How to Write Winning OKRs in 2024: A Step-by-Step Guide

Imagine working in a company or a team where everyone has a shared vision and is working towards this vision. That is exactly what OKRs are about: unifying all team members with the help of one or more common goals. It is about creating some momentum in your business.

Good coworkers are still the most valuable resource in business.

But that’s not all. Additionally, an OKR will define key metrics that enable you to track your progress and shift your strategy if needed.

Over 5 out of 6 companies believe that writing OKRs has helped and improved the company overall.

It is a simple yet powerful tool that can take your company to the next level. If you are eager to learn to write winning OKRs, then you are in the right place. In this article, we dive deep into the world of OKRs: what they are, how they work, and how you can write your own OKRs and create a team spirit where everyone pulls in the same direction.

What Are OKRs and Why Do They Matter?

First and foremost, what does OKR stand for? The acronym stands for objectives and key results. It is a goal-setting framework used to define and track organizational goals.

An Objective is a clear, ambitious aim that inspires the team. Key Results are specific, measurable outcomes that show progress toward the Objective.

For example, an Objective might be “Boost customer satisfaction,” with Key Results like “Increase NPS score by 15 points” or “Reduce customer support response time to under 2 hours.”

OKRs help teams focus on what’s most important, align efforts across the organization, and measure success. They’re not a to-do list, but rather a tool to drive meaningful progress and keep everyone moving in the same direction.

The concept dates back to the 1970s, when Andy Grove developed the process at Intel—yes, that Intel the computer chip company. Google later popularized OKRs, and now everyone is trying to implement them.

Why? Because the simple framework is inanely effective.

There were many studies conducted on the use of OKR’s and some of the key benefits were improved transparency, team engagement, and performance.

Everyone knows that there is power in having a personal vision for your future. The same is true for your company or team. If you are able to create a unified vision and everyone is working towards that vision, you are going to be way more effective as a whole. If you then add some key results that act as measurement points for progress, you are going to be unstoppable.

In my experience, when done right, OKRs can light a fire under your entire organization. They align teams like nothing else. If you study some of the best company leaders worldwide it is exactly what they are doing. They create a vision and implement measurements, often with consequences attached when those are not met.

Then suddenly, everyone’s rowing in the same direction, and you’re zipping across the lake while other boats are going in circles. Plus, they foster this amazing sense of transparency and accountability.

Even though the concept seems simple, it is difficult to master. Creating a unified vision takes training, and you will probably mess up a few times. Even the best fail at times.

OKRs are a tool, not a magic wand. They won’t fix a broken company culture or turn a lazy team into superstars overnight. But if you’re willing to put in the work, learn from your mistakes, and work together, OKRs can be the catalyst that takes your organization from good to great.

Still, we can learn from each other’s mistakes. I have prepared a guide here that pushes you forward on your OKR learning curve so that you can use the power of OKRs as quickly as possible.

The Structure of a Winning OKR

Before diving into a step-by-step process on how to write OKRs, let’s discuss some key elements of an OKR and how they are structured.

First up, Objectives. These need to be clear, concise, and inspiring. If you don’t set a crystal-clear objective, your team will not exactly know what to do, and your outcome will be way worse. A good objective where everyone is on board creates motivation for everyone to work on and make progress on the project.

For example, instead of a vague need like “Improve customer service,” try something like “Create a customer experience so amazing, that every single customer is happy with their treatment” See the difference? It’s specific, it’s exciting, and it gives your team a clear vision to work towards.

Now, onto Key Results. These are where the rubber meets the road. Your Key Results need to be measurable. For example, if you set a Key Result to “make customers happier,” yeah, good luck measuring that!

Instead, think about concrete metrics that show real progress. Want to boost customer satisfaction? How about “Increase our Net Promoter Score from 30 to 50” or “Reduce customer support response time from 24 hours to 4 hours”? These are specific, they’re measurable, and they clearly show whether you’re achieving your Objective or not.

But here’s point, your Objectives and Key Result need to match perfectly. If your Key Results don’t directly contribute to your Objective, you’re barking up the wrong tree. This is a tricky part of the progress, and maybe you need to reconsider both your results and objectives to align them perfectly.

Let me give you a couple of examples to really drive this home. Say you’re in marketing (marketing is an easy example). Your OKR might look something like this:

Objective:

Establish our brand as the go-to thought leader in our industry.

