Best OKR Software & Tools

Objectives and Key Results Definition (OKR)

OKR stands for Objectives and Key Results, which roughly translated from German means goals and key results. This is the name of a method used by companies, teams, and individuals for setting joint goals, defining ambitious and challenging objectives, and efficiently achieving these through measurable key results. A company's OKRs focus on the most important issues for the OKR cycle, to actively pursue them with the whole organization's attention and create employee engagement. Regardless of whether it's about office procedures, software development, non-profit organizations, or other areas, OKRs operate identically across all sectors. Typically, OKRs are defined with one objective at the top and – depending on the interpretation – three to five supporting key results underneath. At the top is the objective, defining the outcome to be achieved by the end of the OKR cycle. The key results define the measurable steps through which this outcome will be achieved. By definition, objectives are significant, concrete, action-oriented, and (ideally) inspiring. Effective key results are specific to the cycle, objectively measurable, and ambitious, such that achieving 70% would already be considered satisfactory. At the end of the OKR cycle, which typically lasts a quarter, the key results are evaluated, and it's reviewed whether the overall objective has been achieved. Based on the results and lessons learned, the OKRs for the next OKR cycle are then developed and adopted.

What Are OKR Softwares and What Are They Needed For?

An OKR software (Objectives-and-Key-Results software), also known as an OKR management tool or objective setting software, simplifies and takes over large parts of the definition and tracking of objectives and key results. Users can use an OKR platform to visualize objectives/goals, measure progress, interact directly with members of relevant teams, and collect relevant comments from colleagues. OKR software helps businesses, as long as it is appropriately chosen and used correctly, to align their employees' work precisely with their core business goals. The key features naturally include the ability to define objectives and key results but also dashboards for visualizing goals at the company, team, and individual level, documentation of OKR check-ins, specific graphs and diagrams, interfaces to other tools for automatically updating OKRs, as well as team communication features for staff discussions or feedback sessions. Objectives and key results are fundamentally not a new concept. Typically, companies pursue specific goals, and their achievement has always been tracked in a certain way. Traditionally, however, this is done manually using OKR templates, in Excel spreadsheets, or using PowerPoint. Such a manual approach is, of course, relatively inefficient and also very prone to errors. OKR software provides a remedy for this. It allows objectives and key results to be coordinated, tracked, and visualized relatively easily.

How do OKR Tools Work?

Of course, how an OKR software ultimately works or can be used depends on its scope or functionalities. However, the following process is typical.

1. Define OKRs: Usually, OKR tools offer an intuitive user interface through which users can quickly define corresponding objectives and key results using OKR templates and other assistants.
2. OKR Planning: With an OKR software, users often have different possibilities for OKR planning (top-down or bottom-up). This allows specific OKR sets to be precisely aligned according to strategic planning.
3. Aligning Teams: At the team level, OKR software helps to organize goals and key results precisely. Those responsible can track how effectively employees are working towards achieving the goals and react accordingly. A certain score gives a clear impression of how well the team's OKR sets are aligned.
4. Holistic view: It can finally be made visible how all employees are achieving their specific OKRs. The status report is created directly via the tool and can be used as an agenda for meetings and one-on-one discussions.
5. OKR Development: OKR software allows those responsible to precisely identify what is crucial for them. OKR tools offer various filters to focus on the most important OKRs and further develop or potentially adjust them.

What are the Pros and Cons of OKR Softwares?

Here are the top benefits that companies can enjoy when using OKR software:

• Employees can be briefed precisely on achieving company goals.
• Those in charge can provide a clear direction to each team and individual.
• Ideally, there will be an increase in productivity due to focusing on specific goals.
• Progress in achieving the company's goals should be regularly and detailed registered.
• More effective and informed decisions can be made based on OKR data.
• Transparency increases through measurements and a clear data basis.
• Weekly updates provide short-term insights and thus the flexibility of quick adjustments.
• It can be clearly seen how the achievement of goals matches the company's vision, strategy, and top priorities.
• OKR software enables efficient definition of clear and specific goals.
• Those responsible get a tool with which they can organize the achievement of goals or the steps towards them comprehensively and transparently.
• The clear goal-setting process helps to increase individual engagement and ownership.
• The reasons for not achieving goals can also be clearly traced.
• Allocation of resources and the relevant management can be made more efficient based on goal achievement data.
• Cross-functional dependencies between teams can also be captured.

And what about the disadvantages – are there any? In fact, some pitfalls can occur, which should be taken into account:

• If executives use OKR software as an instrument of control, employees may react negatively, and the potential of the OKR approach cannot be fully exploited.
• The introduction of OKR software and corresponding processes generally require a significant additional effort.
• The use of an OKR software tool also requires additional (personnel) resources in the long run, the costs of which companies sometimes do not initially calculate.
• OKR for teams generally only performs to its full potential in an open company culture and agile thinking.
• OKR software can simplify and improve many things, but on the other hand, it can also lead to inefficient processes, especially if an unsuitable tool or wrong strategy has been chosen.
• If the tool doesn't align with the organization's OKR approach, confusion may arise within the teams, and the tool can become a stumbling block for OKR introduction and implementation.

OKR Comparison: How to Choose the Best OKR Software and What to Look For?

Given the many differently equipped OKR solutions on the market, companies should carefully weigh their requirements before investing in software. Below, the two most common categories of buying companies of OKR software and their typical needs are listed. Interested parties can, therefore, classify themselves in one of these two groups as a primary step on the way to determining a suitable OKR application and quickly receive insights into which OKR options are most likely to be particularly relevant for them.

Small Businesses

These companies typically employ fewer than 100 people and are looking for a cost-effective and user-friendly OKR solution. Users in small businesses usually don't have much time to adapt and learn a new software. They need tools with pre-installed features, while larger companies prefer solutions that offer more customization options. Functions such as drag-and-drop or simple sliders with easy explanations are ideal for small businesses. Additionally, centralization, through which information and features are easy to find, is an essential factor for user-friendliness. For example, users should be able to receive and give feedback on their goals at a central location. Visual dashboards should also make the tracking of performance reports quick and easy. Small businesses hardly need an OKR tool with a large number of features. Their primary goal is mainly to confirm the return on investment (ROI) of the total expenditure for the software and its benefits. They are looking for providers who do not charge additional fees for adding new users or providing personal support.

Larger Businesses

These types of companies have more specific requirements for managing OKRs. They must organize their goals across a large workforce, which is probably even distributed over several locations. Larger enterprises often need OKR software with a variety of features and the ability to integrate third-party applications to meet all their business requirements. Typically, large companies want precise reporting features that allow them to compare and analyze in detail the current and historical OKR performance of their employees. Moreover, they want to be able to quickly receive customized reports in a variety of formats, including PDF, XLS, and HTML, summarizing information about who is responsible for certain goals, when they are to be completed, and more. Additionally, task assignment and tracking, visual org charts, white-label options, and real-time push notifications for mobile applications are often requested features for these enterprises. Large enterprise customers also want technology that integrates well into their existing, often very extensive, system infrastructure. Therefore, the OKR software needs to be linked with applications like project management software, collaboration tools, HR software, and other programs. In other words, thanks to the integrations, the data should flow seamlessly between the different systems.

The Essential Features of OKR Systems

Many of the OKR options that are often important in specific cases have already been mentioned. However, these are now to be specified based on typical features. This allows interested parties to understand in more detail what they need to look out for when searching for a suitable OKR tool. Those responsible should always familiarize themselves with the following features and prerequisites.

• User-friendliness: It is essential to ensure that the focused OKR software can be easily integrated into the existing system landscape, offers a simple introduction process and can easily be used by users in everyday operations.
• OKR Management: Organizing or creating OKRs is usually possible via templates or assistants and/or individually. Goals and important results can be created for the company, teams, and individuals. In addition, deadlines must be set for achieving these goals. Individual goals can be linked to department or company-wide goals on a central platform.
• Feedback Management: It is often helpful to gather and compile contributions from employees and other stakeholders on the set goals. This ultimately serves as a guideline for structuring OKR techniques and methods that are necessary in light of the feedback.
• Progress tracking: Setting measurable key results and defining performance indicators can help to very clearly track progress towards the goals.
• Gamification: Gamification features help make achieving goals and receiving feedback more appealing – for example, by allowing employees to thank colleagues with high-fives and stars or compete against each other in leaderboards.
• Analytics and reporting: Employee performance and other important factors for achieving specific goals can be precisely examined and compiled into reports to understand what has worked and what has not. The reports then support, for example, the forecasting and planning of resources to achieve company goals on time.

What are the Costs of OKR Software and are there Free OKR Tools?

Most OKR providers tier their prices by offering two to five cost or license plans. In this way, they cater to companies of different sizes and needs as well as financial possibilities. The plans usually differ mainly in terms of functional coverage. They either cost a flat monthly/yearly fee for an unlimited or limited number of employees or use a subscription model per month and maybe per employee. With monthly payment, costs usually range between approximately ten and 20 euros. More extensive suites are significantly more expensive. Indeed, free OKR software does exist. Such OKR freeware typically comes with heavily restricted functionalities but can be useful for small businesses or individuals. Both for paid OKR systems and freeware, always remember that additional fees may apply for individual services such as product training, customizations, guideline compliance, specific account management, and others.