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<p>Companies that want to create impactful change need a well-defined goal setting process. Using an effective goal setting approach, you can establish and encourage steady goal progress while keeping employees motivated and accountable.&nbsp;</p><p>In this article, we’ll cover everything you need to know about creating a successful goal setting process, covering:</p><ul><li>What is goal setting&nbsp;</li><li>Why goal setting is important</li><li>Types of goals</li><li>Goal setting frameworks</li><li>7 goal setting steps&nbsp;</li><li>Tips for an effective goal setting process&nbsp;</li></ul><hr><p style="margin-left:0px;text-align:center;">Don't have time to read the full article now? <a href="https://info.quantive.com/hubfs/Quantive_Guides/Goal_Setting_Guide.pdf" target="_blank" rel="noopener noreferrer">Download the pdf</a> and save for later</p><figure class="image image_resized" style="width:50%;"><a href="https://info.quantive.com/hubfs/Quantive_Guides/Goal_Setting_Guide.pdf" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1671870124/site-v5/cover_effective_goal_setting_17c0790d81.png" alt="cover-effective goal setting.png"></a></figure><hr>

<p>A well-defined goal setting process is a surefire way to improve your organization’s performance and reach new levels of success. In a business environment, goals are achievements you want to attain at the organization, team, or employee level over a specific period of time.</p><p>As a powerful driver of motivation and learning, effective goal setting involves using a structured working model to approach your goals. That is, using the goal setting theory as a model for understanding the components of a practical goal.</p><h3>Back to basics: The goal-setting theory&nbsp;</h3><p>The goal-setting theory honed by Edwin Locke and Gary Latham in 1990 highlights the correlation between goal setting and performance, stating that specified and well-defined goals can enhance productivity. They proposed that such goals can motivate individuals to do their best by cultivating focus, effort, and perseverance.&nbsp; &nbsp;</p><p>The goal-setting theory is said to work when you meet five critical conditions:&nbsp;&nbsp;</p><ol style="list-style-type:decimal;"><li><strong>Clarity</strong>: Goals must be specific and measurable, letting employees know what they’re striving to achieve</li><li><strong>Challenge</strong>: Goals should be challenging yet attainable, as easy goals won’t encourage employees to put their best foot forward</li><li><strong>Commitment</strong>: Employees need to support the goals they’re working towards and commit themselves to achieving these</li><li><strong>Feedback</strong>: Feedback helps employees determine how well they’re performing and what they need to change to improve results</li><li><strong>Task complexity</strong>: Employees need an adequate timeline for their goals — one that accounts for the learning curve and task complexity</li></ol>

<p>A goal-setting process is a vital tool for organizations seeking to drive measurable progress and achieve desired outcomes. It offers a clear path to defining goals and outlining the steps necessary to attain these. As a result, fostering clarity, motivation, and accountability among employees.</p>

<p>Having an adequate goal setting process can be highly beneficial for organizations of all sizes, as:&nbsp;</p><h3>Effective goal setting provides direction&nbsp;</h3><p>Business goal setting can pave a clear direction for your employees to embark on, and <a href="https://quantive.com/resources/articles/leadership-goal-setting-framework" target="_blank" rel="noopener noreferrer">leadership goals</a> help your team leaders play their part. Once the steps to goal setting are complete, employees can follow a distinct pathway that aligns their daily activities with the company’s main objectives. This allows them to zero in on areas prioritized by your business while discouraging them from going on a tangent and investing energy into activities that don’t contribute to key goals.&nbsp; &nbsp;</p><h3>Successful goal setting keeps motivation levels high</h3><p>When employees directly contribute to business goal setting, they’re more likely to stay motivated when faced with challenges. Measurable goals are incredibly motivating, as employees can visibly see themselves progressing towards the end goal as they hit each milestone and short-term goal. This keeps them increasingly engaged as they close in on their final objective.&nbsp;</p><h3>Setting goals improves accountability&nbsp;</h3><p>Beyond cultivating motivated employees, business goal setting also hold keeps employees accountable. A carefully crafted goal setting process depicts clear goalposts and deadlines, giving employees a timeline to abide by. As such, they’ll consistently work towards these milestones, simultaneously monitoring their progress to ensure they’re on track.&nbsp;&nbsp;</p><h3>A well-defined goal setting process boosts employee performance&nbsp;</h3><p>After choosing a goal setting framework and creating goals for your employees, they know what needs to be done and by when. This gives them a clear sense of purpose, resulting in heightened productivity. A study published in the <a href="http://www-2.rotman.utoronto.ca/facbios/file/Porter%20&amp;%20Latham%202013.pdf">Journal of Leadership &amp; Organizational Studies</a> corroborates this, revealing a positive relationship between an employee’s goal commitment and their department’s performance.&nbsp;&nbsp;</p><h3>Business goal setting helps you address obstacles&nbsp;</h3><p>Once you’ve announced your goals, employees can consistently compare their performance with the desired outcome. This can help them uncover where they’re falling short and where they’re thriving, revealing what needs to be improved or adjusted. As such, establishing effective goal setting processes can help you stay on track by pinpointing what you need to adapt or reconfigure to move forward.&nbsp;</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1713535057/site-v5/benefits_goal_setting_944f0add9c.png" alt="The benefits of goal setting"></figure>

<p>When setting goals, you can choose to establish different types of goals. These can vary depending on the scope, context, duration, or complexity of what you want to achieve.&nbsp;</p><h3>Process vs. performance vs. outcome goal setting</h3><ul><li><strong>Process goals </strong>refer to methods or strategies you want to use to facilitate progression and attain the performance goals</li><li><strong>Performance goals </strong>are short-term initiatives that work together to achieve the outcome goal</li><li><strong>Outcome goals </strong>are overarching end goals that you’re striving to achieve</li></ul><p><br><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601426/site-v5/Goal_Setting_Process_c18c80e014.svg" alt="an image depicting the difference of process, performance, and outcome goals as part of the goal setting process"></p><h3>Short-term vs. long-term goal setting</h3><ul><li><strong>Short-term goals </strong>are goals you want to accomplish soon — often within the next week, month, or quarter, depending on your cadence. These serve to complete the bigger picture and contribute toward larger business goals.</li><li><strong>Long-term goals </strong>refer to end goals you want to accomplish later on. These are rooted in your company’s values and require more time, commitment, and planning.</li></ul><h3>Individual vs. shared goal setting</h3><ul><li><strong>Individual goals </strong>are personalized to each employee based on their professional goals and broader organizational objectives. These help employees cultivate unique pathways that align with their aspirations while contributing to overarching business goals.</li><li><strong>Shared goals </strong>help employees work together by fostering a sense of unity. Additionally, they enhance collaborative capabilities within departments, teams, and projects. Therefore, shared goals are vital to creating an environment that balances strengths and weaknesses, resulting in an inclusive and productive workplace.</li></ul><h3>Qualitative vs. quantitative goal setting&nbsp;</h3><ul><li><strong>Qualitative goals </strong>are assessed objectively, as there’s no concrete definition or measurement for achievement. Instead, goal achievement for qualitative goals is ‘felt.’</li><li><strong>Quantitative goals </strong>are measurable and can be tracked, with goals accomplished when a particular metric or outcome is reached.</li></ul>

