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How to Make OKRs More SMART? A Practical Guide

09 December 2021 | 3 Minute
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How to Make OKRs More SMART? A Practical Guide

To make OKR's more SMART, define each Key Result as Specific, Measurable, Achievable, Relevant, and Time-bound so goals are clear, trackable, and realistic.

One of the best strategies for building a successful organization and boosting employee performance is defining the right company goals. Research shows that goal setting can increase productivity, even without monetary incentives. Using the SMART technique when developing an OKR helps you avoid setting yourself up for failure, while keeping employees focused and motivated on a single, clear objective.

What is the difference between OKR and SMART?

OKRs link key 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 used to create a goal on their own, without specific emphasis on key results or techniques.

How do SMART goals work?

Adopting the SMART framework for your company goals is an easy way to write meaningful Key Results. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Below, we explain how to build an OKR based on each of these criteria, with practical examples.

Specific

A SMART objective must be explicit, with a detailed description of what needs to be accomplished. Everyone contributing to it should understand it clearly. Your Key Results should make the main goal obvious to your team. Avoid vague statements, but also avoid being overly prescriptive — describe the aim, not how to achieve 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 involved?
Where is it located?
What resources or limits are there?

Example: "Increase the number of accounts with 1000+ employees by 20%."

This goal contains a clear scope and describes the task to complete. However, it doesn't explain how success is measured, why it matters, or when it must be achieved.

Measurable

A goal must be measurable to know when it has been met. There should be a metric with a clear target demonstrating success. Setting OKRs helps align your organization, but tracking them is what enables outstanding execution. Make sure you can track your Key Results weekly to confirm you're on the right path.

A measurable goal should address questions such as:

How much (money)?
How many?
How will I know when it's successful?

Example: "Keep our Net Promoter Score above 40."

This goal has a target you can measure progress against. Once the score reaches 40, the goal is considered successfully achieved.

Achievable

A goal is achievable when it's feasible given available resources and constraints. This doesn't mean it should be easy — for example, a team might revise a target of publishing 10,000 posts by quarter-end because it's simply impossible.

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?

Example: "By the end of the quarter, get 500 views on new content."

This objective may be challenging, but it's doable. However, it's still unclear why reaching this goal matters.

Relevant

Your Key Results should have a clear connection to the parent Objective. A goal is relevant if it's consistent with, and contributes to, the organization's broader objectives. The Relevant element also means focusing on Key Results you can actually influence.

A relevant goal might answer "yes" to these questions:

Does this seem valuable?
Is this the right time?
Does this fit our other efforts and needs?
Am I the right person to achieve this goal?
Is it applicable in the current socio-economic environment?

For example, if your company's goal is to make SEO a strong growth channel, increasing the conversion rate on your pricing page by 30% is irrelevant — but ranking on Google's first page for ten product-related terms is highly relevant. Now all that's left is setting a deadline.

Time-bound

A goal is time-bound when it has a start and finish date. The end date is crucial, since that's when the goal is evaluated for success.

A time-bound goal usually answers questions such as:

When?
What can I do six months from now?
What can I do six weeks from now?
What can I do today?

Example: "To expand our global footprint, we closed 450 enterprise customers in Canada in 2019."

This goal now has a scope and a time frame, meeting all the SMART criteria.

Bringing It All Together

OKRs should be part of an integrated strategic planning framework designed to improve goal setting, decision making, and business performance. They can be used alongside other methods such as KPIs, the SMART approach, and CSFs.

Experimental iteration is perhaps the best approach, as it helps teams understand what works, what doesn't, and how to improve over time.

You may not be sure your current OKR methods comply with SMART rules, or you may find it difficult to get employees to adapt to your existing OKR system. You can explore Sorwe solutions for an OKR system that is comprehensive, SMART-compliant, and easy for your employees to understand. Contact us now for stronger performance management.

Frequently Asked Questions

How to make OKR's more SMART?

Apply the SMART framework to each Key Result by making it Specific, Measurable, Achievable, Relevant, and Time-bound, so your team knows exactly what success looks like and by when.

What is the difference between OKR and SMART?

OKRs link key results to broader objectives for strategic focus, while SMART is a set of principles used to structure any single goal, without emphasis on results or techniques.

Why should OKRs follow SMART criteria?

Combining OKRs with SMART criteria prevents vague or unrealistic goals, helping teams stay focused, track progress accurately, and increase motivation and performance.

What does the "measurable" part of SMART mean for OKRs?

It means every Key Result needs a clear metric or target, such as a score or percentage, so progress can be tracked weekly and success can be objectively confirmed.

Can OKRs be used alongside other performance frameworks?

Yes, OKRs work well together with KPIs, CSFs, and the SMART approach as part of an integrated strategic planning framework.

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