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The global state of OKRs

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Understanding strategy execution is the first step in improving it for your organization. But successful strategy execution process doesn't occur by trying to do everything all at once. Some efforts produce greater results than others.Through our experience in <a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer">strategy planning, alignment and activation, execution, and assessment and adaptation</a>, we’ve distilled our best practices for strategy execution. These tips are a non-exhaustive, practical starting point for kickstarting an effective strategy execution journey.&nbsp;In this article, we’ll explore best practices for strategy execution, covering:<ol><li>Team responsibilities</li><li>Corporate strategy</li><li>Finances</li><li>OKRs and KPIs</li><li>Information silos</li><li>Micromanagement</li><li>Alignment</li></ol>

Imagine your teams not knowing who is working on which projects or who to report to. How can collaboration, accountability, or alignment thrive in this environment?&nbsp;Clarity is the catalyst for effective strategy execution.<blockquote>Clarity creates visibility. Visibility creates accountability. Accountability creates results.&nbsp;</blockquote>As a general concept thought leaders love to throw around, clarity is aspirational but abstract — so how can clarity become tactically approachable for you?&nbsp;Uncertainty between decision-makers creates conflicts within teams, leaders, and processes, leading to a lack of clarity. For example:<ul><li>If a leader assumes someone is making a decision (but they aren’t), time is wasted</li><li>If a leader believes they have decision making rights (but they don’t), conflict is created</li><li>If a team member waits for or bypasses approval, time is wasted</li><li>If a leader needs approval from another leader, who needs approval from another leader, inefficient bureaucracy is reinforced</li></ul>Endless scenarios can demonstrate the chaos that ensues from poor clarity. Larger organizations are especially vulnerable, as leadership may frequently change or roles grow more ambiguous.&nbsp;Improving clarity on responsibilities directly contributes to better results, making it a must-have best practice for strategy execution.

Clarity doesn’t just help sort out individual responsibilities. Corporate strategy can be painfully vague and ambiguous — creating a clear strategy is the first step to approachability.&nbsp;<blockquote>Without a clear corporate strategy, business and functional strategies operate in disarray and the strategy chain is broken before it can begin!&nbsp;</blockquote>Consider then how this strategy &nbsp;scales as your company or the market changes. Building scale into strategy is an insurance policy against unpredictability.&nbsp;But why are clarity and scalability so necessary in corporate strategy and effective strategy execution?&nbsp;<h3>Clarity for an approachable strategy</h3>When the corporate strategy is transparent and well-understood, it allows information to flow freely throughout the organization, reducing the lag between strategy and execution. As corporate strategy informs business and functional strategies, it creates a symbiotic relationship — an approachable corporate strategy leads to healthy execution.<blockquote>With a clear, approachable corporate strategy, teams are more closely connected to the company’s vision, and as a result, aligned in their efforts to drive measurable impact.</blockquote>Approachability isn’t enough, however. Building a scalable strategy means dedicating the right resources for alignment, execution, and adaptation at any level.But why scalability?&nbsp;<h3>Scalability for preventing resource waste</h3>The strategy that works for 10 people likely won’t work for 100 people. The same goes for the jump from 100 to 1,000. The difficulty of strategic communication compounds as your organization scales.&nbsp;<blockquote>Building strategy to scale is ensuring that in six months or a year, you don't have to completely redo the structure and approach of your entire organization.</blockquote>By being more intentional about the scalability of your corporate strategy upfront, you’re saving time and money in the future.&nbsp;

Imagine this: you’ve built the best strategy in your industry. It’s guaranteed to shake up the competition and thrust your business into the forefront of your customers’ minds. Everyone is excited about the rollout, leadership believes in the concept, and the figurative runway is prepared for takeoff!Just one problem: you forgot to talk about costs.<blockquote>A great strategy without the resources to execute it is pointless.&nbsp;</blockquote>Finances raise the question of practicality — can our ambitious strategy actually be deployed? &nbsp;As noted in <a href="https://www.clearpointstrategy.com/strategy-implementation/" target="_blank" rel="noopener noreferrer">Clear Point Strategy,</a> creating the financial plan in a silo, away from the strategy, is a recipe for failure in both processes. &nbsp;Financial resources should be actively considered within the strategy, instead of being plugged in at the last minute. This is not possible without clear communication about the strategy and <a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">cross-functional collaboration</a> between finance, leadership, and any other stakeholders.&nbsp;