<p>Choosing the right goal setting framework can bring you closer to realizing your goals. These can help you <a href="https://quantive.com/resources/articles/organizational-alignment" target="_blank" rel="noopener noreferrer">align employees with your company’s trajectory</a> while allowing you to keep an eye on your progress. Below, we discuss seven of the most widely used goal setting frameworks you can choose as part of your goal setting process.&nbsp;&nbsp;</p><h3>SMART goals</h3><p><a href="https://quantive.com/resources/articles/okrs-vs-smart-goals">SMART goals</a> guide your goal setting process by defining goals using five principles:&nbsp;&nbsp;</p><ol><li><strong>Specific: </strong>goals clearly highlight what you want to achieve</li><li><strong>Measurable: </strong>goals have metrics attached to them</li><li><strong>Achievable: </strong>goals are ambitious but not unachievable</li><li><strong>Realistic: </strong>goals are attainable with the available resources</li><li><strong>Timely: </strong>goals have a reasonable deadline</li></ol><h3>OKRs&nbsp;</h3><p>The <a href="https://quantive.com/resources/articles/okr-meaning">OKR framework </a>stands for objectives and key results. This goal setting framework can help you execute your priorities by facilitating transparency and focus while ensuring <a href="https://info.quantive.com/hubfs/Quantive_Guides/Global-State-of-OKRs.pdf" target="_blank" rel="noopener noreferrer">effective resource allocation</a>. The OKR framework consists of three main components:&nbsp;&nbsp;</p><ol><li><strong>Objective</strong>: a short statement that highlights what you want to achieve during a given period</li><li><strong>Key result</strong>: a progress indicator showing how well you’re progressing toward your desired outcome</li><li><strong>Task</strong>: activities that you undertake to help you make headway</li></ol><hr><p style="text-align:center;">Want to know all about implementing OKRs? Read our <a href="https://quantive.com/resources/articles/how-to-write-okrs">guide on writing OKRs</a> &nbsp;</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/how_to_write_great_OK_Rs_225963118b.png" alt="how to write great OKRs"></a></figure><hr><h3>KPIs &nbsp;</h3><p>KPI stands for <a href="https://quantive.com/resources/articles/okrs-vs-kpis">Key Performance Indicators</a> and depicts quantifiable measures that track performance over time. You can select KPIs for multiple organizational domains, including project, individual, departmental, or business objectives.</p><h3>Backward goal setting&nbsp;</h3><p>Backward goal setting, as the name suggests, involves working backward. You start by determining your end goal and work retrogressively to develop an action plan. That is, you keep your end goal at the forefront of your mind while breaking it down into smaller goals and milestones, identifying the daily, weekly, and monthly goalposts you need to reach along the way to achieve your final goal.&nbsp;&nbsp;</p><h3>MBO</h3><p><a href="https://quantive.com/resources/articles/mbo-vs-okr">Management by Objectives (MBO)</a> is a strategic goal setting methodology that defines objectives for managers within an organization. These objectives are then relayed and spread across the organization, where they can be discussed, acted on, and monitored.</p><h3>BHAG&nbsp;&nbsp;</h3><p>BHAG goals stand for Big, Hairy, and Audacious goals. These refer to challenging, long-term business goals (often 10-25 years away) that your organization uses as a guiding light. While these goals are far away, they can continuously direct employees toward effective action.&nbsp;&nbsp;</p><h3><span lang="EN-US" dir="ltr">4DX</span>&nbsp;</h3><p><span lang="EN-US" dir="ltr">4DX refers to the four disciplines of strategy execution framework, which proposes four core disciplines for helping individuals and teams reach their goals. These disciplines include:</span>&nbsp;</p><ol style="list-style-type:decimal;"><li><span lang="EN-US" dir="ltr"><strong>Focus on the wildly important:</strong> Teams and individuals should narrow down their focus to no more than two Wildly Important Goals (WIGs)</span>&nbsp;</li><li><span lang="EN-US" dir="ltr"><strong>Act on the lead measures:</strong> focus on activities that drive the best results, where lag measures describe what you’re looking to achieve and lead measures describe the activities that influence goal attainment</span>&nbsp;</li><li><span lang="EN-US" dir="ltr"><strong>Keep a compelling scorecard:</strong> teams should have access to a visible scorecard that lets them know whether they’re successful or not</span>&nbsp;</li><li><span lang="EN-US" dir="ltr"><strong>Create a cadence of accountability:</strong> Teams and individuals are held accountable for their goals through weekly WIG sessions where they discuss commitments, performance reviews, and improvement plans</span>&nbsp;</li></ol><h3>EOS</h3><p>The <a href="https://quantive.com/resources/articles/eos-and-okrs" target="_blank" rel="noopener noreferrer">entrepreneurial operating system (EOS)</a> is a goal setting framework used by small and medium-sized businesses. Its goal setting process uses six key components for organizational focus and efficiency. These include vision, people, data, processes, traction, and issues.</p><ol style="list-style-type:decimal;"><li><strong>Vision</strong>: Establishing and communicating the values, goals, and purpose throughout the organization</li><li><strong>People</strong>: Ensuring the right people and teams are in place to help undertake the tasks and activities needed to execute the vision</li><li><strong>Data</strong>: Providing an overview of business health using key performance indicators</li><li><strong>Process</strong>: Analyzing business metrics to figure out existing strengths and weaknesses and address them appropriately</li><li><strong>Traction</strong>: Holding recurring meetings to foster goal accountability&nbsp;</li><li><strong>Issues</strong>: Pinpointing, prioritizing, and solving obstacles as they come</li></ol><h3>BSC</h3><p>The <a href="https://quantive.com/resources/articles/balanced-scorecard" target="_blank" rel="noopener noreferrer">balanced scorecard (BSC)</a> is a strategic management framework that helps organizations translate their mission and vision into actionable objectives and key performance indicators. It comprises four distinct perspectives, providing a comprehensive view of an organization's performance:</p><ol style="list-style-type:decimal;"><li><strong>The financial perspective</strong> measures organizational success from a shareholder's standpoint&nbsp;</li><li><strong>The customer perspective</strong> aims to understand how the organization is perceived by customers&nbsp;</li><li><strong>The internal process perspective</strong> examines the efficiency and effectiveness of value-adding internal operations and processes&nbsp;</li><li><strong>The learning and growth perspective</strong> considers the development of employees, innovation, and the organization's ability to adapt to change for long-term sustainability and competitive advantage</li></ol><h3>Agile</h3><p>Although Agile is not a goal setting methodology itself, it's a management principle often associated with OKRs. It's about embracing outcome (customer) focus on product, while having a quick, iterative development process to reduce time to value.</p><hr><p style="text-align:center;">Learn more about <a href="https://quantive.com/resources/articles/okr-and-agile" target="_blank" rel="noopener noreferrer">OKRs and Agile</a></p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-and-agile" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/OK_Rs_and_Agile_3dd7e4cb90.png" alt="A looping circular illustration representing okr and agile"></a></figure><hr>

<p>After choosing a suitable goal setting framework, you can begin crafting and perfecting your goal setting process. Use the seven goal setting steps highlighted below to ensure you've established goals correctly and are on the right track.&nbsp; &nbsp;</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601655/site-v5/7_steps_goal_settings_685d7c993e.svg" alt="an image of a diagram explaining 7 steps to goal setting as part of the goal setting process"></figure><h3>Step 1: Figure out your goals&nbsp;&nbsp;</h3><p>The first step of an actionable goal setting process is figuring out what you want to achieve, why you want to achieve it, and when you want to achieve it. If you’re unsure where to start, use your company’s comprehensive <a href="https://quantive.com/resources/articles/mission-vs-vision" target="_blank" rel="noopener noreferrer">mission</a> statement as a base. This way, you can work on setting goals for employees and teams based on your company’s priorities.&nbsp; &nbsp;</p><h3>Step 2: Write your goals down &nbsp;</h3><p>Once you’ve settled on your goals, the second step involves writing these down. Putting pen to paper and writing out your goals cements them as tangible, improves clarity, and gives you time to reflect on why you chose them. When <a href="https://quantive.com/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer">putting your goals in writing</a>, it’s essential to take note of your language: avoid using perhaps, may, or might, as these can affect how attainable you perceive these goals to be.&nbsp; &nbsp;</p><h3>Step 3: Consider how you’ll measure your goals&nbsp;</h3><p>After solidifying your goals in writing, the third step of the goal setting process is figuring out how you'll measure goal progress. Achieving your goals requires you to know precisely what success looks like, and most of the time, this requires a quantifiable approach, such as <a href="https://quantive.com/resources/articles/okrs-vs-kpis" target="_blank" rel="noopener noreferrer">using KPIs or OKRs</a>.</p><h3>Step 4: Prepare for potential obstacles&nbsp;&nbsp;</h3><p>You must be prepared to encounter challenges when working to achieve your goals. As challenges can come in many forms (e.g., knowledge, people, skills, or context), you need to take a bird’s-eye view and consider all grounds when anticipating goal setting obstacles. Once you’ve pinpointed possible hurdles, dig deeper into their root causes. Thinking of these beforehand can help you address and tackle goal setting issues before they emerge, resulting in more confidence throughout the goal setting process.&nbsp;&nbsp;</p><h3>Step 5: Map out a timeline&nbsp;</h3><p>The fifth step of goal setting is to create a timeline for your goals. This timeline should clearly outline the tasks, milestones, and deadlines you need to tick off to achieve your goals. A visual timeline of everything you need to accomplish can help you create realistic expectations for achieving your goals while making the more significant goal seem more digestible.&nbsp; &nbsp;</p><h3>Step 6: Create a plan&nbsp;</h3><p>After establishing your goal setting timeline, you need a plan for approaching these goals. With a plan in place, you become aware of what you need to do to accomplish the goals you’ve set out for your business. You can start creating a plan by first emphasizing the daily habits you must get into to gain momentum. After this, pan out to the weekly, monthly, and quarterly steps you need to take to overcome obstacles and successfully realize your goals.&nbsp;&nbsp;</p><h3>Step 7: Monitor progress consistently &nbsp;</h3><p>A <a href="https://www.geckoboard.com/blog/us-smbs-who-set-and-track-key-metrics-are-2x-more-likely-to-hit-targets-survey/">study by Censuswide and Geckoboard </a>revealed that tracking your progress increases the likelihood of obtaining your goals, with companies that track progress hitting their goals almost twice as much as companies that don’t. As such, you need to engrain weekly or monthly goal progress reviews into your goal setting process. Doing so can also help you remain organized and focused while allowing you to reflect on your goal performance.&nbsp; &nbsp;</p>

<h3>1. Align goals to wider company objectives</h3><p>As part of your goal setting process, your goals should tie into your more comprehensive company strategy. This ensures they serve a purpose and don’t just yield one-off achievements that don’t contribute to your company’s growth.&nbsp;</p><p>Beyond creating a ripple effect for your organization’s success, there are several reasons for aligning your employees’ goals with <a href="https://quantive.com/resources/articles/company-okrs" target="_blank" rel="noopener noreferrer">company objectives</a>. These include:&nbsp;&nbsp;</p><ul><li>Employees feel more connected to your company</li><li>Employees understand the impact of their work</li><li>Employees gain clarity on your organization’s priorities</li></ul><p>To make goal setting and alignment easier, ensure your company’s story and objectives are communicated consistently across the whole company. For example, you can emphasize objectives in your company’s history, company-wide meetings, or company newsletters.&nbsp; &nbsp;</p><h3>2. Keep goals visible&nbsp;</h3><p>Ensuring your goals are visible keeps you working towards them, reminding you and your employees of what you want to accomplish. This further increases your likelihood of attaining these goals as it avoids them becoming a one-off conversation, where employees forget about their goals after initially discussing them.&nbsp;&nbsp;</p><h3>3. Commit to your goals&nbsp;&nbsp;</h3><p>According to the goal-setting theory, goal commitment is composed of self-efficacy and perceived importance. That is, an individual’s belief that they can achieve their goals and the importance of their expected outcomes. Therefore, you need to instill confidence in your employees and emphasize the importance of these goals.&nbsp;</p><p>To boost goal commitment (and, consequently, your chances of goal attainment), acknowledge the value of these goals to your company. When doing so, ensure that executives are on board with your goals, as vouching for the importance of these goals is futile unless C-suite people prioritize them.&nbsp;&nbsp;</p><h3>4. Establish rewards &nbsp;</h3><p>Rewarding your employees for attaining their goals can keep them inspired — particularly when it comes to long-term goals. Giving them something to look forward to can drive performance, productivity, and retention, as:&nbsp;&nbsp;</p><ul><li><a href="https://www.prweb.com/releases/2017/04/prweb14269589.htm">88% of employees</a> agree that employers should reward employees for great work</li><li>Recognition increases employee <a href="https://www2.deloitte.com/ie/en/pages/deloitte-private/articles/recognition-programmes.html">productivity, engagement, and performance by 14%</a></li><li><a href="https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/documents/retaining-talent.pdf">91% of HR professionals</a> agree that rewards and recognition increase the likelihood of employees staying within a company</li></ul><p>Therefore, establishing goals can make your goal setting process and efforts more effective.</p>

