{"id":9591,"date":"2021-08-27T01:01:41","date_gmt":"2021-08-27T06:01:41","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=9591"},"modified":"2021-11-24T10:50:51","modified_gmt":"2021-11-24T15:50:51","slug":"how-to-use-the-okr-framework-to-align-company-and-team-goals","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/how-to-use-the-okr-framework-to-align-company-and-team-goals\/","title":{"rendered":"How to Use the OKR Framework to Align Company and Team Goals"},"content":{"rendered":"

\"\"There are a number of popular goal setting frameworks used by companies. Popular ones include Balanced Scorecard<\/a> and SMART. One that is new for many but has actually been around for a long time and evolved from the MBO framework is Objectives and Key results or OKR<\/a>.<\/p>\n

The Basics of OKRs<\/h2>\n

OKRs have two elements to worry about as part of their format. An Objective and a group of Key Results that are designed to quantify the goal and measure its achievement. Here is an example of an OKR.<\/p>\n

Growth driven through amazing CX<\/b><\/p>\n

CSAT score increases from 72% to 80%<\/p>\n

Retention increases from 83% to 90%<\/p>\n

Achieve Sales Growth of 150%<\/p>\n

With a unifying top-level OKR this team can propose aligned or cascading OKRs that would support its achievement during the upcoming quarter in same format<\/p>\n

Common Challenges and Issues for New OKR Users<\/h2>\n

Although in principle OKRs are simple, they are designed to be both transparent and inclusive. This means that teams are perhaps not used to setting goals and even considering which measurements matter most will be asked to learn new skills.<\/p>\n

Common OKR challenges include:<\/p>\n