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Objectives and Key Results (OKRs)

Created by ex-McKinsey, Deloitte &

BCG Management Consultants
Scope
This deliverable will focus on the OKRs section of our
Corporate and Business Strategy Toolkit
Phase I: Set up your strategic planning Phase II: Gather & analyze data and Phase III: Define and implement your
project provide key insights strategic plan
1. Strategic planning team 1. Market analysis 1. Mission, vision and values
2. Guiding principles 2. Competitor analysis 2. Key strategic objectives
3. Strategic plan structure 3. Customer feedback 3. Strategy map
4. Strategic plan key inputs 4. Company data analytics team 4. Balanced scorecard and key performance indicators
5. Strategic planning project plan 5. Employee feedback 5. Potential initiatives to reach strategic objectives
6. Executive feedback 6. Business cases and financial models
7. SWOT summary of the key business insights 7. Prioritization of the initiatives
8. Business roadmap and detailed initiatives plan
9. Strategic plan implementation
10.Dashboards to track & manage progress
11.Key lessons learned
12.Quarterly update of the strategic plan based on new data

Top 24 strategy tools & frameworks commonly used by Fortune 100 and global consulting firms to make strategic decisions and solve strategic problems

4. Entering a new 5. Introducing a new 6. Acquiring a 8. Objectives & Key

1. Business Model 2. Business Plan 3. Profitability problem 7. Pricing Strategies
market product company Results (OKRs)
9. Blue Ocean 10. Porter’s Generic 11. Porter’s Five 15. Ansoff Growth 16. Lean Financial
12. Issue Tree 13. Entry/Exit Barriers 14. Five Whys
Strategy Corporate Strategies Forces Matrix Model
20. Value Chain
17. Net Present Value 18. Experience Curve 19. Product Life Cycle 21. Value Driver Tree 22. PESTLE 23. Fishbone Diagram 24. Project Financials
Analysis

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Problem
In many companies, employees struggle to understand how they can help their
organization achieve its Vision

Employees’ verbatims that we’ve heard many

times while advising Fortune 1000 companies

“I understand our vision, “I struggle to set “I don’t clearly see how

but I’m struggling to objectives for my team my personal objectives
understand how I can members as my own are aligned with our
help my organization personal objectives are organizational
achieve it.” frustratingly vague.” objectives.”

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Solution
To solve this problem, we like to use with our clients the powerful goal-setting tool called
Objectives and Key Results (OKRs)
Objectives and Key Results (OKRs) is a powerful goal-setting tool that can:
• Bring greater transparency to an organization's objectives
• Help connect individuals' roles to organizational objectives in a clear and practical way
• Align employees' objectives with organizational objectives
• Motivate people to work together
• Increase transparency, accountability and empowerment

Andy Grove, former president and CEO of computer processors giant Intel, wrote in his book, High Output
Management, that a successful management by objectives (MBO) system needs only to answer two questions:
• Where do I want to go? (The answer provides the Objective)
• How will I pace myself to see if I'm getting there? (The answer gives us milestones, or Key Results)

And so a new management tool was born: Objectives and Key Results (OKRs). OKRs received a real boost in 1999
when U.S. venture capitalist John Doerr introduced them to a small, up-and-coming tech company called Google, and
they've been used there ever since. Other high-profile organizations that use OKRs include LinkedIn, Twitter and Oracle.

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Description
OKRs will help you set and communicate company, team, and employee objectives and measure progress based on achieved results

The OKRs tool includes 2 components:

Objectives • Consist of a list of 3 to 5 high level objectives.

• Measured on a 0-100% scale or 0 to 1.0.

Key Results • Under each objective are 3-5 measurable Key Results.
• When objective’s results reach 70-80%, consider it done.

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Guiding principles
OKRs need to be implemented with 4 guiding principles in mind

Focus Numbers-driven Transparency Culture

When you're using OKRs, Progress must be It's important that everyone OKRs have to become part
you need to be laser focus measurable. This allows can see everyone else's of your organization's
on achieving your results to be analyzed OKRs. For example, culture, and be embedded
organization's objectives. accurately and shows your Google includes OKRs in into your team's routine.
people how close they are its staff biographies. This Tracking OKRs regularly is
to achieving their allows you to see how key to achieving their
objectives. It also makes another employee's role desired results. Getting
discussion and feedback may impact your own OKRs your team members to
more factual and less and this helps you to work discuss their OKRs with
emotional. together more effectively. one another openly will help
to make the concept a
natural part of their work.

