OKRs - A Primer

A very basic overview of the OKRs goal-setting framework

Transcript

1. OKRs a primer Jason Carlin, Q2 2020
2. Objectives & Key Results
3. OKRs is a goal-setting and tracking framework intended to promote focus and drive alignment through simplicity
4. Overwhelmingly, employees do not know their company’s goals
5. …so they have no way of aligning their work with those larger goals
6. OKRs make goals both visible and understandable
7. 45% of managers could not name 1 of their organization’s priorities One study found source
8. 95% of employees could not name 1 of their organization’s priorities One study found source
9. What aren’t OKRs?
10. OKRs are not new John Doerr joins Intel
11. OKRs are not exhaustive Only critical objectives are included (that doesn’t mean other objectives aren’t important)
12. OKRs are not roadmaps Timeline is annual or quarterly Workstreams are secondary Objectives are not exhaustive
13. OKRs are not roadmaps Timeline is annual or quarterly Workstreams are secondary Objectives are not exhaustive (you still need a roadmap, buddy)
14. OKRs are not KPIs Objectives create a narrative OKRs are shareable and readable OKRs don’t measure everything …sort of
15. OKRs are not KPIs Objectives create a narrative OKRs are shareable and readable OKRs don’t measure everything (you still need KPIs, buddy) …sort of
16. OKRs are not easy to implement You need to avoid common pitfalls, human nature, and self-organization. OKRs require discipline.
17. OKRs are not employee evaluations OKRs are for alignment. They’re about the company’s goals and how each employee contributes to achieving them.
18. What are OKRs?
19. Objectives are ambitious, inspiring, conversational, & uncomfortable Key Results are measurable. They’re easy to grade with a single number (at Google we used a 0–1.0 scale to grade each key result at the end of a quarter). OKRs are uncomfortable. Good objectives set an “unrealistic” target. The “sweet spot” for an OKR grade is .6-.7. If one consistently gets 1.0, their OKRs aren’t ambitious enough. Low grades shouldn’t be punished; see them as data to help refine the next quarter’s OKRs. Rick Klau, GV
20. Rick Klau, GV Objectives and Key Results live in multiple levels of an organization. Typically the company will set annual OKRs and each team will set quarterly OKRs designed to drive toward the company’s goals. Optionally, individuals may set personal OKRs to ensure alignment with their team and with the company. OKRs are layered
21. 3-5 Objectives 3–5 Key Results each OKRs are focused
22. 3-5 Objectives 3–5 Key Results each That’s all you get OKRs are focused
23. Objective — Make ads that are truly useful for our users KR 1 — Homepage banner clicks up by 150% KR2 — HP follow-on downfunnel (HVA) actions up by 125% KR3 — Cumulative ad revenue up by 75% Well, maybe not always this simple, …but you get the idea OKRs are simple
24. Objective — Make ads that are truly useful for our users — 0.6 KR 1 — Homepage banner clicks up by 150% — 0.2 KR2 — HP follow-on downfunnel (HVA) actions up by 125% — 0.7 KR3 — Cumulative ad revenue up by 75% — 0.9 An objective’s score is the average of its KR scores OKRs are measurable
25. Objective — Make ads that are truly useful for our users KR 1 — Homepage banner clicks up by 150% Key initiative 1 — Ad framework redesign Key initiative 2 — Auction system v1 Key initiative 3 — Partner program launch KR2 — HP follow-on downfunnel (HVA) actions up by 125% KR3 — Cumulative ad revenue up by 75% OKRs are executable
26. Examples
27. KR 1 — Run 10 prototype test flights KR2 — Keep plane in the air for at least 100 feet KR3 — Launch redesigned wings to improve lift by 25% Teach mankind to fly OBJECTIVE EXAMPLES — GOOD OKRs
28. KR 1 — Increase homepage banner clicks by 150% (30-day avg) KR2 — Increase homepage banner follow-on HVAs* by 125% (cumulative) KR3 — Total banner ad revenue up by 75% (30-day avg) Make ads that are truly useful for our users OBJECTIVE EXAMPLES — GOOD OKRs
29. KR 1 — Launch strike-through pricing KR2 — Increase item-saving behavior by 50% KR3 — Launch structured reviews with 10% completion rate Drive adoption of new features OBJECTIVE EXAMPLES — GOOD OKRs
30. KR 1 — Most users view a PDP KR2 — Add to cart engagement up 50% KR3 — Launch redesigned PDP by July 1st Increase PDP traffic by 25% OBJECTIVE EXAMPLES — BAD OKRs
31. Add-ons and extras
32. The cascade
33. …is not required
35. Individual OKRs
36. …are not required
37. Individual OKRs are a bi-directional approach for goal setting that connects employees with the company’s objectives, increasing engagement and alignment
38. This space left intentionally blank
39. Thanks. Jason Carlin, Q2 2020
40. How Google sets goals: OKRs - GV Library Theory vs. reality in OKR Biggest Mistakes in OKR Implementation: Cascading OKR | LinkedIn OKRs do not cascade - Felipe Castro Felipe Castro OKR: Learn Google's Goal System with Examples and Templates WDC OKRs Check-In (5/7) - Google Slides Brainstorm - Google Docs WDC OKRs - Google Sheets References Google OKRs infographic Measure What Matters by John Doerr What Matters: What are OKRs goals? Explanation and examples OKR - Wikipedia Management by objectives - Wikipedia Weekdone - resources OKRs - re:Work