Key Results:

1. Publish 12 in-depth, original research reports

2. Increase website traffic from organic search by 50%

3. Achieve 100,000 newsletter subscribers

See how those Key Results all directly contribute to the Objective? That’s what you’re aiming for.

Or maybe you’re in HR (human resources). Here’s what your OKR could look like:

Objective:

Create a workplace culture that attracts and retains top talent.

Key Results:

1. Increase employee Net Promoter Score from 20 to 40

2. Reduce voluntary turnover rate from 15% to 8%

3. Implement and achieve 90% participation in a new professional development program.

Each of these Key Results is measurable and directly supports the Objective of improving workplace culture.

Writing great OKRs is a skill, and like any skill, it takes practice. Don’t expect to nail it on your first try. The key is to get better each time, and you don’t have to do it on your own. OKRs usually are most effective when you work them out as a team.

How to write OKRs, step-by-step guide

We’re about to embark on an OKR-writing adventure. OKRs are no magic if you follow this step by step guide you will soon be ready to write your first OKRs or simply improve your writing process.

Step 1: Current status

First things first, you’ve gotta know where you stand. It’s like trying to use Google Maps without a starting point – you’ll end up lost in the middle of nowhere. Take a good, hard look at your business or your team. What’s working? What’s not? Where are you headed right now?

I have found it to be helpful to be quite harsh here. Be real about what you want to change; the worse it sounds, the more you are going to change.

Once you know where you are, it is time to define where you want to go:

Step 2: Defining Objectives

Dream big, but keep it real.

Now it’s time to brainstorm those Objectives. This is where you get to channel your inner visionary.

I like to first write down all I want to achieve and then sort it out.

Objectives need to be ambitious, but not so out there that your team thinks you’ve lost your marbles. It is about finding a balance between inspiration and difficulty.

It makes little sense to set an Objective to “Become the number one company in our industry worldwide” when you are a small local business. Be realistic, think in terms of the next few years.

Step 3: Comming up with measurable Key Results

For each of the outcomes (objectives) you choose you want to come up with at least one Key Result. Most likely you need more than one result to measure progress towards one objective.

Again, get specific with your Key Results. You want numbers, percentages, and objectively measurable factors that show you that you are on the right way and moving in the right direction.

Here are a few examples from different business areas:

• Acquire 1000 new customers in the enterprise segment

• Reduce reported bugs in production by 75%

• Improve user-reported ease-of-use score from 7 to 9 out of 10

• Increase employee productivity by 20% as measured by output per hour

• Increase total annual donations from $500K to $750K

• Increase social media followers from 10,000 to 50,000 across all platforms

Step 4: Clarify and reevaluate your OKRs

This is a crucial step that many of you will skip.

I know it, when you have just been through a goal setting process and you are quite happy with your outcome, you don’t really want to start all over again.

However, your OKRs are often not perfect after the first try. Now, it is time to look at your objectives and key results and see if you may improve them.

First, reevaluate how difficult or ambitious your OKRs are.

Find the perfect zone. Your OKRs should be just right – ambitious enough to make you stretch but not so crazy that they demoralize your team. They’re probably not ambitious enough if you’re not a little nervous about your OKRs. But if they’re making you break out in a cold sweat, you might need to dial it back a notch.

Second, look if you can make your OKRs even more clear.

If you are unsure, here is a simple formula for how you can rewrite your outcomes and key results for better clarity.

PS. I deliberately share these steps only here because, in steps 2 and 3, I want you to be creative and not think too much about this framework or clarity. Those steps are about setting a vision and defining outcomes. Only once we have this we should focus on improved clarity.

Objective: We will [action verb] [description] [end result]

Key Result 1: Increase/Decrease [metric] from X to Y by [date]

Key Result 2: Achieve [specific outcome] by [date]

Key Result 3: Implement/Launch [new initiative] resulting in [measurable impact]

For example

• Objective: We will revolutionize our customer support to create a customer base of raving fans.

• KR1: Decrease average response time from 24 hours to 2 hours by Q3

• KR2: Achieve a Net Promoter Score of 70 or higher, placing us in the top 10% of our industry by year-end

• KR3: Implement 24/7 live chat support, resulting in a 30% reduction in support tickets by Q4

See how specific and measurable these are. That’s what you’re aiming for.

The key is to keep iterating. After each OKR cycle, take a step back and assess. What worked? What didn’t? Where did you overshoot? Where did you undershoot? Use those insights to write even better OKRs next time.

