📚 Tutorial 6 of 8

Tutorial 6: Set Up OKR Cycle and Track Performance - CrmLeaf HRMS

🎯 Outcome: Quarterly OKR cycle live with company objectives, team OKRs, and individual key results assigned and visible

7 steps28–40 minCrmLeaf HRMS Admin
✓ Your progress0/7 steps complete
1

Create the OKR cycle

▶ Action

Define the quarterly performance period for this OKR cycle.

Why this matters: An OKR cycle defines the time period during which objectives are tracked and scored. Quarterly cycles (Q1 April–June, Q2 July–September, Q3 October–December, Q4 January–March) are the standard in India. The cycle must be created before objectives can be added.
  1. Go to Performance › OKR Cycles › + New Cycle
  2. Name: e.g. “Q1 FY2025-26 (Apr–Jun 2025)”
  3. Start date: April 1, 2025
  4. End date: June 30, 2025
  5. Status: Active
  6. Click Save Cycle
Performance › Cycles › Q1 FY2025-26: Active ✓ | Apr 1 – Jun 30, 2025
✓
Done when: OKR cycle created and visible in the Cycles list. Status shows Active. All subsequent objectives and key results will be linked to this cycle.
2

Add company-level objectives

▶ Action

Define the 3–5 company objectives for this quarter.

Why this matters: Company-level objectives represent what the whole organisation is trying to achieve this quarter. They cascade down to teams and individuals. Good company OKRs are ambitious, measurable at the company level, and relevant to the quarter (not generic annual goals).
  1. Go to Performance › OKRs › Company Level
  2. Click + Add Objective
  3. Enter the objective statement (e.g. “Grow ARR to ₹8 crore by June 30”)
  4. Add 2–4 Key Results for this objective (measurable outcomes, not activities)
  5. Assign an owner (typically the CEO or relevant CXO)
  6. Repeat for each company objective (3–5 recommended)
Performance › Company › Q1 › [Objective 1: Grow ARR + 3 KRs ✓ | Objective 2: Launch 2 new markets + 2 KRs ✓]
✓
Done when: Company objectives visible in the Performance dashboard. Each objective has at least 2 key results with measurable targets.
3

Create team-level OKRs

▶ Action

Break company objectives down into team-level objectives for each department.

Why this matters: Team OKRs are the link between company strategy and individual work. Each team OKR should align to at least one company objective. Department heads own their team’s OKRs and are accountable for the key results.
  1. Go to Performance › OKRs › Team Level
  2. Select a department (e.g. Engineering)
  3. Click + Add Team Objective
  4. Enter objective, link to parent company objective
  5. Add 2–3 Key Results for this team objective
  6. Assign the department head as owner
  7. Repeat for each department
Performance › Teams › [Engineering: 2 objectives ✓ | Sales: 2 objectives ✓ | Operations: 1 objective ✓]
✓
Done when: Team objectives created for all departments. Each team objective is linked to a parent company objective. Department heads are assigned as owners.
4

Assign individual Key Results

▶ Action

Create individual-level KRs for each team member.

Why this matters: Individual KRs are the specific measurable commitments each employee makes for the quarter. They should be directly linked to their team objective. The employee owns their KRs and updates progress throughout the quarter.
  1. Go to Performance › OKRs › Individual Level
  2. Select an employee
  3. Click + Add Key Result
  4. Enter the KR (measurable, time-bound: e.g. “Close 12 new enterprise deals by June 30”)
  5. Link to parent team objective
  6. Set start value (current state) and target value (end-of-quarter goal)
  7. Assign weight if employee has multiple KRs
Individual OKRs › [190/190 employees have at least 1 KR assigned ✓]
✓
Done when: Individual KRs assigned to all employees who are part of the OKR cycle. Each employee can see their KRs and progress in their ESS portal.
5

Set up progress check-ins

▶ Action

Schedule regular progress updates for the quarter.

Why this matters: Regular OKR check-ins prevent the “set and forget” problem where OKRs are reviewed only at cycle end. Weekly or bi-weekly progress updates catch blocked KRs early and allow course correction before the quarter ends.
  1. Go to Performance › Settings › Check-in Frequency
  2. Set check-in frequency: Weekly or Bi-weekly
  3. Automated reminders: enable email reminders to employees to update their KR progress
  4. Manager notifications: when a KR is marked “At Risk” or “Off Track”, notify the manager
  5. Save check-in settings
OKR Settings › Check-in: Bi-weekly ✓ | Employee reminders: ON ✓ | Manager alerts: ON ✓
✓
Done when: Check-in reminders are active. Employees receive periodic reminders to update KR progress. Managers are notified when KRs are flagged as at risk.
6

Link OKR scores to variable pay (optional)

▶ Action

Connect the OKR scoring outcome to the quarterly bonus payroll component.

Why this matters: Linking OKR scores to variable pay closes the performance-compensation loop. The OKR score at cycle end determines the bonus amount for each employee according to the configured formula (e.g. OKR 80%+ = 100% bonus). This eliminates manual variable pay calculation at cycle end.
  1. Go to Payroll › Payroll Components › Variable Pay
  2. Select or create the “Quarterly Bonus” component
  3. Set calculation basis: “OKR Score Based”
  4. Configure slab formula: e.g. 80–100% OKR = 100% bonus, 60–79% = 60% bonus, below 60% = 0
  5. Link to the OKR cycle: select Q1 FY2025-26
  6. Save the payroll component
Payroll Components › Quarterly Bonus: OKR-linked ✓ | Formula: 80%+ = 100% | Cycle: Q1 FY2025-26
✓
Done when: Variable pay component shows “OKR Score Based” formula saved. At cycle end, approving the OKR scores will automatically calculate each employee’s bonus for the next payroll run.
7

Score and close the OKR cycle

▶ Action

At the end of the quarter, score key results and close the cycle.

Why this matters: Closing the OKR cycle records the final scores, triggers variable pay calculation (if linked), and provides the performance data used in appraisal decisions. Scores are based on actual achievement against the KR target.
  1. At quarter-end, go to Performance › OKRs › Q1 FY2025-26
  2. For each KR: enter the final achievement value
  3. CrmLeaf calculates the KR score (achievement / target × 100)
  4. Review and approve individual OKR scores
  5. If variable pay is linked: payroll automatically picks up the OKR score for next payroll calculation
  6. Click Close Cycle
Q1 FY2025-26 › Status: Closed ✓ | Avg score: 81% | Variable pay: Ready for July payroll run
✓
Done when: OKR cycle status shows Closed. All employees have final OKR scores. Variable pay component is ready for the next payroll run with correct bonus amounts.

✓ Tutorial 6 complete!

You have completed this tutorial. Your next step: Tutorial 7: Process a full F&F settlement

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