Performance management indicators are amongst the necessary best practices for strategy execution, making your strategy measurable.&nbsp;<blockquote>Demonstrating results helps every level of your organization, whether showing your team’s progress, measuring the health of your strategy, or catching red flags early.</blockquote>OKRs and KPIs are practical <a href="https://quantive.com/resources/articles/strategy-execution-gap" target="_blank" rel="noopener noreferrer">tools for closing the gap between strategy and execution</a>. Here’s how OKRs and KPIs give you critical insights into your strategy execution process. &nbsp;<h3>OKRs</h3>OKRs help you create smarter goals. Ambitious objectives combined with the proof of key results are a long-term solution for deploying strategy. Objectives may shift as your strategic priorities do, while key results enforce actions that drive real impact.Because OKRs are a transparent system, accountability becomes a pillar in the <a href="https://quantive.com/resources/articles/strategic-planning-process" target="_blank" rel="noopener noreferrer">strategic planning process</a>. Initiatives are clearly tied to impact, and the ownership of goals aligns individuals to strategic outcomes.<hr>Learn how <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">OKRs can enhance your strategy</a><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><h3>KPIs</h3><a href="https://quantive.com/resources/articles/what-are-kpis" target="_blank" rel="noopener noreferrer">KPIs (key performance indicators)</a> can be incorporated into OKRs, providing a purely quantitative feedback loop. As the health monitor of your active goals and business-as-usual processes, KPIs can be fine-tuned to reflect your strategic priorities.As a bonus, automated KPIs allow minimal effort for continuous data feedback. The habit of strategic check-ins will naturally extend beyond KPIs too, creating higher chances of success for your strategy execution.&nbsp;<hr>Learn how <a href="https://quantive.com/resources/articles/okrs-vs-kpis" target="_blank" rel="noopener noreferrer">OKRs and KPIs work together</a><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.png"></a></figure><hr>

The cause of silos, and how severe they are, is usually correlated to the size of the organization. Regardless of your organization’s size, deploying information the right way is one of the secrets to successful strategy execution.For example, information silos inhibit startup organizations by stifling the innovation and agility they thrive on for their competitive advantage. In full-scale enterprises, they cost millions of dollars in inefficiencies and disruption.&nbsp;Clarity continues repeating as a theme for our tips, and for good reason.<blockquote>The free flow of information from top-to-bottom creates more opportunities for collaboration and promotes organizational efficiency.&nbsp;</blockquote>So how can you clear information silos? Identify ambiguity: &nbsp;<ul><li>Where are processes being held up?</li><li>Who are the key decision-makers?</li><li>What is repetitively causing friction?</li></ul>Typically, more transparent and effective strategy execution processes have less bureaucracy which leads to information silos. A system like OKRs ensures transparency is more than an afterthought or ambition.&nbsp;<hr>Learn about transparency, alignment, and <a href="https://quantive.com/resources/articles/okrs-in-business" target="_blank" rel="noopener noreferrer">other benefits of OKRs in business</a><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="OKRs for business.png"></a></figure><hr>

Good strategy execution requires making the right decisions at the right time. The more frequently one decision corresponds with one person, the more effective your strategy execution process will be.When ample time is spent defining and deploying the strategy, teams will have a clear vision for executing it. Clarity enables autonomy for team decision-making, reducing the total number of decision makers and improving efficiency in your strategic process.However, this assumes leaders and managers trust your teams. Micromanagement doesn't just plague organizations by hindering employee efficiency and confidence — it’s simply not practical for the <a href="https://quantive.com/modern-operating-model" target="_blank" rel="noopener noreferrer">modern operating model.</a><blockquote>A culture of second-guessing comes from the inability of leadership to relinquish control, due to mistrust or otherwise poor communication of strategic direction.</blockquote>As <a href="https://hbr.org/2008/06/the-secrets-to-successful-strategy-execution" target="_blank" rel="noopener noreferrer">Harvard Business Review</a> suggests, unnecessarily cascading decision-making&nbsp;crushes accountability in teams and eliminates efficiency. Managers have roles for a reason and so do individual contributors.&nbsp;Influence from leaders in the organization should be about guiding process, not controlling it.

Managing expectations is a renowned piece of advice for leaders. However, what your teams are traditionally responsible for and what the strategy calls for may not always align.For example, a manager may be hired to do a job that aligns with the previous, outdated strategy. After updating the strategy, the manager’s expertise is no longer aligned with the strategy, which can create inefficiencies and friction for the manager and their teams.What’s more effective — changing the entire strategy to fit the needs of one person, or adapting the role to fit better within the strategy?&nbsp;<blockquote>Strategy can’t work at its fullest potential if parts of it are cherry-picked or molded to static job responsibilities. The strategy must exist because it is effective, not because it fits in a box.&nbsp;</blockquote>Your organization must create work and jobs that align with the strategy. Work for the sake of work, or work because “it has always been this way,” is not effective. Data from <a href="https://online.hbs.edu/blog/post/strategy-execution" target="_blank" rel="noopener noreferrer">Harvard Business School</a> backs this up: jobs that align with strategic needs contribute to successful&nbsp;strategy execution.

