The Power of OKR Goal-Setting

by Lawrence Walsh | Oct 10, 2024

time icon 6 mins

Setting goals is easy. Setting the right goals – the kind that *actually* move your business forward—is harder. That’s where OKRs (Objectives and Key Results) and OKR Goal-setting comes in. This proven framework helps you cut through the noise, focus on what matters most, and track progress.

With OKRs, teams stay aligned, motivated, and clear on how their work contributes to the entire organisation. In this blog, we explain exactly how to set OKRs that turn ambitious goals into results.

Key Takeaways

  • OKRs (Objectives and Key Results) help teams focus on what really matters, driving progress toward the company’s biggest goals.
  • Objectives set clear, ambitious targets that push your organisation forward, while Key Results break those objectives into measurable steps.
  • Regular reviews are essential for keeping teams aligned so that OKRs stay relevant as business priorities evolve.
  • Leadership plays a crucial role in making OKRs work.
  • By embracing OKRs, your business gains a framework for long-term success, helping teams stay focused, motivated, and aligned with the company’s mission.

A quick recap on OKRs

At the heart of the OKR methodology are two essential components: Objectives and Key Results. Together, they create a simple but powerful way to align teams and measure progress.

Team in OKR Setting meeting

Objectives

An objective is a clear, inspiring goal that sets a specific direction for the business or team. It’s the what – what you’re trying to achieve. Objectives are ambitious goals meant to push the organisation to reach higher, but they should still be realistic enough to remain achievable.

Think of objectives as the big picture: they’re qualitative, focused on direction and impact rather than numbers. For example, an objective might be “Become the industry leader in customer experience” or “Launch a new product that redefines the market.” The aim is to inspire action and clarify the desired outcome.

Key Results

Key results, on the other hand, are all about measuring progress toward that objective. They are the how – how you’ll know if you’re succeeding. Each objective should have 3-5 measurable outcomes that define success in a specific, quantifiable way. These outcomes must be clear and trackable, leaving no room for ambiguity.

Unlike objectives, key results are always numeric or binary. For example, if your objective is to “Improve customer satisfaction,” your measurable goals might include:

  • “Increase Net Promoter Score by 20 points.”
  • “Achieve a 95% customer satisfaction rating.”
  • “Reduce customer support response time to under 2 hours.”

Key results provide the milestones on the road to success, making it easy to track progress toward achieving the objective. If your objective is the destination, your key results are the signposts along the way. You can also set stretch goals to challenge teams further, aiming for results that require extra effort but can deliver exponential returns.

By linking big, bold objectives to concrete, measurable outcomes, OKRs give businesses a clear roadmap for driving focus, alignment, and progress. You can also measure key performance indicators (KPIs) to keep your company on track.

Your Step-by-Step Guide to OKR Goal-Setting

  1. Start with the Big Picture
    Before diving into specific objectives, align your team around the company’s main mission and vision. This creates a North Star that will guide all your team OKRs. What does success look like for the company this year? The answer should drive your objectives.
  2. Set Ambitious, Yet Achievable Objectives
    Objectives should be ambitious goals that challenge the team to think big, but they should also remain realistic. Strike a balance to motivate the team while avoiding discouragement from unattainable goals.
  3. Define Measurable Key Results
    Once your objective is set, define key results in the form of measurable goals. These key results should be specific and quantifiable, helping you to track OKR progress effectively.
  4. Prioritise Alignment Across the Business
    Make sure that all teams are aligned with the company’s OKRs. This helps foster collaboration and ensures that everyone is contributing to the desired outcome.
  5. Review and Adjust Regularly
    OKRs are not static – they need to be regularly reviewed and adjusted based on business needs. Tracking your OKR progress allows for better flexibility and long-term success.
  6. Celebrate Wins and Learn from Failures
    Whether you hit your stretch goals or fall short, the OKR process provides invaluable insights that allow you to refine your strategy and keep improving. Use OKR examples from past successes or lessons to guide future goal-setting cycles.
  7. Introduce an OKR coach
    Ensuring continued success and development within your business, but also within your teams can be managed with an OKR coach. Keep the positive and motivated momentum by introducing OKR training to your in house coaches

The OKR Cycle

The strength of the OKR framework lies not only in setting OKRs but also in how they are managed throughout the OKR cycle. Once the OKR goal-setting process is complete, it’s essential to establish a consistent rhythm for tracking progress. This helps keep teams aligned and motivated as they work toward their business goals.

Key results check-in

A key part of the OKR planning process is regularly reviewing each key result to assess performance and make any necessary adjustments. By monitoring measurable results, teams can make real-time decisions that keep them on track to completing business goals. Using team-specific OKR examples can also provide clarity and direction, helping teams see how their work contributes to the bigger picture.

Common Mistakes to Avoid

Setting OKRs can feel straightforward, but making them work effectively is where businesses often stumble. One common issue? Too many OKRs. Overloading teams with numerous objectives dilutes focus and makes it harder to see real progress. Stick to 3-5 OKRs per cycle – enough to drive results, but not so many that teams feel overwhelmed.

Another pitfall is confusing tasks with key results. Tasks are actions, but key results are measurable outcomes that show real progress. Regular check-ins often get overlooked too, which can lead to misalignment. Frequent reviews keep everyone on the same page and give teams a chance to adjust if priorities shift.

Finally, while it’s important to set bold objectives, they need to be achievable. Aim for a balance – ambitious enough to inspire, but realistic enough to avoid frustration.

The Role of Leadership in OKRs

OKRs aren’t just for teams – they’re driven from the top. When leadership is involved from the start, it sends a clear message: OKRs matter. By setting OKRs that align with the company’s biggest priorities, leaders help teams stay focused on what will move the needle.

Leadership also plays a key role in creating transparency. When OKRs are visible across the entire organisation, they champion accountability and collaboration. Regular check-ins led by leadership ensure teams stay aligned, and adjustments are made when needed to keep objectives relevant and achievable.

How to Adapt OKRs in a Changing Business Environment

Business moves fast, and OKRs need to move with it. The best OKRs are flexible, allowing teams to pivot when priorities shift. Reviewing OKRs quarterly is a smart way to stay responsive to changing market conditions or new business opportunities.

If circumstances change, don’t hesitate to adjust your OKRs. Flexibility helps your team stay focused on the most relevant objectives without losing sight of long-term goals. The key? Regular reviews, open communication, and a willingness to adapt when needed – keeping your OKRs aligned with your current business reality.

Why OKR Goal-setting Works

OKRs are powerful because they focus on outcomes, not tasks. Instead of getting bogged down by day-to-day operations, teams stay focused on what truly matters – driving results. This method empowers everyone in the company, from executives to front-line staff, to align their work with the entire organisation’s mission.

By embracing OKR goal-setting, your business gains clarity, transparency, and a framework for sustainable growth. When executed well, OKRs become the backbone of your strategy, so your team can focus on the right things and succeed together.

Why Choose There Be Giants?

At There Be Giants, we don’t just help you with creating OKRs – we help you embed them into your business for long-term success. With our proven expertise and hands-on approach, we guide you through every step of the OKR process, so your goals are aligned, measurable, and truly impactful. 

Whether you’re just starting with OKRs or looking to refine your strategy, our team of experts is here to help you unlock your full potential. Learn more about our approach to OKRs here.