OKR (Objectives and Key Results) is a powerful goal-setting framework used by companies to set, measure, and achieve their objectives. Key Results are specific, measurable outcomes that determine the achievement of an Objective. Calculating the progress of your OKRs is crucial in tracking your performance. In this article, we'll delve into the formula and methodology to calculate OKR progress.

Calculating your OKR progress is surprisingly straightforward. Here's the formula:

Let's break it down with an example:

Imagine your objective is to increase Sales Monthly Recurring Revenue (MRR). You've set three Key Results for October, November, and December, with each aiming for a $10,000 increase.

Calculate the total progress achieved across all Key Results. Let's say you've achieved 20% progress in October, 10% in November, and 0% in December.

Now, calculate the progress for each Key Result. Each Key Result represents a maximum progress of 100%. Since you have three Key Results, the maximum progress achievable is 300%.

Lastly, determine the overall progress of your OKR. Divide the total progress achieved by the maximum progress possible across all Key Results.

In some cases, OKRs come with child objectives, adding a layer of complexity to the progress calculation. When this happens, calculating progress involves a slight twist. Here's how it works:

However, in this scenario, total progress is the sum of two things: the sum of your objective's key results and the percentage for your child objective's progress.

Let's dive into an example:

Imagine your objective remains boosting Monthly Recurring Revenue (MRR) in Sales. You've set three Key Results for October, November, and December, with each targeting a $10,000 increase.

Now, your objective has a child objective for the Sales department. In this case, we consider the child objective when calculating progress as a parent objective.

First, add up the progress from all your key results. In our example, the company achieved 20% progress in October, 10% in November, and 0% in December. Additionally, the Sales department, a child objective, made 50% progress.

Each key result here is worth 100%. Since you have four (three main key results and one child objective), the maximum progress possible is 400%. In this scenario, the child objective's progress percentage also contributes to the parent.

Finally, determine your overall OKR progress by dividing the total progress achieved by the key results count.

So, in this case, your OKR progress stands at 20%. We hope this guide has clarified the often complex process of calculating OKR progress.

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