Before we begin writing Company OKRs (also known as Corporate OKRs on Inspire), it is important to understand what OKRs are.
Objectives and Key Results is a goal-setting framework that was introduced by Google and has since been used by various organizations globally to implement strategy effectively.
OKRs are like ‘Agile for Business’. They encourage teams to set ambitious goals and then break them down into measurable outcomes, fostering alignment and focus across the organization.
- Objectives: Clear, concise, and ambitious statements that define what an organization or team wants to achieve. Objectives are qualitative and inspirational, providing direction and purpose.
- Key Results: Specific, measurable, and time-bound metrics that serve as quantifiable indicators of progress toward achieving the Objectives. Key Results help leadership and next-level teams call out ‘What does success look like?’ The more lead indicators there are in the Key Results, the higher the impact of your OKRs.
- Activities/ Initiatives: Magical experiments that help achieve Key Results. Teams keep a sharp eye on these initiatives/activities during the quarter and bring on new ones, to move the metric forward.
Aspects of how Company OKRs are written
Company OKRs are not just the goals of CEOs, but are written collectively by the leadership team, reflecting the company's strategy and setting the direction to all teams on the vital few.
| Aspect | Details |
| Written by | Executive / Leadership team |
| Reflects | Company's strategy as North Star OKRs |
| Involves | Leadership or top team members and Internal OKRs champion |
| Aim | Not to create an Annual Operating Plan or focus solely on financial KPIs |
| Focus |
Vital Few objectives for the next 6-12 months. 3-5 Objectives, at most 3-5 key results |
Best Practices for Writing Company OKRs
- Get the building blocks right: Mission, Vision, and Strategy: Mission and Vision define a company's purpose and principles. Strategy involves not only what you aim to achieve but also why and how. Effective strategy requires leaders to prioritize actions, focusing on what to pursue and what to avoid.
- Convert Strategy into action with OKRs: The leadership team identifies three to five critical business levers for the next 6-12 months. Instead of using broad statements such as 'Grow our business to gain market share,' effective OKRs ensure that the strategy is explicitly articulated.
Tip: An objective statement like, 'Expand our premium product lines in North America to increase revenues,' clearly communicates the strategic focus. This enables leadership and subsequent teams to concentrate on high-value products to drive revenue growth in a specific region.
3. Write OKRs with consistency: Objectives are qualitative statements that define what needs to be achieved, while Key Results are measurable indicators of success.
Objective Formula: Verb+ what are you going to do + business value
Key Result Formula: Verb+ metric you are trying to measure + from X to Y;
where x = baseline and y = target
For instance, a company might focus on expanding distribution, launching new offerings, and building people capability.
The Company objective could be "Focus on expanding our width of distribution to accelerate new customer acquisition," with corporate key results like
- Increase distribution in specific cities from X to Y
- Onboard new partners from X to Y
- Launch new products from X to Y
- Increase revenue from X to Y
For Example: the Long-term CKR is to Increase Annual revenue from USD 0 to 20 million by end of the financial year, where the specific quarterly key results aligned to the LTKR could be
- Q1 CKR: Increase revenue from USD 0 to 5 million (Annual)
- Q2 CKR: Increase revenue from USD 0 Million to 10 million (Annual)
- Q3 CKR: Increase revenue from USD 0 to 3 million (Annual)
- Q4 CKR: Increase revenue from USD 5 Million to 2 million (Annual)
5. Prioritize: Think company, not department: Company OKRs should fit on a single page to ensure they are memorable. Leadership teams must write OKRs for the company as a whole, not just for individual departments.
For example, "Increase distribution in specific cities from X to Y" is a company Key Result that multiple teams can align with.
6. Drive accountability and ownership: Ensure each Company Objective and Key Result has an owner. While the leadership and executive teams are encouraged to own Company Objectives and Long-term Key Results, the quarterly Key Results can be owned by the next level teams. This helps you to scale accountability of strategy execution.
7. The power of Executive Communication: Once written, company OKRs must be communicated swiftly, with CEOs acting as sponsors. This sets the stage for Team OKRs writing. Executives should coach teams to pick the right metrics and conduct regular leadership reviews to maintain momentum and groom next-in-line team members.
By following these steps, companies can ensure their OKRs are aligned with their mission, vision, and strategy, driving meaningful progress and engagement across the organization.
If you have any questions, please reach out to support@inspiresoftware.com.