The How-To
Guide to
OKRs
Part of Provision's Mentorship Program
for establishing quality relationship
between mentors and mentees
CONTENTS
3. GOAL SETTING
4. WRITING GREAT OKRS
9. NUMBERS FOR OKRS
10. ALIGNING & PLANNING OKRS
12. GETTING STARTED WITH OKRS
WHAT IS GOAL SETTING?
Objectives and Key Results (OKRs) is a goal- vision, this means that you also own a part to
setting methodology driven by outcomes. contributing to the success of that vision.
Think of them as a guide to track outcome-
based success. How is this different from my new year
resolutions?
That said, you need to make sure that you
focus on the outcomes as a driver (instead of Chances are that those new year resolution
tasks) because this will encourage goals were doomed to fail from the get-go as
accountability through metric indicators or they weren't structured and reviewed with
values based outcomes. We'll look into the persistence and vigor. OKRs use
difference between tasks and key results S.M.A.R.T.E.R. goals (Specific, Measurable,
later in this document. Actionable, Relatable, Time-Bound, Evaluate,
Reward) to increase the probability of you
Does this have to do with performance successfully accomplishing what you set out
compensation? to do.
Well, kind of. Everyone works harder and A lot can be learned by revisiting your goals
aims higher when goals become decoupled and progress overtime, adjusting your next
from compensation. Performance isn't tied steps to be more effective, and establishing
solely to metrics so you can focus on success an urgency to accomplish it. Actionable steps
and growth, not just meeting a target. OKRs should always begin with a verb so that it
should allow team efforts to be aligned under introduces an element of immediacy and
common organization priority and core allows us to map out the path to get there.
values.
In essence, OKRs are a lot more specific and
When creating your own OKRs, you are pre-meditated than your average new year
effectively the direct owner over your resolutions or goals - which makes them way
success. With OKRs aligned to a shared more likely to be achieved.
organizational
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WHAT MAKES A GREAT
OKR?
The difference between a great OKR and a To build a great OKR, we'll need to separate
bad OKR is in how achievable and the OKRs into objectives and key results to
measurable it is. When an objective has analyze them further.
measurable key results, it becomes much
easier to determine if the new idea fits in Objectives
with a current or overall strategy. If it can't fit A great objective clearly answers:
into the current set of OKRs or be aligned 1. "Who is responsible for what?"
effortlessly, you're then forced to make an 2. "What am I working towards without
exception or re-prioritize. Due to this forced focusing on the tasks?
constant deliberation, OKRs result in keeping
your strategy fresh. When an individual clearly understands what
is expected of them, politics and favoritism
OKRs are not: are minimized and everyone can collectively
Unspecific goals with a task list focus on the organizational strategy.
Boring & monotonous Objectives are single sentences that describe
Overly specific to be constraining current priorities in the language and culture
A statement that notes a business vision of the team. The accompanying results
A one-size fits all model should be difficult, but not impossible.
General action you plan to take
Objectives should reflect outcomes that are
OKRs are: challenging but realistic. A great objective
Reminders why you do what you do day- would offer an inherent sense of
to-day, regardless of your role collaboration where teams can cross-
Aspirational and challenge you to be collaborate. In an accounting scenario, this
innovative and creative, a better you includes offering each other tips and tricks on
Written so anyone can understand how building skills in certain CPA competency
you're contributing to business strategies areas.
and priorities
Aligned to organizational values
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Key Results Once you've established what key result
A great key result clearly answers: you're hoping to achieve, think to the
1. How do I know if I have achieved my supporting projects that you're going to
outcome? perform to get you there. From there, think
2. What target indicator will define success? further and more specifically down to the
3. What am I expecting to achieve if I tasks to complete that project.
successfully complete this objective?
It is important to differentiate the difference
The aim of OKRs is to have a bigger impact by between tasks and key results. We have to
splitting time on fewer things and focusing on complete small tasks every day, all the time.
the keys results, not tasks. Numeric insights In fact, tasks form the basis for getting
move conversations from actions taken to anything done in any organization. But to
data patterns across quarters so that you can push beyond expectations to achieve goals,
look at the patterns and really measure the we need to organize tasks into OKRs and
most valuable aspects. manage the OKRs, not the tasks.