Clarity. Alignment. Transparency. All critical characteristics in the tips you’ve learned for strategy execution. But what’s next?&nbsp;Along with the guidance from our strategy execution guide — which covers how to get better at strategy and best practices for strategy execution — you’ve&nbsp;got a starting point for creating, deploying, and executing a strategy. It might be tempting to jump in head-first and start defining your strategy immediately.&nbsp;But why work harder when you can work smarter?<hr>Check out our “Read Next” article to learn about the <a href="https://quantive.com/resources/articles/strategy-execution-gap" target="_blank" rel="noopener noreferrer">strategy execution gap</a> and how top businesses close it<figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution-gap" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/close_strategy_execution_gap_8de6ba8e73.png" alt="close strategy execution gap.png"></a></figure><hr>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;&nbsp;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;&nbsp;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 <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

How Top Companies Close the Strategy Execution Gap

7 Best Practices for Strategy Execution

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.<hr>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<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>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;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;

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.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.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;

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.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;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;

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

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

<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;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>.Let's take a quick look at what your company's OKRs would look like within a dedicated OKR platform like Quantive Results:<img src="https://res.cloudinary.com/gtmhub/image/upload/v1705582547/site-v5/Company_OK_Rs_28ab4347fc.png" alt="Company OKR examples">

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;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;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;

How to Write Great OKRs: OKR Best Practices

Company OKRs Examples

If you’re reading this article, you’ve most likely already bought into the <a href="/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">objectives and key results</a> (OKRs) methodology. And by now, you know how OKRs provide a focused and outcome-driven structure that cultivates awareness around purpose, strategic intent, and priorities company-wide. This is great news.&nbsp;But now you’re ready for the next step — implementing OKRs in your organization. That’s where we come in. Wherever you are in the process of implementing OKRs, this guide will take you through the steps and best practices necessary to your OKR implementation plan, ensuring you make the most of the OKR framework.&nbsp;To succeed with OKRs, there are four main steps you need to focus on throughout OKR implementation: &nbsp;<ol style="list-style-type:decimal;"><li>Creating the right company culture for OKRs</li><li>Integrating OKRs into your organizational rhythm</li><li>Educating your team about OKRs</li><li>Making sure OKRs stick&nbsp;</li></ol>

Let’s face it, no matter how beneficial the shift, people often resist changing their current processes. That’s why implementing OKRs successfully begins with your company culture. With knowledge, buy-in, and the right mindset, your culture will fuel the transformation that OKRs are meant to deliver. &nbsp;To build an OKR culture, you need to get everyone on the same page as early as possible. This begins with ensuring familiarity with the OKR implementation process, while prioritizing employees' needs and addressing their concerns. Listen to your employees’ objections, determine the most common ones, and make it a goal to alleviate possible issues. This will pave the way for successful OKR implementation.Next, communicate why you’re using OKRs. What problems are you trying to solve, and how do you see OKRs providing the solution? This will help people understand that OKRs are meant to make their lives easier and help propel them to where they want to be — not add to their to-do list.To work effectively, OKRs require engagement and growth, not just task accomplishment. That’s why an OKR culture is built on the values of transparency, clarity, creativity, autonomy, and a focus on outcomes over outputs. Outcomes are about impact, and engagement is often a result of employees understanding theirs.&nbsp;Here are more ways to foster engagement:<ul><li>Encourage curiosity about what’s happening inside and outside the organization</li><li>Don’t cast aside wild ideas, even if you can’t use them</li><li>Emphasize quality as much as speed or quantity</li><li>Empower people to make mistakes and learn from them</li></ul>It’s vital that your culture maintains <a href="https://sloanreview.mit.edu/article/10-things-your-corporate-culture-needs-to-get-right/" target="_blank" rel="noopener noreferrer">respect, support, and integrity</a> throughout the OKR implementation process. Implementing OKRs requires an abundance of time and learning.<blockquote>Start small, remain patient, and be human about it.</blockquote>Together, the above tips will help you develop a foundation of trust, which is essential to foster connection and growth through OKRs.&nbsp;

