The Ultimate Guide to Setting & Working for Quarterly OKRs

Are quarterly OKRs even worth it? Are they the right fit for my organization?

Or are you asking yourself, “How do we craft quarterly goals that actually drive business impact?”

Well, thanks for asking! This guide will highlight their benefits and insights for choosing the perfect OKR cycle for your needs.

We’ll also provide a step-by-step framework to set powerful quarterly OKRs. To top it off, a case study will showcase how a company used OKRs to improve its business.

What are quarterly OKRs?

Quarterly OKRs break big objectives into smaller, manageable actions, making them easier to achieve. Moreover, they keep everyone on track and motivated by showing progress regularly.

For example, Imagine you’re planning a road trip with your friends. Your big goal is to reach a fun destination, but it’s far away, and you don’t know the way.

Quarterly OKRs are like your roadmap for the journey. They break down the trip into smaller parts, like reaching certain towns along the way.

Quarterly vs. Annual OKRs

Deciding between Quarterly and Annual OKRs? Here’s your quick differentiation to choose the perfect fit for your teams.

How to choose OKR cadence or cycle in our company?

Selecting the right OKR cadence can make all the difference in achieving your organizational goals. 

Here, we’ll explore the factors to consider when choosing your OKR cycle, helping you set a rhythm that aligns with your organization’s objectives and drives success.

1. Industry dynamics

The pace at which your industry evolves can significantly influence your choice. Fast-paced industries, such as technology or fashion, often undergo rapid changes in consumer preferences and market trends. 

In such dynamic environments, quarterly OKRs give your team the agility needed to adapt quickly to shifts in the market landscape.

Conversely, stable industries, like utilities or government sectors, experience slower rates of change. Here, annual OKRs may be more suitable as they allow for long-term planning and execution without frequent adjustments.

2. Company culture

A culture that values agility, innovation, and rapid adaptation to change may lean towards quarterly OKRs. 

These short-term goals align well with a dynamic culture, encouraging teams to respond swiftly to market opportunities and challenges.

Conversely, a culture focused on long-term strategic vision and stability may find annual OKRs more appealing. These longer cycles provide the stability and consistency needed to execute comprehensive strategic plans over time.

3. Analyzing company goals

Are they primarily long-term and strategic, focusing on achieving significant milestones over an extended period? Or are they more short-term and tactical, addressing immediate challenges or opportunities? 

Understanding the nature of your goals helps determine whether quarterly or annual OKRs are better aligned with your organization’s strategic priorities.

4. Team size and structure

In large organizations with complex structures and multiple layers of hierarchy, longer cycles such as semi-annual OKRs may be beneficial. These longer timeframes allow for better alignment and coordination across diverse teams and departments.

Conversely, smaller, more agile teams may find quarterly OKRs more manageable and conducive to rapid iteration and decision-making.

5. Assessing different cycles

Consider evaluating different OKR cycles, including annual, quarterly, or even hybrid approaches.

Annual OKRs provide a comprehensive view of the entire year’s objectives, allowing for detailed planning and execution. Quarterly OKRs offer shorter, more focused cycles that promote agility and responsiveness to changing circumstances.

A hybrid approach combines elements of both, balancing long-term strategic vision and short-term adaptability.

6.Experimentation

Don’t hesitate to experiment with different OKR cycles to find what works best for your organization.

Start with a chosen cycle, whether it’s annual, quarterly, or hybrid, and closely monitor its effectiveness. Gather feedback from teams and stakeholders to identify improvement areas and refinement.

Through continuous experimentation and iteration, you can fine-tune your OKR approach to better align with your organization’s goals and culture.

7. Seeking OKR Expert advice

An experienced OKR coach can provide valuable insights and best practices based on their expertise and industry knowledge. They can help tailor OKR strategies to your organization’s specific needs, ensuring alignment with strategic objectives and cultural values.

How can we set up quarterly OKRs for our company? (Steps)

These guidelines will help you align your team’s efforts with strategic objectives, track progress effectively, and achieve meaningful results.

Let’s get started with the crucial steps to set up your quarterly OKRs.

1. Get the team’s buy-in and train them

Firstly, you’ll focus on clear communication, ensuring that the team understands the purpose and benefits of OKRs. You’ll emphasize how it aligns with the organization’s goals and contributes to overall success.

You should create interactive training sessions that encourage participation and engagement. This will involve hands-on activities, discussions, and opportunities for team members to ask questions and share their insights.

By tailoring the training to address the specific needs and challenges of the team, you can ensure that it’s relevant and impactful.

