Different Types of OKRs & How to use them?

Nov 01, 2022
Different Types of OKRs & How to use them?

OKRs

OKRs are one of the most reliable and effective means for companies and organizations to set attainable goals and objectives for key results and progress. They form the basis of the company’s objectives and are used to track the organization’s progress and activities.

Aspirational OKRs and Committed OKRs 

A committed OKR methodology involves setting up an ambitious objective for the organization that must be achieved by the end of the process. A committed OKR is very broad in drawing up a goal. However, it stretches the team and commits them to achieve said goal. In a committed OKR, the objective may seem too ambitious, but it is never impossible because it is still within the realm of possibility. Subsequently, the progress of the objective is tracked. Accordingly, the metrics must be met in due time, and the key result must be attained.

Aspirational OKR has broader ramifications than other OKRs. In an aspirational OKR, the objective is set at a higher level, but the scale of its success may be relatively low. It is designed to exceed the team’s capacities to establish the goal and encourage them to strive towards larger objectives and attain bigger goals. Where objectives are set and are seemingly impossible to achieve, they are called ‘moonshots’ or 10x goals.

Differences Between Aspirational OKRs and Committed OKRs

Taking big risks, setting unrealistic goals, and falling short where it is seemingly impossible to achieve are some of the distinctive factors of Aspirational OKRs. An aspirational OKR involves setting big goals and taking huge risks to facilitate the company’s progress. Where some of these objectives are unattainable or beyond the designated team’s capacity, the failures are often celebrated as commendable attempts to achieve a great prospect.

In a committed OKR methodology, the objectives are equally as ambitious but not as comprehensive and broad as those of Aspirational OKR. The goals may be difficult to measure and achieve, but they are still realistic and attainable. For this reason, failure is not an option.

The metrics of the objectives must be met in due time, and progress must be monitored accordingly for key results. When a team cannot deliver on a committed OKR in due time, the objective is immediately escalated to a different team or the management for prompt alternatives and solutions to set the goal back on track.

Simply, committed OKRs are more realistic, and to ascertain the success of a committed OKR methodology, all metrics of the key results have to be achieved. 

As for aspirational OKRs, they aim much higher and are much harder to achieve. The team must be well-equipped to think outside the box to achieve aspirational goals. 

Aspirational OKRs and Committed OKRs Examples

The difference between a committed OKR and an aspirational OKR may be subtle, but they are very evident.

Committed OKRs

O: Expand to the US market

KR1: Close first 6 start-ups

KR2: Get a meeting-to-close rate of 6%

KR3: Reach average deal size of $200

Aspirational OKRs

O: Capture the entire US market in one quarter

KR1: Get onboard 95% of big customers in the US market to grow over competitors 

KR2: Get a meeting-to-close rate of 30%

KR3: Reach average deal size of $2000

Common Mistakes While Setting up an Aspirational and Committed OKR

Here are common mistakes organizations make while setting up either of these two OKR systems

Poor Attention to the Structure and Needs of Organizations

Most companies fail to understand their needs and end up drawing up OKRs without paying attention to the prospects and standing of the company. A company needs to understand what its consumers need at present and what the company requires to grow before drawing up an OKR with unattainable goals.

– Unrealistic and Unattainable OKRs

Setting up a committed or aspirational OKR does not imply that the objectives will be unrealistic and impossible to achieve. Most companies fail to realize that these goals are supposed to be achievable to help the team work with focus and well-defined goals. Where goals are not flexible and are impossible to meet, it will result in an overuse of the company’s resources, and the team will have little understanding of how to achieve the goals.

– Too Many OKRs

Drawing up too many OKRs in one cycle can affect the company’s focus. Most companies make the mistake of aiming for many objectives to attain different key results in the same cycle, which easily diverts the focus and tracking of the goals altogether.

Conclusion

The aspirational OKR and the committed OKR both impact your organization’s success, and the ability to discern between the two OKRs help to give a clear edge on what your company needs and what it seeks to achieve.

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