It is a management methodology that helps to ensure that the company focuses efforts on the same important issues throughout the organization. This goal-setting framework is used by Google, Airbnb, LinkedIn, and many other successful companies.

Objective: a short, inspirational, and achievable statement that describes WHAT you want to achieve. Objectives are a “vaccine against fuzzy thinking and fuzzy execution.”

Key Results: succinct, specific, and measurable actions that map out HOW you will achieve your Objectives. KRs are aggressive but realistic.

OKRs surface your primary goals. They channel efforts and coordination. They link diverse operations, lending purpose and unity to the entire organization.

OKRs help your organization prioritize the highest impact initiatives. They also align people across your entire organization, which creates unity despite people working on very different parts of the business.

Goals may cause systematic problems in organizations due to narrowed focus, unethical behaviour, increased risk-taking, decreased cooperation and decreased motivation.

The wrong goals can be detrimental to an organization. The OKR process helps you set the right goals, but it must be used carefully. Sending people in the wrong direction or incentivizing the wrong behaviour through goals can be wildly harmful to an organization.

OKRs are a shared language for execution. They clarify expectations: What do we need to get done (and fast), and who’s working on it? They keep employees aligned, vertically and horizontally.

OKRs unify the organization with a shared language and clarity about expectations.

Leaders must get across the why as well as the what. Their people need more than milestones for motivation. They are thirsting for meaning, to understand how their goals relate to the mission. And the process can’t stop with unveiling top-line OKRs at a quarterly all-hands meeting. 

People want to find meaning in their work. They want to know how their hours contribute directly to the mission of the organization. It’s the responsibility of the leader to explain why certain goals have been set, and how individuals working on their goals are contributing to the overall vision.

People who choose their destination will own a deeper awareness of what it takes to get there.

Giving people a chance to contribute to setting OKRs within their functions can help increase buy-in, give a sense of ownership, and help them understand what it takes to achieve the goals. Leaders need to find the right balance between bottom-up and top-down goal-setting when using OKRs.

A manager’s first role is the personal one. It’s the relationship with people, the development of mutual confidence, and the creation of a community.

Not everything that can be counted counts, and not everything that counts can be counted.

Outside of setting the right goals and getting buy-in from their teams, managers need to focus on relationships. They need to make sure their people are developing and happy with their path.

OKRs need to include a healthy and continuous performance management system. This can be done with the CFR framework.

Conversations: an authentic, richly textured exchange between manager and contributor, aimed at driving performance.

Feedback: bidirectional or networked communication among peers to evaluate progress and guide future improvement.

Recognition: expressions of appreciation to deserving individuals for contributions of all

CFRs help promote transparency, accountability, empowerment, and teamwork.

Feedback helps people understand how others perceive them and their work. It’s naturally opinion-based but is often grounded in the experiences we have with colleagues.

Managers need to learn how to give constructive feedback to their employees in a way that they can absorb and action that feedback.