How To Create OKR Objectives That Focus On And Defines Business Value

Published on January 15, 2025 by Target Align

How To Create OKR Objectives That Focus On And Defines Business Value

Objectives and Key Results, or OKR in short, has long become a reliable and efficient practice that aligns company leadership as well as startup founders with their teams. OKRs work seamlessly with KPIs and other performance tracking tools. They provide transparency in goal-setting and flexibility for agile teams. 

In this article, we will talk about writing OKR objectives that are crystal clear in explaining what they intend to achieve.

Remote work has increased the need for transparency and focus in goal-setting using OKR Objectives.
Remote work has increased the need for transparency and focus in goal-setting using OKR Objectives.

 

Plenty of professionals, both employees and employers, have always known that remote working has a host of benefits. However, it was the COVID-19 pandemic that really showed the working world how a good remote working strategy for extended periods of time could very well be the new norm. The boom in productivity from remote working can’t be ignored— if executed correctly, of course!

As employees decentralize and work in remote locations, company goals and objective alignment are even more paramount.  Writing a OKR Objective  using best practices will help teams clarify the purpose of the goals. OKR software helps teams set clear goals and track progress effectively. 

Target Align’s OKR software streamlines performance management by making sure everyone’s clear about what they’re going to work towards.

OKR Objectives Formula 

The OKR Objectives Formula is: 

[Verb to be] – to be at a future state + [Future State] – where you want to be + in order to/ so that + [business benefit] – the outcome you want to achieve 

Examples Of Some Good OKR Objectives 

  • To create the most convenient mortgage approval process, so that our bank will be first in customers’ mind when applying for a mortgage.
  • To be the largest copper producer in the East Asian region, in order to achieve supply chain dominance in local markets. 
  • Become the most trusted provider of personal finance tools, ensuring our app is the go-to solution for budget management
  • Establish market leadership in renewable energy solutions to drive sustainable growth and industry innovation.

Here’s How To NOT Do It 

  • To be the largest fast food chain in the world – This sounds too generic and does not state business value.  
  • To increase sales by 20%  – This is more like a key result, and not an OKR objective. 
  • To improve customer satisfaction – This is too vague and lacks measurable direction or specific outcomes.
  • To launch a new product line. – This describes an activity, not an aspirational goal tied to broader impact or purpose.
  • To reduce expenses by 15%. – This focuses solely on metrics and resembles a key result rather than a motivating objective.

Per Objective writing best practice, do not mention any %, #, or any other measurable metrics. Metrics are defined in the Key Results, maintaining flexibility for agile execution. Key Result writing will be discussed in a separate article. 

OKRs help organizations achieve alignment by ensuring all teams work toward common goals with a solid strategy.
OKRs help organizations achieve alignment by ensuring all teams work toward common goals with a solid strategy.

 The Bottom Line 

In order to write focused and impactful OKR Objectives, make sure to follow the format provided above. Here’s a reminder:

[Verb to be] + [Future state] in order to/ so that [Business Outcome] 

Always mention a future state and the measurable benefits intended to be achieved.Be cautious about , not having measurable metrics, e.g. %, #, $ in an objective. The metric to be achieved will be stated in the child Key Results (KR) of the parent Objective.   

Frequently Asked Questions (FAQs)

What is an OKR, and why is it important for teams?

An OKR (Objectives and Key Results) is a goal-setting framework that promotes alignment, focus, and transparency within teams. It’s a great strategy to ensure everyone is working toward the same goals.

What should be included in OKR objectives statements?

An OKR objective statement should describe a future state and its business impact without including specific metrics. Metrics belong in Key Results, offering flexibility and encouraging agile planning.

What’s the recommended format for writing OKR objectives?

The recommended format for OKR objectives is: [Verb to be] + [Future state] in order to/ so that [Business Outcome]. This approach ensures alignment and strategy while keeping the goals clear and actionable.

How can Target Align’s OKR software help my organization?

Target Align’s OKR software and training services help companies scale-up quickly to meet or exceed their business objectives.

Is OKR software necessary for managing remote teams?

While not mandatory, OKR software simplifies tracking, reporting, and collaboration, making it highly beneficial for teams doing remote work.





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