And as I have said before, involve your team in the process. OKRs shouldn’t be handed down from on high like the Ten Commandments.

Imagine if you would be more motivated if your boss just stood there and told you his vision or if you could actively participate in creating a vision with key elements.

Obviously, you should have a plan where you want to go and then lead your team in this. But let them come up with their own ideas, hear them, and implement the good ones. Ask each team member for their opinion so they all feel heard.

If you master this process, you can create a team that is literally unstoppable.

Here you have it: your step-by-step guide to writing winning OKRs. It is no rocket science. As you have seen, it is a simple yet powerful process to create a team that generates incredible results.

Common Pitfalls to Avoid When Writing OKRs

To wrap this up, let’s look at some common mistakes and slip-ups that can happen when you try to write effective OKRs. After all, we want to learn from others mistakes and do not repeat them.

1. To many OKRs

First up: More is not always better. OKRs, aren’t a to-do list. They’re about focus. Stick to 3-5 objectives max, with 3-5 key results each.

You want your team to have a clear, compelling vision for each outcome. The fewer outcomes you create, the easier it is for your team to keep them all vividly in their minds. Ask yourself how you bring your business forward with as few outcomes and results as possible.

2. Vague OKRs

I have said it before, and I am going to mention it one last time. Do not set vague results or objectives. Everybody needs to be on board, the simpler and clearer you can make them the better is it.

Simiplicity always wins.

3. Using OKRs like a KPIs

Next, do not confuse OKRs with tasks or KPIs (Key Performance Indicators). OKRs are not your daily to-do list, and they’re not just another set of metrics to track. They’re ambitious goals that push your team to achieve great things.

Don’t be there every day and measure the progress. Trust in the process and the vision. Trust in your team. The key idea of an OKR is to empower your team, not to create a new way of supervision.

4. Failing to implement the company strategy

Another mistake is that you get so caught up in writing good OKRs that you fail to align them with the company strategy.

This can happen, especially when you work with your team.

Always keep your company strategy in mind. A good idea here is to first create a long-term vision for the company that aligns perfectly with the strategy. Then, keeping this vision in mind, you can start to write great works.

5. Doing it all alone

The collective intelligence of your team is always better than you alone.

A great leader is one who can lead a team to create OKRs that align with their interests, strengths, and the company strategy. Not the one who tells everyone what to do.

I know that you, as the leader, have amazing ideas and plans, and now you have to ask yourself:” How can I structure the team meeting so that they come up with similar objectives and results?”

What question do you have to ask your team? What inputs do you have to come from you, and where are you open to changes?

If you have clear answers to those questions, you are ready to have a transformational team session.

So, as you sit down to write your OKRs, keep these pitfalls in mind. Focus on what really matters, make it measurable, align with your strategy, and get your team involved. Do that, and you’ll be well on your

Conclusion

There you have it – your roadmap to writing winning OKRs that will revolutionize your goal-setting process!

Crafting effective OKRs is both an art and a science. It takes practice, iteration, and a willingness to learn from both successes and setbacks.

By following the steps and best practices outlined in this guide, you’ll be well on your way to creating OKRs that inspire your team, drive meaningful progress, and propel your organization to new heights.

So, what are you waiting for? It’s time to put pen to paper. If you have decided that you want to start or level up your OKR journey. Then, I urge you to do something right away that sets you up for success. Start brainstorming, plan a first OKR, or maybe schedule a team meeting.

Whatever it is, start it right away while you are in state.

FAQ

What’s the difference between OKRs and KPIs?

OKR stands for Objectives and Key Results, while KPI stands for Key Performance Indicator. Both are similar, but KPIs track ongoing performance, while OKRs drive change and innovation.

OKRs are ambitious goals set for a specific period, often pushing beyond “business as usual.” KPIs, on the other hand, are regular metrics you always monitor to ensure smooth operations.

How many OKRs should a team have?

Aim for 3-5 Objectives per team, with 3-5 Key Results each.

Quality trumps quantity. Too many OKRs can lead to a lack of focus and overwhelm your team. Remember, OKRs are about prioritizing what’s most important, not creating a to-do list.

How do I write measurable Key Results?

Use specific numbers and deadlines.

Instead of “improve customer satisfaction,” try “increase Net Promoter Score from 30 to 50 by Q4.” Think in terms of quantities, percentages, or ratios.

Always ask: “How will we know if we’ve achieved this outcome?”