Ways To Setting OKRs in project management will be described in this article. Only 29% of American adults who are employed are familiar with OKRs, according to Ally’s recent study.
Stephen Wunker wrote in Forbes earlier this year that “OKRs are having their moment” because so many businesses are using OKR software to address the expanding remote and hybrid work period.
Ways To Setting OKRs in Project Management
One thing is certain: understanding and mastering this structure are top of mind in the business world, regardless of whether you’re a project manager who has never used OKRs, has used them before COVID, or is learning them as a result of changes to remote work.
Going even further, there is a relationship between OKRs and project management that has the potential to be crucial and game-changing.
What is the OKR framework?
- The details of goals and important outcomes
- OKR project management examples that tie the ideas together
- OKRs and KPIs: What’s the difference?
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- What does OKR stand for?
- OKR is a framework for setting goals.
- The term “objectives and key outcomes” is abbreviated as OKR.
John Doerr, an American entrepreneur and venture capitalist, popularised the OKR movement and disseminated his concept through the publication of his book Measure What Matters.
The ideas were taught to John Doerr by Andy Grove while he was a class participant.
(For more great advice from Andy Grove: The ultimate guide to creating a great Software Engineering performance review.)
Grove used OKRs in the 1970s to change Intel.
Grove and Doerr’s work allowed organisations like Google, The Gates Foundation, and Bono to use the OKR framework to surpass expectations and adapt to changing business requirements.
Let’s look more closely at the definitions of the goals and key results that make up this technique now that we are aware of what OKR stands for.
Explain objectives and key results
Get Started With OKRs is the name of a comprehensive learning library and kickstarter course on the Measure What Matters website that includes a step-by-step tutorial for setting and accomplishing goals using this framework.
To summarise the ideas and save you time, I finished the first series of lessons.
The Measure What Matters creators provide the following explanation of goals and significant outcomes:
Lesson 11: Why OKRs?
The founders know the straightforward method works because amazing companies like Intel, Google, and Bono use it.
Lesson 1.2: What is an OKR?
OKRs can’t change things like workplace culture or poor leadership, but they can help teams identify the pertinent goals.
By dividing objectives into quantifiable components, OKRs serve as a tool for putting a company’s vision or purpose into action.
Many organisations communicate their purpose and vision, but they often struggle to explain how to get there or how to measure their progress.
The OKR framework transforms a vision into a clear method to describe that vision, adds measurement and progress, and provides a channel for team communication.
The “what” or task that you and your team are setting out to complete in a limited amount of time is known as a goal (such as the next 30 or 90 days)
How we get there or the quantifiable benchmarks that demonstrate success are key outcomes.
Lesson 1.3: What makes good OKRs?
OKRs are more than just KPIs; they are the urgent issues you and your team need to handle right now.
They stand for significant improvements you want to see.
The success criteria are outlined in OKRs, allowing your team to determine whether they need to course-correct or alter their focus.
Your goals should be significant, bold, and motivating.
Your main outcomes ought to be measurable and verifiable, aggressive but realistic, specified and time-bound, and measurable.
There should be three to five key results for every goal.
Using the OKR framework for project management, let’s go.
OKRs in project management
Do you have any questions about the interaction between OKRs and project management?
Learn how they work in harmony, how project management office (PMO) directors and managers can set OKRs for project managers, and how project managers can establish OKRs for their projects by reading on.
OKRs and project management complement one another
The OKR framework can be used by project managers to plan and organise smaller-scale tasks as well as longer-term programmes of work.
Although OKR goal-setting and project management methodologies are fundamentally dissimilar, they can coexist in the proper situations.
A project is a collection of duties that a team must carry out in order to achieve a specific goal.
The aim of project management is to complete tasks on time and within budget while allocating resources and managing budgets.
On the other hand, OKRs focus more on the strategies used to gauge success towards the achievement of the company’s larger goals.
We increase the probability of failing when we set OKRs without outlining the steps necessary to accomplish each key result (this is where project management can help).
