Objectives and Key Results: Distinguishing the Good from the Bad

Understanding the difference between well-crafted and poorly crafted Objectives and Key Results (OKRs) can dramatically affect your business's strategy execution.

The Scenario: Search Engines

Consider a digital marketing team aiming to enhance their website's visibility on search engines to drive more organic traffic and conversions. Their goal is to improve search engine rankings and increase website traffic from organic sources.

Example of a Poorly Crafted OKR

Objective: Improve website performance on search engines.

Key Result 1: Research search engine optimization (SEO) techniques.
Key Result 2: Implement meta tags on website pages.
Action 1: Attend an SEO workshop.
Action 2: Rewrite website meta descriptions.

Analysis: This OKR lacks depth and direction as it focuses on activities rather than outcomes. The objective is vague and does not provide a clear vision for success. The key results are merely steps in a process and do not measure the impact of the website's performance on search engines.

Example of a Well-Written OKR

Objective: Achieve top three rankings for key industry keywords on Google search results.

Key Result 1: Increase website visibility by improving keyword rankings from page 2 to page 1 for target keywords.
Key Result 2: Boost organic website traffic by 30% compared to the previous quarter.
Action 1: Conduct comprehensive keyword research to identify high-potential keywords.
Action 2: Optimize website content and meta tags for target keywords based on SEO best practices.
Action 3: Build quality backlinks from authoritative websites to improve website authority and search engine rankings.

Analysis: This OKR is outcome-driven, providing a clear and measurable objective that aligns with the business goal of improving search engine visibility. The key results are specific, quantifiable, and directly tied to the objective, focusing on increasing website visibility and organic traffic. The initiatives listed are strategic actions aimed at achieving the key results and ultimately fulfilling the objective.

The Scenario: Restaurant Menu

Consider a restaurant team aiming to revamp their menu to attract more customers and increase average order value. Their goal is to enhance the appeal of their menu and align it more closely with customer preferences and seasonal availability.

Example of a Poorly Crafted OKR

Objective: Redesign the restaurant menu.

Key Result 1: Meet with chefs to discuss new menu ideas.
Key Result 2: Print new menus.
Action 1: Collect feedback from wait staff on popular dishes.
Action 2: Update the menu design and layout.

Analysis: This OKR is task-oriented and lacks strategic depth. The objective is framed as a task rather than an inspiring goal, and the key results are focused on the activities necessary to produce a new menu. There’s no indication of how these actions will impact customer satisfaction or profitability.

Example of a Well-Written OKR

Objective: Transform the menu to increase customer satisfaction and grow average order value by 20%.

Key Result 1: Increase the number of menu items rated excellent by customers from 50% to 80%.
Key Result 2: Raise the average order value per customer from $20 to $24 by introducing premium dishes.
Action 1: Conduct a customer survey to identify the most and least popular dishes.
Action 2: Develop and test new recipes focusing on local, seasonal ingredients.
Action 3: Train staff on upselling techniques and the benefits of new menu items.

Analysis: This OKR clearly ties the menu redesign to tangible business outcomes, such as customer satisfaction and average order value. The objective is inspiring and strategically aligned with the restaurant’s broader goals. Key results are specific, measurable, and designed to gauge the success of the new menu in achieving these objectives. The initiatives support the key results with actionable steps that directly contribute to the desired outcomes.