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Implementation
The OKRs tool can be easily implemented within your organization in 3 simple steps

I. Set
objectives

II. Set key

results
III. Monitor
progress

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 1
Step 1: Set objectives
2
Your objectives need to be actionable, inspirational and time bound 3

Actionable Inspirational Time bound

The objectives should give

employees a reason to be The timeframe to achieve
A best practice is to start each
excited when going to work objectives is usually a quarter, 6
objective by a verb
months, or a year

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 1
Step 2: Set key results
2
Key results (KR) must be SMART 3

Key Results add metrics to objectives, which will help you:

• Measure how far from reaching your objective you are
• Give clear direction on what to do and how to do it

Key Results must be SMART, that is to say:

S Specific Is the KR well-defined and understandable for everyone?

M Measurable Can you measure success or failure?

A Achievable Is it realistically possible to do?

R Relevant Is this KR important for your objective?

T Time Bound Have I clearly established when key results must be met?

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 1
Step 3: Monitor progress
2
Carry out regular reviews to keep a good momentum 3

We recommend doing an OKRs "health check" once a week with your team or as part of your one-on-one in
order to:
• Keep a good momentum
• Monitor progress effectively
• Identify and address any issues before they turn into major problems
• Help your team members meet their quarterly OKRs

At the end of each quarter, the best practice is to do an OKRs quarterly review with your team members to:
• See how your team members performed during this quarter
• Define or readjust your next set of OKRs for the next quarter

You can easily review the performance of your team members by giving them a success rate percentage or,
if you prefer, a grade between zero and one (where 0.8 is equivalent to 80 percent). For example, if one of
your objectives is to add 10 leads during Q1, and at the end of Q1, you deliver 8, then your rating is 80
percent, or 0.8.

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 Real-life example from a Fortune
500 company

Objectives and Key Results (OKRs)

OKRs to be Overall Total
achieved by: Team A Timeframe: Q1 Status: Results: 2 out of 3

Objectives Key results Status Results / 1 Average

Increase revenue by 15% 1

Increase profit Reduce cost per customer by 3% 0.5 0.5

Increase number of customers by 2% 0

Speed up by 20% the hiring process without compromising quality of staff 1

Grow the number of
employees
Create 30 job descriptions based on our needs 0.5 0.5
Hire 80 employees 0

Interview 20 customers & launch survey to identify customer pain points 1

Increase customer
satisfaction score
Launch a customer survey to identify customer pain points 1 1
Increase customer satisfaction score by 5% 1

Stuck Working on it Moved to next quarter Done

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 Template #1

Objectives and Key Results (OKRs)

OKRs to be Insert name of the Overall Average
achieved by: company, team or person
Timeframe: Q1 Status: results / 1 0.66

Objectives Key results Status Results / 1 Average

Insert your own KR 1

Insert your own
objective
Insert your own KR 0.5 0.5
Insert your own KR 0

Insert your own KR 1

Insert your own
objective
Insert your own KR 0.5 0.5
Insert your own KR 0

Insert your own KR 1

Insert your own
objective
Insert your own KR 1 1
Insert your own KR 1

Stuck Working on it Moved to next quarter Done

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 Template #2

Objectives and Key Results (OKRs)

OKRs to be Insert name of the Overall Average
achieved by: company, team or person
Timeframe: Q1 Status: results / 1 0.5

Objective 1 - Insert your own objective Status Results / 1

Insert your own KR Done 1

Insert your own KR Working on it 0.5

Moved to next
Insert your own KR quarter
0

Average: 0.5

Objective 2 - Insert your own objective Status Results / 1

Insert your own KR Done 1

Insert your own KR Stuck 0.5

Moved to next
Insert your own KR quarter
0

Average: 0.5

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 Template #3

Objectives and Key Results (OKRs)

OKRs to be Insert name of the Overall Average
achieved by: company, team or person
Timeframe: Q1 Status: results / 1 0.5