On the other hand, siloed initiatives that don’t have a direct connection to the overall team or business goals can waste time.
These methods complement one another despite their differences.
Projects should help and fit into long-term goals.
Teams can effectively accomplish key results by utilising project management methodologies and practises.
Project managers can assist in dividing key results into lists of doable tasks once an organisation has established OKRs at the business and team levels.
Setting OKRs for project management teams
The OKR method can be used by PMOs and project teams to direct their project managers and leads with regard to team OKRs.
Setting OKRs for a team that probably doesn’t work together frequently can be motivating and uplifting.
Under the same manager or director, project supervisors may work in one unit.
However, they likely spend the majority of their time working on their particular tasks with other key stakeholders.
Setting OKRs and providing project managers with a common objective will help the force for good come together.
Project managers can set OKRs for their projects
The OKR framework can be used by project managers as part of the project planning procedure.
A framework for ensuring that project work is in line with business goals is provided by incorporating OKRs into project management. This keeps teams engaged and focused.
Consider including an OKR development session in the project initiation phase in addition to emphasising success metrics and outlining project duties.
OKR project management examples
Assume you are a new project manager entering a team as work is beginning.
To ensure that everyone is on the exact page and pursuing an inspiring objective, the project initiation phase is the ideal time to establish OKRs with your stakeholders and project team.
For particular initiatives, here are some examples of OKRs:
Website redesign project
Describe the project:
You have been chosen by the marketing team to lead their forthcoming website redesign project.
To increase lead generation and attract new company, the project involves redesigning the homepage, sales form, and service offerings.
The following is how we can connect this effort to an OKR:
By the end of Q4, the goal is to reach the greatest number of website conversions ever.
Perform an A/B homepage test, then use the best copy (notice how this key result fits into the project scope)
25% more sales form views (this would be following the sales form revamp, so you could develop a project plan to move from the old sales form to the new sales form)
scheduling free meetings 15% more frequently (perhaps you could project manage a marketing campaign around free consultations)
The team used measurable outcomes and a bigger goal at risk to help direct the team rather than just keeping track of the project’s end goals.
OKRs for a growing PMO team
For project management teams, do you need some examples of how to establish OKRs?
An illustration of particular OKRs for a group of project managers working within a PMO is provided below:
By the end of Q3, aim to have a seamless procedure in place for handling internal projects.
50% more project proposals should be written.
Reduce by 30% the amount of project deadlines missed.
25% fewer budget modification approvals are needed
For all tasks, send monthly status update reports.
Create models for project retrospectives.
Metrics in comparison to OKRs
It’s possible to hear OKRs and KPIs compared, but it’s not an accurate comparison.
The positive news is that companies should and can use both.
With measurable benchmarks delineating how you will get there, OKRs outline what you and your team want to accomplish in the next few months.
The framework focuses on future success and goal-setting.
OKRs are bold, precise, quantifiable, time-bound, and aggressive while remaining practical.
The OKR structure can be considered strategic and visionary.
A key performance measure is known as a KPI.
Many organisations use KPIs as metrics to track business operations, keep an eye on benchmarks, and gauge particular aspects of a company.
KPIs don’t always connect to a bigger picture because they are occasionally used as independent metrics to assess the health of a company.
OKRs vs. KPIs
In some cases, KPIs produce excellent key outcomes.
For instance, a marketing team’s Goal might be to increase the monthly average of shares on LinkedIn from 50 to 250.
This KPI could be translated into a crucial outcome assisting the goal of raising social media engagement across platforms by 40% to accomplish record reach.
KPIs and OKRs are not mutually exclusive.
Use them to enhance one another instead.
Be audacious and set those OKRs
OKRs, which stand for “objectives and key results,” are a straightforward and practical goal-setting framework.
To successfully implement their corporate visions and goals, many major corporations have used OKRs.
The key results are how you will accomplish your goal, which is what you set out to do.
Project managers and business executives can use OKRs and project management together because they complement each other.
KPIs and OKRs are different, but KPIs can also be excellent key outcomes when included in a larger OKR.