<p>Ambitious and effective business goal setting keeps your employees accountable and productive while allowing you to monitor progress. You can choose to set different goals (e.g., long-term, individual, quantitative) depending on the breadth, reach, circumstances, time scale, and complexity of your goals.&nbsp;</p><p>Regardless of the goals you select, an effecting goal setting process needs to be supported by a suitable goal setting framework. The right goal setting framework can help you align employees and craft an actionable plan for tackling your goals. Moreover, using the goal setting steps and tips outlined in this article, you can facilitate a seamless goal setting process that makes<a href="https://hbr.org/2022/08/5-ways-to-set-more-achievable-goals" target="_blank" rel="noopener noreferrer"> goal attainment achievable</a>.</p><hr><p>Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp;&nbsp;</p><p>As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy from a static plan to a feedback-driven engine for growth.&nbsp;&nbsp;</p><p>Whether you’re a visionary start-up, a mid-market business looking to conquer, or a large enterprise facing disruption, Quantive keeps you ahead — every step of the way. For more information, visit <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;</p>

How to Write Great OKRs: OKR Best Practices

7 Steps for a Successful Goal Setting Process

<p>Annual goal setting: By definition, it happens every year. After a while, the process may begin to feel rote or obligatory. What would happen if you eliminated it?</p><p>While a world without annual goal-setting sessions might feel refreshing at first, some issues wouldn't take long to arise. At the start of each year, your goals are crucial for keeping your team focused and motivated. Clear goals help individuals track their progress and stay accountable for their contributions.</p><p>Annual goals are valuable components of your overall strategy when created and tracked with a structured approach. These goals are the waypoints on the roadmap for your year. By giving yourself the best possible map at the outset, you help the business get where it's going over the next 12 months.</p><p><a href="https://quantive.com/lp/annual-leadership-goal-setting-worksheet"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1735908737/site-v5/Goal_setting_worksheet_download_f915c3300b.png" alt="Download goal setting worksheet"></a></p>

<p>Before delving too deeply into leadership goal setting, an important point needs clarification: Annual goals don't have to stay rigidly in place for the full year. In many cases, change is inevitable and even required.</p><p>Quarterly sessions are useful natural points to set goals that allow you to pivot based on your observations. Unpredictable events and changing conditions over a year can make some annual goals unachievable, outdated, or less important. Quarterly goal-setting sessions allow you to course-correct and keep your strategy alive.</p><p><strong>Pro tip: </strong>Quantive StrategyAI makes setting time-based goals easy. Thanks to real-time insights and flexible planning tools, you can adapt them throughout the year.</p>

<p>Goals are a part of an overall strategy — a pivotal one. Annual goals are the connective tissue between your company's aspirations and actual results, making them worth planning.</p><p>Defining your business strategy and leadership skills development goals for the upcoming year is the critical first step in setting meaningful goals. You have your strategic direction for the next 12 months laid out. Now, it's time to set specific, ambitious, yet achievable goals to help you realize that strategy with a growth mindset.</p><p>Rather than assisting your business in one or two ways, strategic goal setting provides various benefits over the year to come. Setting goals is so important because the process:</p><ul><li><strong>Translates strategy into action</strong>: Goals, as components of your overall business strategy, make that strategy actionable and approachable daily. Strategic goals keep you on track by serving as discrete steps from Point A (the blank slate at the beginning of the year) to Point B (achieving your strategic objectives and organizational success).</li><li><strong>Aligns everyone in the company</strong>: Goals are visible expressions of what you’re determined to accomplish. When teams and team leaders fully understand and align with yearly goals, it prevents silos and miscommunication that could arise between departments during execution. Emotional intelligence works hand-in-hand with goal setting here.</li><li><strong>Enables a focus on long-term business objectives:</strong> Focusing your whole organization on a high-level, long-term strategic vision can be difficult. Goals, with their cross-team reach and step-by-step nature, make it easier to make progress during day-to-day business operations.&nbsp;</li><li><strong>Gives a concrete structure for measuring results: </strong>The results and outcomes of each significant action you take should be clear. When you have well-defined goals, you can immediately understand the relative success of your efforts.</li><li><strong>Outlines roles and keeps team members accountable: </strong>Strategically aligned goals clarify what each person should do over a quarter or year.</li></ul><p>Learn how smart leadership goals fit into <a href="https://quantive.com/resources/articles/corporate-annual-planning">strategic annual planning at the departmental level</a> and how to ensure each department's goals are aligned with company-level strategic objectives.</p><p><strong>Pro tip: </strong>Use <a href="https://quantive.com/products/strategy-execution">Quantive StrategyAI</a> to effortlessly align your goals with your company’s strategic direction with the help of an AI strategic advisor at every step of the planning.<br>&nbsp;</p>

<p>As an important part of your organization's annual strategy, goal setting deserves a step-by-step approach. While laying out the whole process may initially look overwhelming, it's relatively easy to take things one at a time and arrive at a satisfying, actionable, and well-aligned list of goals.&nbsp;</p><p>The payoff of this methodical goal-setting will come throughout the year as the organization comes together to follow the resulting roadmap.</p><p>Practical steps to follow through goal creation include:</p><h3>Step 1: Determine goals based on your annual strategy</h3><p>One important point to remember about goal creation is that your organizational strategy should be the basis of your efforts. If strategic planning for the upcoming year hasn't been completed, there won't be a larger plan to align your goals. Every company should begin by defining its strategic objectives before any department formulates specific goals for the year.</p><p>If you have a solid strategy for the year ahead, it's time to draw on the objectives there to inspire your goals. The plan will state what the organization hopes to accomplish in the coming year. Goal setting is the process of dividing those major objectives into goals assigned to specific departments or teams, with clear timelines and milestones.</p><p>Did you know? <a href="https://quantive.com/products/strategyai">Quantive StrategyAI</a>’s AI assistant can analyze your business documents and provide customized strategic insights. Just upload your files and watch it work!</p><figure class="image"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1730734130/site-v5/STEP_1_Identify_the_Challenge_783aab270f.png" alt="Identify the challenge with Quantive StrategyAI"></figure><h3>Step 2: Define specific annual goals</h3><p>This step comes when the abstract becomes concrete. Here, you do something very simple — write your goals down — that enables every other step to occur. By laying out highly specific goals you perceive as clearly attainable, you're setting yourself up for success throughout the goal-setting process and the year to come.</p><p>The goals created during this session should be meaningful and motivating. They must be clear, aligned with the company's mission, and inspire positive emotions. It can seem unscientific, but when you set achievable and exciting goals, it's easier to stay committed to them over the year ahead.</p><p>Picking a goal-setting framework at this stage is important in putting yourself on a strong footing. Choices include:</p><ul><li><a href="https://quantive.com/resources/articles/okr-meaning"><strong>Objectives and Key Results (OKRs)</strong></a>: OKRs are designed to be flexible. Businesses can use the framework across teams and departments, and OKRs are meant to be updated over time.</li><li><a href="https://quantive.com/resources/articles/okrs-vs-smart-goals"><strong>SMART Goals</strong></a>: In its most familiar form, SMART stands for Specific, Measurable, Achievable, Realistic, and Timely. This is an individual goal framework—each person's SMART goal list is unique.</li><li><a href="https://quantive.com/resources/articles/mbo-vs-okr"><strong>Management by Objectives (MBO)</strong></a><strong>: </strong>This methodology is a top-down approach to assigning objectives to individuals. The goals flow downward from overall company aims, and progress can be measured qualitatively or quantitatively.</li><li><a href="https://quantive.com/resources/articles/goal-setting#different-goal-setting-frameworks"><strong>Big, Hairy Audacious Goals (BHAG)</strong></a>: As the colorful name implies, these are far-off priorities on a timeline of 10 to 25 years that can inspire team members as they pursue more practical aims.</li></ul><p>Did you know? <a href="https://quantive.com/products/strategyai">Quantive StrategyAI</a> offers a smart AI advisor to help you set the right goals based on your strategy. Goal creation is now easy, fast, and more impactful.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1732096640/site-v5/whiteboards_brainstorming_strategic_goals_0d39fb2458.png" alt="Whiteboards for strategic goals brainstorming"></figure><h3>Step 3: Set up measurement methods to track progress</h3><p>One of the defining features of good goals is that you can measure progress toward completing them. Then, the question becomes about what method you should use for tracking. There are multiple measurement frameworks available, so you can make your own decision about which to use.</p><p>While the exact choice of framework will depend on your organization's needs and teams’ work dynamics, the concept behind measurement is always the same. To make goal-tracking possible, you need a way to quantify success and progress, and these goal-tracking systems provide that.</p><p>Useful measurement frameworks to choose from include:</p><ul><li><a href="https://quantive.com/resources/articles/what-are-kpis"><strong>Key Performance Indicators (KPIs)</strong></a>: KPIs can be applied at different levels. They track quantifiable information over time and can measure performance. KPIs are designed to last for long cycles and are static.</li><li><a href="https://quantive.com/resources/articles/eos-and-okrs"><strong>Entrepreneurial Operating System (EOS):</strong></a><strong> </strong>Specifically meant for small and medium-sized enterprises, the EOS uses KPIs and measures six facets of organizational performance: Vision, People, Data, Process, Traction and Issues.</li><li><a href="https://quantive.com/resources/articles/balanced-scorecard"><strong>Balanced Scorecard (BSC)</strong></a>: A BSC measures a company's alignment from four different perspectives — Customer, Financial, Learning &amp; Growth and Internal Business Processes.</li><li><a href="https://quantive.com/resources/articles/okr-vs-4dx"><strong>4DX</strong></a>: The 4 in 4DX stands for the method's four intertwined disciplines to help companies achieve their goals. They are:<ul><li>Focus on the wildly important.</li><li>Act on the lead measures.</li><li>Keep a compelling scorecard.</li><li>Create a cadence of accountability.</li></ul></li></ul><p><strong>Pro tip:</strong> With Quantive StrategyAI, you can effortlessly <a href="https://quantive.com/solutions/okrs-and-goal-tracking">track your progress using OKRs and KPIs</a>. Its advanced automation capabilities streamline updates, freeing up your time to focus on what drives impact.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1734085269/site-v5/Report_and_monitor_Quantive_Strategy_AI_2ec9171a30.png" alt="Report and monitor progress with Quantive StrategyAI"></figure><h3>Step 4: Prepare to overcome potential obstacles</h3><p>Your efforts to achieve your annual goals will encounter some challenges. This is a safe assumption because many forces can interfere with companies' efforts. Sometimes, the issue is an internal problem, such as a lack of skillset. In other cases, it's an external threat, such as a rapid change in market conditions.</p><p>By anticipating what could put your goals off track, you can plan to overcome them early. Achieving each goal is easier when these contingencies are in place so you can proceed into the new year with a confident, positive mindset.</p><p><strong>Pro tip:</strong> Quantive StrategyAI delivers <a href="https://quantive.com/products/results/integrations">data-backed insights</a> by seamlessly integrating with your tech stack through 170+ integrations. These insights help you track progress, spot challenges early, and plan to stay on track.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669938426/site-v5/data_integrations_5031991ae7.png" alt="data integrations"></figure><h3>Step 5: Create timelines for each goal</h3><p>In addition to choosing a quantifiable way to pursue your goals, give each one a timeline. Just because you're engaging in annual goal setting doesn't necessarily mean you have to think of goals that take all 12 months to accomplish.</p><p>Writing out a clear goal timeline for each of your aims allows you to lay out points on the way to the ultimate completion of that priority. By setting checkpoints along the way to each major accomplishment, you can keep your team motivated and give yourself an early warning if your team falls off pace. Achieving one of several milestones feels more attainable and easier to track than completing a months-long project.</p><p><strong>Pro tip: </strong>Quantive StrategyAI’s timeline tools enable you to set milestones and monitor your progress in real time, ensuring nothing falls behind.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1724104700/site-v5/Q3_FY_24_KR_milestone_91edf7c033.png" alt="Q3-FY24 - KR milestone.png"></figure><h3>Step 6: Keep everyone aligned and informed to achieve timelines</h3><p>A timeline gives you a good idea of what you must do to accomplish a goal, and a measurement framework allows you to track your progress along the timeline. With those elements in mind, you can and should craft detailed plans that help your team progress. This plan can be granular and general, listing specific points to hit and general good practices.</p><p>While writing out a plan, it pays to think back on the challenges you anticipated. Building in ways to bypass those issues and stick to your timeline will set your people up for success. You can also break down necessary actions into lists of weekly, monthly, and quarterly priorities.</p><p><strong>Pro tip:</strong> Quantive StrategyAI makes planning easier by linking goals to tasks and KPIs. The alignment view brings everyone’s efforts together in one clear, seamless platform.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1724104700/site-v5/Q1_2025_Linking_KP_Is_and_OK_Rs_to_check_ins_8eb425b60a.png" alt="Q1-2025 - Linking KPIs and OKRs to check-ins.png"></figure><h3>Step 7: Implement progress monitoring process</h3><p>You have a measurement framework in place — are you using it? You should make sure your team makes good progress toward its goals. From the outset of your annual goals, you should be ready to celebrate your accomplishments weekly and monthly.</p><p>Even if conditions become difficult and the team falls off pace, it's better to know what's happening than to abandon progress monitoring. You can respond at quarterly planning sessions, implementing revised and updated goals that suit your position throughout the year.</p><p><strong>Pro tip: </strong>Use Quantive StrategyAI’s automated tracking to monitor progress effortlessly and ensure your team remains aligned with your strategic goals.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1733304270/site-v5/Option_to_delete_KPI_Updates_2f9ae92276.png" alt="Delete KPI updates with Quantive StrategyAI"></figure><h3>Step 8: Revisit and evaluate your goals</h3><p>One of the most important considerations for you and your team is being ready to revise goals. Creating in-depth goals and implementing timelines and measurement systems can make them feel like they're set in stone, but they need to be flexible to cope with the realities of your business environment.</p><p>Organizational goals are only useful if they motivate your team and guide your progress through the year. If your goals are unachievable — or conditions change that make other priorities far more pressing — it's better to make a quick switch rather than wait for the cycle to end.</p><p><strong>Pro tip</strong>: Quantive StrategyAI helps you evaluate your business health in real-time by turning data into actionable insights. This allows you to adapt quickly when priorities shift or new opportunities arise.</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1734085317/site-v5/Make_pro_decisions_all_the_time_619049a63d.png" alt="Smarter decisions faster with Quantive StrategyAI"></figure><h3>How do quarterly goals interact with annual goals?</h3><p>Annual goal setting isn't the only time you should meet to craft goals. A quarterly basis is useful for creating smaller plans that feed into your annual goals and contribute to your efforts to accomplish business objectives.</p><p style="text-align:center;">Read more: Go deep on <a href="https://quantive.com/resources/articles/goal-setting">the keys to effective goal setting</a>.&nbsp;</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/goal-setting"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1733394595/site-v5/Annual_Goal_setting_2af547178b.svg" alt="Leadership goal-setting - social image"></a></figure>

