How Google Sets Goals Using the OKR Framework

okr methodology google

Feeling overwhelmed with goal-setting and frustrated with the lack of clarity in your team’s objectives? 

We’ll unpack the basics of OKRs, explore Google’s unique approach to goal-setting, and compare OKRs to traditional planning methods. 

Learn about companies that achieve their goals with OKRs, the different types of OKRs, and common mistakes to avoid when crafting them.

okr methodology google

What are the basics of OKR methodology Google?

OKR is a goal-setting methodology that has gained popularity in various organizations for its effectiveness in aligning teams and driving performance. The “O” in OKR stands for Objectives, while the “KR” stands for Key Results.

Objectives are the qualitative and inspirational goals that an organization, team, or individual aims to achieve. They are meant to be ambitious, motivating, and provide a clear direction for everyone involved. Objectives answer the question, “What do we want to achieve?”

Key Results, on the other hand, are specific, measurable outcomes that indicate the achievement of the corresponding objective. 

They provide a quantifiable way to track progress and success. Key Results are the measurable milestones or targets that help determine whether the Objective has been met. They answer the question, “How will we know when we have achieved our objective?”

In practice, a set of Objectives and their corresponding Key Results is usually defined for a specific time frame, often quarterly or annually. Regular check-ins and updates are conducted to assess progress and make any necessary adjustments.

Example of OKR

Objective: Increase customer satisfaction

Key Results:

  • Achieve a Net Promoter Score (NPS) of 70 or above by the end of the quarter.
  • Reduce customer support response time to less than 24 hours on average.
  • Increase the number of positive customer reviews on online platforms by 20%.

What is Google’s approach to setting goals with OKRs?

Google’s approach to goal-setting with OKRs is known for its simplicity and wide participation. The company believes in a decentralized approach, where more than 50% of the objectives ideally come from individuals or smaller teams. 

This approach aims to inspire and empower employees at all levels, giving them a sense of ownership and responsibility. 

By involving individuals in the goal-setting process, Google OKR ensures that objectives not only align with the overall priorities of the organization but also incorporate diverse perspectives and insights from the workforce. 

This inclusive approach helps create a culture of engagement and motivation, as employees can directly see the impact of their contributions on the company’s overarching goals.

In summary, Google’s focus on individual input in the goal-setting process through OKRs highlights the significance of a bottom-up approach, where employees actively participate in shaping the organization’s direction and feel personally connected to the objectives they strive to accomplish.

Comparison: OKR vs Traditional Planning Methods

OKRs and traditional planning are like two different styles of setting goals. In traditional planning, bosses at the top decide the goals, and these goals flow down to everyone else. It’s very structured and detailed, but sometimes, it can be inflexible. 

On the other hand, OKRs are more flexible and open. Everyone is encouraged to contribute to the goals, and it’s not as strict. OKRs focus on big, exciting goals and clear, measurable results, which helps teams be creative and adapt quickly. 

While traditional planning can be strict and follow a clear hierarchy, OKRs are more about everyone working together, improving continuously, and adjusting goals faster when needed. 

Overall, OKRs offer a more dynamic and inclusive way of setting and achieving goals compared to the more rigid and top-down approach of traditional planning.

Which companies are using OKR?

Many different companies are using OKR to set and achieve their goals. It’s not just digital companies; even big names like Walmart, Target, The Guardian, Dun and Bradstreet, and ING Bank have adopted OKRs in their businesses. 

They find it helpful for keeping everyone on the same page and working towards common objectives. So, whether it’s a tech giant or a retail giant, OKRs are becoming a popular way to make sure everyone in the company is moving in the right direction.

What are the types of OKRs?

OKRs come in various types, each serving a specific purpose within an organization. Here are the main types

Committed OKRs: These are goals that teams or individuals are fully committed to achieving. They are typically more realistic and achievable, representing the core objectives that must be met for the team or individual to fulfill their responsibilities.

Aspirational OKRs: These are more ambitious and challenging goals that push the boundaries of what is currently achievable. 

