OKR Assessment: Understanding the process and its benefits (2023)

Luis Goncalves

(Video) What are OKRs? Easy Explanation And Practical Examples Of Objectives And Key Results

OKR Assessment: Understanding the process and its benefits (2)

A goal setting framework known as OKR or Objectives and Key Results has grown in popularity in recent years. OKRs are a quick and easy approach to tracking progress, ensuring accountability and aligning an organization's goals. An important part of the OKR framework is scoring, which is used to measure an organization's performance against its goals and key outcomes.

Each objective and key result is typically assigned a numerical score based on its degree of achievement when evaluating OKRs. This score can vary between 0 and 1, where 1 means completely meeting the target and 0 completely missing the target. The score provides quick access to information about the organization's performance and opportunities for improvement.

The OKR scoring process has several advantages. First, it brings focus and clarity. Organizations can quickly identify what they are doing well and where they need improvement by assigning a numerical score to each objective and key outcome. This makes the team more cohesive and effective, ensuring everyone is on the same page and working toward the same goals.

Second, scoring OKRs encourages greater accountability. By assigning points, organizations can identify who is accountable for ensuring each goal and key outcome is met, and who is accountable for ensuring progress is made. Individuals and teams are motivated by this responsibility, which leads to better performance and goal achievement.

Third, the OKR score provides useful information about the company's performance. Organizations can identify which key goals and outcomes are successful and which are not by monitoring progress over time. Making data-driven judgments based on this information can lead to better outcomes and more productive processes.

(Video) How to Set Good OKRs With Examples

If you need an efficient method of evaluating theDISTRICTYour department, there are two ways/methods to do this. They are called confidence indices and classification approaches.

Confidence Ratings for OKR Scoring: Pros and Cons

At least two weeks before the end of the quarter, it's time to evaluate OKRsyour team in your department. Was your team successful? Have you achieved your goals as a department? Were your team's key deliverables effective? Also, you need to plan your OKRs for the next quarter.

This is a simple system commonly used by startups and smaller teams new to OKRs. When you set OKR, you are essentially setting a confidence score that reflects how likely your team is to achieve their goals.

The rating is usually between 5 and 10. Each week, members are asked whether or not their trust level has changed. They consider what they have done so far to achieve their most important results. Whether they are current or late.

You analyze all the data from the past few weeks and see if the team is making progress or not, getting closer or further away from their goal. You, as a department head, team leader, or manager, have a responsibility to adjust your confidence to a higher rating as you become more confident that you are getting closer to the outcomes you want.

The confidence level may rise or fall from week to week. It depends on whether there has been progress or regression. However, after two months of implementing the OKR, the team's confidence level should stabilize to a more stable outcome.

You can evaluate the results of OKRs two weeks before the end of the quarter. You can determine if you only have a 50/50 chance of achieving your team's goals. The sooner you report results, the sooner you can make plans for the next quarter.

Using confidence ratios to assess your department's OKRs has two main benefits. The first is that it serves as a reminder for employees to track theirsDISTRICT

As they're asked about their confidence week in and week out, they take the initiative to track their own progress and make sure they're focused on their most important results. It's a simple and very effective way for a company to get into the habit of tracking success.

(Video) Overview of the OKR Quarterly Refresh Process

The second major benefit of using trust scores is that they pave the way for meaningful conversations. When team confidence drops, everyone can talk about who could be better. What went wrong? What could have been done differently? You can think of ways to fix the slump and get back on track.

because a teamDISTRICTaffects everyone else's OKRs, it can be a serious problem for the entire organization. The leader should therefore feel free to open up conversations and ask his team members what they can do to help.

When evaluating your department's OKRs, mark your confidence level as a 10 or 0. If they get two of your top three results, it means the OKR was successful.

This ranking system helps a team double down on potential targets and discard efforts that are clearly out of reach. This streamlines processes and eliminates unnecessary effort and solutions.

The downside, however, is that some employees can “isolate” the system by setting an easy goal, a hard goal, and an impossible goal. The manager has an important role to play in making sure this doesn't happen.

OKR evaluation and scoring approach: pros and cons

The second approach to evaluating OKRs is called the “rating approach”. This is the system used by Google. At the end of each quarter, teams and individuals evaluate their results based on the data collected. A score of 0.0 means they failed, 1.0 means the OKR was successful, and a score between 0.6 and 0.07 is the ideal score.

A lower score indicates that the team is not achieving what it should. For businesses new to OKR, falling behind on your goals can be uncomfortable.

Most companies implement a scoring system where key results are measured at the end of the quarter or multiple times during the quarter. However, many fail to define a set of qualifying criteria that are an important element of key outcomes.

Scoring criteria are required in particular if you want to use a standardized scoring system for your company and should be defined when creating OKRs. Technically, the main results are not final until the team has defined their leadership and evaluation system.