<p>Technology can help when it comes to goal setting, which leads to organizational success. By allowing you to collaborate effectively with your team and integrate all elements of your business strategy, Quantive StartegyAI is the ideal platform for planning, executing, and adapting your goals with effective leadership.</p><p>Goal creation in the platform lets you see the links between the goals you've created and how they support your large-scale company objectives. Assigning ownership of each goal ensures accountability and provides an easy framework for updating progress over time.</p><p>Automated progress updates take the manual work out of goal tracking, helping you keep your team agile as conditions change over a month, a quarter, or a year.</p><p>Discover Quantive StrategyAI's role in <a href="https://quantive.com/solutions/okrs-and-goal-tracking">goal setting and tracking</a>.</p><hr><p><a href="https://quantive.com">Try Quantive StrategyAI</a> for free to see how Quantive can help your business achieve its strategic goals faster and more efficiently.</p>

Leadership Goal Setting for Annual Planning Success

<p>Objectives and key results (OKRs) are a leading goal management framework that helps individuals, teams, and entire organizations reach their goals through identifiable and measurable results. To help you get a complete understanding of what is an OKR, we’ve compiled the most important information on what OKRs are to give you a quick yet complete overview. By the end, you will have a better understanding of the OKR abbreviation, what is an OKR, how OKRs work, why you should use the OKR framework, and how to get started.</p>

<p>Before we learn more about OKRs, let's look at an OKR definition. <strong>The OKR acronym stands for objectives and key results, which is a widely used goal-setting methodology that helps both individuals and teams set and track specific and measurable goals.</strong> OKRs were created by Intel’s Andy Grove and then popularized by venture capitalist John Doerr in his New York Times best-selling book <a href="https://www.whatmatters.com/" target="_blank" rel="noopener noreferrer"><i>Measure What Matters</i></a>.&nbsp;</p><p>Companies from Google to Adobe have rolled out the OKR framework and OKR goals to accelerate growth and drive innovation by helping teams see how their work fits into the overall company’s objectives.&nbsp;</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1681149760/site-v5/OKR_1_62c20da1c7.svg" alt="OKR formula illustration: We will (objective) as measured by (key results)"></figure><p>The OKR framework, by definition, has two core components:&nbsp;&nbsp;</p><ul><li><strong>Objective</strong>: what you’re trying to accomplish&nbsp;</li><li><strong>Key results</strong>: how you’ll measure whether you achieve the objective&nbsp;</li></ul><h3>What are objectives?</h3><p style="margin-left:0px;">In the OKR framework, objectives are qualitative goals and should be inspiring and ambitious. An objective can be long-lived or can have a firmer deadline like the end of the year, the next quarter, or even the next month.&nbsp;</p><p style="margin-left:0px;">The objective of an OKR goal should be hard — the point is to push yourselves as a team or organization. When writing your OKR's objective, keep the following qualities in mind:&nbsp;&nbsp;</p><ul><li>OKR objectives are “stretch goals” or “moonshots,” pushing the limits of your team’s capabilities while remaining within the realm of possibility&nbsp;&nbsp;</li><li>OKR objectives are limited in number, which constrains focus to core priorities&nbsp;&nbsp;&nbsp;</li><li>OKR objectives are designed with your <a href="https://quantive.com/resources/articles/business-strategy" target="_blank" rel="noopener noreferrer">business strategy</a>, mission, and vision in mind&nbsp;&nbsp;</li></ul><p><strong>Example objective:</strong> Dominate our category mind space through content and community.&nbsp;</p><h3>What are key results?&nbsp;</h3><p>Your OKR's key results are quantitative metrics that measure progress toward your objectives. Key results are used to ground your objectives in reality, allowing you to break down an objective into tangible milestones and specifically define the outcomes to be achieved.&nbsp;</p><p>For this reason, it’s critical that they always have a number to measure progress by so there’s a clear answer to whether it’s achieved. Key results also act as a mechanism for accountability, particularly for goals that have a long timeframe and may easily go off track.&nbsp;&nbsp;</p><p>For each OKR objective you create, you'll typically assign two to four key results. Here are some example key results that could be used for the example objective above:&nbsp;&nbsp;</p><p><strong>Example key result 1: </strong>Rank number 1 in search for our top 5 keywords.&nbsp;&nbsp;&nbsp;</p><p><strong>Example key result 2: </strong>Build a Slack community of 10,000 relevant and active members.&nbsp;&nbsp;&nbsp;</p><p><strong>Example key result 3: </strong>Reach 30,000 unique page views per month on our blog.&nbsp;&nbsp;&nbsp;</p>

<p>The origin of the OKR framework traces back to Intel’s CEO, Andy Grove, in the 1970s. Grove conceptualized this goal-setting framework to instill a clear direction and purpose within the organization. However, it wasn’t until John Doerr, a renowned venture capitalist, highlighted OKRs in his influential book, "Measure What Matters," that this methodology gained widespread recognition and adoption. Doerr’s advocacy and strategic application of OKRs in companies like Google, Adobe, and various startups showcased how aligning teams using ambitious yet achievable objectives can fuel growth and innovation.</p>

<p>The OKR methodology is a crucial business tool that can provide clarity, accountability, transparency, and a foundation for continuous improvement. By fostering a shared sense of purpose and empowering employees to work collaboratively towards completing business goals, OKR goal-setting can become a key driving force behind the success and growth of organizations.&nbsp;</p><p>Read more on why <a href="https://info.quantive.com/hubfs/Quantive_Guides/Global-State-of-OKRs.pdf" target="_blank" rel="noopener noreferrer">leaders are implementing OKRs</a>.</p>

<p><span style="font-family:Arial;">The primary purpose of OKRs is to create a structured framework that allows businesses and teams to easily set, track, and evaluate goals and objectives. OKRs help align individuals with the broader goals of a company or organization. Creating clear, high level objectives along with detailed and measurable key results allows companies to describe exactly what they want to achieve and come up with a clear path to meet their goals. This helps create a culture of growth and accountability across organizations.</span></p>

