectives and articulate measurable intermediate results, in a functional mutual alignment thanks to linear and transparent communication.

Doesn’t everything seem perfect to you? Maybe too much… And in fact, for the mechanism to work, it will be necessary not only to create OKRs tailored to the specific company and organization but also to know how to translate them well into practice.

To do this, it is advisable to understand how to write OKR correctly: in other words, we must learn to avoid mistakes that can be harmful to the company or organization.

The OKR examples to which I refer in the next chapters serve me on the one hand as an authority (see OKR Google) and on the other hand they are useful to avoid errors that, in my experience as a Product Manager, I have seen repeated too often: unclear objectives o low business value, unmeasurable key results, measurable and useful but not sufficient key results, team misalignment and others that I will detail in the next chapter.

 

How to correctly write OKR according to Google

 

To give authority and substance to what I write, I make use, as mentioned, of my experience in the field (I will have the opportunity in one of the next articles to enter into the merits of real company OKRs) and on the other hand to the most illustrious theorist of Objectives and Key Results: John Doerr.

The legendary venture capitalist, in his bestseller “Measure What Matters” (# 1 in the New York Times chart), not only defined the OKRs as what they are but also clearly illustrated the most common spelling mistakes. On the latter I decided to focus to give the reader a way not to make such mistakes and, if necessary, to implement the necessary corrections, following the examples on how to correctly write objectives and results.

 

OKR Google structure

 

In the following table, I have summarized the characteristics of Google OKRs, as described by John Doerr.

  Objectives Key Results
What they are? What we try to achieve Steps towards achieving the goal
How they are? Priority and transparent for the entire organization (from the base to the CEO) Measurable over time and in quantity/quality

 

How to correctly write OKR: Ambitious vs Unrealistic

 

An ambitious goal is what is asked of the OKR method, even if this characteristic increases the chances of failure. On the other hand, however, the danger is not that of failing because the goal is ambitious, but rather because it is considered unrealistic by the work teams. In this case, the team members could be disheartened and not change their priorities. The solution? Plan key results as measurable, concrete and time-bound as possible to restore the focus of the work teams in the direction of the set goal.

 

OKR “As Is” error

 

The goal is aimed at improving, including through critical steps. Too often goals are written thinking about the state of affairs and what can be obtained from it. Writing an OKR designed in this way does not change anything and therefore does not produce that value necessary to fuel growth and to positively impact the process.

 

How to correctly write OKR: “What’s the use?”

 

As mentioned, the goal is to produce business value. If not, it is not worthwhile to allocate any resources to it. If the objectives are of low value (LVO = Low-Value Objectives) their achievement is not useful and will not impact at any company level.

 

OKR error: “Not enough”

 

When we write a Goal + Key Results, a fairly frequent mistake is not to hit all the results, that is, we identify KR that is necessary, but not sufficient to lead us to the goal. After all, it is easier to be attracted to results that avoid difficult commitments in terms of the use of resources and level of risk. The danger that lies behind this trap is insidious because we risk noticing late both of which are the essential results for the goal, and the fact that this goal will not be completed in time.

What can be done? If the KR are satisfied, but not the final intent, it is advisable to rework the KR until their completion clearly indicates that the road to the final goal is right and will be successfully traveled on schedule.

 

How to write OKRs correctly? Let’s stretch!

 

I go back once again, very gladly, to John Doerr who in the book on OKR talks about “stretch goals”. In my opinion, one of the keys to how to correctly write Objective and Key Results is precisely this: to stretch the objectives just beyond the threshold of what is thinkable.

Let me explain and write the following OKR formula: “I aim to reach X. To do this I will measure the results of activities A, B, C to be completed within the time T1”.

How do I know if I’m stretching enough? Simple! I take into account that while I reach for the goal there is the possibility of a fall and that is why I aim for intermediate results that allow me to calibrate my effort and that give me the measure of the limit.

In any case, failure is part of the OKR mindset: when goals are stretched, already 60-70% of their completion is already a success.

“The harder the goal, the higher the level of performance. Although people with very difficult goals achieve them much less often than people with easier goals, they consistently behave at a higher level than others ”. (Edwin Locke)

 

okr stretch goals

 

How to correctly write O (=Objectives)

 

The formula for correctly writing the OKRs begins with the definition of the goal which, I remember, must be challenging (aka stimulating) and clear.

It will be the goal towards which the team is headed and each member of the organization must be able to interpret, understand and assimilate it. It will be a goad for everyone to give an extra mile to be able to reach it and large enough to allow room for maneuver.

When writing a goal, you focus on its quality, rather than the metrics. Those will come later. You are now imagining the route and it must be memorable and engaging.

 

How to correctly write KR (= Key Results)

 

The Key Results indicate the progression towards the goal and they do it in a quantitative and measurable way: “If it doesn’t have a number, it’s not a key result,” said former Google Vice President, Marissa Mayer.

In light of that enlightening premise, I close this guide on how to write OKRs correctly, with a list of tips on what not to do when setting up KRs.

  • No shopping list: result metrics are not equivalent to task and to-do initiatives.
  • No too much: each goal has a minimum of 2 and a maximum of 5 KR. If you exceed the limit, you risk that there are too many to monitor and control.
  • No misalignment: do not set up the KRs alone, but share them with the work teams exactly as the transparent communication of the OKR method requires.
  • No set and forget: imagining a goal and setting milestones without giving yourself any verification times and without regular follow-through is like equating O + KR with generic “good intentions” for the new year.

 

how to write OKRs correctly errors to avoid

In conclusion: how to write OKRs correctly?

 

Finding the formula to write performing and effective OKRs is a stimulating and challenging activity that requires the ability to look beyond the thinkable while focusing on the intermediate stages.

To get started right, I recommend that you ask yourself and the team the question “Why is this important?” relative to the objective (O) and to prefer numerical over binary ones as metrics (KR).

An aspect that should not be underestimated is the motivation for improvement through the definition of a “stretched goal” which contemplates the possibility of failure.

In the same way that you will learn from failure, so will you celebrate successes.

If you are looking for ideas for your Objective and Key Results, take a look at the article on OKR examples. To help you get started or for professional advice, do not hesitate to contact me.