OKR confidence level setting
One of the key ideas of OKRs is communication around progress. So far, Gtmhub has been automatically calculating progress and juxtaposing it with the time passed in order to determine how well an objective is progressing. Many times, however, there are circumstances that are beyond this simple approach.
For example, if your objective is related to improving sales, you may have a handshake deal with one of your prospects, but it has not yet been processed. Other times yet, you may work on your objectives in a sequential manner, where you first work on your first objective, then second and finally third.
To address these scenarios, we have introduced a subjective confidence level on objectives.
What is a confidence level?
Confidence level is typically a number which represents a subjective opinion of objective owner that objective will be accomplished. Typically, this number is in the range between 0 and 10, where 0 means you think there is no chance you will accomplish your objective and 10 means that you are certain you will achieve your objective.
At the beginning of the planning period, it is common to set your confidence level to 7, because OKRs encourage you to go after ambitious, stretch-goals (so, if you think 10, then you need more ambitious objective). This could be understood as, I think there is 70% chance that I will fully accomplish my objective in this timeframe.
Updating confidence levels
Perhaps the biggest benefit of confidence level measurement is the fact that it’s a live number that changes. You start with 7, but then few weeks later something happens and you see that your chances of hitting the objective have decreased – at that point you should lower your confidence level. Tremendously important is to leave a short note on why have you decreased or increased confidence level.
Changing confidence levels communicate the situation to your colleagues and dramatically increases the predictability of your company performance.
Confidence level in Gtmhub
Now that we have established the context for confidence levels, let us quickly examine how it works in Gtmhub.
Creating a new objective
You can now set confidence level for every new objective. If you skip this step, the default value will be 7. To set a different initial confidence level click on the “Set confidence level”.
If you decide to change the default value, you will be present with an expanded screen which will let you choose the different confidence level as well as ask you to explain why you think different confidence should be set.
To change the confidence level, simply drag the dot on the slider.
Updating confidence level
Depending on your particular implementation of OKRs process, you should update your objective confidence levels regularly. Some organizations do it weekly, but it’s really up to you. The key thing here is to also explain why are you changing your confidence. You can do this from the objective screen.
Every change will be recorded in the objective timeline like this.
Quickly glancing confidence levels
Gtmhub also provides you with a quick glance over the confidence levels of all objectives in the objectives list.
You can notice that below the actual progress percentage, now you also have a visual indicator of the confidence level for the given objective
Confidence level scales
Finally, while you can technically choose any scale for your confidence levels, two are typically used in organizations:
- 0 to 10 in increments of 1, where 0 means no chance I’ll make it and 10 means I am certain I will make it
- 0.0 to 1.0 in increments of 0.1, where 0 means no chance I’ll make it and 1.0 means I am certain I will make it
You can choose your organization’s preference of scale in the Setup > Configuration > Methodology
Confidence levels represent an important talking points in an organization. They increase transparency and predictability of the objective execution. Together with automated calculations of progress, subjective confidence levels allow organizations to be proactive in the face of changing circumstances.