Planning a New Cycle

A well-planned cycle sets your team up for focused execution. This guide walks through the process of setting up a new OKR cycle — from reflection on the last period to alignment conversations to final commitment.

When to Plan

Start planning 1-2 weeks before the new cycle begins. This gives you time to:

  • Close out the current cycle properly (see Closing a Cycle)
  • Reflect on what worked and what didn't
  • Have alignment conversations across teams
  • Refine objectives before the cycle starts
Don't plan during the first week of the new cycle — you'll lose momentum. Aim to have OKRs finalized before Day 1.

Step 1: Company-Level Objectives

Start at the top. Leadership defines 3-5 company objectives that answer: "What matters most this cycle?"

  • Review company strategy and annual goals
  • Identify the 3-5 themes that will drive the most impact
  • Draft objectives (qualitative, inspirational)
  • Add key results (measurable outcomes)
Company objectives set the direction. Teams will create their own objectives that align to and support these.

Step 2: Share with Teams

Once company objectives are drafted, share them with team leads:

  • Present company objectives in a kick-off meeting
  • Explain the "why" behind each objective
  • Take questions and clarify expectations
  • Give teams a deadline to draft their aligned objectives (3-5 days)

Step 3: Team OKR Drafting

Each team creates objectives that support company goals:

  1. Brainstorm — What can our team do this cycle to support company objectives?
  2. Prioritize — Select 2-4 objectives (fewer is better).
  3. Align — Link team objectives to parent company objectives in Runsheet.
  4. Define key results — What measurable outcomes indicate success?
  5. Assign owners — Every objective and key result has one accountable person.

Top-Down vs Bottom-Up

Healthy OKR planning is both top-down and bottom-up:

  • Top-down — Company sets direction; teams align to it.
  • Bottom-up — Teams propose what's achievable and surface ideas leadership might miss.

The alignment conversation (Step 4) is where these meet. Leadership shouldn't dictate team key results; teams shouldn't ignore company priorities.

Step 4: Alignment Conversations

Before finalizing, have alignment conversations:

  • Vertical alignment — Do team objectives clearly support company objectives?
  • Horizontal alignment — Are there dependencies between teams? Are we duplicating effort?
  • Resource reality — Do we have the capacity to achieve these? What are we saying no to?
This is where you catch conflicts before the cycle starts. A team committing to something another team needs but can't deliver is a recipe for failure.

Step 5: Final Review and Commit

Before the cycle starts:

  1. Leadership reviews all team OKRs
  2. Make final adjustments based on feedback
  3. Move objectives from "Draft" to "Active" status
  4. Communicate the final OKRs to the entire organization
Consider a company-wide kick-off to share OKRs. Visibility builds accountability.

Planning Timeline

For a quarterly cycle, here's a suggested timeline:

  • Week -2 — Close current cycle, retrospective, leadership drafts company OKRs
  • Week -1 — Share company OKRs with teams, teams draft their OKRs
  • Last few days — Alignment conversations, final review
  • Day 1 of new cycle — All OKRs active, kick-off meeting

Creating the Cycle in Runsheet

  1. Go to Settings → Cycles
  2. Click "New Cycle"
  3. Set the name (e.g., "Q1 2025")
  4. Set start and end dates
  5. Once created, you can create objectives within this cycle

Common Mistakes

  • Planning during the cycle — Finalize before Day 1, not during Week 1.
  • Too many objectives — 3-5 per team. If everything is a priority, nothing is.
  • No alignment conversations — Objectives created in silos lead to conflicts later.
  • Carrying over everything — Each cycle is a fresh start. Re-evaluate what matters.
  • Vague key results — "Improve X" is not measurable. Set specific targets.

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