As you’re thinking about annual or quarterly goals, you may be wondering how you should set your goals in the first place. Two frameworks usually rise to the top: OKRs and SMART goals. Both bring structure and clarity, but they’re built for different purposes. Understanding how each one works can help you choose the right approach for your team and your goals.

In a post on the 15Five blog, writer Genevieve Michaels says that SMART goals work best for individual, task-focused objectives. OKRs, on the other hand, are great for aligning teams on broader goals. She adds that most teams benefit from a hybrid approach. In this issue of PromoPro Daily, we share her thoughts on the benefits and drawbacks of both frameworks.

Understanding OKRs
OKRs, or objectives and key results, turn broad objectives into goals with clear success metrics. Michaels says they’re created with only two main components: objectives (the ultimate target) and key results (the metrics you use to track progress).

Benefits of OKRs
According to Michaels, using OKRs leads to stronger alignment since the format is easier to apply organization wide. It’s also flexible, making it easier for managers and individual contributors to create goals that align with a company’s broader objectives.

Limitations of OKRs
OKRs are meant to be ambitious, but it’s easy to set the bar a bit too high and overwhelm employees. Michaels says that OKRs also require ongoing monitoring, which can create an unnecessary administrative burden on leaders.

Understanding SMART goals
SMART stands for specific, measurable, achievable, relevant and time-bound. This framework allows you to consistently set realistic goals with a clear path towards achieving them, Michaels says.

Benefits of SMART goals
Clarity is one of the biggest benefits of SMART goals, Michaels says. This framework requires managers and employees to work through a concrete plan, which prevents misunderstandings and misalignment. They’re also great for short-term performance goals.

Limitations of SMART goals
While SMART goals are much stronger than goals created with no specific methodology in mind, they do have some limitations. Michaels says that since they have to be achievable, they’re not well-suited to more ambitious objectives. They can also be overly rigid.

Strong goals do more than check a box. They give your team members clarity and direction, and they help them stay engaged. Sometimes that means using SMART goals. Other times it means leaning on OKRs. The key is picking what works for your team and adjusting as priorities change.

Compiled by Audrey Sellers
Source: Genevieve Michaels is a freelance writer who contributes to the 15Five blog, among others.