Objective 1 - Insert your own objective Status Results / 1

Insert your own KR Done 1

Insert your own KR Working on it 0.5

Moved to next
Insert your own KR quarter
0

Average: 0.5

Objective 2 - Insert your own objective

Insert your own KR Done 1

Insert your own KR Working on it 0.5

Moved to next
Insert your own KR quarter
0

Average: 0.5
Objective 3 - Insert your own objective
Insert your own KR Done 1

Insert your own KR Stuck 0.5

Moved to next
Insert your own KR quarter
0

Average: 0.5

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 Template #4

Objectives and Key Results (OKRs)

OKRs to be Insert name of the Overall Average
achieved by: company, team or person Status: results / 1 0.5

Objective 1 - Insert your own objective Timeframe Status Results / 1

Insert your own KR Q1 Done 1

Insert your own KR Q1 Working on it 0.5

Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5

Objective 2 - Insert your own objective

Insert your own KR Q1 Done 1

Insert your own KR Q1 Working on it 0.5

Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5
Objective 3 - Insert your own objective
Insert your own KR Q1 Done 1

Insert your own KR Q1 Stuck 0.5

Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5

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 Tutorial

Objectives and Key Results (OKRs)

OKRs to be Insert name of the Overall Average
achieved by: company, team or person Status: results / 1 0.5

Objective 1 - Insert your own objective Timeframe Status Results / 1

Insert your own KR Q1 Done 1

Insert your own KR If the OKRs

Q1 need to beWorking
achieved
on it by a person,
0.5you can
add the picture of the person.
Moved to next
Insert your own KR Q1 quarter
0
If the OKRs need to be achieved by the company, you
can add the logo of the organization. Average: 0.5

Objective 2 - Insert your own objective

Insert your own KR Q1 Done 1

Insert your own KR Q2 Working on it 0.5

If this slide focuses on the objectives and KRs for one
Insert your own KR specific quarter, then you may decide to put the section Q2
Moved to next
0
“timeframe” in the headline of your slide, like we did in quarter
the previous slides. Average: 0.5
Objective 3 - Insert your own objective
If the slide focuses on the objectives and KRs for
multiple Quarters, then it is better to add the “timeline”
Insert your own KR Q1 Done 1
section in your table.
Insert your own KR Q1 Stuck 0.5
Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5

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 Template #5 in Excel

Objectives and Key Results (OKRs)

Click here to download the Excel Template

Or alternatively, you can insert this link directly into your web browser:
https://cdn.shopify.com/s/files/1/0287/1266/files/Objectives_and_Key_Results_OKR.xlsx?v=1651549182
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 Key success factor
When implementing OKRs throughout the organization, ensure perfect alignment between
Organizational, team and individual OKRs
CEO OKRs

Team 1 OKRs Team 2 OKRs Team 3 OKRs

Team Member 1 OKRs Team Member 2 OKRs Team Member 1 OKRs Team Member 2 OKRs Team Member 1 OKRs Team Member 2 OKRs

In the next 2 slides, you’ll see a real-life example illustrating how to align OKRs
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 Real-life example

Objectives and Key Results (OKRs)

OKRs to be Overall Average
achieved by:
Company XYZ
Status: results / 1 0.5

Objective 1 - Grow our revenue Timeframe Status Results / 1

KR1: Increase marketing spend by 20% while keeping our return on ad spend (ROAS) above 2 Q2 Done 1

KR2: Increase by 20% the size our sales team Q2 Working on it 0.5
Moved to next
KR3: Grow our revenue by 30% for this financial year Q4 quarter
0

Average: 0.5

Objective 2 - Increase our profit margin

KR1: Migrate all our legacy systems into the cloud Q1 Done 1

KR2: Decrease our production costs by 5% Q2 Working on it 0.5

Moved to next
KR3: Increase our profit margin from 9% to 13% Q3 quarter
0

Average: 0.5
Objective 3 - Launch our offer in the European market
KR1: Create a subsidiary in Paris with a team of 10 people Q1 Done 1

KR2: Launch 2 products in the European market Q2 Stuck 0.5

Moved to next
KR3: Generate $5M in sales by the end of Q3 in the European market Q3 quarter
0

Average: 0.5

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 Real-life example

Objectives and Key Results (OKRs)