Differences between Tasks & Key Results
Tasks are: Key Results are:
small, bite-sized chunks of a roadmap that track-able metrics resulting from tasks
leads to the key results you track the result of completing many tasks &
tasks can change day-to-day activities
short bursts that help you assess what's about how one's objectives impacts the
working and what's not rest of the team
to-do items that can be crossed off on a initiatives that contribute to your
sticky note, checklist, or marked as objective and goal
complete/incomplete how you measure the success of your
not items that can be measured, graded, objective
quantified or assesed items that can be graded, measured, and
quantified
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THE STRUCTURE OF GOALS & OKRS
Annual Goal 4
Annual Goal 3
Annual Goal 2 Annual Goal 1
Q1 Q2 Q3 Q4
Q1 Objective 1 Q1 Objective 2 Q1 Objective 3 Q1 Objectives (the "What")
Key Result 1 Key Result 2 Key Result 3 Q1 Key Results (the "Measurement")
Project 1 Project 2 Projects/Tactics (the "How")
Task 1,2,3,4,5 Task 1,2,3,4,5
Tasks (the "Activities")
Goals are not tasks!
Task 1,2,3,4,5 Task 1,2,3,4,5
Never mistake activity for results.
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DETAILED EXAMPLES OF OKRS
Annual Goal: Develop advanced skill in taxation
Objective: Reach proficiency level 2 in taxation competency
Key Result 1: Prepare 5 complex T2 Tax Key Result 2: Reduce mistakes in tax return
Returns (0-5 tax returns) preparations by 10% (Complete/Incomplete)
Project & Tasks: Project & Tasks:
Develop criteria for defining complex T2 Define top 3 problematic areas to
Returns improve on and track progress
Request to be assigned files that match Review tax return of ABC Co. with
the criteria manager
Complete ABC Co. Tax Return etc. Track the number of revisions required
Annual Goal: Improve new client experience
Objective: New clients are all onboarded in a standardized way
Key Result 1: Develop an approved & Key Result 2: Increase client response
standardized onboarding process (0-100%) speed to admin queries by 10%
(Complete/Incomplete)
Project & Tasks: Project & Tasks:
Create onboarding flow chart Analyse current response rate baseline
Execute onboarding flowchart, analyzing Establish measurement parameters and
results analyze data
Obtain approval from stakeholders Prepare report for stakeholders
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OTHER EXAMPLES OF OKRS
Finance OKR Product Management OKR
Objective: Improve annual Objective: Implement new 360
budgeting and business planning degree product planning process
Key Results: Key Results:
Submit all 5 budget proposals Finish documentation that divides
before 1st of September (0-5 clear roles between sales,
submitted) marketing, design, and
Conduct 4 planning sessions development (0-100%)
with each of the 5 division Decide on and implement the
managers before their proposals input methods from design and
(0 - 20 sessions) development back into product
Close the final budget by the management (0-100%)
end of November (0 - 100%)
Marketing OKR 1 Marketing OKR 2
Objective: Successfully implement Objective: Activate user-testing
the weekly newsletter
Key Results: Key Results:
Grow subscriber base at least Conduct at least 4 face to face
5% per week (0-65% increase) testing sessions per month (0-12
Increase the CTR% to above sessions)
industry average of 3.5% Receive at least 15 video
(Complete/Incomplete) interview from usertesting.com (0-
Finalize the content strategy, 15 interviews)
key messages, and topic
structure for the next 6 months
(0-100%)
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NUMBERS FOR OKRS
Choosing the right metrics Grading your OKRs
The most important component of using a Evidently, OKRs can be very different for
key performance indicator (KPI) in your key different teams and functional positions. It's
results is to make sure it is a valuable metric important to consider the difficulty of each
to your team. Adding a target number for the OKR when grading and assessing. Therefore,
sake of abiding by the "metric-driven" aspect it's important to establish a grading scale
of a key result clouds the effectiveness of before committing to an OKR to ensure
your key result. The metric used should expectations throughout the quarter are
match your team's culture and priorities. clearly defined and prioritized.
