OKRs for Nonprofits

OKRs for Nonprofits

Nonprofits often ask us, “But will OKRs work for us too?”

And the answer is, “Absolutely!” Every organization needs to turn strategy into execution. That’s why any organization can use OKRs. At the same time, nonprofits and for-profits prioritize different things. And that can affect their OKRs.

Developing long-term plans

Let’s start with an organization’s mission.

Whether it’s battling poverty or disease or saving the planet, nonprofits take on hard problems. This change can take decades, and strategic plans may have very long timelines. Wikimedia, for example, has both a three-year and a 10-year strategic plan. That can make it tough to answer the question, “What’s most important for me to do right now to advance the mission?”

OKRs are designed to translate long-term strategies into actionable goals.

Perhaps you’re Bono’s ONE organization with a mission to eliminate extreme poverty and end preventable disease. It’s inspiring, but where do you start? How do you turn one big strategy into a number of more manageable strategies? Perhaps you begin with a single region. Or maybe with just one kind of intervention.

To address poverty, Bono’s ONE started by advocating for the G8 to forgive the debt of African countries. To take on preventable disease, they first focused on ending mother-to-child HIV transmission. While the organization never loses sight of their critical goals, they do have to settle on the most important ones to do first.

So when you’re writing OKRs for your own organization, DO dream up the future twenty years from now. You’ll get there faster if you work together on defining the future you want to see one year from now. Having annual North Star OKRs makes it easier to craft quarterly OKRs and choose day-to-day actions and priorities, while still staying connected to your mission.

Managing competing strategies

Another challenge nonprofits face is managing competing priorities. In a for-profit company, money is the main driver. Profitability is by definition a shared goal, and often can help cut through arguments over what to do and what not to do.

For nonprofits, money is a significant consideration, but it’s not the main driver. Limited resources can create constant moral dilemmas. If a disaster relief organization lacks enough revenue or program managers to help everyone who needs it, some people will be left out. Who decides which people get help? This is the kind of tough discussions nonprofits deal with all the time – and the answer may change from one year to the next.

OKRs give teams a common framework to negotiate competing priorities.

For example:
Should new funds go to expanding staff to provide more of an existing service? Or should they go to launch a new program that may have greater impact in the long term? How much money should go into operational reserve versus direct services this year?

Often there is no clear answer, but simply stating the organization’s priorities can help teams better sort through the tradeoffs. With clear priorities, it’s easier to shift the conversation from “Where are all the places we can do good?”to “Where do we need to do the most good right now?”

Crafting OKRs for nonprofits

All organizations have financial goals they must reach if they are to expand or even maintain operations. Every organization needs sustainable sources of revenue, and that’s why funding is typically a top-level OKR in nonprofits.

But before setting a specific fundraising target, remember that standalone numbers don’t make for great Objectives. Even if there’s a number you need to reach, can you add context around the financial goal to help everyone align?

Ask yourself:

• What does it take to sustain the organization at its current level?
• What would it take to grow?

Those criteria are the basis for your Objectives. More often than not, revenue targets are Key Results. A strong financial Objective will reflect your organization’s purpose and strategy.

Perhaps the Objective is to grow in certain regions. Or maybe this is the year to propose programs that are more attractive to long-term funders, or to save costs through a creative partnership.

OKRs for impact outside your control

Finally, we recognize that nonprofits often seek to change systems they did not create. Some organizations exist to influence public policy, others offer services through volunteers or partner organizations. Keeping all the agendas aligned can feel like herding cats.

Say you work at a nonprofit that wants the government to fix something. But you’re not a Congressperson; you’re on the outside helping to advocate for proposed legislation.

Can your Objective be to get that bill passed? The answer is yes. You should state the target that your team is driving towards.

Let’s compare this to trying to win the Super Bowl. The General Manager or Coach doesn’t entirely control that outcome. It’s determined by any number of things that happen on the field, including weather conditions and the random bounces of the ball. But the team can prepare for their offense, their defense, their special teams. They can improve their training program to avoid injuries. In short, they can set measurable goals for all the things that contribute to excellence.

When a team wins, some people will say “Oh, it was the kicker who made that field goal from 50 yards out.” But we all know that the decisive moment of victory could not have happened without laying a strong foundation.

The same approach applies to Objectives like winning a policy initiative. The questions you’ll need to ask your team are similar:

• How do we lay the groundwork for winning?
• Whose support is needed?
• What actions are under my control, such as doing more research or mobilizing support?
• What data can help strengthen our campaign?

With the aid of OKRs, the team should clearly define what represents a solid foundation, so they’re not relying on hope or luck. Success emerges from steady, purposeful efforts towards a well-defined goal.

So, yes, working in nonprofits carries its own set of considerations and challenges. But the principles and process for achieving success are the same. With the help of OKRs, you can take more effective steps towards your big, important mission.