The Beginner’s Guide to OKR
Objectives and Key Results
There are several OKR guides available. However, they lack the solid foundations that will allow you to start from scratch and successfully implement OKR.
This guide was written for first-time OKR users, but many long-time OKR users find it useful as well. Many of them lack the necessary concepts to succeed with OKR.
My recommendation is that you read this guide from beginning to end, as each section builds on the previous ones. Reading it from beginning to end will help you understand how the various OKR building blocks fit together and why great companies like Google, Spotify, Twitter, Airbnb, and LinkedIn have successfully adopted OKR.
What exactly is OKR?
OKR (Objectives and Key Results) is a goal-setting system popularised by Google and other businesses. It is a straightforward method for achieving alignment and engagement around measurable and ambitious goals.
What's the big difference between traditional planning methods? OKRs are set, tracked, and re-evaluated on a regular basis – usually quarterly. OKR is a straightforward, fast-paced process that taps into each team's unique perspective and creativity.
OKR exists to create alignment and to establish the organization's cadence. The goal is to ensure that everyone is heading in the same direction, with clear priorities, and in a steady rhythm.
The idea for OKR originated with Intel and spread to other Silicon Valley companies.
OKR was first used by Google in 1999, during its first year of operation. It aided Google's expansion from 40 employees to over 60,000 today.
OKR is used by companies other than Google, such as Spotify, Twitter, LinkedIn, and Airbnb.
However, OKR is not limited to digital businesses. OKR is also used by Walmart, Target, The Guardian, Dun and Bradstreet, and ING Bank.
Table of contents in The Beginner’s Guide to OKR
- What is OKR?
- What are the benefits of using OKR?
- Strategic vs. Tactical OKRs: Nested Cadences
- OKRs do not Cascade
- Success criteria and types of Key Results
- How ambitious should your OKRs be?
- Creating Alignment
- Tracking Results with the Weekly Check-in
- A Typical OKR Cycle
- Why you should separate OKR and compensation
- Common OKR mistakes
- What's Next?