Stack OKRs for Team Engagement and Alignment [Free Tool]

Objectives and Key Results (OKRs) have become widely adopted as a framework for setting and achieving goals, and you're probably no stranger to them. (But no worries if you are, there's a quick overview included below.)

However, I've observed a common misconception and misuse among adopters of this framework, and it's leading to employee discouragement and missed opportunities for managers.

Here's how to use OKRs to support your organization's performance, productivity, and alignment. 

Quick OKR Overview

OKR stands for "Objective and Key Results". It's a goal-setting framework popularized by Intel and the book Measure What Matters by John Doerr. It adds an important element often missing from goal setting and, in a simple framework, answers two core goal-setting questions: what will be accomplished, and how will we know we were successful?

Objectives can be qualitative or quantitative and have a long time horizon (1 year or more), while Key Results should follow the SMART goal framework (Specific, Measurable, Attainable, Realistic, and Time-Bound) and have a shorter time to complete (90 days or less).

The Misconception of OKRs in Performance Management

I've seen OKRs reduced to a simplistic 'pass' or 'fail' grading system for performance management. In reality, OKRs aren't performance metrics at all and should be seen as guides that drive people toward business objectives, not as definitive indications of a job well done.

Interestingly, an OKR's success or failure often speaks volumes about the clarity and direction provided by management rather than solely reflecting an individual's performance. 

John Doerr’s Insight on Engagement and Contribution

John Doerr, oracle of OKRs, wrote that people "are most engaged when they can actually see how their work contributes to the company’s success.” This statement underlines a fundamental aspect of OKRs: clarify how individual efforts fit into the larger organizational picture. OKRs aren't just about doing the right things; they're about understanding why those things matter and showing others that they are important.

OKRs to Connect Depts and Teams 

What sets OKRs apart from other goal-setting frameworks is their capability to connect department and team goals to broader business objectives. A CEO's Key Result becomes the COO's Objective, and the COO's Key Result becomes the department manager's Objective.

This ‘stacking’ effect ensures that every level of the organization moves cohesively towards common goals. Think of OKRs as a map that connects your daily tasks to the organization's ultimate destination. This connection is crucial for motivation and alignment

For example, if the CEO has an Objective of increasing revenue by 20% and one of her Key Results is to identify a new revenue stream that can complement existing core businesses, then a department manager may take that Key Result to set an Objective for themselves to test various innovation ideas.

Tap into Intrinsic Motivation with OKRs

The most effective OKRs resonate with an individual's intrinsic motivation and should evoke a sense of purpose and excitement. As a manager, it's your responsibility to ensure that the OKRs your team sets are inspiring and aligned with their interests and strengths. Encourage your team members to participate in the OKR-setting process—this involvement leads to greater commitment and enthusiasm.

OKRs are more than a performance metric; they are one of your best tools for motivation, engagement, and aligning your team's efforts. Use them to connect and inspire your team, and let your OKRs reflect where you want to go and why and how you want to get there.

Download Our OKR Template 

We've created a OKR template and guide to help managers and their teams collaboratively set effective OKRs. It provides guidance on writing clear objectives and tips for breaking down objectives into key results.

As you use the tool, reflect:

• Are our OKRs well-structured? Are they right-sized and clear?
• Are my team's individual goals aligned with broader organizational objectives and key results?
• Do my team's personal goals resonate with their intrinsic motivators?