Finally, provide ongoing support and resources to help reinforce learning and ensure that the team feels confident to work for OKRs.

2. Decide your top-line OKRs

It essentially sets the direction for your entire organization or team. To do this effectively, you must align your OKRs with your overarching business objectives.

This means looking at your company’s mission, vision, and strategic priorities to identify the key areas where you can make the most significant impact. 

You will then translate these high-level goals into actionable OKRs. By doing this, you’ll ensure that your efforts are aligned with the broader goals of the organization.

3. Break top goals into quarterly team OKRs

You should start by identifying the key team objectives that support your top-line goals. You will then break objectives down into smaller, actionable key results that can be achieved within a quarterly time frame.

By breaking goals into manageable chunks and aligning them with the quarterly OKR cycle, you’ll ensure that your team stays focused, motivated, and on track to achieve the goals at their level.

4. Check alignment, give feedback, and negotiate

Next, you’ll provide regular feedback to team members on their progress towards achieving their OKRs. This feedback should be specific, actionable, and focused on both successes and improvement areas.

By providing timely feedback, you can help team members stay on track and make necessary adjustments to their plans as needed.

Finally, negotiation may be necessary if there are discrepancies or conflicts in OKRs between team members or departments. You’ll facilitate discussions to resolve any issues and ensure that everyone is aligned and committed to achieving shared objectives.

This may involve compromise, reevaluation of priorities, or finding creative solutions to meet the needs of all stakeholders.

5. Set the best practices and delegate OKR champions

It’s helpful to establish best practices and designate OKR champions, who will oversee the implementation and progress of OKRs within their teams.

These champions will advocate for the OKR program, providing guidance and support to team members as needed.

6. Regularly check progress and support the team

To do this, you should implement a structured process that includes regular check-ins, progress reviews, and ongoing support mechanisms.

You should establish a cadence for check-ins, whether they are weekly, bi-weekly, or monthly, depending on the nature of the objectives and the team’s preferences. During these check-ins, you’ll review progress against OKRs, identify any challenges or obstacles, and celebrate successes.

Furthermore, you’ll encourage a culture of transparency and open communication within the team, where team members feel comfortable sharing their progress, asking for help when needed, and offering support to their colleagues.

By regularly checking progress and providing support, you’ll ensure that the team remains focused, motivated, and equipped with the resources they need to achieve their objectives.

Bonus tip: Use an efficient OKR software to manage your goals, feedback, check-ins, performance management, etc.

7. Be flexible in your OKRs and strategy

It’s essential to recognize that circumstances may change, priorities may shift, and new opportunities may arise.

Firstly, you should regularly review and reassess your OKRs to ensure they remain relevant and aligned with your organization’s goals. This may involve adjusting KRs, revising timelines, or even pivoting to entirely new objectives if necessary.

Secondly, you’ll build a culture of experimentation within your team. Encouraging team members to try new approaches, test hypotheses, and learn from both successes and failures will help you stay adaptable in your strategy.

Thirdly, you’ll establish clear communication channels and feedback mechanisms to ensure that everyone is aware of changes to OKRs and strategy. This transparency will help maintain alignment and commitment across the organization.

By establishing flexibility in your OKRs and strategy, you’ll be better equipped to navigate uncertainties and seize opportunities as they arise, ultimately driving success for your organization.

8. Reflect on your OKR implementation and improve

Firstly, you’ll establish a regular cadence for reflection sessions where you can evaluate the progress made towards OKRs. You’ll review what worked well, what didn’t, and what lessons the team can learn from the experience.

Secondly, you’ll solicit feedback from team members and stakeholders involved in the OKR implementation process. Their insights and perspectives can provide valuable information on improvement areas and potential adjustments to your strategy.

Thirdly, you’ll analyze data and metrics related to your OKRs to assess performance objectively. By tracking key indicators, you can identify trends, patterns, and areas where additional focus or resources may be needed.

Finally, you’ll use these reflections and insights to make informed decisions about adjusting your OKRs and strategy moving forward. This may involve revising objectives, refining KRs, or realigning priorities based on learnings.

By adopting a proactive approach to reflection and improvement, you can ensure that your OKR implementation remains dynamic, responsive, and effective in driving performance and achieving your organizational goals.

Why is it usually suggested to set quarterly OKRs?

Setting quarterly OKRs can benefit your organization in several ways, like enhancing the team’s strategic focus, flexibility, and adaptability. Let’s explore these advantages with realistic examples:

1. More control over the business strategy

You have greater control over the business strategy by enabling the team to set short-term objectives aligned with the long-term goals.