Before your OKR rollout, you need to determine your OKR implementation plan. Some companies choose to run an OKR pilot to define what success looks like on a smaller scale. Some choose to begin with team leaders only, and some companies might onboard everyone at the same time.&nbsp;<hr>&nbsp;Learn more about <a href="https://quantive.com/resources/articles/how-to-run-okr-pilot" target="_blank" rel="noopener noreferrer">running a successful OKR pilot</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/how-to-run-okr-pilot" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/OKR_Pilot_6e42e629aa.png" alt="OKR pilot graphic"></a></figure><hr>Every company will approach the initial rollout in a way that makes the most sense for their organization, so don’t be pressured to do something that doesn't feel right. As we said above, company culture has a lot to do with OKR success.Next, determine your OKR cycle (also known as the OKR timeline or cadence), which is the period in which OKRs are set, communicated, executed, monitored, and optimized. There are quarterly and annual OKR cycles, as well as cadences customized to a company’s unique workflow. Not sure where to start? Get a deep dive in <a href="https://quantive.com/resources/articles/okr-cycle" target="_blank" rel="noopener noreferrer">choosing and setting the right OKR cycle</a> for your company and set yourself up for success.&nbsp;At this point, you might consider <a href="https://quantive.com/resources/articles/okr-software-buyers-guide" target="_blank" rel="noopener noreferrer">choosing an OKR software</a> to streamline your OKR implementation plan for the best possible results. The right OKR software can help simplify, streamline, and support you throughout all OKR implementation steps by enabling you to:<ul><li>Write, implement, manage, and update OKRs at the company, team, and individual levels</li><li>Align efforts throughout the company</li><li>Ensure progress transparency throughout the OKR cycle</li><li>Assign visible ownership of objectives and key results</li></ul>It’s also important to determine who will own each OKR. This refers to who’s responsible for updating progress on specific objectives and key results, as well as keeping track of OKR success, adapting as necessary, and making final strategic decisions. The size of your company, the way it is structured, and the stage your company is at regarding implementation will all help determine decisions around ownership.This discussion helps facilitate accountability, a critical element for OKRs to get traction in your organization. But no matter who owns each OKR, collaboration and brainstorming with your team will inspire them to care about the OKRs that are set.&nbsp;

Familiarity, practice, and support can help create the confidence necessary for successful implementation of a new methodology like OKRs, which is why it’s important to provide <a href="https://quantive.com/resources/certifications/okr-fundamentals" target="_blank" rel="noopener noreferrer">guidance and training</a> throughout the process.The most important thing you can do to sustain knowledge and morale in the long run is establish someone as the OKR champion, whose role it is to ensure organization-wide success with OKRs. An OKR champion’s duties include driving adoption, designing the process, being the go-to source for all questions, and choosing and maintaining OKR tools. This person sets the milestones and deadlines and ensures the organization is making progress in the direction of its vision.OKRs are a general approach for teams to align themselves and drive performance. To make it really work, certain tweaks will have to be made that correspond to the culture of the team. The OKR champion is the person that initiates and drives these tweaks. &nbsp;The OKR champion is also the person everyone can turn to for clarity. People will always have questions about OKRs, and new people will come on board who’ve never used them. A good OKR champion will be organized, well-known in the team, a good mentor, passionate about OKRs, and patient with others and the process.With this being said, all leaders need to use OKRs themselves to ensure they’re effectively employed at other levels of the organization. While an OKR champion is a great resource, leaders also need to understand how to use OKRs through and through. Do your research so you can model best practices and provide trustworthy guidance to your team.With all of this knowledge and learning in play, you’ll need to educate your team on how to write effective OKRs. High-quality OKRs are key to high-quality growth. <a href="https://quantive.com/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer">Best practices for writing effective OKRs</a> include sticking to inspiring, easy-to-remember, and qualitative objectives supported by 3-5 quantitative, measurable, and well-defined key results. &nbsp;Before you start working with OKRs, revisit your company mission. Consider creating 1-3 overarching annual objectives, which you can use to define your quarterly company-level objectives. Ensure you focus on priorities by keeping objectives clear and minimal, and make sure you can answer the question: “Why does that matter?”<hr>Get started with <a href="https://quantive.com/resources/articles/okr-examples" target="_blank" rel="noopener noreferrer">25+ real-world OKR examples for different teams</a><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>

Not only is alignment key to a successful OKR culture, it’s also key to your OKR implementation plan and scaling growth within your company.<blockquote>Highly aligned companies grow revenue at least 58% faster and are <a href="https://lsaglobal.com/blog/organizational-alignment-creates-growth/" target="_blank" rel="noopener noreferrer">72% more profitable</a> than misaligned companies.</blockquote>Have the goal conversation first and get your team involved for feedback to help align objectives up, down, and across the organization. Team OKRs must align with company mission and higher-level goals. This does not mean that teams have OKRs dictated from above, but that company goals and overall mission are communicated and well understood prior to setting team-level OKRs.Once OKRs are in place and the process is underway, you can continue to work towards and achieve outcomes by revisiting the process as it builds on itself. In fact, the single most important factor of successfully implementing OKRs is holding a regular retrospective meeting.These meetings ensure teams are focused and driving objectives while offering an opportunity to discuss progress, priorities, obstacles, and victories throughout the quarter. Decide how often you’ll meet, when you’ll meet, and who will meet and get it on the calendar.In these meetings, proactively use key terms surrounding the OKR methodology — i.e. objectives, key results (KRs), KPIs, etc. Not only will clear and consistent OKR language help teach the team these terms, it will also lead to clarity, common understanding, and efficient communication.In addition, weave OKR conversations into other existing meetings, celebrate progress, and showcase impact to help <a href="https://quantive.com/resources/articles/okrs-for-employee-engagement" target="_blank" rel="noopener noreferrer">sustain OKRs through employee engagement</a>.&nbsp;

