What is an OKR?
Objectives and Key Results (OKRs) are strategic tools for setting goals and defining measurable outcomes to track progress. They help clarify your aims (Objectives) and establish precise criteria (Key Results) for measuring success. This framework is instrumental in aligning team goals across an organization, ensuring collective efforts towards unified, quantifiable results.
How Does an OKR Look?
The structure of an OKR is simple yet effective:
I will (Objective) as measured by (Key Results).
For example, an OKR might be: “I will enhance the user experience on our website,” measured by “achieving a user satisfaction rate of 70%, reducing load time to under one second, and decreasing error rates to less than 1%.”
This format not only specifies the goal but also sets clear benchmarks for evaluating success, making it a powerful tool for driving organizational performance.
Do OKRs Have Timelines?
OKRs are typically time-bound, often structured around quarterly cycles. However, the exact timing of these quarters can vary, aligning with an organization’s fiscal year rather than the calendar year. This flexibility allows OKRs to be seamlessly integrated into diverse business operations and schedules, enabling regular reassessment and recalibration of strategies and objectives.
Additionally, OKRs can be carried over to subsequent periods if they are not completed due to ambitious scopes, long-term projects, or unforeseen challenges.
Understanding Fiscal Years
The distribution of quarters in a fiscal year depends on when an organization’s fiscal year begins. Here is a general outline of how quarters are distributed based on different fiscal year start dates:
Standard Calendar Year (January Start)
- Q1: January, February, March
- Q2: April, May, June
- Q3: July, August, September
- Q4: October, November, December
Fiscal Year Starting in October (Common in U.S. Federal Government)
- Q1: October, November, December
- Q2: January, February, March
- Q3: April, May, June
- Q4: July, August, September
Organizations choose their fiscal year’s starting month based on regulatory requirements, industry practices, or strategic considerations, influencing how fiscal quarters are set.
Considerations for Carrying Over OKRs
When extending an OKR into a new period, it’s important to:
- Review and Rationale: Evaluate why the OKR is being carried over, whether due to initial over-ambition, external factors, or its long-term nature.
- Update and Adapt: Revise the Key Results to reflect any new insights or changes in the business environment.
- Communication: Transparently communicate the reasons for the carryover to all stakeholders to maintain clarity and engagement.
- Integration with New Goals: Ensure that the carried-over OKRs are aligned with new organizational objectives to maintain strategic coherence.
This approach ensures that OKRs continue to be relevant and effective in driving progress, rather than being perceived as mere routine or unachievable targets.
How Does Jira Relate to OKRs?
Many organizations use Jira to monitor and manage the progress of OKRs. Managers and product owners typically create Epics in Jira that correspond to each OKR, serving as central repositories for organizing tasks, tracking progress, and ensuring alignment with strategic goals.
By using Epics to categorize work, teams—whether they are in development, infrastructure, or other domains—can more accurately reflect their specific contributions to the company’s overarching objectives.