---
title: How to Define OKRs (Strategic Outcomes)
description: "In HRSimplified, **OKRs (Objectives and Key Results)** form the foundation of your company’s **strategic direction**. The OKRs are used to drive performance management across the organization by aligning each employee's performance goals with the company’s broader vision and mission. ---…"
url: "https://hrsimplified.org/docs/how-to-define-okrs-strategic-outcomes/"
updated: "2024-10-08"
category: Performance Management
---

# How to Define OKRs (Strategic Outcomes)

In HRSimplified, **OKRs (Objectives and Key Results)** form the foundation of your company’s **strategic direction**. The OKRs are used to drive performance management across the organization by aligning each employee's performance goals with the company’s broader vision and mission.

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## Steps to Define OKRs in HRSimplified

![HRSimplified OKR setup screens ](https://hrsimplified.org/wp-content/uploads/2024/10/image-27-1024x576.png)

### 1. Access the OKR Section

- **Log in** to HRSimplified and navigate to the **Performance Management** module from the left-hand menu.
- Click on **OKR**, where you will define and manage your company’s strategic outcomes (OKRs).

### 2. Define the Company’s Strategic Objectives (Visions, Missions, Goals)

- **Objective**: Start by creating a new **Objective**. This represents the company’s **long-term goals** or **strategic vision**.
  - **Example**: “Increase customer retention by 15% by the end of the year.”
- **How to Enter Objectives**:
  - Click **Create New OKR** and define the **Objective**. Ensure the objective is broad, actionable, and aligned with the company’s mission.

### 3. Define Key Results

- **Key Results**: After setting the Objective, create the **Key Results**. These are specific, measurable outcomes that track progress toward achieving the Objective.
  - **Example**:
    - **Key Result 1**: Reduce customer churn rate to 5%.
    - **Key Result 2**: Increase Net Promoter Score (NPS) to 8 or higher.
- **How to Enter Key Results**:
  - Under the **OKR** section, after defining the Objective, you will be prompted to enter the **Key Results**. Add at least two to three measurable results that will determine success.

### 4. Review and Finalize the OKRs

- **Review the OKR**: Once the OKRs are defined, review them to ensure that they are ambitious but realistic. Adjust any details if necessary.
- **Save**: Click **Save** to finalize the OKR. This objective and its key results will now be available to assign to specific job titles or departments in the organization.

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## Linking OKRs to Performance Management

The OKRs you define at the **executive level** are directly linked to the **KPA/KPI templates** created for each job title within HRSimplified. Managers can use these OKRs to measure employee performance and ensure that everyone in the organization is aligned with the company’s strategic outcomes.

### How to Link OKRs to KPA Templates:

- After defining the company’s OKRs, managers can **select them** when creating **KPA/KPI templates** for various job roles.
- For each KPA, a related **KPI** is set, and the **OKR** that drives the performance target can be selected from the list.

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## Important Notes:

- **Strategic Alignment**: Ensure that the OKRs you create at the executive level align with the company’s overall vision and long-term goals. All KPAs and KPIs assigned to employees will be tied to these OKRs.
- **Continuous Review**: OKRs can be reviewed and updated regularly based on the company’s performance, ensuring that they remain relevant and aligned with evolving strategic goals.