To inspire your own OKR implementation, here are some real-world examples of the different approaches companies used to implement OKRs.&nbsp;<h3>Departmental OKRs at Spotify&nbsp;</h3>Spotify uses OKRs at the departmental level to align teams with broader company objectives while allowing teams the flexibility to set their own goals. Departments like product development, marketing, and engineering set OKRs that contribute to the overall company mission while tailoring them to their specific functions and priorities.<h3>Hybrid OKR implementation approach at Intel&nbsp;</h3>Intel uses a hybrid approach to OKRs that combines top-down alignment with bottom-up input. Corporate-level OKRs cascade down to business units and individual teams, ensuring alignment with strategic priorities. However, Intel also encourages employees to propose their own OKRs, fostering innovation and empowering teams to contribute to the company's success.<h3>Company-wide focus on OKR implementation at Amazon</h3>Inspired by Jeff Bezos's advocacy for constancy, Amazon aligns objectives with enduring principles to drive innovation and growth. This approach enables Amazon to stay true to its core values while setting clear objectives and aligning them with key results, enhancing brand value and delivering exceptional customer experiences, and solidifying its position as a global leader in e-commerce and technology.

By incorporating the following best practices, you can successfully introduce OKRs in your organization and quickly reap their benefits.<ul><li>Align OKRs with company values: Ensure that your objectives and goals are not only specific and measurable but also in alignment with your company's core values. This approach<span style="background-color:rgb(247,247,248);color:rgb(55,65,81);font-family:Söhne, ui-sans-serif, system-ui, -apple-system, &quot;Segoe UI&quot;, Roboto, Ubuntu, Cantarell, &quot;Noto Sans&quot;, sans-serif, &quot;Helvetica Neue&quot;, Arial, &quot;Apple Color Emoji&quot;, &quot;Segoe UI Emoji&quot;, &quot;Segoe UI Symbol&quot;, &quot;Noto Color Emoji&quot;;"> guarantees well-rounded OKRs.</li><li>Emphasize learning and adaptation: Encourage your teams to embrace continuous learning and adaptation. Foster an environment where taking risks and learning from both successes and failures is celebrated. This flexibility allows for necessary adjustments and keeps your OKRs closely aligned with your top priorities.</li><li>Encourage stretch goals: Dare to set ambitious goals that stretch your teams beyond their comfort zones. By pushing the boundaries of what seems possible, you inspire creativity, innovation, and out-of-the-box thinking, leading to superior results.</li><li>Use OKR software: Take advantage of <a href="https://quantive.com/resources/articles/okr-software" target="_blank" rel="noopener noreferrer">specialized OKR software</a> to streamline OKR implementation. These tools offer features like progress tracking, real-time visibility, collaboration capabilities, and automated reminders, simplifying the management and tracking of your OKRs.</li></ul>

Scaling OKRs involves a heavy focus on alignment. This requires cascading goals from leadership to teams, where lower-level goals are interconnected and contribute to overall goals for your entire organization. Ongoing communication — through regular feedback, check-ins, and retrospectives — is critical to facilitate these. These keep your company aligned and adaptable. This adaptability also involves reassessing and realigning OKRs as your company grows, ensuring they're relevant and impactful.&nbsp;

Navigating the OKR implementation steps can be challenging at first. Yet, when you follow the steps and best practices outlined above, you’ll find that OKRs connect people, create mutually beneficial growth for employees, leadership teams, and stakeholders alike, and prepare you for the bigger and brighter challenges ahead.No matter the size of your business, <a href="https://quantive.com/solutions/results/okr-software" target="_blank" rel="noopener noreferrer">Quantive's</a> OKR software can help streamline your implementation process so your company can maintain alignment, write effective OKRs, and benefit from OKRs sooner.&nbsp;If your enterprise is looking to become OKR champions and succeed with OKRs at scale, Quantive provides the tools you need to bridge the strategy execution gap and unleash the power of OKRs. Learn more about our <a href="https://quantive.com/solutions/results/okrs-for-enterprise" target="_blank" rel="noopener noreferrer">solution for enterprises</a>.Is your company just getting started? Quantive's <a href="https://quantive.com/solutions/results/okrs-for-small-business" target="_blank" rel="noopener noreferrer">free OKR solution</a> will help you manage business growth, anticipate disruptions and opportunities, and achieve operational excellence using OKRs.<hr>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;&nbsp;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;&nbsp;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 <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