(Video) OKR Performance Assessments

Before giving a final grade, it can be helpful to do a mid-level check-in for all levels, from key departments to teams and individuals, so everyone has an idea of ​​where they stand. A quarter end report is used to prepare you and your team for the following quarters.

Other organizations conduct an interim review, others a monthly review. Google, your philosophy is to hire smart people, give them a goal and give them the freedom to achieve it. A smart technique recommended by experts is to keep OKRs visible. This not only promotes transparency across all teams, but is also an effective strategy for communicating results and creating a sense of accountability. Everyone is in some way "challenged" to update their self-assessments as the quarter draws to a close.

There are many tools your team can use to track their OKRs and measure their progress. Buying a tool should be your last resort. It can be helpful to experiment with different approaches to find the right technique that works for your team and can produce the results you want.

Bringing your department teams together for feedback is always the best way. Collaboration is the key to successfully implementing a change, a new process or another governance structure. In the beginning it can be difficult to keep things clear and implement OKRs. But with a rating system, it should be easy for you to rate yoursDISTRICT

We hope this helps. If you want a closer look at how your entire organization is performing overall, check out our Organizational Mastery Test. We determine scientific and concrete key figures to see where your company can still improve.

Feel free to forward it to other department heads in your company (or even to the CEO). It highlights specific areas that are preventing your business from realizing its true potential.


In summary, an essential part of the OKR framework is the scoring of OKRs. It encourages accountability, brings clarity and focus, and provides insight into how an organization is performing. Organizations that employ this technique can increase success and create a more effective and efficient workplace by ensuring their goals are aligned, their people are inspired, and their progress is tracked effectively.

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we also offerOKR advicejOKR-Training, but our approach differs from other companies, we believe that OKRs should be fully integrated into your product development.

(Video) Why the secret to success is setting the right goals | John Doerr | TED

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What are the main benefits of OKRs? ›

It can help achieve mission and vision, aid in employee engagement, and bring to the surface the top priorities of a company. OKR's five key benefits include focus, alignment, commitment, tracking, and stretching — or as John Doerr likes to call them, “the five superpowers” of OKRs.

What is OKR assessment? ›

OKRs (Objectives and Key Results) is a performance management framework designed to encourage companies to set, communicate and monitor broad organizational goals and results. The framework is meant to be transparent and to align business, team and individual objectives in a hierarchal, measurable way.

What is the OKR process? ›

What are OKRs? Objectives and Key Results (OKR) is a powerful goal-setting methodology that drives alignment, performance, and results in growing and high-performing companies. At the most basic level, an OKR is a simple tool to align and engage everyone at the company around measurable goals.

What are the three important elements of OKRs? ›

An OKR framework consists of three key things: (1) Objectives, (2) Key Results, and (3) Initiatives. An objective describes the main goal that a company hopes to achieve in the long run, while key results are the expected outcomes. Initiatives define the work that needs to be done to achieve the key results.

What are good examples of OKRs? ›

Top company objectives—OKR examples
  • Hit company global sales target of $100 Million in Sales.
  • Achieve 100% year-to-year sales growth in the EMEA geography.
  • Increase the company average deal size by 30% (with upsells)
  • Reduce churn to less than 5% annually (via Customer Success)
Mar 18, 2022

How do you make OKRs effective? ›

Here are 8 steps to help set and achieve OKRs that work at a company, team and individual level.
  1. Understand your company goals. ...
  2. Choose the right tools. ...
  3. Involve your whole team. ...
  4. Write an OKR objective statement. ...
  5. Develop key results. ...
  6. Plan your initiatives. ...
  7. Track them consistently. ...
  8. Celebrate 70%

How does OKR measure progress? ›

OKR Grading

To calculate a score, you have to divide the target set by the final result. Using the example above, if your team's KR was to “get 100 customers” but they only got 50, their final score would be 0.5, but if they got 20, the score would be 0.2. Having this score we can assign a grade to the Key Result.

What is a good Key Result OKR? ›

Remember, good Key Results have several basic characteristics: They are specific and time-bound. They are aggressive, yet realistic. They are measurable and verifiable.

What are the different types of OKRs? ›

There are two types of OKRs goal: committed OKRs and aspirational OKRs. Both committed and aspirational OKRs define different purposes and have separate methods to achieve them. If you are someone new to OKRs (Objectives and Key Results), this information can be overwhelming.