<p>Here are a few of the most common types of OKRs by definition.</p><ul><li><strong>Committed vs. aspirational OKRs</strong>: Committed OKRs are certain to be achieved, while aspirational OKRs push the boundaries and may not be fully attained.</li><li><strong>Learning OKRs</strong>: Focused on acquiring new skills and knowledge or exploring innovative approaches, with personal or professional growth in mind.</li><li><strong>Top-down vs. bottom-up OKRs</strong>: Top-down OKRs are set by leadership and trickle down, while bottom-up OKRs are crafted by individual teams or employees and move upwards in alignment with broader organizational objectives.</li><li><strong>Personal OKRs</strong>: Tailored for individual growth and development, aligning personal aspirations with professional objectives.</li><li><strong>Functional, departmental, or team OKRs</strong>: Specific to the goals and needs of particular departments, functions, or teams within an organization, aligning with broader company objectives.</li><li><strong>Project-based OKRs</strong>: Aligned with specific projects or initiatives, ensuring that the project goals contribute to broader organizational objectives.</li><li><strong>Quarterly, annual, or rolling OKRs</strong>: Varying timeframes for goal achievement, such as setting OKRs on a quarterly or yearly basis or utilizing a rolling system where objectives are constantly reviewed and updated.</li><li><strong>Cross-functional OKRs</strong>: Goals that involve multiple departments or teams working together toward a common objective.</li></ul>

<p>The OKR framework can be a superpower for creating an environment where <a href="https://quantive.com/resources/articles/okrs-employee-experience" target="_blank" rel="noopener noreferrer">employees work with purpose</a>. In fact, using the objectives and key results for <a href="https://quantive.com/resources/articles/goal-setting" target="_blank" rel="noopener noreferrer">goal setting</a> offers five core benefits:&nbsp;</p><ul><li>Focus&nbsp;</li><li>Accountability&nbsp;</li><li>Alignment&nbsp;</li><li>Transparency&nbsp;</li><li>Engagement&nbsp;</li></ul><h3>Focus: Doing the most important work&nbsp;</h3><p>When using the OKR framework, deciding what NOT to do is as important as deciding what to do. Setting business OKRs forces the conversation of deciding what’s most important and letting go of the things that aren’t. With a better focus through OKR goals, team efficiency improves because strategic priorities are established, and everyone is contributing to work that actually moves the needle. &nbsp;</p><h3>Accountability: Ownership and commitment&nbsp;</h3><p>The OKR methodology creates a sense of ownership within teams to improve accountability when advancing goals. And when there’s mutual trust and transparency in teams, job satisfaction, worker confidence, and organizational commitment increase. Because of the transparency of OKR goals, they are a built-in proofing tool for the organization to help you regularly measure progress and <a href="https://quantive.com/products/signals">uncover problems as early as possible.</a>&nbsp;</p><h3>Alignment: Everyone working towards the same goals&nbsp;</h3><p>Aligning employees with the overall strategy requires clarity of top-level objectives. The OKR framework helps display the organization’s direction and show what everyone is working towards. When employees know the company’s mission and current objectives, less time is wasted, and resources are better optimized.&nbsp;&nbsp;</p><h3>Transparency: Know what others are working on&nbsp;</h3><p>OKRs are as much about information access as they are strategy, which is why transparency is a big component of the OKR methodology. Transparency in OKR goals enables everyone in the organization to know why leaders make decisions, what the company is trying to accomplish, and what teammates are working on. When you understand the top-level objectives (because you can see them), your initiatives are more likely to drive impact.&nbsp;&nbsp;&nbsp;</p><h3>Engagement: Each person is filled with purpose&nbsp;</h3><p><a href="https://quantive.com/resources/articles/okrs-for-business-alignment" target="_blank" rel="noopener noreferrer">OKRs combine alignment</a>, focus, accountability, and transparency to drive an outcome vital to the modern workplace — engagement. With the power of democratizing <a href="https://quantive.com/resources/articles/ai-for-decision-making" target="_blank" rel="noopener noreferrer">decision-making</a> with bottom-up and bidirectional <a href="https://quantive.com/resources/articles/goal-setting">goal setting,</a> the OKR method empowers employees to go all-in on the process. The sense of personal responsibility attached to OKRs can strengthen employee connection to your company while allowing them to see how their work impacts the progress of individual, department, and company goals.&nbsp;</p><hr><p style="text-align:center;">See the <a href="https://quantive.com/resources/articles/okrs-in-business" target="_blank" rel="noopener noreferrer">specific benefits OKRs offer</a> startups, SMBs, and enterprises</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okrs-in-business" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670703147/site-v5/OK_Rs_for_business_656a5f0108.png" alt="OKR methodology for business"></a></figure><hr>

<p><span style="background-color:transparent;color:#000000;font-family:Arial,sans-serif;">OKRs and KPIs differ significantly in their approach to performance measurement. OKRs prioritize alignment, ambitious goal setting, and adaptability, fostering continuous review in line with organizational priorities. Their collaborative, buildable nature allows for a wider scope. Conversely, KPIs predominantly evaluate broader business success over extended periods, serving as static, high-level performance indicators with less adaptability than OKRs.</span></p><p><br><span style="background-color:transparent;color:#000000;font-family:Arial,sans-serif;">Learn more about the differences and applications of&nbsp;</span><a href="https://quantive.com/resources/articles/okrs-vs-kpis"><span style="background-color:transparent;color:#1155cc;font-family:Arial,sans-serif;"><u>OKRs vs. KPIs in our comparative article</u></span></a><span style="background-color:transparent;color:#000000;font-family:Arial,sans-serif;">.</span></p>

<p>To make the OKR framework more effective, things like projects, tasks, KPIs, and CFRs are often used in tandem to ensure alignment across your business process.</p><h3>Projects and tasks&nbsp;</h3><p>As the work initiatives that help you achieve your key results, projects and day-to-day tasks are a big part of your business operations. While projects and tasks in general should not act as key results, there are some cases where it may be necessary.&nbsp;</p><p>This is particularly true in cases where the outcomes of a key result can’t easily be quantified, but still acts as an important part of achieving an objective. For instance, publishing a book could be both a project and key result in relation to the objective of “dominate our product category mind space.”&nbsp;</p><h3>KPIs&nbsp;</h3><p><a href="https://quantive.com/resources/articles/what-are-kpis" target="_blank" rel="noopener noreferrer">Key performance indicators (KPIs)</a> are the critical numbers a business needs to monitor&nbsp;to track organizational performance. Although changes to some KPIs can be used as key results, key results do not always include KPIs.&nbsp;</p><p>For instance, the key result of an OKR in a product launch can’t be classified as a KPI. The initiative may be exploratory, and hence non-essential to the business, which means any key results would not be classified as KPIs. On the other hand, increasing customer satisfaction and lifetime value may act as a key result for a specific objective, in addition to a KPI for the business.&nbsp;</p><hr><p style="text-align:center;">Learn more about <a href="https://quantive.com/resources/articles/okrs-vs-kpis">the differences between OKRs and KPIs</a>&nbsp;</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okrs-vs-kpis" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/OK_Rs_and_KP_Is_58043d5709.png" alt="OKRs &amp; KPIs illustration"></a></figure><hr><h3>Conversations, feedback, and recognition (CFRs)</h3><p>Rooted in continuous improvement, CFRs help boost business results, gather feedback, and recognize outstanding performance. The three components of CFR are:&nbsp;&nbsp;</p><ul><li><strong>Conversations</strong>: An authentic one-on-one between a manager and contributor aimed at driving performance&nbsp;&nbsp;</li><li><strong>Feedback</strong>: Mutual and intentional communication among peers to evaluate progress and guide future improvement&nbsp;&nbsp;</li><li><strong>Recognition</strong>: Expressions of appreciation to deserving individuals for contributions of all size&nbsp;</li></ul><p>CFRs were made&nbsp;to channel OKRs into organizations, encouraging depth and complexity in goal setting and tracking. Moreover, as CFRs are meant to be conducted face-to-face or over video calls, they also add a human component to the OKR process, facilitating connection, engagement, and powerful business results.&nbsp;</p><hr><p style="text-align:center;">Learn more about <a href="https://quantive.com/resources/articles/okrs-and-cfrs">how OKRs and CFRs work together</a>&nbsp;</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okrs-and-cfrs" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1672742717/site-v5/OK_Rs_vs_CF_Rs_47092a9a37.png" alt="OKRs and CFRs"></a></figure><hr>

<p>Finding the right goal setting methodology for your organization is a big task. Outside of the OKR framework, there are tons of other options to choose from to help align your employees with the company’s overall business objectives.&nbsp;</p><p>Some of the more notable ones include: &nbsp;</p><ul><li><a href="https://quantive.com/resources/articles/okrs-vs-smart-goals" target="_blank" rel="noopener noreferrer"><strong>SMART goals</strong></a><strong>: </strong>A well-known framework for setting and managing goals, the letters in this acronym stand for specific, measurable, achievable, realistic, and timely. &nbsp;</li><li><a href="https://quantive.com/resources/articles/okr-vs-balanced-scorecard" target="_blank" rel="noopener noreferrer"><strong>The Balanced Scorecard</strong></a><strong>:</strong> This method takes a broad approach to strategy planning and goal management to generate “scorecards” that track performance. Emphasis is placed on measuring four areas: financial, customer, internal processes, and learning and growth.&nbsp;</li><li><a href="https://online.hbs.edu/blog/post/who-is-responsible-for-strategic-planning" target="_blank" rel="noopener noreferrer"><strong>Hoshin Kanri</strong></a><strong>: </strong>Originating in Japan, Hoshin Kanri can be translated to “policy development.”. Like other approaches to goal management, the method focuses on setting strategic objectives, aligning the organization, and measuring progress.&nbsp;</li><li><a href="https://quantive.com/resources/articles/mbo-vs-okr"><strong>MBOs</strong></a><strong>: </strong>Management by objectives (MBOs) is another well-known framework that functions similarly to the others. Aligning challenging objectives, creating a plan of action, and measuring performance and rewards are key components.&nbsp;&nbsp;</li><li><a href="https://quantive.com/resources/articles/okr-vs-4dx" target="_blank" rel="noopener noreferrer"><strong>4DX</strong></a><strong>: </strong>4DX refers to the 4 disciplines of the strategy execution framework. It proposes four core disciplines for helping individuals and teams reach their goals — focus on the wildly important, act on the lead measures, keep a compelling scorecard, and create a cadence of accountability.&nbsp;</li><li><a href="https://quantive.com/resources/articles/eos-and-okrs"><strong>EOS</strong></a>: The Entrepreneurial operating system (EOS) helps leadership teams become tighter and more efficient in ways meant to permeate the entire organization. It’s designed for growth-minded organizations of about 10 to a few hundred people but has been employed successfully in much larger companies, too.&nbsp;</li></ul><p>While all of these methodologies have their merits and use cases, every organization is unique, and each company needs to find what works best for them. &nbsp;</p><hr><p style="text-align:center;">Read more about <a href="https://quantive.com/resources/articles/goal-setting" target="_blank" rel="noopener noreferrer">goal-setting frameworks</a> to find the right one for your business</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/goal-setting" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/goal_setting_guide_932059351d.png" alt="goal setting guide with okr methodology "></a></figure><hr>