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Some organizations rely on OKRs for goal attainment, while others swear by the agile methodology for continuous progress toward a desired outcome. However, OKR and agile don’t have to be mutually exclusive — the best results come from using them together. Often, this involves creating agile OKRs.Combining OKR and agile to create agile OKRs can foster a purpose-driven, streamlined, and effective way of achieving desired goals. In this article, we'll help you understand the <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">purpose of OKR</a> and agile — both individually, and as a united framework. To do so, we'll cover:<ul><li>What is the agile methodology?</li><li>What are OKRs?</li><li>The differences and similarities between OKR and agile</li><li>Why OKRs are suited to support agile</li><li>How OKR and agile work together</li><li>The benefits of agile OKRs&nbsp;</li></ul>

Key takeaway: Agile is a project management approach that stresses the significance of continuous improvement and value-added activities, developed from software development methods that foster collaboration and iteration.&nbsp;The Agile Manifesto includes five stages of principles and values, which are implemented in various frameworks such as Scrum, Kanban, SAFe Agile, and Lean Agile.<hr><h3>Agile 101</h3>Agile uses a collaborative and iterative approach to project development, where an initial version of a product is developed and then continuously improved during sprints.&nbsp;<blockquote>As such, improvements, updates, and fixes under the agile umbrella are made quickly, with value-added activities being prioritized.&nbsp;</blockquote>The <a href="https://hbr.org/2016/05/embracing-agile" target="_blank" rel="noopener noreferrer">agile methodology</a> was made to overcome the shortcomings of traditional project management methods (e.g., the waterfall methodology). &nbsp;<h3>The agile manifesto&nbsp;</h3>The <a href="https://www.smartsheet.com/comprehensive-guide-values-principles-agile-manifesto">Agile Manifesto</a>, originally created by software developers, outlines 12 principles for the agile methodology:&nbsp;<ol style="list-style-type:decimal;"><li>Satisfy customers &nbsp;</li><li>Change requirements flexibly</li><li>Deliver frequently&nbsp;</li><li>Open collaboration</li><li>Motivated and trusted individuals drive projects&nbsp;</li><li>Face-to-face communication is preferred</li><li>A working product is the goal</li><li>Constant pace</li><li>Technical excellence and good design&nbsp;</li><li>Simplicity is a must</li><li>Autonomy delivers the best results</li><li>Regular reflections and adjustments</li></ol><h3>The 5 phases of the agile development lifecycle&nbsp;</h3>The five stages of the agile development cycle work together to create a continuous feedback loop (aka sprint):&nbsp; &nbsp;<ol style="list-style-type:decimal;"><li>Concept</li><li>Design</li><li>Development or iteration</li><li>Release</li><li>Review and monitor&nbsp;</li></ol><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601290/site-v5/Agile_Cycle_2ae9592149.svg" alt="Agile Cycle"></figure><h3>Types of agile methodologies&nbsp;</h3>Several frameworks fall under the agile umbrella, with Scrum, Kanban, SAFe agile, and Lean agile being the most popular.&nbsp;<hr>Get the <a href="https://quantive.com/resources/articles/agile-meaning" target="_blank" rel="noopener noreferrer">full breakdown on Agile methodology</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/agile-meaning" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1679429465/site-v5/What_is_Agile_695ff681d4.png" alt="Bullseye outline, with arrows inside the bullseye margins, and an outside circular line with an arrow, on a green background, to convey agile meaning"></a></figure><hr>

In the context of organizational goal setting, OKRs (<a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">objectives and key results</a>) are utilized to attain challenging, time-bound targets with quantifiable outcomes.&nbsp;Objectives are short, qualitative descriptions of your intended outcome, while key results are two to four measurable milestones that track progress toward these objectives.A simple <a href="https://quantive.com/resources/articles/how-to-write-okrs" target="_blank" rel="noopener noreferrer">formula for writing OKRs </a>is: &nbsp;<figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601670/site-v5/OKR_1_62c20da1c7.svg" alt="OKR formula"></figure><h3>The 5 stages of the OKR cycle&nbsp;</h3>The OKR framework consists of five cyclical steps. These are:&nbsp;<ol style="list-style-type:decimal;"><li>Define qualitative objectives</li><li>Create two to four key results to measure goals and progress</li><li>Align OKRs to organize efforts, resources, and strategy</li><li>Track OKRs regularly to collect feedback and improve process</li><li>Hold retrospectives once the <a href="https://quantive.com/resources/articles/okr-cycle" target="_blank" rel="noopener noreferrer">OKR cycle</a> is complete</li></ol><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601290/site-v5/OKR_Cycle_a09d1f19e9.svg" alt="The 5 stages of the OKR cycle"></figure><hr>Learn more about<a href="https://quantive.com/resources/articles/okr-meaning#what-is-an-okr?-definition-and-okr-components" target="_blank" rel="noopener noreferrer"> OKRs and their history</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-meaning#what-is-an-okr?-definition-and-okr-components" 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>