Aspirational OKRs are meant to inspire and encourage teams to aim higher and innovate. While there’s an acknowledgment that these goals might not be fully attained, the pursuit of aspirational OKRs often leads to significant progress and breakthroughs.

 A Comparison between committed and aspirational OKRs

Here is a comparison between committed and aspirational OKR in a tabular form.

  Committed OKRs         Aspirational OKRs
A set goal that you must achieve within the given time period.A significant stretch. Only about 70% of the set goal will be accomplished.
It is necessary for an organization’s success. It sets the bar for success and exceeds the team’s ability to work more.
It provides clear and concrete goals for the company to achieve. It encourages teams to aim high and think creatively.

What are the usual mistakes while writing OKRs?

Here, in this section, you will see some common mistakes people make while writing OKRs. Take notes because this is going to help you prevent those mistakes.

1. Failing to differentiate between committed and aspirational OKRs

This mistake occurs when there is confusion between objectives that are truly aspirational and those that are committed.

If a committed OKR is mistakenly treated as aspirational, it can lead to a lack of urgency and commitment from the teams. 

They may not prioritize the necessary actions, assuming that the goal is a stretch and not a definite requirement.

Clearly define whether each OKR is committed or aspirational. Committed OKRs should be realistic and achievable, while aspirational ones should be challenging but not guaranteed.

2. Adding too many OKRs

Some organizations make the mistake of setting too many objectives and key results, overwhelming teams with numerous goals.

Having an excessive number of OKRs can dilute focus and make it challenging for teams to prioritize their efforts. 

It may lead to spreading resources too thin, resulting in a lack of significant progress on any particular front.

Limit the number of OKRs for each team to a manageable amount, ideally between 3-5 objectives and 3-5 key results. This ensures that teams can concentrate on the most critical initiatives and achieve meaningful results.

What are some ways to write a good OKR?

Writing effective Objectives and Key Results is crucial for driving focus, alignment, and success within an organization. Here are some tips for crafting good OKRs:

1. Set the goals first that you want to achieve

The first step in writing an OKR is setting goals and aspirations. It is important that all the team members are a part of it. 

Leaders should prompt their teams to share meaningful details regarding what specific objective they’re trying to accomplish. This gives the team an idea of the shared goal.

However, while setting the goals, it is very necessary that you ask the question, “Why does it matter?” to your business.  It gives a clear and distinct idea about the goal.

2. Conduct brainstorming sessions with your team

After the goals are set, it is very important to have brainstorming sessions with your team for the key results. 

It gives the team a sense of ownership and responsibility and inspires them to work towards the goals that they set.

3. Encourage your team to share ideas and suggestions

After the key results are found, try to have debates or discussions with your team as much as possible. 

Try to get their suggestions and ideas and debate on the metrics until you find the desired results.

Conclusion

In summary, the OKR methodology, pioneered by Google, stands out for its agile goal-setting approach. Google’s strategy involves setting challenging yet reachable objectives with measurable key results for progress tracking. 

Unlike traditional methods, OKRs offer a more adaptable and transparent structure. Many successful companies, like Google, Intel, and Spotify, leverage OKRs to boost innovation and team alignment. 

However, avoiding common mistakes, such as setting excessive objectives or treating them solely as performance metrics, is crucial for OKR’s success. Crafting impactful OKRs requires a focus on simplicity, alignment, and regular reassessment, fostering a culture of continual improvement and success.

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Gaurav Sabharwal

CEO of JOP

Gaurav is the CEO of JOP (Joy of Performing), an OKR and high-performance enabling platform. With almost two decades of experience in building businesses, he knows what it takes to enable high performance within a team and engage them in the business. He supports organizations globally by becoming their growth partner and helping them build high-performing teams by tackling issues like lack of focus, unclear goals, unaligned teams, lack of funding, no continuous improvement framework, etc. He is a Certified OKR Coach and loves to share helpful resources and address common organizational challenges to help drive team performance. Read More

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