<p>Creating and <a href="/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer">writing incredible OKRs</a> gives you a sense of direction and enable you to focus on what matters most while poorly written OKRs can disconnect and demotivate teams, costing time and effort in the long run. &nbsp;</p><p>So how do you go about creating OKRs? Let’s break down the anatomy of an OKR in this brief OKR template.&nbsp;</p><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1681149827/site-v5/Objective_d50eb6273b.svg" alt="Objective = Verb + What you're going to do or achieve (business impact) diagram"></figure><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1681149882/site-v5/Key_Result_5b63c625a6.svg" alt="Key result = Verb + what you're going to track + from x to y diagram"></figure><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1681150112/site-v5/Task_e1e05895e9.svg" alt="Task = Day-to-day initiatives that progress your key results"></figure><p>As you start your OKR journey, remember there are certain qualities that objectives and key results must have for them to be effective. Here is a quick reference of the key qualities you need to know about:&nbsp;</p><h3>Basic rules for objectives&nbsp;</h3><ol><li><strong>Clear: </strong>Use simplified, clear, concise language that can be easily understood across the organization. Business jargon and technical language should be avoided. This may even apply if it’s a function specific OKR, as members of other teams may need to understand it too.&nbsp;</li><li><strong>Inspiring: </strong>Energize team members and boost engagement with inspiring language and power words such as “crush” and “transform.”&nbsp;</li><li><strong>Actionable</strong>: Make objectives actionable by using verbs and clearly defining the work to be done.&nbsp;</li><li><strong>Timebound: </strong>Set a deadline for each objective to ensure resources are managed and things don’t go off track.&nbsp;&nbsp;</li><li><strong>Ambitious yet realistic: </strong>Objectives should be “stretch goals” or “moonshots.” This means that they need to be ambitious goals that push the capabilities of your team, but they shouldn’t be so extreme that they reduce confidence.&nbsp;</li><li><strong>Focused: </strong>Constrain objectives to key priorities to ensure focus on mission-critical objectives.&nbsp;</li></ol><h4>Examples of objectives</h4><p><strong>Good objective: </strong>Turbo-charge our sales cadence to win more deals faster.&nbsp;&nbsp;</p><p>Why it’s good: Not only is it clear and easy to remember, it's also inspirational, actionable, and focused on a key priority.&nbsp;</p><p><strong>Bad objective: </strong>Increase number of SQLs from MQLs by 400% derived from the DCT, OBL, and COS Campaigns.&nbsp;</p><p>Why it’s bad: This is a key result, not an objective. It’s not inspiring, uses function-specific jargon and is unrealistic.&nbsp;</p><h3>Basic rules for key results&nbsp;</h3><ol><li><strong>Quantified: </strong>Numbers as the key to tracking progress towards objectives.&nbsp;&nbsp;</li><li><strong>Measurable: </strong>The number must be clearly measurable. Keep in mind that if you can’t collect accurate data, then you won’t be certain about progress.&nbsp;&nbsp;</li><li><strong>Relevant: </strong>Key results must be relevant to the objective. Each key result serves to paint the picture of progress toward a particular objective.&nbsp;</li><li><strong>Focused: </strong>It’s best practice to assign two to four key results per objective. Too few key results won’t give you the complete picture, and too many could mean losing focus on what matters.&nbsp;&nbsp;</li><li><strong>Results-oriented: </strong>Key results must be results oriented vs task oriented. They should signify the achievement of something, as opposed to work being completed.&nbsp;&nbsp;</li><li><strong>Ambitious yet realistic:</strong> Like with objectives, individual key results need to push the envelope of what’s possible but should not feel unachievable.&nbsp;</li></ol><h4>Examples of key results</h4><p><strong>Good key result: </strong>Create 200 SQLs from MQLs by EOQ.&nbsp;</p><p>Why it’s good: Quantitative, tied to a specific metric, and time-bound.&nbsp;</p><p><strong>Bad key result: </strong>LTV/CAC Ratio is 3:1.&nbsp;</p><p>Why it’s bad: This is a KPI and isn’t linked directly to the objective.&nbsp;</p><hr><p style="text-align:center;">Learn all the <a href="/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer">best practices for writing OKRs</a></p><figure class="image image_resized" style="width:50%;"><a href="/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/how_to_write_great_OK_Rs_225963118b.png" alt="how to write great OKRs"></a></figure><hr>

<p>Need some inspiration before getting started writing your own OKR goals? Check out the examples below of well-written company OKRs, team OKRs, and individual OKRs.&nbsp;</p><h3>Company OKR example&nbsp;</h3><ul><li><strong>Objective: </strong>Become a leader in the HR tech market&nbsp;&nbsp;</li><li><strong>Key result 1:</strong> 25% of our revenues come from Forbes 100 companies&nbsp;&nbsp;</li><li><strong>Key result 2:</strong> 100% of our C-level team to be hired from Player-A companies&nbsp;&nbsp;</li><li><strong>Key result 3: </strong>Be recognized as the best HR tech B2B vendor by top 5 HR media&nbsp;&nbsp;</li><li><strong>Key result 4: </strong>100% employee retention rate&nbsp;&nbsp;</li></ul><h3>Team OKR example (<a href="https://quantive.com/resources/articles/marketing-okrs" target="_blank" rel="noopener noreferrer">marketing</a>)&nbsp;&nbsp;</h3><ul><li><strong>Objective:</strong> Prime the marketing pump&nbsp;&nbsp;</li><li><strong>Objective description:</strong> Improve the efficiency of our operations to create more impact&nbsp;&nbsp;</li><li><strong>Key result 1:</strong> 20% of SQLs begin as Trials&nbsp;&nbsp;</li><li><strong>Key result 2:</strong> 30% of MQLs are Organic&nbsp;&nbsp;</li><li><strong>Key result 3: </strong>Achieve $7.5mm of MGP&nbsp;&nbsp;</li></ul><h3>Individual OKR example (sales leader)&nbsp;&nbsp;</h3><ul><li><strong>Objective:</strong> Break the 8-figure barrier&nbsp;&nbsp;</li><li><strong>Objective description: </strong>Trim operational fat and crush expansion to amass $10mm in quarterly revenue&nbsp;&nbsp;&nbsp;</li><li><strong>Key result 1:</strong> Achieve $1.5mm in new ARR in NOAM region&nbsp;&nbsp;</li><li><strong>Key result 2:</strong> Reach &gt;30% new business upsell/cross-sell for current customers&nbsp;&nbsp;</li><li><strong>Key result 3:</strong> Double SQL: opportunity conversion rate to 14%&nbsp;&nbsp;</li><li><strong>Key result 4:</strong> Half the sales cycle for our baseline product from 42 to 21 days&nbsp;</li></ul><hr><p style="text-align:center;">Check out our <a href="https://quantive.com/resources/articles/okr-examples">OKR examples </a>for more inspiration&nbsp;</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-examples" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/OKR_examples_25_real_teams_bca27968b7.png" alt="OKR examples - 25 real teams.png"></a></figure><hr>

<p>To see how OKR goals work in action, let's dive into some OKR case studies of companies that use the OKR method to tackle challenges, enhance operations, and achieve remarkable success.</p><h3><a href="https://quantive.com/resources/case-studies/workiz" target="_blank" rel="noopener noreferrer">Workiz</a></h3><p style="margin-left:0px;">Workiz, a field service business, had difficulties with prioritizing goals and<a href="https://quantive.com/resources/articles/strategic-planning-process" target="_blank" rel="noopener noreferrer"> strategic planning</a> due to rapid growth. They adopted the OKR process to expand their focus, improve sales efficiency, and increase goal visibility. They used Quantive Result's collaborative capabilities to enhance transparency and alignment, leading to significant growth and successful goal tracking. As a result, they were able to use OKR goals to effectively train new sales reps and close sales successfully.&nbsp;</p><h3 style="margin-left:0px;"><a href="https://quantive.com/resources/case-studies/unbabel" target="_blank" rel="noopener noreferrer">Unbabel</a></h3><p style="margin-left:0px;">Unbabel, an AI-powered human translation platform, sought a solution for enhancing alignment and visibility across the organization. They used Quantive Results to improve their OKR process. Using <a href="https://quantive.com/solutions/results/okr-software" target="_blank" rel="noopener noreferrer">Quantive's</a> OKR software, Unbabel streamlined coordination across cross-functional projects and improved real-time progress tracking, as such replacing the use and limitations of <a href="https://quantive.com/resources/articles/okrs-vs-spreadsheets" target="_blank" rel="noopener noreferrer">OKR spreadsheets</a>.&nbsp;</p><h3 style="margin-left:0px;"><a href="https://quantive.com/resources/case-studies/rose-city-rollers" target="_blank" rel="noopener noreferrer">Rose City Rollers</a></h3><p>The Rose City Rollers (RCR), women's flat track roller derby league and 501c3 non-profit, needed to adapt their offerings and coordinate quickly — their goal-setting process lacked measurability and accountability. Using Quantive Results to implement OKRs, RCR achieved team-wide transparency, alignment, and prioritization, helping them navigate challenges brought on by the pandemic. A such, Quantive Results became one of company's essential tools, enhancing communication, reflection, and goal progression.</p><p>Want more real-life examples of OKR implementation? <a href="https://quantive.com/resources/case-studies" target="_blank" rel="noopener noreferrer">See our OKR case studies</a>.</p>

