What are OKRs and how do they work?

OKRs (Objectives and Key Results) are a goal-setting framework where Objectives define what you want to achieve (qualitative), and Key Results measure how you'll achieve it (quantitative). They typically operate on quarterly cycles with company, team, and individual levels.

How do you cascade goals effectively through an organization?

Effective goal cascading starts with company-level OKRs, then teams create aligned goals supporting those objectives, and individuals set personal goals contributing to team success. The key is ensuring clear line-of-sight from individual work to company strategy.

What's the difference between OKRs and KPIs?

OKRs are aspirational goals set quarterly or annually to drive change and improvement, while KPIs are ongoing operational metrics measuring steady-state performance. OKRs push for growth and innovation; KPIs maintain business-as-usual standards.

How many OKRs should each person have?

Best practice is 3-5 Objectives with 2-3 Key Results each at company level, and 2-4 Objectives at individual level. Too many OKRs dilute focus and make tracking difficult. Quality and focus matter more than quantity.

Should OKRs be tied to compensation?

Most OKR experts recommend against tying OKRs directly to compensation because it discourages ambitious goal-setting and encourages sandbagging. OKRs work best as aspirational stretch goals where 70-80% achievement is considered successful.

How often should goals be reviewed and updated?

Goals should be reviewed weekly in 1-on-1s and team meetings, with formal check-ins monthly or quarterly. This regular review ensures goals remain relevant, allows for adjustments based on changing priorities, and maintains accountability.

What are common mistakes in goal setting and how to avoid them?

Common mistakes include setting too many goals, making them too vague or easy, failing to align across teams, not reviewing regularly, and treating them as tasks rather than outcomes. Avoid these by focusing on impact, being specific and measurable, ensuring alignment, and maintaining discipline in reviews.