OKRs: what and how

2024

Objectives and Key Results (OKRs) are more than just a goal-setting framework—they are an interface for alignment. When done correctly, they shift the focus from "what we are doing" to "why it matters" and "what success looks like."

POMKRA: A Structured Framework

While traditional OKRs focus on the what and how, the POMKRA method (developed by Yonatan Zunger) provides a more robust lifecycle by anchoring goals in real problems.

  • P — Problem: Clearly articulate the problem you are solving. This should be stable; if the problem changes, the entire OKR needs a rethink.
  • O — Objective: What the world looks like once the problem is solved. It should be tangible, objective, and unambiguous.
  • M — Milestones: Significant stages that lead to the objective. Crucially, each milestone should represent Captured Value—real progress that stands even if the project stopped there.
  • K — Key Results: Measurable outcomes that indicate progress. They should focus on outcome, not activity.
  • R — Activities: The specific tasks to achieve the milestones. Unlike Objectives, these change frequently as you learn.

1. Objectives — The "What"

An objective is a tangible goal or intention valuable for the company, team, or individual.

  • Concrete: It should be obvious to a rational observer if it was achieved.
  • Actionable: It should communicate intent and drive action.
  • High Value: Top objectives should represent the best value the team can provide.

Focus Tip: Don't settle for what you're comfortable doing. Push for meaningful, significant goals that align with your long-term vision.

Priority Levels

  • Committed (P0): Highest priority. The team adjusts resources to hit these. Anything lower than a 1.0 score needs strong justification.
  • Aspirational (P1-4): Strategic bets. These can be sacrificed for P0s but often become commitments in later quarters.

2. Key Results — The "How"

Key results are measurable milestones that impact the top objective. They focus on the outcome rather than the activity.

Characteristics of a Good KR

  • Clearly Measurable: No room for debate on the score.
  • Aggressive Yet Realistic: Should push the team but remain achievable.
  • Outcome-Focused: Instead of "consult" or "analyze," use "publish latency measurements" or "increase uptime to 99.9%."
  • Time-Related: Should have a clear deadline.

Trap Check: If you score 1.0 on all KRs but still haven't achieved the objective, your KRs are insufficient. Every KR must be a necessary step toward the O.


3. The POMKRA Method in Detail

The Short Version (Interface Focus)

  1. Problem: Why are we doing this?
  2. Objective: What is true once we've solved the problem? (Boolean statement).
  3. Milestones: Break the objective into milestones. Sub-objectives are parallel; milestones are series. Each must answer "why should I care?"
  4. Key Results: How do we measure the milestone? Use Boolean statements that describe the desired state of the world.

The Long Version (Operational Focus)

  • P & O (Fixed): These slow-moving parts define the project charter.
  • M & KR (Stable): These change only when you gain significant new insights.
  • Activities (Fluid): These are your internal to-do lists. Stakeholders rarely need to see these; they care about the KRs.

4. Classic OKR Mistakes

Trap #1: Business-as-Usual OKRs

Setting goals based on what you know you will achieve without changing current practices. OKRs should reflect what you or your customers truly want.

Trap #2: Timid Aspirational OKRs

Starting from the current state rather than the desired end state. Ask: "What could the world look like in several years if we were freed from constraints?"

Trap #3: The "Who Cares?" OKR (Low Value)

Objectives must promise clear business or user value. "Increase CPU utilization by 3%" is an activity; "Decrease cores required to serve peak queries by 3%" is an outcome.

Trap #4: Sandbagging

If a team easily meets all OKRs without using all resources, they aren't challenging themselves. OKRs should consume slightly more than available resources to encourage optimization.


5. Tips for Success

  1. Keep it Focused: Limit to 5-7 objectives and 4-5 key results per objective.
  2. Seek Agreement: OKRs should be mutually agreed upon, not dictated.
  3. Use Grading: A score of 0.6-0.7 is good progress. 1.0 is a "home run."
  4. Foster Transparency: Make them accessible to everyone in the organization.
  5. Distinguish Types: Differentiate between team OKRs and personal career development OKRs.
  6. Celebrate Milestones: Recognizing progress ignites joy and creativity.

Example: POMKR for a Navigation Tool

Problem: Existing tools lack real-time road condition data, leading to inefficient routing.

Objective: Provide the most accurate road condition service, improving user retention and revenue.

Milestones & KRs:

  • Milestone 1: Infrastructure
    • Objective: Build a scalable data collection system.
    • KR: Integrate real-time driver reporting for all metro areas.
    • KR: Implement AI models for probability forecasting of road conditions.
  • Milestone 2: Experience
    • Objective: Improve accuracy for short-span rides.
    • KR: Prioritize updates within a 10-mile radius with < 2ms latency.
    • KR: Reach 95% user validation on reported conditions via a rating system.

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