That is kind of like asking how to paint a good painting or write a good song.
Practice and basing them on the long-term Strategic Plan is the best simple answer.
Having been trained management teams since 2004 to do this I have found almost no one does it well at first. It requires about 2 monthly cycles of practice to get it. However, each time people will do better and understand the value more. I have a course on Online Courses - Learn Anything, On Your Schedule | Udemy on this and a video here: Management Best Practices that explains why MBO/OKR are not optional.
Every successful company does this somehow, though there are some variations. I strongly recommend both training and coaching to make it stick and keep people on track to get the massive advantages that can come from a good process.
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Independent research shows companies that do this will create 56% more value than companies that do not. That is the difference between a market leader and also-ran company. And you will never grow rapidly and have a strong market position without doing OKR or MBO well if your company has more than 10–15 people.
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Bob Norton is a long-time Serial Entrepreneur and CEO with four exits that returned over $1 billion to investors. He has trained, coached and advised over 1,000 CEOs since 2002. And is Founder of The CEO Boot Camp™ and Entrepreneurship University™. Mr. Norton works with companies to triple their chances of success in launching new companies and products. And helps established companies scale faster using the six AirTight Management™ systems. And helps companies successfully raise capital.
Call (619) SCALE06 or email info@AirTightMgt.com for a complementary strategic consultation.