Week 12, 2021 — Issue #144
OKR Template: Leading vs. Lagging, Outcomes over Activities, Roofshots and Moonshots
Each week: three ideas to make work better. This week: three ideas on Objectives and Key Results.
How do you define success for new projects? Personally, I usually whip out this handy little OKR template that I’ve created for myself:
If you are new to OKRs, Felipe Castro provides an excellent primer.
Here’s what you need to know:
Here’s what you need to know:
1. Leading vs. Lagging
OKRs and KPIs are not the same thing. But the analogy can be instructive all the same. You see, KPIs come in two forms. Leading KPIs that you an indication of what is likely to happen in the future. Lagging KPIs tells you what already happened in the past. The same distinction can be useful when defining KRs. Depending on your cadence, you might for example want to high use Leading KRs as milestones — interim targets to help ensure that you’re on track to achieving your overall objective.
2. Outcomes over Activities
Speaking of which: your overall objective should always be to achieve a specific result. It should not, and I repeat, should not, be to complete a certain task. No one cares how many sales calls you make or how many blog posts you write. That’s irrelevant. Results are the only thing that matter. And so when you define your KRs, think outcomes over activities. (This goes for Leading as well as Lagging KRs, but if you must include a task, please make sure it’s one of the less important Leading KRs).
3. Roofshots and Moonshots
As a rule of thumb, I usually suggest that 3 out of 5 KRs should be of the Lagging outcome variety. And that’s a bare minimum. But that’s not all. Because OKRs are all about stretching your limits, I also recommend that Lagging outcomes be defined at three levels of ambition: Shots are outcomes you believe to be reasonable, Roofshots are aggressive yet plausible, and Moonshots are the stuff dreams are made of. Get ’em all on paper. No one ever achieved anything by aiming low.
A few things to note:
- OKRs are considered done once 70% of the KRs are achieved. You should aim for your moonshot, but you don’t actually have to hit it in order to achieve your OKRs. So aim high.
- The template provides space for a few other things as well, notably, the how and when of KRs should be measured. Do not forget to fill this in when you define your KRs
There you have it: an OKR template that (hopefully) makes life a bit easier next time you need to define success for a new project. You’ll find a Google Sheet version HERE.
That’s all for this week.
Until next time: Make it matter.
