How to Set Quarterly OKRs and Monthly Goals - Tutorial Video
New to OKRs? This 7-minute video gives a simple overview of how to set quarterly OKRs that align with a larger strategic objective.
New to OKRs? This 7-minute video gives a simple overview of how to set quarterly OKRs that align with a larger strategic objective. Ideal for project or program managers, this tutorial will also demonstrate how to create monthly goals that support the quarter’s objectives and key results.
To get the worksheets used in the tutorial video, download my FREE ebook, ‘How to Create Your Strategic Operating Rhythm’.
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Create Your Operating Rhythm
This ebook delves into the common challenges that hinder strategy execution and offers recommendations for how to implement an operating rhythm that will transform your organization into an effective strategy execution powerhouse.
A Beginner's Guide to Defining Strategic OKRs
New to using OKRs? Start here. This brief beginner’s guide to OKRs will quickly get you up to speed on how to set objectives and key results and why.
Organizations and teams are constantly seeking ways to align their teams, set clear objectives, and drive results. One effective method is the use of Objectives and Key Results (OKRs). OKRs provide a structured approach to defining and measuring strategic goals, helping organizations of all sizes stay focused and agile.
In this beginner's guide, we will explore how to define your organization's strategic OKRs to drive success.
What are OKRs?
Objectives and Key Results (OKRs) are a goal-setting framework originally popularized by Intel and made famous by companies like Google. OKRs consist of two primary components:
Objectives: These are clear, concise, and ambitious statements that define what you want to achieve. Objectives should be inspiring and provide direction for the organization. They answer the question: "What do we want to accomplish?"
Key Results: Key Results are specific, measurable outcomes that indicate you've reached your objective. They are the quantifiable, time-bound targets that help you track progress. They answer the question: "How will we measure our success?"
Defining Your Strategic OKRs
Start with Your Vision and Mission
Your OKRs should be aligned with your organization's overarching vision and mission. These are the core principles that guide your business. Use them as a foundation for setting objectives that move you closer to fulfilling your mission.
Identify Your Focus Areas
Determine the key areas where you want to make significant progress. Consider factors such as market growth, customer satisfaction, product development, or operational efficiency. Your objectives should reflect your organization's strategic priorities.
Set Clear, Inspirational Objectives
Your objectives should be ambitious and inspiring. They should motivate your team to push their limits. For example, an objective could be "Become the market leader in customer satisfaction."
Create Measurable Key Results
Key Results should be specific, measurable, and time-bound. They provide a clear path for assessing progress. For the objective mentioned above, key results could include: "Achieve a Net Promoter Score (NPS) of 80 or higher by the end of the year."
Keep It Simple
While it's tempting to create numerous objectives and key results, it's often more effective to focus on a few critical ones. Keep it simple to maintain clarity and focus. At most, an organization should have three to five strategic objectives with three to five key results each.
Align and Cascade
OKRs should be cascaded throughout the organization. Ensure that team and individual OKRs align with the higher-level objectives. This alignment keeps everyone moving in the same direction.
Regularly Review and Adapt
OKRs are not set in stone. Regularly review progress, and be prepared to adapt your OKRs as circumstances change. Sometimes, you may need to pivot and set new objectives to respond to evolving market conditions.
be Transparent and Accountable
Share your OKRs with the entire organization. Transparency encourages accountability, as everyone can see how their efforts contribute to the organization's goals.
Use OKR Software
Consider using OKR software to track and manage your OKRs effectively. These tools simplify the process, make progress visible, and enable better collaboration.
Objectives and Key Results (OKRs) are a powerful tool for defining and measuring strategic goals. They provide organizations with clarity, focus, and a sense of purpose. By starting with your vision and mission, setting clear objectives and measurable key results, and aligning your OKRs throughout the organization, you can drive success and propel your organization toward its mission. Remember that OKRs are a dynamic framework, allowing you to adapt and respond to changing conditions. By implementing OKRs effectively, you can set your organization on a path to continuous growth and improvement.
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What’s keeping you from achieving your strategic goals? This ebook will help you identify and overcome the 7 common challenges that hinder strategy execution. Create a 90-day plan to shift the way your team works and transform your organization into an effective strategy execution powerhouse.
Note: This post was written with the assistance of AI
6 Operating Rhythm Examples & Systems To Support Them
Here are some common rhythms that many high-performing teams have and rely upon to get their most strategic projects and goals done.
Every organization, every team, every leader will have their own operating rhythms. But there are some common rhythms that many high-performing teams have and rely upon to get their most strategic projects and goals done.
These rhythms don’t just help them get goals across the finish line, they also help keep progress visible and allow for enough flexibility to change priorities, resources and expectations as situations change (which they invariably do).
Here are 6 Common Operating Rhythms of High-Performing Teams:
#1 Annual Strategic Planning & Visioning
What: Set or re-set the ‘happily ever after’ vision for the next 1-3 years. These are the ‘big hairy audacious goals’ that will bring you closer to fulfilling your mission or purpose.
When: Each year, near the start of the year, but definitely before the end of the first quarter.
Who: Leadership team, key decision makers, stakeholders
Support Systems: Executive Management
#2 Quarterly Goal Planning
What: Prioritize the projects, programs and goals you will undertake in the next 90 days that will bring you closer to realizing the strategic vision you set at the start of the year. Identify measurable results of project, program or goal. These goals should generally be completed within 1 year.
When: Each quarter, near the start of the year, but definitely before the end of the first month in the quarter.