<p>Although the OKR method can be used on a smaller scale for teams and individuals, the OKR framework works best when it’s across the organization.&nbsp;</p><p>Before you get started <a href="https://quantive.com/resources/articles/how-to-implement-okrs" target="_blank" rel="noopener noreferrer">implementing OKRs</a>, here are a few things to consider:&nbsp;</p><ol style="list-style-type:decimal;"><li>You will need to clearly define your vision, mission, and strategic objectives. OKR goals should be linked to the high-level thinking of the organization in order to make them a reality.&nbsp;&nbsp;</li><li>Running a small <a href="https://quantive.com/resources/articles/how-to-run-okr-pilot" target="_blank" rel="noopener noreferrer">pilot program</a> across one division may be useful before rolling out OKRs to the entire organization. This would allow you to collect data on what does and doesn’t work and help build an internal case study for change.&nbsp;&nbsp;</li><li><a href="https://quantive.com/resources/articles/okr-software" target="_blank" rel="noopener noreferrer">OKR software</a> can help you achieve the best possible transparency and accuracy from the method, such as by connecting your data sources to dynamically update key results progress.&nbsp;</li><li><a href="https://quantive.com/okr-consulting-services" target="_blank" rel="noopener noreferrer">OKR consultants</a> may also be useful to help you streamline the process and ensure the initiative delivers what you need.&nbsp;</li></ol><p>A useful way to start thinking about setting OKRs is to look at <a href="https://quantive.com/resources/articles/okr-cycle" target="_blank" rel="noopener noreferrer">a typical OKR cycle</a>. OKR cycles are the timelines in which OKRs are developed, executed, measured, and evaluated.&nbsp;</p><p>For example, a quarterly OKR cycle looks something like this:&nbsp;</p><ol><li><strong>Before and at the start of the quarter: </strong>OKRs are set by the executive level and communicated across the organization. Teams and individuals then set their OKRs and align with the rest of the organization.&nbsp;</li><li><strong>During the quarter: </strong>Weekly reviews, confidence assessments, and progress reporting about key results are made. Problems are identified and solved, and execution is optimized through continuous learning.&nbsp;</li><li><strong>At the end of the quarter: </strong>A companywide retrospective is done to evaluate progress and collect learnings across the board. Decisions about changes of direction are made, including whether to adapt and continue with the current OKRs.&nbsp;&nbsp;</li></ol><p>There are more details to consider, including who owns which OKRs, how decisions are made, and how OKRs fit in with your <a href="https://quantive.com/resources/articles/okr-performance-management" target="_blank" rel="noopener noreferrer">performance management</a> process.&nbsp;</p><p>How each company rolls out OKRs will be different, which is why it’s important to fully understand the methodology before trying to implement it. Without proper application, OKRs can easily be forgotten and disregarded by team members, or in the worst case, come across as another form of micro-management.&nbsp;&nbsp;</p><hr><p style="text-align:center;">Read this article to learn more about <a href="https://quantive.com/resources/articles/how-to-implement-okrs" target="_blank" rel="noopener noreferrer">implementing OKRs</a></p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/how-to-implement-okrs" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/how_to_Implement_OK_Rs_6b84fd4bd8.png" alt="how to Implement OKRs"></a></figure><hr>

<p>Grading OKRs should be a straightforward, iterative, and collaborative process to understand progress and inform future actions. Best practices include:</p><ul><li>Using a simple numeric scale (0 to 1) to grade KRs</li><li>Establishing ambitious and growth-oriented goals rather than fixating on perfection</li><li>Engaging teams in self-assessment to promote transparency</li></ul>

<p>Setting great OKRs takes practice. Early in the transformation towards a more dynamic, outcome-based culture, it’s easy to go off the rails. Here are a few of the most common OKR mistakes. &nbsp;&nbsp;</p><p><strong>Not aligning with top-level objectives: </strong>A key benefit of OKR goals is creating alignment from the top of the organization to the bottom to ensure the right work is done and employees are engaged. Setting OKRs that aren’t linked to top-level objectives won’t provide these benefits.&nbsp;</p><p><strong>Sandbagging: </strong>This is the practice of teams underpromising and overdelivering. This is done to avoid the pressure of difficult targets but causes problems such as under-utilized bandwidth and misallocation of resources.&nbsp;</p><p><strong>Not learning and adapting: </strong>OKR goals are best used to create a culture of learning and continuous improvement. Learning and adapting from regular reviews and retrospectives are a key part of the OKR methodology.&nbsp;&nbsp;</p><p><strong>Lack of transparency: </strong>For better alignment, OKRs need to be transparent so everybody can see how their OKR goals work in conjunction with the rest of the organization. Transparency also allows problems to be more easily identified and enables the whole team to solve problems together.&nbsp;</p><hr><p style="text-align:center;">Learn how to avoid the <a href="https://quantive.com/resources/articles/okr-mistakes">top OKR mistakes</a></p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-mistakes" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/common_OKR_mistakes_39f82a0196.png" alt="common OKR mistakes.png"></a></figure><hr>

<p>Getting started with the OKR methodology can seem daunting, but it doesn’t have to be. Here are a few of the frequently asked questions from people like you at the beginning of their OKR process.&nbsp;</p><h3>What does OKR stand for?</h3><p>Objectives and key results.</p><h3>What are OKRs and how are they different from other goal management methods?&nbsp;</h3><p>OKRs are a goal management framework that helps organizations and teams align their efforts toward achieving specific and measurable objectives. They differ from other goal-setting methods in that they focus on setting specific, measurable, and time-bound objectives and tracking progress through key results that improve business performance.</p><h3>What's the difference between OKRs and KPIs?</h3><p>OKRs help businesses set aspirational objectives alongside measurable outcomes to drive company-wide innovation, alignment, and collaboration. KPIs (key performance indicators), on the other hand, evaluate ongoing performance to ensure the efficiency of processes across the organization.</p><h3>What is a key result in the OKR Framework?</h3><p>An OKR's key result is a specific and measurable outcome that indicates progress toward an objective. It helps track and assess the success or effectiveness of efforts undertaken to accomplish the objective.</p><h3>Why use OKRs?</h3><p>OKRs provide a clear and transparent framework that allows teams to prioritize objectives, define key results, and track their progress, fostering accountability, motivation, and agility.</p><h3>Who should own OKRs?&nbsp;</h3><p>OKRs should be owned by individuals or teams who are responsible for achieving specific business goals and measurable key results. This could include department heads, managers, or project leaders.&nbsp;</p><h3>How to measure OKRs?&nbsp;</h3><p>OKRs can be measured by tracking progress towards specific, measurable targets. This can be done for an individual team member or an entire team. <a href="https://quantive.com/resources/articles/okr-software" target="_blank" rel="noopener noreferrer">OKR software</a> that aggregates, updates, and displays data can be useful for this purpose.&nbsp;&nbsp;</p><h3>What makes a good OKR?</h3><p>Good OKRs possess a couple of key characteristics including being ambitious, aligned with company goals, limited in number, transparent, collaborative, and regularly updated.</p><h3>Who invented OKRs?&nbsp;</h3><p>OKRs were created by Intel’s Andy Grove and then popularized by venture capitalist John Doerr in his New York Times best-selling book Measure What Matters. Doerr learned about OKRs while working at Intel in the 1970s, and later popularized the concept while working with companies like Google and Amazon.&nbsp;</p><h3>How many OKRs should you have?&nbsp;</h3><p>It’s generally better to have a smaller number of objectives that focus only on key priorities. Each objective should have two to four key results assigned to them.&nbsp;</p><h3>How often should OKRs be reviewed and updated?&nbsp;</h3><p>OKRs should be reviewed and updated regularly, such as quarterly or semi-annually, to adjust to changing circumstances or new information.&nbsp;</p><h3>How do OKRs work within my performance management process?&nbsp;</h3><p>OKRs can guide teams and organizations towards aspirational goals, while performance management assesses individuals’ abilities to perform tasks and generate desired outputs. With this in mind, fully combining OKRs with performance management can deter progress and encourage wrong behaviors. While acknowledging the differences between the two frameworks is essential, you can align <a href="https://quantive.com/resources/articles/okr-performance-management" target="_blank" rel="noopener noreferrer">OKRs and performance management</a> to streamline organizational success.&nbsp;</p><h3>How do I make sure that OKRs are actionable and not just a list of vague aspirations?&nbsp;</h3><p>Make sure OKRs are actionable by setting specific, measurable, and time-bound objectives and key results.&nbsp;</p><h3>What is the best free OKR software?</h3><p>Quantive Results’ Essentials plan is a forever-free OKR software designed for smaller teams and those new to OKRs, as well as those transitioning away from manual methods. It encompasses all the necessary tools to establish a robust foundation for your OKR framework.</p><h3>How do I create OKRs for something that is not measurable?&nbsp;</h3><p>When dealing with non-measurable objectives, focus on making them actionable, clear, and impactful. Break qualitative objectives into smaller, measurable components or milestones that indirectly gauge progress (e.g., proxy metrics or qualitative assessments). Emphasize clarity and alignment with the mission, even if they can't be quantified directly.</p><h3>How long does it take to implement an OKR framework in a company?</h3><p>The time taken to implement OKRs varies depending on the size and complexity of the organization. Generally, teams might take a few cycles to adapt to the OKR methodology. However, the planning, training, and rollout may take a few months to a year to align and regulate across the company.</p><h3>What percentage of progress makes a successful OKR?</h3><p>True OKR success isn’t confined to a specific percentage. It’s about contextual achievement, aligning with key results, and staying true to the overarching objective. Progress that significantly impacts the goal’s direction — even if key results aren’t fully attained — defines success beyond numerical benchmarks.</p><h3>What are initiatives?</h3><p>Initiatives are actions undertaken to achieve an OKR's key results and, ultimately, the objective itself. They represent day-to-day tasks, projects, or strategies that drive progress toward the outcomes outlined in the key results.&nbsp;</p><h3>How can you tie bonuses to OKRs?</h3><p>At Quantive, we believe tying bonuses to OKRs curbs the framework's effectiveness, limiting goal attainment and the pursuit of ambitious objectives. However, if insisted upon, consider a balanced approach to tying bonuses to OKRs. Allocate a portion of bonuses based on progress toward key results to recognize effort and advancement, or create a bonus structure tied to overall team performance and strategic impact. This allows you to acknowledge collective efforts without rigidly linking bonuses to individual OKR achievement.</p><h3>What’s the difference between OKR and MBO?</h3><p>The primary difference between OKRs and MBOs lies in their scope and focus. OKRs emphasize ambitious goals and measurable outcomes that align with an organization's vision. On the other hand, MBOs typically focus on setting and managing specific, achievable goals, often emphasizing hierarchical alignment and individual performance measurement.</p><h3>What’s the difference between OKR and SMART goals?</h3><p>OKRs and SMART goals share similarities in creating objectives and measurable outcomes. Yet, while OKRs emphasize aspirational, qualitative objectives alongside measurable key results, SMART goals focus on setting specific, attainable, and trackable goals, forgoing the emphasis on aspirational objectives and alignment.</p><h3>How do I ensure OKRs are aligned with the company's overall strategy and vision?&nbsp;</h3><p>Align OKRs with the company's overall strategy and vision by involving stakeholders, linking OKRs to company goals, and regularly reviewing and updating them.&nbsp;</p>