For instance, a technology company may write OKRs to enhance its cybersecurity measures, allowing it to address immediate security concerns while staying aligned with its overall strategic objective of safeguarding customer data.

2. People can be more flexible in their work

You can adjust your priorities and strategies based on evolving business needs.

For example, a sales team may set quarterly OKRs to explore new sales channels or target specific customer segments, giving team members the flexibility to adapt their approach to changing market conditions and customer preferences.

3. Work is more manageable and motivating

You break down large goals into smaller, achievable milestones, making work more manageable and motivating for employees. 

For instance, a marketing team may set quarterly OKRs to increase website traffic or social media engagement, providing team members with clear targets to strive towards and a sense of accomplishment upon achievement.

4. Can be more responsive to changing customer needs and market

You can be more responsive to changing customer needs and market trends by providing a framework for quick adaptation. 

For example, a retail company may set quarterly OKRs to launch seasonal promotions or introduce new product lines, enabling it to capitalize on emerging opportunities and stay ahead of competitors.

5. Gives a chance to be more creative and experimental

You can encourage teams to be more creative and experimental in their approach to achieving goals.

For instance, a product development team may set quarterly OKRs to explore innovative features or design concepts, allowing them to test new ideas and gather user feedback before committing to long-term development plans.

6. Allows you to set and achieve more ambitious goals for the business

Despite their shorter timeframe, quarterly OKRs enable organizations to set and achieve more ambitious goals by breaking them down into smaller, actionable steps. 

For example, a start-up company may set quarterly OKRs to secure additional funding or expand into new markets, laying the foundation for future growth and success.

7. Gives team members more chances to improve

You provide your team members with regular opportunities to improve their skills and performance. 

For example, a customer service team may set quarterly OKRs to improve response times or enhance customer satisfaction scores, allowing team members to focus on specific areas for growth and development.

Achieving more at Zed HR with quarterly OKRs – A hypothetical case study

This is a completely hypothetical case study used to illustrate the impact of changing OKRs to a quarterly cycle on a mid-size business.

Zed HR, a mid-sized B2B SaaS company, provides small and medium businesses with cloud-based HR software. With 50,000 active users and a stable growth trajectory in three years, they felt their annual OKR approach wasn’t driving the agility and focus needed for the competitive market.

Goals and challenges of Zed HR

Objectives:

• Increase customer acquisition by 20%
• Boost customer retention by 15%
• Improve product adoption by 10%
• Enhance employee engagement and satisfaction

Challenges

1. Slow decision-making: Annual OKRs felt rigid, limiting timely adjustments to market shifts or customer feedback.
2. Limited agility: Responding to new competitors or technology advancements was slow due to the annual planning cycle.
3. Motivation dips: Employees felt disconnected from long-term goals, leading to decreased engagement.
4. Accountability gaps: Tracking progress against annual goals was cumbersome, making it hard to pinpoint improvement areas.

Shifting to Quarterly OKRs

Zed HR transitioned to a quarterly OKR system with the following key changes:

• Shorter planning cycles: OKRs were set for each quarter, allowing for faster adaptation.
• Ambitious yet achievable goals: Quarterly OKRs were challenging but attainable, keeping teams motivated.
• Regular check-ins and adjustments: Quarterly reviews ensured progress was tracked, and OKRs were adjusted as needed.
• Transparency and communication: Goals were cascaded down, aligning individual efforts with company objectives.
• Data-driven decision-making: Key Results were based on measurable metrics, enabling data-backed adjustments.

How did the shift to quarterly OKRs improve their business?

• Increased agility: Zed HR quickly launched new features based on quarterly customer feedback, leading to a 12% increase in product adoption in a quarter.
• Improved decision-making: Faster feedback loops allowed for swift adjustments to marketing campaigns, resulting in a 15% boost in customer acquisition.
• Enhanced employee engagement: Quarterly OKRs connected individual contributions to company goals, increasing employee satisfaction by 10%.
• Boosted accountability: Regular check-ins held teams accountable, leading to a 12% improvement in on-time project completion.

Lessons they learned from this experience

• Quarterly OKRs require a strong commitment to transparency and communication.
• Regular check-ins and adjustments are crucial for maintaining focus and agility.
• Data-driven decision-making ensures OKRs stay relevant and impactful.
• Aligning individual goals with company objectives fosters employee engagement.

Positive results in the business

Zed HR achieved significant results after implementing quarterly OKRs.

• Customer acquisition increased by 22% (exceeding the initial goal)
• Customer retention rose by 18% (surpassing the target)
• Product adoption jumped by 15% (beating the initial goal)
• Employee satisfaction score climbed by 13%

Shifting to quarterly OKRs empowered Zed HR to become a more agile, focused, and data-driven organization, ultimately achieving better business outcomes. This highlights the potential of quarterly OKRs to accelerate growth and success, especially for mid-sized SaaS companies operating in dynamic markets.

How can we use quarterly OKRs to drive employee engagement and development?

OKRs complement, not replace, your performance management system. Use them to have purposeful discussions, provide more context, and offer data-driven insights to the team.

Read more to understand the role of OKRs in driving employee engagement with examples relating to a B2B SaaS company.

1. Employees can self-evaluate objectively

Imagine a marketing manager with an OKR to “Increase website leads by 20%.” During their quarterly check-in, they review key results (KRs) like:

• KR1: Implement SEO best practices on 10 key landing pages (Achieved 80%)
• KR2: Launch a new lead magnet campaign with a 5% conversion rate (Achieved 10%)
• KR3: Improve website loading speed by 2 seconds (Achieved 70%)

This data paints a clear picture of their performance beyond just a subjective “good job.”

They see areas where they excelled, like exceeding the conversion rate target, and improvement areas, like falling short on landing page optimization.

This empowers them to take ownership and set useful goals for the next quarter.

2. Leaders get involved in performance discussions more frequently

Regular OKR check-ins (weekly/bi-weekly) become natural conversation starters. Instead of waiting for annual reviews, leaders can discuss progress and roadblocks and offer timely support.

Imagine a product manager with an OKR to “Launch a new feature with 90% user satisfaction.”

During their check-in, the manager can help navigate user feedback that’s pulling the satisfaction score down.

This regular engagement builds trust and improves communication.

3. Leaders give more fair evaluations due to the transparency and objectivity of OKRs

You can eliminate ambiguity by providing concrete OKRs. Imagine a sales rep with an OKR to “Close 10 deals worth $10,000 each.”

Their manager can objectively assess their performance based on the number and value of closed deals, removing subjective biases.

This transparency ensures everyone is evaluated on the same playing field.

4. More frequent and 360 recognition of team members

You create opportunities for ongoing recognition throughout the quarter. Imagine a designer exceeding their KR of “Increase user interface (UI) usability by 15%.”

Their manager can publicly recognize their contribution in team meetings, celebrate their achievement on an internal communication platform, or even nominate them for a company-wide award.

This frequent recognition boosts morale and motivates others also.

5. Quality feedback as OKRs directly impact the business

Since OKRs are tied to business objectives, feedback becomes more meaningful and actionable.

Imagine an engineer struggling to meet their KR of “Reduce software bugs by 20%.”

Their manager can provide specific feedback on code testing strategies they could implement directly linked to achieving this goal.

This quality, business-oriented feedback helps employees see the impact of their work and guides their meaningful development.

6. Data-driven insights on performance

Imagine you track the team’s progress on an OKR to “Increase customer retention by 5%.”

By analyzing KR data (e.g., churn rate, customer satisfaction surveys), you can identify improvement areas and tailor training or support accordingly.

This data-driven approach helps you make informed decisions and guide the team’s development.

Conclusion

Think of quarterly OKRs as stepping stones, each leading the team closer to your ultimate business destination.

By setting achievable goals every quarter, you’re building momentum, course-correcting when needed, and ultimately achieving bigger, bolder goals than you ever thought possible.

Start small, experiment, and iterate. Don’t be afraid to adjust your approach as you go. And most importantly, celebrate your wins along the way!

And remember, you can always take external help from the OKR consultants like JOP.

Frequently asked questions

1. What is an OKR cycle?

An OKR cycle is a specific timeframe where OKRs are defined, pursued, and assessed. It’s a structured period, often lasting a quarter (three months) or a year, during which organizations set goals, track progress, and adjust to achieve desired outcomes.

2. Can OKRs be monthly?

Yes, you can set and review OKRs monthly. While quarterly cycles are more common, some organizations opt for monthly OKR cycles to enhance agility and responsiveness to rapidly changing business conditions.

3. How many OKRs should you have per quarter?

It’s recommended to have around 3-5 Objectives with 2-3 Key Results each per quarter. This allows for focus and clarity while ensuring that objectives remain achievable within the timeframe.