Understanding how OKRs and agile compare can help us understand their complementary nature. This section covers the differences and similarities between OKR and agile.&nbsp;<h3>Differences between OKRs and agile</h3><ul><li>Focus: Agile is used to direct project management, while OKRs establish action-oriented goals for employees, teams, and wider organizations&nbsp;</li><li>Time frame: OKR goals are typically set per quarter or year, while agile teams work in short sprints (1-4 weeks) to deliver product iterations continuously&nbsp;</li><li>End goal: The agile process doesn’t have a defined end goal, while OKRs do&nbsp;</li><li>Size: OKRs can be adopted by individuals, groups, and entire businesses, while the agile framework recommends team sizes of at least three members&nbsp;</li></ul><h3>Similarities between OKRs and agile</h3><ul><li>Transparency: Agile teams ensure visibility across the agile development lifecycle, while those using OKRs require transparency to see how their work contributes to broader goals&nbsp;</li><li>Frequent monitoring: Both OKR and agile teams need regular monitoring and check-in meetings to function effectively&nbsp;</li><li>Collaboration: Collaboration is at the forefront of OKR and agile, with goal setting and <a href="https://quantive.com/resources/articles/product-management-okrs" target="_blank" rel="noopener noreferrer">product development</a> requiring a coordinated approach&nbsp;</li><li>Cyclical nature: OKR and agile involve cyclical processes, with agile focused on ongoing improvement and OKRs continuously updated at the end of (or during) the <a href="https://quantive.com/resources/articles/okr-cycle">OKR cycle</a>&nbsp;</li><li>Flexible: Both OKR and agile methodologies are adaptable to change, where they embrace shifting circumstances and encourage the reprioritization of tasks and goals&nbsp;</li></ul>

OKRs are a great tool to support agile initiatives because they share common principles and practices. Both OKRs and agile focus on:<ul><li>Outcomes over tasks</li><li>Continuous feedback and improvement</li><li>Alignment</li></ul><h3>Outcomes over tasks</h3>OKRs help teams identify the most important objectives that will drive the organization forward. This aligns with agile, which delivers value to customers through iterative and incremental product development.&nbsp;<h3>Continuous feedback and improvement</h3>OKRs require regular check-ins and progress updates, allowing teams to adjust and pivots as needed. Agile teams also conduct regular retrospectives to reflect on their processes and identify areas for improvement.<h3>Alignment</h3><a href="https://quantive.com/resources/articles/okrs-for-business-alignment" target="_blank" rel="noopener noreferrer">OKRs ensure that employees align around the same objectives</a>, and progress is transparent to everyone. This aligns with agile's emphasis on collaboration and communication, keeping everyone on the same page and working toward the same goals.Together, OKRs and agile provide a powerful approach for business, powering it through the fast-paced, rapidly changing environment of modern businesses.Read more on how OKRs drive agility in our <a href="https://info.quantive.com/hubfs/Quantive_Guides/Global-State-of-OKRs.pdf" target="_blank" rel="noopener noreferrer">Global State of OKRs Report</a>.

