28 February 2025
Measuring progress is essential for businesses that rely on objectives and key results (OKRs) as a goal-setting framework. The OKR methodology includes tracking, scoring and optimizing OKRs to keep team members updated and on target for achieving strategic goals.
Organizations that use OKRs for company-wide or departmental initiatives often use certain best practices to help measure success. These best practices typically include:
- Identifying key performance indicators (KPIs)
- Setting SMART objectives
- Using standardized scoring formats
OKRs and KPIs are sometimes seen as competing concepts. However, organizations often use both to complement each other as part of the OKR process for attaining company goals.
KPIs help measure the success of OKRs by providing quantitative data that can track progress toward measurable goals. They can function as the backbone of key results by ensuring that they are data-driven, measurable and time-bound.
Many organizations align KPIs with OKR metrics to create a reliable system for tracking and evaluating performance that balances long-term aspirations with measurable, time-sensitive achievements.
The difference between OKRs and KPIs
While both OKRs and KPIs are valuable tools for performance management, they serve distinct purposes.
The OKR framework focuses on defining ambitious goals and the measurable key results (KRs) to achieve those goals. KPIs, on the other hand, are specific performance metrics used to evaluate how well an organization is achieving its objectives.
Although KPIs are sometimes used for tracking OKRs, they should not be confused with the OKRs themselves.
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Setting SMART objectives is another method organizations use to effectively measure OKR progress. “SMART” is an acronym for “specific, measurable, achievable, relevant and time bound.”
This approach provides a clear, structured way to set realistic milestones, monitor progress and optimize efforts to achieve business goals.
For instance, a software development company that aims to improve customer satisfaction might follow an OKR such as this:
Objective: Improve customer satisfaction by 15% within the next quarter.
Key results:
- Reduce the average response time for customer support tickets by 30% in the next quarter.
- Decrease the number of open bug reports by 40% in the next quarter.
- Increase the frequency of product updates by 50% in the next quarter.
Or a marketing department that seeks to build awareness and generate more leads might implement this OKR:
Objective: Increase brand awareness and lead generation.
Key results:
- Achieve a 20% increase in website traffic.
- Generate 15% more marketing-qualified leads (MQLs) per quarter.
- Improve social media conversion rates by 25%.
Both of these OKR examples demonstrate the use of SMART objectives to create well-defined and measurable OKRs. Each key result is specific, measurable, achievable, relevant and time bound. They provide stakeholders with a clear roadmap for achieving the organizational goal.
Scoring OKRs is a vital part of the measurement process. Scoring helps organizations evaluate success, improve decision-making and identify areas for improvement. A few popular methods for OKR scoring include:
This method assigns a percentage score to each key result that reflects the level of completion. For example, if a key result is 50% complete, it would be assigned a score of 50%. This scoring method is straightforward and easy to understand, enabling teams to quickly gauge their progress.
This method uses a color-coded system to indicate the status of key results. Typically, three colors are used: green, yellow and red.
Green signifies that the key result is on track or completed. Yellow indicates that it is at risk or requires attention. Red shows that it is off track or not progressing as planned. This visual representation identifies areas that need attention so teams can prioritize accordingly.
This method assigns a numerical value, usually between 0 and 1, to each key result based on the level of completion.
For example, if a key result is halfway completed, it would be assigned a score of 0.5. This scoring method provides a more granular representation of progress, making it easier for teams to identify the precise level of completion for each key result.
Scoring methods such as these can help organizations improve OKR project management, establish timelines for completion and understand what went right and wrong during the process.
Other commonly recommended tips for improving OKR effectiveness include:
- Conduct weekly OKR team check-ins to improve employee engagement.
- Share OKR updates through Excel spreadsheets, real-time dashboards or OKR software.
- Regularly review and adjust OKRs so they remain relevant and aligned with the organization’s goals.
- Communicate OKRs across the organization to improve transparency and encourage feedback.
- Celebrate successes and learn from failures by using them as opportunities for growth and improvement.
Organizations that are able to streamline OKR measurement often see continuous improvement in their ability to drive results. These best practices can help organizations empower teams and foster a culture of collaboration, accountability and success.