OKRs to be Overall Average
achieved by:
Marketing Team
Status: results / 1 0.5

Objective 1 - Increase marketing spend by 20% while keeping our (ROAS) above 2 Timeframe Status Results / 1
KR1: Increase Google ads spend by 25% while keeping ROAS above 2.2 Q2 Done 1

KR2: Increase Facebook ads spend by 18% while keeping ROAS above 1.8 Q2 Working on it 0.5
Moved to next
KR3: Increase Linkedin ads spend by 20% while keeping ROAS above 2 Q2 quarter
0

Average: 0.5

Objective 2 - Insert your own objective

Insert your own KR Q1 Done 1

Insert your own KR Q1 Working on it 0.5

Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5
Objective 3 - Insert your own objective
Insert your own KR Q1 Done 1

Insert your own KR Q1 Stuck 0.5

Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5

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 Best practice

Objectives and Key Results (OKRs)

OKRs to be Overall Average
achieved by:
Marketing Team
Status: results / 1 0.5

Objective 1 - Increase marketing spend by 20% while keeping our (ROAS) above 2 Timeframe Status Results / 1
Replace this image by the logo of the
KR1: Increase Google ads spend by 25% while keeping ROAS above 2.2 Q2 team, or by the 1picture
organization orDone
KR2: Increase Facebook ads spend by 18% while keeping ROAS above 1.8 of the person
Q2 responsible for 0.5
Working on it
achieving the OKRs
Moved to next
KR3: Increase Linkedin ads spend by 20% while keeping ROAS above 2 Q2 quarter
0

Average: 0.5

Objective 2 - InInsert your ownthe

this example, objective
KR1 of the Objective This KR1 may become one of
Insert your 1 defined
own KR at the organizational level
the objectives of a team Q1 Done 1
became the Objective 1 for the Marketing member (e.g. Google Ads
Insert your team.
own KR Manager), which will have Q1 Working on it 0.5
his/her own OKRs defined in Moved to next
Insert your own KR Q1 0
Please note that it is not always possible another slide quarter
to simply copy and paste the parent KR Average: 0.5
into your objective. The most important
Objective 3 - Insert your own objective
thing to remember is to at least make
Insert your sure that the team defines its objectives
own KR Q1 Done 1
while respecting the intent of the parent
Insert your own KR Q1 Stuck 0.5
OKRs.
Moved to next
Insert your own KR Q1 quarter
0

Average: 0.5

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Need more help to define and implement your corporate and business
strategy?
Please check our Corporate and Business Strategy Toolkit
Phase I: Set up your strategic planning Phase II: Gather & analyze data and Phase III: Define and implement your
project provide key insights strategic plan
1. Strategic planning team 1. Market analysis 1. Mission, vision and values
2. Guiding principles 2. Competitor analysis 2. Key strategic objectives
3. Strategic plan structure 3. Customer feedback 3. Strategy map
4. Strategic plan key inputs 4. Company data analytics team 4. Balanced scorecard and key performance indicators
5. Strategic planning project plan 5. Employee feedback 5. Potential initiatives to reach strategic objectives
6. Executive feedback 6. Business cases and financial models
7. SWOT summary of the key business insights 7. Prioritization of the initiatives
8. Business roadmap and detailed initiatives plan
9. Strategic plan implementation
10.Dashboards to track & manage progress
11.Key lessons learned
12.Quarterly update of the strategic plan based on new data

Top 24 strategy tools & frameworks commonly used by Fortune 100 and global consulting firms to make strategic decisions and solve strategic problems

4. Entering a new 5. Introducing a new 6. Acquiring a 8. Objectives & Key

1. Business Model 2. Business Plan 3. Profitability problem 7. Pricing Strategies
market product company Results (OKRs)
9. Blue Ocean 10. Porter’s Generic 11. Porter’s Five 15. Ansoff Growth 16. Lean Financial
12. Issue Tree 13. Entry/Exit Barriers 14. Five Whys
Strategy Corporate Strategies Forces Matrix Model
20. Value Chain
17. Net Present Value 18. Experience Curve 19. Product Life Cycle 21. Value Driver Tree 22. PESTLE 23. Fishbone Diagram 24. Project Financials
Analysis

22
Thanks for your attention!

www.domontconsulting.com

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