What are the 5 elements of OKR? ›

Five Key Elements of OKR Success
  • OKRS Require Strategic Direction. OKRs are a great means to align an organisation towards a set of ambitious common objectives. ...
  • OKRs Need to be Bidirectional. ...
  • OKRs Require Defined Cadences. ...
  • Key Results Must not be Binary. ...
  • Outcomes Need a Feedback Loop.
Jul 4, 2019

What problems do OKRs solve? ›

Here are the 3 problems that OKRs are meant to solve in theory:
  • Employees not having the right priorities (lack of direction)
  • Managers/ team leads not knowing what employees are working on and what their progress is (lack of insight)
  • Teams not knowing what other teams are working on (lack of transparency)
Sep 16, 2021

What common mistakes you should avoid when making OKRs? ›

6 Common Mistakes to Avoid When Implementing OKRs
  • Too many Objectives. ...
  • Everyday To-Do's as OKRs. ...
  • Set and Forget approach. ...
  • Objectives set are not aspirational enough. ...
  • Creating OKRs in silos. ...
  • Breaking OKRs linked to compensation.

What are the 5 smart goals examples? ›

Examples of SMART Goals
  • Studying. Simple Goal: I need to study more. ...
  • Writing. Simple Goal: ...
  • Reading More Books. Simple Goal: ...
  • Mastering Emotions. Simple Goal: ...
  • Exercising More. Simple Goal: ...
  • Improving Your Diet. Simple Goal: ...
  • Becoming More Productive. Simple Goal: ...
  • Time Management. Simple Goal:
Oct 14, 2022

What are two of the most important things you can do in managing OKRs effectively? ›

What are OKRs?
  • Focus and commit to priorities.
  • Align and connect for teamwork.
  • Accountability through tracking.
  • Stretch to achieve the impossible.
Jun 18, 2020

Which part of an OKR defines what needs to be achieved? ›

An Objective is simply what is to be achieved, no more and no less. By definition, Objectives are significant, concrete, action oriented, and (ideally) inspirational.

Why OKRs are better than smart goals? ›

SMART goals provide guidelines for writing specific, attainable goals. In contrast, the OKR framework offers more of a process to reach for stretch goals that promote higher performance and personal or business growth. In many organizations, SMART goals are also tied to compensation.

How do you measure your performance and progress? ›

How to Measure Your Employee's Performance
  1. Set Measurable OKRs and Individual Goals. ...
  2. Benchmark Performance by Implementing 'Sprints' ...
  3. Implement a Project or Task Management Tool. ...
  4. Track Training Completion. ...
  5. Conduct a Skills Gap Analysis. ...
  6. Create Your Own Employee Performance Metrics. ...
  7. Data from 360 Performance Reviews.
Dec 22, 2021

How many objectives should OKRs have? ›

While the answer is the same across the board, there may be some nuances depending on an organization's size. Simplicity is always key. To capture the ambitions of your organization, you should have a maximum of three Objectives, each with 3-5 Key Results.

Do OKRs actually work? ›

OKRs are simple but require certain key aspects that need to be considered for successful implementation. OKRs don't work and fail in some companies; there is no practice to vocalize the resources or requirements to accomplish meaningful outcomes.

How many OKRs should each person have? ›

Having too many OKRs can undermine the purpose of the framework. We typically recommend setting a maximum of 3-5 OKRs per team per quarter. This is a maximum, not a minimum – it's perfectly appropriate to have only 1-2 OKRs.

What are OKR tools? ›

Objectives and key results (OKR) software are dedicated tools for setting, communicating, tracking, and measuring goals and results within businesses. Within OKR software, management can easily set and monitor goals for teams and individuals.

Why are OKRs better than KPIs? ›

KPIs can be great for measurement, but they're standalone metrics — they may tell you when a measure is good or bad, but they don't necessarily communicate context or what direction your team needs to go in. OKRs, which stands for Objectives and Key Results, provide that much needed direction and context.

What are Key Results in OKRs? ›

Key Results are the measures and milestones that indicate how you know you will accomplish our Objective. Each Objective has its own set of Key Results with at least 3, but no more than 5, per Objective. You can't have an Objective without Key Results and vice versa.

What is the value of OKRs? ›

OKRs reinforce such Agile principles as transparency. They help companies focus on real business outcomes rather than just features or output, and empower teams to determine “how” to deliver the “what” that senior leaders define.

Why OKRs are better than SMART goals? ›

SMART goals provide guidelines for writing specific, attainable goals. In contrast, the OKR framework offers more of a process to reach for stretch goals that promote higher performance and personal or business growth. In many organizations, SMART goals are also tied to compensation.


1. The Role of An Internal OKR champion in your OKR journey
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2. How Google sets goals: OKRs / Startup Lab Workshop
3. Understanding OKRs | How to set achievable goals | Measuring what matters
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4. OKRs: All about OKRs and Benefits of Using OKRs
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5. OKRs: validating key results with the "Necessary and Sufficient Test"
6. How the Best Executives Transform Strategy into Action using OKRs. All the essentials covered in 15m
(Marcos Barros - OKRs in Your Organisation)
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