OKRs strengthen the agile process. They enhance the ‘how’ of each sprint, decentralizing decision-making and boosting accountability by focusing the backlog on a specific end goal.&nbsp;<blockquote>Using OKRs and agile — by, for example, creating an agile OKR — can nurture complementary synergies, as the advantages of one methodology compensate for the pitfalls of the other.&nbsp;</blockquote>You can make OKR and agile work for you in multiple ways, either by nesting one methodology into the other or giving both equal weights in the process. Here are a few ways of combining OKR and agile:&nbsp;<h3>Creating agile OKRs</h3>One way to integrate OKR and agile is by building OKRs using agile principles. This involves using an adapted sprint cycle to create your agile OKRs.<h4>Planning</h4>Identify your main OKRs for the coming period, appointing OKR product owners, scrum masters, and team members.&nbsp;<h4>Strategy</h4>Weave your OKRs into existing strategies and highlight critical performance nodes that need to be addressed.&nbsp;<h4>Design</h4>Prioritize OKRs and restructure to-do lists to accommodate these, weighing each component.&nbsp;<h4>Systemize</h4>Integrate and solidify OKRs into existing processes.&nbsp;<h4>Meetings</h4>Make OKRs a typical part of your meeting agenda, nesting these into each other.<h4>Launching</h4>Spearhead your OKRs using an initial <a href="https://quantive.com/resources/articles/okr-performance-management">performance management</a> meeting and begin the process of continuous improvement.&nbsp;<h3>Integrate OKRs into your agile routine&nbsp;</h3>Another way of making OKR and agile work is to integrate OKRs into your agile routine.This way you can regularly align OKR and agile principles, allowing you to assess progress quantitatively and reprioritize goals from one sprint to another. With sprints, you can split them into two sections, with teams working toward OKRs for the first half and responding to stakeholder feedback in the second half.Incorporating OKRs will bring more transparency into agile sprints.&nbsp;&nbsp;<h3>Use OKRs for agile operations</h3>The agile methodology requires constant visibility. While some businesses use tools such as Slack for this, these can breed miscommunication and errors as teams and individuals on these platforms tend to be disjointed.&nbsp;Therefore, specialized <a href="https://quantive.com/resources/articles/okr-software" target="_blank" rel="noopener noreferrer">OKR software</a> tools can act as a centralized hub for outlining progress, confidence, and updates — with ownership visible throughout the entire organization.&nbsp;&nbsp;<h3>Align OKR and agile roles</h3>OKR and agile teams have similar roles and levels of ownership. For agile, these roles consist of:&nbsp;<ul><li>A product owner: Who’s responsible for setting the direction of the agile cycle&nbsp;</li><li>A team lead: Who instills agile principles&nbsp;</li><li>An extended agile team: Who takes on the other aspects of the agile process&nbsp;</li></ul>While the OKR process includes:&nbsp;<ul><li>An OKR champion: Who is an expert on OKRs and establishes the OKR cadence&nbsp;&nbsp;</li><li>The product/project owner: Who sets the overarching focus and target of OKRs&nbsp;&nbsp;</li><li>An extended team of KR owners: Who manage the tasks and actions required to fulfill OKRs&nbsp;</li></ul>As the roles in both frameworks are similar, aligning the two can enhance ownership, collaboration, and <a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">cross-functional</a> success, where progress is visible and steady across teams.&nbsp;

Not convinced about the power of using OKR and agile to create agile OKRs? Check out the following benefits.&nbsp;<h3>Improved business outcomes</h3>OKR and agile can work together to create superior outcomes. While agile achieves this by frequently testing products and improving them using feedback, OKRs do this by encouraging goal flexibility and the continuous measurement of progress.&nbsp;<h3>A focused backlog</h3>Relying on agile can make prioritizing backlog tasks difficult, as the agile methodology’s end goal of value generation is subjective.&nbsp;<blockquote>By using OKRs to supplement the agile process and create agile OKRs, you can help your development team prioritize tasks, enabling it to see which tasks contribute to key results and which ones are irrelevant.&nbsp;</blockquote><h3>More effective meetings</h3>Combining agile and OKRs improves the efficiency of your meetings. While both methodologies involve consistent meetings, agile has a short-term scope, while OKR focuses on more extended periods.&nbsp;As such, combining the agile and OKRs to create agile OKRs help you maintain both a short- and long-term focus by ensuring all short-term activities align with long-term objectives.&nbsp;<h3>Create measurable product iterations</h3>OKRs can add measurability to each product iteration, making it an effective way to depict value throughout the agile development lifecycle. This way, your business can avoid making product improvements that are perceived as valuable but don’t necessarily yield results.&nbsp;<h3>Create self-organized teams&nbsp;</h3>OKRs act as a North Star for your organization, ensuring teams work toward overarching objectives. Teams are encouraged to ask themselves if the value created during each iteration brings the organization closer to company-wide goals.&nbsp;<blockquote>As such, using OKR and agile can improve team autonomy, as OKRs remove ambiguities surrounding the end goal of the agile product lifecycle.&nbsp;&nbsp;</blockquote>

OKR and agile are compatible methodologies that allow businesses to achieve alignment, establish measurability, facilitate continuous improvement, and orient day-to-day operations toward long-term goals.&nbsp;Therefore, using OKR and agile philosophies together to create agile OKRs is a great way to improve your business’s operations and <a href="https://quantive.com/resources/articles/business-adaptability" target="_blank" rel="noopener noreferrer">adaptive capabilities</a>.&nbsp;<hr>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;&nbsp;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;&nbsp;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 <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

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