How to measure OKRs’ success: Key strategies and metrics for leaders

In enterprises, implementing OKRs (Objectives and Key Results) not only helps clarify organisational goals, but also aligns teams and improves overall performance. However, how do you measure OKRs’ success?

Yes, there is much talk about the importance of this methodology. Still, few enterprises actually manage to implement the strategy, measuring the success of their OKRs to know the points of success or improvement. Knowing how to measure OKRs’ success is still a challenge for many leaders.

If you are one of these leaders needing support, don’t worry! In this article, we show you how to measure OKR success effectively, including the key metrics to consider and how to adjust strategies based on the results.

In addition, to support you in this process, ifeel has designed an OKR implementation guide for large organisations, which you can download for free here.

Why measure OKRs’ success in enterprises?

OKRs are a powerful tool to chart a clear path towards meeting strategic objectives. This approach not only improves organisational clarity, but also promotes a culture of accountability and commitment among employees.

In this sense, measuring OKRs in enterprises is crucial for several reasons directly impacting organisational performance. The following are some of the main reasons:

1. Strategic alignment

Measuring OKRs ensures that all enterprise efforts align with the overall strategic objectives. In large organisations, where the dispersion of teams and functions is more complex, OKRs act as a centralised system of objectives that all teams can follow and understand. This makes it easier for each employee to know how their work contributes to the overall success of the enterprise.

2. Clarity and focus

OKRs help simplify complexity by clarifying what is important to the enterprise in a given period. By measuring OKRs, organisations can prioritise resources and efforts towards initiatives with the greatest impact, eliminating activities that do not directly contribute to the stated objectives.

3. Fostering collaboration

By measuring OKRs, a culture of transparency and cooperation is promoted . Employees can see how their personal and team goals are interrelated with those of other teams, which fosters cross-departmental collaboration and synergy.

4. Performance evaluation

Measuring OKRs provides leaders with a clear methodology to evaluate performance not only at the individual level, but also at the team and organisational level. This makes it easier to identify areas for improvement and recognise outstanding performance, which in turn can positively influence team morale and employee motivation.

5. Flexibility and adaptability

Enterprises operate in dynamic environments where change is constant. As such, OKRs enable organisations to be agile and adapt quickly to new opportunities or challenges. Measuring these objectives on a regular basis helps enterprises to pivot their strategies in an informed way, ensuring that resources are used as effectively as possible.

‘Improving engagement requires personalising communication and our actions to foster a sense of ownership, which also helps us keep our OKRs aligned with the specific needs of our audiences.’

Sabrina Kruse, Head of EMEA HR and Diversity at SCOR, an ifeel partner company.

How do we measure OKRs’ success?

Learning how to measure OKRs’ success is crucial to ensure that an organisation is on the right track towards achieving its strategic objectives.

At ifeel, we understand that what cannot be measured, cannot be improved. That is why we advise leaders to implement effective OKR measurement and monitoring systems that not only assess progress, but also facilitate timely strategic adjustments. This approach enables organisations to maximise the impact of their strategies and ensure continuous and sustainable growth.

1. Key metrics to measure OKRs’ success

To measure the success of OKRs, it is essential to consider a set of metrics that not only quantify progress, but also provide a qualitative view of the impact on the organisation. Some essential metrics are detailed below:

Key metrics to measure OKRs’ success
Delivering key results	The primary metric of success in OKRs is the degree of achievement of key results . This involves assessing whether the numerical indicators set have been achieved within the given period. For example, if an OKR sets out to increase team cohesion, one metric might be that at least 80% of employees participate in team building activities.
Impact on performance	Assessing how OKRs influence the enterprise’s overall performance is crucial. This may include an analysis of improvements in operational efficiency or product quality.
Employee satisfaction	Employee perception of the OKRs implemented is vital. Satisfaction questionnaires and anonymous surveys can help measure whether employees feel that OKRs are improving their work experience.
Return on Investment (ROI)	Analysing the return on investment of time and resources spent on OKRs is essential to justify their long-term implementation.

Strategies for adjusting OKRs according to results

Once OKRs have been evaluated, leaders should be prepared to adjust them based on the results obtained and metrics analysed. Take note of the following strategies, which we recommend:

• Quarterly review: Implement quarterly reviews to assess the progress of OKRs and make necessary adjustments. This allows for quick adaptation to changes in the business environment.

• Continuous feedback: Foster an environment where feedback is constant and constructive. This not only improves the execution of OKRs, but also involves employees in the process.

• Alignment with business strategy: Ensure that OKRs are aligned with the enterprise’s long-term strategy. This may require re-prioritisation of certain objectives if circumstances require it.

Practical Exercise: Assessing OKRs

To facilitate the implementation of these concepts, we propose the following practical exercise based on team cohesion improvements to serve as practice on how to measure the success of OKRs in your enterprise:

Example: Evaluation of team cohesion

1. Definition of objectives: Set as an objective ‘to increase team cohesion through team building activities’.

2. Success metrics:

• KR1: At least 80% of the staff attend team building activities.
• KR2: Participants rate the activities 8/10 or higher in satisfaction.

3. Progress analysis: Every quarter, collect data on attendance and satisfaction with activities. Then, through analysis of this data, adjust the activities based on the feedback received.

4. Final report: At the end of the year, produce a report detailing achievements, areas for improvement and recommendations for the next year.

Unlocking team potential

At ifeel, we know that learning how to measure OKRs’ success is essential to the strategic growth of enterprises. By using key metrics and applying fine-tuning strategies, leaders not only improve organisational performance, but also create a more cohesive and motivating work environment.

To assist in this process, ifeel has designed an OKR implementation guide for large organisations, which you can download for free here.

To support enterprises in this process, our team of expert workplace well-being psychologists has created a mental well-being solution for businesses that improves talent retention, reduces presenteeism, and combats employee stress. 

With our mental well-being solution, your company’s HR managers can receive personalised, data-driven advice on improving mental health at work. In addition, this solution offers employees a 360° mental well-being solution structured at different levels according to their needs. Try our solution now to see how it could help you.

We hope you found this article on how to measure OKRs’ success interesting. If you would like more information about our mental well-being solution for enterprises, simply request it and we will get in touch with your team as soon as possible.