Who: Leadership team, Project or program leaders, key decision makers
Support Systems: Executive Management, Communications & Collaboration, Project Management
#3 Monthly Goal Review / Planning
What: Review progress and results-to-date on quarterly projects, programs and goals. Revise goals or update strategy as needed. Devise action plans for continued goal progress.
When: Each quarter, near the start of the year, but definitely before the end of the first month in the quarter.
Who: Leadership team, Project or program leaders, team members, key decision makers
Support Systems: Communications & Collaboration, Project Management
#4 Monthly Financial Close & Reporting
What: Finalize, review and consolidate accounting transactions for the month. Create and analyze financial reports.
When: The end of each month
Who: Accounting team, Leadership team, Project or program leaders
Support Systems: Accounting & Financial Management, Executive Management, Communications & Collaboration
#5 Weekly Plan & Review
My Weekly Business Planning template in Workboard.
What: Review weekly Red, Amber, Green (RAG) status for the month’s goals. Devise action plans for continued goal progress.
When: Each quarter, near the start of the year, but definitely before the end of the first month in the quarter.
Who: Project or program leaders, team members key decision makers
Support Systems: Project Management, Communications & Collaboration
#6 Daily Touchpoints
What: 15-30 minute team meeting for help, issues or questions on this week’s action plans.
When: Daily or 2-3 times per week
Who: Project or program leaders, team members, key decision makers
Support Systems: Project Management, Communications & Collaboration
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Tell Your Story, Set Your Operating Rhythm and Establish Your Systems.
The Power in Creating Your Own Rhythm + Systems
When you’re surrounded by the chaos and inconsistency of dysfunctional systems and rhythms, it may seem as though you are completely at their mercy. But in most cases, you can still make sense of the madness.
Systems are everywhere.
And by systems I mean complex and coordinated networks of people, processes and technology that were created to repeatedly and consistently deliver a defined outcome or end result.
We’ve all had the experience of having to deal with a dysfunctional system. When a system is dysfunctional, nothing gets done when or how it’s supposed to be done. You can’t rely on the system’s output or even trust that there will be an output.
The same goes for rhythm. Almost every process has an established rhythm that it moves by. When processes (or the people who run them) are out of rhythm, then there’s no clarity on when things will happen or how often. Inconsistency abounds.
If you don’t create your own system, one will be provided for you.
When you’re surrounded by the chaos and inconsistency of dysfunctional systems and rhythms, it may seem as though you are completely at their mercy. There’s nothing you can do to change such huge and broken systems, so you may as well just give into them.
In some cases, this may be true. But in most cases, you can still make sense of the madness.
While you may not be able to change the huge, dysfunctional systems and rhythms of the organization-at-large, you still have the ability to create and influence the rhythms and systems that functionally support your team’s needs and values. This is especially important to remember when you’re a leader of a high-performing team that’s embedded within a dysfunctional organization.
I often say that the team is the smallest unit of organizational culture. The most tangible way that is proven is in the team habits, behaviors, tools and practices (aka, rhythms and systems) that they use to accomplish their objectives and goals.
Subscribe to my YouTube Channel to learn how to create an Operating Rhythm & Supporting Systems for your team.
What Is an Operating Rhythm?
Whenever I explain what an operating rhythm is, I always think of the old nursery rhyme, '‘Here We Go ‘Round the Mulberry Bush’.
“This is the way we wash our clothes
Wash our clothes
Wash our clothes
This is the way we wash our clothes
So early Monday morning...”
I always think of this old nursery rhyme when I explain what an operating rhythm is.
In short, an operating rhythm is the combination of the things you do, the way you do them and the frequency with which you do those things in the process of fulfilling your needs and obligations.
You might otherwise refer to them as your habits and routines. They are the repeated actions and behaviors that make your life (or your business) possible. The better you get at doing them, the better results you get.
Operating rhythms are generally associated with the core operational functions of your life or business. For the sake of this article, we’ll focus on operational functions for a business.
Below is a list of objectives associated with each of the core business functions. Your business operating rhythm consists of the activities you take to meet these objectives and the frequency with which you do those activities.
7 Core Business Functions & Objectives
Function: Marketing & Sales
Objective: Find & attract new buyers
Objective: Make money off of who you know, what you know and / or what you produce or deliver
Function: Product / Service Development
Objective: Create your service or product
Objective: Improve or expand your service or product
Function: Product / Service Delivery
Objective: Deliver your service or product
Objective: Fulfill the promise made to your customers and / or stakeholders
Function: Customer / Stakeholder management
Objective: Derive value from the relationships you’ve built
Function: information management
Objective: Derive value from the data you’ve produced or collected
Function: accounting & financial management
Objective: Track & categorize income & expenses
Objective: Derive additional value from your financial resources
Function: strategy & planning
Objective: Get closer to ‘happily ever after’
Want to learn how to tell your story, set your operating rhythm and establish your systems? Subscribe to my YouTube Channel!
The 5 Types of Systems Every Business Needs
Running a business, team or project without the right systems is possible but it usually isn’t pleasant.
Running a business, team or project without the right systems is possible but it usually isn’t pleasant.
As you begin to grow, your systems will need to grow along with you. Choosing systems that support the core functions of your business today, while also giving you the option to change or expand systems in the future is critical to avoiding having too many systems or systems that cost too much.
While every business or team will differ in what they need to deliver the best results, these are 5 common business systems that every business needs:
