What Is an OKR Cycle?

Staying aligned and focused on your goals can be a challenge. The OKR (objectives and key results) cycle offers a structured way to keep your organization on track, ensuring everyone is working toward the same objectives and adjusting as necessary. This cycle isn't just about setting goals; it's about creating a timeline-based process that allows your team to set, track, and review their objectives in a way that fosters continuous improvement.

In this blog, we'll walk you through the OKR cycle step-by-step, sharing the actions to consider at different stages—before, during, and as the cycle wraps up.

What is an OKR cycle?

The OKR cycle is a timeline-based process that guides your organization through writing, tracking, reviewing, and refining your OKRs. 

A typical OKR cycle timeline

Many organizations choose to run their OKR cycles quarterly. This timing aligns with most companies' fiscal quarters, making integrating OKRs into the broader planning and reporting processes easier. Quarterly cycles also strike a good balance between providing enough time to make meaningful progress on OKRs while being short enough to allow for agility and quick adjustments if needed.

However, the quarterly cycle isn't the only option. Some organizations, particularly those in fast-paced industries, might opt for shorter cycles, such as monthly. Others working on longer-term projects might prefer a biannual or annual cycle. The key is to choose a timeline that fits your organization's rhythm and allows you to maintain focus without losing flexibility.

For simplicity's sake, let's take a closer look at the OKR cycle of a typical organization whose fiscal year runs from January through December. 

Weeks leading up to the start of the quarter

• Set annual and quarterly OKRs: In the weeks leading up to a new quarter, senior leaders might start working on high-level company OKRs for the cycle. For those setting OKRs for Q1, it can be a good time to outline the annual plan, which helps shape the overall strategic direction for the year. It's also a chance to define aspirational OKRs—objectives that can inspire and guide the organization toward long-term, transformative goals.
• Identify OKR champions: If you choose to use OKR champions in your organization, this is the time to assign them. These individuals lead the OKR implementation, ensuring consistency in the process and addressing any skepticism early on.

• Communicate company-wide OKRs: Communicate top-level OKRs to the entire organization in a town hall or all-hands meeting. Transparency is critical—everyone should be able to see each other's OKRs to ensure alignment. Using OKR software can help provide the entire organization with visibility into the OKRs and make it easier to track them throughout the cycle.
• Solicit feedback: Gather input from teams and individuals to ensure that the company OKRs are realistic and aligned with the organization's operational goals.

During the quarter

• Communicate team OKRs: Based on the company's OKRs, teams should develop and share their own OKRs within their meetings.
• Share individual OKRs: After gaining clarity on the team-level OKRs, individual contributors can develop and share their OKRs, typically collaborating with their managers in the process.

• Weekly check-ins: Hold weekly or bi-weekly meetings to discuss progress, assess challenges, and make necessary adjustments. These check-ins keep the OKRs at the forefront and foster a culture of feedback and learning.
• Confidence assessments: Regularly assess your likelihood of achieving your key results. This involves OKR owners providing a confidence score, which helps identify potential issues early.
• Recalibration: Based on the confidence assessments and group analysis, adjust your strategy and execution as needed to stay on track.

End of the quarter

• Analyze OKR achievement: As the quarter nears its end, analyze how well the OKRs were achieved by scoring each one, performing a self-assessment, and reflecting on the key learnings from the cycle.
• Conduct an OKR retrospective: As the quarter comes to a close, hold a retrospective session to review the achievement of the OKRs. Reflect on the learnings, assess the process, and identify opportunities for improvement. 
• Prepare for the next cycle: Begin drafting OKRs for the next quarter, considering the lessons learned from the current cycle.

Aspirational OKRs and north stars

Aspirational OKRs, also known as north stars, are an important element of the OKR cycle for many organizations, though not all companies choose to include them. These high-reaching objectives inspire and guide the organization's efforts, even if they aren't fully achievable within the cycle.

Aspirational OKRs push the organization to think bigger and strive for more. They help teams break out of their comfort zones and explore new possibilities. While aspirational OKRs can be valuable, it's important to balance them with achievable OKRs to keep everyone in the organization motivated and allow for the celebration of wins along the way.

How long does it take to master the OKR cycle?

Mastering the OKR cycle takes time and practice. It's not uncommon for organizations to take several cycles before they find their rhythm. The key is to remain committed to the process and be open to learning and adjusting along the way.

Over time, your organization will become more adept at setting realistic timelines, aligning OKRs, and executing them effectively. Remember that the OKR cycle is iterative, and each cycle is an opportunity to refine your approach and improve your results.

What's next?

The OKR cycle is a powerful process that helps organizations set, track, and achieve their most important goals. By following a structured timeline, including preparation, execution, and review phases, you can ensure that your organization remains aligned and focused on what matters most.

Ready to learn how to craft effective OKRs in an agile way? Check out Agile OKRs, a microcredential course from Scrum Alliance. You'll learn how to leverage this goal-setting system without detracting from your team's agility. Plus, you can showcase your knowledge with a microcredential.

Learn about Agile OKRs