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How to apply the OKR methodology to define your business objectives
The OKR methodology allows for setting measurable goals so that the entire company sails in the same direction. We help you implement it.
Isabel García
HR Consultant
27 of February, 2025
More and more organizations are choosing to rely on key objectives and results in order to achieve their goals. Thanks to this methodology, measurable objectives can be set and the whole company will row in the same direction.
Unlike other models like SMART, the OKR methodology states both the goal and the action steps to achieve it. Giants like Google, Uber, Amazon, and Huawei choose to work with OKR, something any sized companies can do as long as they’re clear on how to apply the OKR methodology.
Before diving deep into the application of this methodology, it should be pointed out that there’s always a necessary adaptation period until workers get used to working with OKRs and the objective measurement criteria. This is especially the case when they’re first working with this methodology. Hence, a transition period can be provided where work teams get used to this work method.
During this time, the principles of the methodology can be started to be applied before gaining cruise speed.
Defining clear and specific objectives
One of the keys to this methodology being effective isthe definition of objectives. It needs to be as clear as possible. After all, the goal is to avoid complications. The more simple the formulation of the goal and the key results, it will become easier to comply with but it will also make monitoring job objectives easier. The team will have them clearly defined and move in a unique direction to achieve the goals. A confusing or abstract goal will generate doubts and could be counterproductive to productivity.
How to define OKRs
For this, knowing the company’s final objective is important. Indeed, defining objectives and key results begins with defining the main goal. Then the quarterly objectives should be identified, which are no more than three or four. These are the intermediate points to get to the goal. These aims are inspiring, as each aim will have its key result, defining the metrics and deadlines, the measurement of job objectives.Defining key actions for each result, what to do to achieve the result, is the final step. These are the tasks that each worker or department need to comply with.
Short-term goals
Even though the aim may be somewhat mid to long-term, work needs to be done in the short term, hence the OKR methodology works with goals and reasonably short deadlines. The fact of having quarterly or bimonthly goals ensures that the staff maintain a sense of urgency in pursuit of these aims. Working with goals longer than three months can lead to many teams or employees procrastinating. “There’s enough time to do it,” or “we’ll see in the future,” have no place in the OKR methodology. Brevity and effectiveness are essential.
OKRs should be public
Everyone should know the OKRs, so they should be made known in the company. It’s a gesture of transparency, but also to keep the staff motivated. The entire team can see how much progress is being made in achieving the objectives, which generates trust and commitment when it comes to complying with key objectives and results. However, it’s important to clarify that the goal is not to pressure the staff into achieving these objectives, but to keep them informed about the progress
Monitoring job objectives
The charm of OKRs is in the measurement of work objectives as a mechanism to know whether the goals are being met or not. This is why it is crucial that the monitoring of job objectives is continuous. There’s no need to wait until the end of the quarter to evaluate the metrics. If it can be done monthly, great; if it is every two weeks, even better; though ideally, it should be done every week. This will allow for the identification of issues or divergences, from objectives and timely take necessary actions.
How to apply the OKR methodology: errors to avoid
Knowing how to apply the OKR methodology in the company is as important as knowing the most common mistakes in it. Many times, failure in its application is related to issues that could have been avoided, so it’s important to keep in mind the most common mistakes in the OKR methodology:
- Impossible goals: we need to be ambitious when determining goals, but also realistic. The human capital or the company’s technical team must be taken into account, as well as the context in which the work is done. Unachievable objectives are useless.
- Not offering resources to the staff: if there’s technical capacity or if human teams can be managed better, it must be done. If resources are not taken full advantage of, the objectives will not be met.
- Results as actions: key results are just that, a measurable result, not an action.
- Not planning weekly: although everyone has long-term objectives, it is always interesting to plan week by week to make sure the plan is advancing correctly.
- Monitoring objectives on Fridays: Friday is the worst day to track job objectives. It’s always better to do it at the beginning of the week, as new tasks may arise from these meetings.
By following these guidelines, applying the OKR methodology will become much easier for any company. All data collected from the tracking of job objectives will be another tool to enhance internal processes and increase productivity.
The feedback from the employees should also be taken into account. They should help when establishing the different objectives of the company. The human resources software of Sesame could help the companies to achieve these objectives of the OKR methodology.
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