<p>Now that you have a solid understanding of the OKR methodology, you're ready to take the next step in your OKR journey. While OKRs can be complex, this article gives you a good foundation to build from as you bring this goal-setting framework into your organization. And if you're looking to dive deeper, check out our <a href="https://quantive.com/resources/certifications/okr-fundamentals" target="_blank" rel="noopener noreferrer">OKR Fundamentals email course</a> to ensure you have everything you need to succeed with OKRs.</p><hr><p><span lang="EN-US" dir="ltr">Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp; &nbsp;</span>&nbsp;</p><p><span lang="EN-US" dir="ltr">As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy and playbooks from a static formulation to a feedback-driven engine for growth.&nbsp; &nbsp;</span>&nbsp;</p><p><span lang="EN-US" dir="ltr">Whether you’re a fast-growing scale-up, a mid-market business looking to conquer, or a large enterprise looking for innovation, Quantive keeps you ahead – every step of the way. For more information, visit </span><a href="http://www.quantive.com/"><span lang="EN-US" dir="ltr">www.quantive.com</span></a><span lang="EN-US" dir="ltr">.</span>&nbsp;</p>

30+ Real OKR Examples for Different Teams

What are OKRs? The Ultimate Guide to the OKR Framework

<p>OKRs (Objectives and Key Results) are a collaborative management methodology that helps companies set and achieve goals by driving alignment, enhancing focus, and promoting transparency. By illustrating the top priorities of the organization, company OKRs are the grounding point for business, department, and individual initiatives.</p><hr><p style="text-align:center;">Learn more about <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">what OKRs are </a>and how to use them</p><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/what_are_OK_Rs_35bf212c5f.png" alt="what are OKRs.png"></a></figure><hr><p>Company level OKRs, however, are not meant to cover everything your organization needs to accomplish, as too many OKRs can unravel organizational efficiency through complexity and confusion. When done correctly, company OKRs prevent a significant vulnerability: misalignment.&nbsp;</p><p>Without alignment at the top, departments and teams operate without direction and focus. Company wide OKRs help leadership connect with the most important goals and help individuals produce efficient and inspired work.&nbsp;</p>

<p>The transparency of OKRs ensures accessibility to the company goals that guide the business, department, and individual goals. This is the first step in preventing misalignment, as each team knows what the other is working on at any given time.</p><p>OKRs also correct misalignment through <a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">cross-functional collaboration</a>. The company level objective is supported by department initiatives that drive progress for the key results. Company wide OKRs require each department to work together to progress key results and their respective OKRs, pushing each team and individual in the same direction.</p><p>Through company OKRs, objectives provide the often-missing guiding light for each department, while key results give teams a quantifiable objective to push towards collaboratively.&nbsp;</p>

<p>Company OKRs can be split into an <a href="https://quantive.com/resources/articles/okr-cycle">annual and quarterly</a> focus, usually with a mid-year review of the annual OKR. Depending on the structure of the organization, the CEO, COO, and/or Chief of Staff may create the initial draft of company OKRs with feedback from other c-suite executives to ensure OKRs aren’t created in a silo.</p><p>The key decision makers need to have an informed perspective on each department’s performance when determining where the company should focus. A growth-focused, Series C funded startup, for example, will need to focus on different areas than a 40-year established enterprise. &nbsp;</p><p>While annual company wide OKRs are the support structure of your organization, they are far from “set and forget” goals. Changes in the competitive environment, shifting consumer demands, and other unaccounted-for variables (like a worldwide pandemic) require flexible company OKRs. Quarterly company OKRs allow for variety in “how” the annual company OKRs are achieved and “what” is happening in the market for your product or service.&nbsp;</p>

<p>Company OKRs can be focused, quarterly or annually, on a selection of areas like:</p><ul><li>Growth initiatives</li><li>Brand</li><li>Culture</li><li>Revenue</li><li>Product</li><li>Service</li></ul><p>Check out all our example company OKRs below. &nbsp;</p>

<h3>Example company OKR: Growth</h3><p>Example 1</p><ul><li><strong>Objective: </strong>Become growth-obsessed&nbsp;</li><li><strong>Key result 1:</strong><span style="color:rgb(29,28,29);"> Decrease avg. net MRR churn by 25%&nbsp;</span></li><li><strong>Key result 2:</strong><span style="color:rgb(29,28,29);"> Compound MoM MRR growth of 15%&nbsp;</span></li><li><strong>Key result 3:</strong><span style="color:rgb(29,28,29);"> 2,000 Customers&nbsp;</span></li></ul><p><span style="color:rgb(29,28,29);">Example 2</span></p><ul><li><strong>Objective</strong>: Kickstart growth mode</li><li><strong>Key result 1: </strong>Increase the company average deal size by 30% (with upsells)</li><li><strong>Key result 2: </strong>Reduce churn to less than 5% annually</li><li><strong>Key result 3: </strong>Successfully expand into APAC by establishing regional HQ in Singapore and hiring at least 3 sales/support staff</li></ul><hr><h3>Example company OKR: Brand</h3><ul><li><strong>Objective</strong>: Delight our customers</li><li><strong>Key result 1: </strong>Achieve an NPS of &gt;24 from our customers</li><li><strong>Key result 2: </strong>Increase customer Net Retention to &gt;100%</li><li><strong>Key result 3: </strong>Achieve product engagement measured by &gt;80% WAU</li></ul><hr><h3>Company OKR examples: Culture</h3><p>Example 1</p><ul><li><strong>Objective</strong>: Build a great corporate culture</li><li><strong>Key result 1: </strong>Successfully launch OKR platform to provide transparency to company goals by having 70%+ users submit reflections within 3 weeks</li><li><strong>Key result 2: </strong>Achieve a weekly employee satisfaction / Pulse Score of &gt;8</li><li><strong>Key result 3: </strong>Celebrate at least 3 “small wins” and "shout-outs" in every all hands meeting</li><li><strong>Key result 4: </strong>CEO and SVPs to complete monthly all-hands town hall and open Q&amp;A meeting</li></ul><p>Example 2</p><ul><li><strong>Objective: </strong>Create an OKR-obsessed culture</li><li><strong>Key result 1:</strong> 90% of KRs are up to date every 2 weeks</li><li><strong>Key result 2: </strong>Average 70% progress on all OKRs</li><li><strong>Key result 3:</strong> Average OKR design score above 80&nbsp;</li></ul><hr><h3>Company OKR examples: Revenue</h3><p>Example 1</p><ul><li><strong>Objective</strong>: Achieve revenue targets through disciplined, profitable, and repeatable methods‍</li><li><strong>Key result 1: </strong>Hit company global sales target of $50 Million in New ARR</li><li><strong>Key result 2: </strong>Achieve &gt;50% growth in channel sourced bookings</li><li><strong>Key result 3: </strong>Achieve &gt;40% of Bookings target by Feb 28th</li><li><strong>Key result 4: </strong>Achieve 100% year-to-year sales growth in EMEA</li></ul><p>Example 2</p><ul><li><strong>Objective</strong>: <span style="color:rgb(29,28,29);">Improve customer retention to drive up revenue&nbsp;</span></li><li><strong>Key result 1:</strong><span style="color:rgb(29,28,29);"><strong> </strong>Improve product onboarding (product)&nbsp;</span></li><li><strong>Key result 2:</strong><span style="color:rgb(29,28,29);"><strong> </strong>Target enterprise MQLs to improve&nbsp;customer life time (marketing)&nbsp;</span></li><li><strong>Key result 3:</strong><span style="color:rgb(29,28,29);"> Build a long-term nurture sequence (customer success)</span></li></ul><hr><h3>Example company OKR: Product</h3><ul><li><strong>Objective</strong>: Launch the new product successfully in Q1</li><li><strong>Key result 1: </strong>Publish 5 new product customer case studies</li><li><strong>Key result 2: </strong>Obtain at least 20 new product customers with an average order size of &gt;$25k</li><li><strong>Key result 3: </strong>Obtain Leader category status in the Gartner Magic Quadrant</li><li><strong>Key result 4: </strong>Win a “Best Product of the Year” award at the industry conference</li></ul><hr><h3>Example company <a href="https://quantive.com/resources/articles/customer-success-okrs" target="_blank" rel="noopener noreferrer">OKR: Customer service</a></h3><ul><li><strong>Objective:</strong> Create customers who love us as much as we love us</li><li><strong>Key result 1: </strong>Identify needs and design features to address them</li><li><strong>Key result 2: </strong>Address pain points and needs of the customer</li><li><strong>Key result 3:</strong> Improve and scale customer success cycle for current customers&nbsp;</li></ul><hr>

<p><a href="https://quantive.com/resources/articles/okr-software" target="_blank" rel="noopener noreferrer">OKR software</a> can improve your company's performance by facilitating smooth communication and <a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">collaboration among cross-functional teams</a>.&nbsp;</p><p>It ensures quick, transparent, and feedback-driven interactions for effective team coordination. Additionally, OKR software keeps your company aligned with changing circumstances, allowing strategic pivots through timely <a href="https://quantive.com/resources/articles/okr-tracking" target="_blank" rel="noopener noreferrer">OKR progress tracking</a>.</p><p>Let's take a quick look at what your company's OKRs would look like within a dedicated OKR platform like Quantive Results:</p><p><img src="https://res.cloudinary.com/gtmhub/image/upload/v1705582547/site-v5/Company_OK_Rs_28ab4347fc.png" alt="Company OKR examples"></p>

<p>Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp;&nbsp;</p><p>As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy from a static plan to a feedback-driven engine for growth.&nbsp;&nbsp;</p><p>Whether you’re a visionary start-up, a mid-market business looking to conquer, or a large enterprise facing disruption, Quantive keeps you ahead — every step of the way. For more information, visit <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;</p>

Success!

Read more about strategy management:

7 Steps for a Successful Goal Setting Process

Leadership Goal Setting for Annual Planning Success

What are OKRs? The Ultimate Guide to the OKR Framework

Company OKRs Examples