Reviewing the Importance of OKRs and Why They Are Still Relevant Today

OKRs are a staple of the tech world, but they don’t come around often. They’re not something you can Google every day. So what is OKR analysis and why should you keep your eyes peeled for it when it returns? Let’s explore that. OKRs originated with Henry Ford who introduced the Five-Year Plans back in 1919. The idea is to set long-term goals, break them down into smaller tasks, and track those tasks over the span of the plan.

You can think of the plan as an outline for your company and its shorter sub plans as chapter headings that each have a specific objective or action item underneath them. The whole thing works so that you can see how your company moves from one chapter heading to another and then again after you’ve completed that chapter heading. And so OKRs came about to help companies get their actions aligned with their words.

Why Is OKR Analysis Important?

OKRs are intended to align companies’ actions with their words, but they’re also intended to align companies’ words with their actions. OKRs can be considered a secret language for your company. Everyone on the team needs to know what OKRs are, what they mean, and what actions are required to reach them. By doing so, everyone can get on the same page and work toward the same goals. And if someone doesn’t know what OKRs are, they need to be taught. OKRs are the language of your company.

You can’t talk to each other without it. As the CTO of a B2B SaaS company, I’m responsible for the overall direction of the company. I’m responsible for hiring, setting the culture, defining and implementing the strategy, managing the budget, and making sure all the other departments are moving in the same direction. We have a number of OKRs that we aim for, and we’re always looking for ways to get more people engaged and more involved.

How to Set Up an OKR Dashboard

Not all OKRs are created equal, so it’s important to track all of them. Put together an OKR dashboard to track all of your OKRs. You can set up a Google spreadsheet or a tracking tool. You want a place where everyone can quickly see all of your OKRs, how far along they are, and what actions are required to get to the next OKRs. Add columns in your spreadsheet or on your tracking tool to keep track of each OKR’s name, the name of the person who owns that OKR, the date it was created, the date it’s due, the current, and how much time remains.

Create a High-Level OKR Goal

If you’re tracking OKRs, you should have a high-level OKR goal. In other words, what is the overall goal that you’re going for? It could be improving your retention rate or increasing your revenue. Whatever it is, this is the overall objective you’re trying to achieve. While you’re putting together your OKR dashboard, you might also want to add a column with a high-level OKR goal. For instance, you might have one goal which is to increase revenue by 10%. Whatever your company’s high-level OKR goal is, add it to the spreadsheet.

Break Down Tasks into Smaller OKRs

When you break down the tasks into OKRs, you’re creating sub-goals. You want to create a long-term strategy based on sub-goals that are each measurable and specific. For instance, if your overall high-level OKR goal is to increase revenue by 10%, you would break down those smaller sub-goals. First, you want to break down your revenue goals. What is revenue for this quarter? What is revenue for next quarter? What is revenue for the year? You want to break down the revenue goals into small enough sub-goals that each one is measurable and has a deadline.

Reviewing the Importance of OKRs

OKRs are about setting a vision and a strategy. That vision and strategy need to be aligned with the company’s overall goals and priorities. Ultimately, OKRs are all about strategy. When you set up an OKR dashboard, it should be the first time you’re taking a step back and assessing your company’s current state and where it’s headed. Once you’ve done that, you can start setting the stage for what your company’s next steps should be. OKRs provide a context for the strategies that your company is trying to implement.