How to Make OKR’s more SMART?
One of the best strategies for being a successful organization and increasing the performance of your employees is to find out what kind of company goals you want to set.
According to research, goal setting can increase productivity, especially when there is no monetary incentive. Therefore, you can use the SMART technique to not prepare yourself for failure while developing an OKR. In this way, you can increase the performance and motivation of your employees by enabling them to focus on a single goal.
What is the difference between OKR and SMART?
OKRs link important results to objectives, allowing for more strategic resource and time allocation with critical results at the forefront. SMART objectives, on the other hand, are a set of principles that can be used to create an objective on their own, with no specific emphasis on essential results or techniques.
How SMART goals work?
Adopting the SMART framework for your company goals is an easy way to write meaningful Key Results. SMART is an acronym that stands for Specific, Measurable, Attainable, Relevant, and Time-bound. In this article, we will tell you how to create an OKR based on these criteria. Let’s dive deep and see some SMART goal examples.
A SMART objective must be explicit, with a detailed description of what must be accomplished. Everyone who contributes to it should be able to grasp it. Your Key Results should make it clear to your team what the main goal is. Avoid making unclear comments, but also avoid being overly prescriptive. You should describe the aim rather than telling folks how to accomplish it.
As you prepare your goal, try to answer the five "W" questions:
What do I want to do?
Why is this purpose important?
Who is attending?
Where is it located?
What resources or limits are there?
“Increase the number of accounts with 1000+ employees by 20%”, for example.
This goal contains a clear scope and a description of the tasks that must be completed (close more of them). It does not, however, explain how success is evaluated, why it is important, or when it must be attained.
It must be measured to know when a goal has been met. There should be a metric with a goal to achieve that demonstrates success. Setting OKRs can help your organization become more aligned, but tracking them is what allows for outstanding execution. Make sure you can track your KRs on a weekly basis to determine if you're on the correct track.
A measurable goal should address questions such as:
How much (money)?
How will I know when it's successful?
“Keep our Net Promoter Score above 40”, for example.
This goal has a target you can measure progress against. Once the score is 40 the goal will be considered successfully achieved.
When a goal is within the realm of feasible, given the available resources and limits under your control, it is considered doable. This isn't to say that it should be simple. For example, the team chooses to change the target of publishing 10,000 posts by the end of the quarter because it is an impossible goal.
An achievable goal usually answers questions such as:
How can I achieve this goal?
How realistic is the target based on other constraints such as financial factors?
For example, “by the end of the quarter, get 500 views on new content.”
This objective may be challenging to achieve, but it is doable. However, it is still unclear why reaching this goal is important.
Your Key Results should have a clear connection to the parent Objective.
A goal is relevant if it is consistent with and leads to a result that helps the organization achieve its other objectives. The Relevant element, however, has another facet. You should concentrate on Key Results over which you have some control.
A relevant goal might answer “yes” to these questions:
Does this seem valuable?
Is this the right time?
Does this fit our other efforts/needs?
Am I the right person to achieve this goal?
Is it applicable in the current socio-economic environment?
If your company's goal is to make SEO a strong growth channel, for example.
Increasing the conversion rate on our pricing page by 30% is meaningless, but ranking on the first page of Google for ten terms related to our product is. Now all that's left is for a deadline to arrive.
A goal that is time-bound has a start and finish date. End date is crucial since it is at this point that the goal will be evaluated to see if it was a success.
A time-bound goal will usually answer the following questions:
What can I do six months from now?
What can I do six weeks from now?
What can I do today?
For example, in order to expand our global footprint, we closed 450 enterprise customers in Canada in 2019.
The goal now has a scope and a time frame, as well as meeting all of the SMART criteria.
As a result, OKRs should be part of an integrated strategic planning framework designed to improve goal setting, decision making, and business performance. OKRs can be used in conjunction with other methods such as KPIs, SMART approach, and CSFs.
Experimental seeing is perhaps the best approach to take, as it will help teams understand what works best, what isn't working, and how to improve over time.
You may not be sure that the OKR methods you use in your workplace comply with SMART rules. Or you may find it difficult to get all your employees to adapt to the existing OKR system. You can examine Sorwe solutions for an OKR system that is comprehensive, compliant with SMART rules, and easily understood by your employees. Contact us now for stronger performance management.