The metrics that you'll be using for measuring You can simply grade your OKR by asking at
your key results are: the end of the quarter: "Did you meet the
Percentage expectations for your OKR that you
Numeric committed to?". If not, then find out why and
Complete/Incomplete adjust your next OKRs accordingly to better
Dollar ($) meet expectations.
Establish your baseline A more precise method is to place your key
A baseline metric is a single number that is results on a grading scale from 0-10. For each
considered an "acceptable" metric. Anything of your key results, score it between 0-10
lower or higher than that will be acceptable based on how challenging it is. They should
or unacceptable, depending on the purpose be fairly challenging so we should aim for a 6
of the key result. This will allow you and your -7 in this process. After rating each key
mentor to work towards moving away or result, add them together and any objective
towards the baseline target. with a cumulative scale of under 4 means you
need to re-evaluate whether the objective is
still worth pursuing, or rethink your
approach.
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ALIGNING & PLANNING
OKRS
Aligning your OKRs Planning & conversations
Creating objectives can be done at any level In order to create OKRs, commit to new ones,
but an important component of making an or prioritize them, there must be
objective great is how it aligns with other conversations on what happened previously,
objectives in the organization. Everyone is what was learned, and what you plan to do
driven by business priorities and core values - about it the next quarter. This holds
alignment keeps everyone's agenda focused everyone accountable both retroactively, as
to what defines success for the team as a well as in the future to make sure corrections
whole. This also places a focus on bottom-up are enabled where necessary. This is also
efforts, inspiring teams through the where you would check your personal
visualization of how they're contributing to commitment to the OKRs. Are you taking on
the overall business success. too much? Too little? While OKRs are
supposed to be challenging, you need to
Creating great OKRs depends on how well ensure that you're being realistic in terms of
your team as a whole does in identifying how much you can commit to.
business priorities. A staff accountant, for
example, can't set a great OKR if they're That said, OKRs are never used as the
unsure what the entire team is focused on. singular input in your performance
And further, the staff accounting team won't evaluations. They would always be
know what's a priority if the organization considered in conjunction with other
doesn't set OKRs. The definition of success attribute criteria such as professionalism
can be different at the team level as well so brought to work, skills acquired, the level of
aligning your OKRs accordingly will help you OKR difficulty etc. Planning and
gauge your success in a relevant context. conversations will help provide and
document the additional
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context that OKRs on their own cannot
provide. Think of planning as a way to paint a
large picture and that OKRs are just one
colour of paint that you'll be using.
Developing a goal-setting habit
To ensure objectivity when evaluating OKRs,
having tangible data is the most effective tool
to track your progress over time. As such,
establishing a regular schedule of checking-in
on your OKRs is crucial to making goal-
setting into a habit.
This changes how you will approach your
everyday jobs-to-be-done. Milestones
become natural, focusing conversations on
what you need to do next to aim even higher.
It will put in place natural milestones that will
allow you to continuously analyze what you
need to aim higher and get there more
efficiently.
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GETTING STARTED WITH
OKRS
Here's some tips to get you started on your first OKR
Discuss OKRs with your mentor in the 1:1, make sure you differentiate what a key result is
and what tasks will support that key result
Don't list too many objectives from the get-go, chances are that both you and your mentor
are learning what aspects are considered important to your growth which means that
writing OKRs will be an iterative process. Focus on writing a great OKR that is achievable
to you. You can always add more OKRs later.
Spend more time setting your OKRs. The last thing you want is an OKR that is not
applicable to you, or a key result that you're going through the motions to complete. Spend
some time to make sure that the OKR is something that is valuable and worth committing
to.
Leave metrics out of objectives as they should only exist in the key results as they have to
be numeric and measurable. See page 8 for a list of metrics.
Make sure you have key results that measure success relevant to your objectives.
Check-in on your OKRs weekly to make goal-setting a habit
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