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How to Avoid OKR Fake News - OKR Forum Amsterdam 2019

93be75fb2c66d30e7ccd3b67677ac903?s=47 Felipe Castro
October 03, 2019

How to Avoid OKR Fake News - OKR Forum Amsterdam 2019

93be75fb2c66d30e7ccd3b67677ac903?s=128

Felipe Castro

October 03, 2019
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  1. felipecastro.com OKR Is the New Black Felipe Castro How to

    avoid fake news and make OKR work
  2. felipecastro.com OKR is cool felipecastro.com

  3. All hot startups are using OKR felipecastro.com

  4. felipecastro.com Interest in OKR is growing FAST

  5. felipecastro.com Searches for OKR Are Up 4X in Two Years

  6. felipecastro.com The catalyst felipecastro.com

  7. Raise your hand if you have read Measure What Matters

    felipecastro.com
  8. felipecastro.com John Doerr The guy who taught OKR to Google

  9. felipecastro.com Popularity has a dark side

  10. felipecastro.com Jumping on the bandwagon felipecastro.com

  11. felipecastro.com More OKR tools… More OKR consultants… More OKR “content”…

    felipecastro.com
  12. felipecastro.com

  13. felipecastro.com Abraham Lincoln “If an OKR example is on the

    internet then it must be true, and you can’t question it. ” felipecastro.com
  14. None
  15. felipecastro.com You should have lots of Key Results OKR Fake

    News #1:
  16. felipecastro.com “You should have 5-7 Objectives with 4-5 Key Results

    each.”
  17. felipecastro.com “You should have 5-7 Objectives with 4-5 Key Results

    each.”
  18. What is the priority? felipecastro.com

  19. If everything is a priority, nothing is. felipecastro.com

  20. 12 Bottles of Whisky felipecastro.com Paulo Caroli

  21. How long does it take on average for my friend

    to drink one bottle of whisky? felipecastro.com
  22. 12 Bottles of Whisky felipecastro.com • His whisky cabinet has

    enough space for 12 bottles, and he always keeps it full. • Whenever he finishes a bottle, he removes it from the cabinet, opens a new one, and adds the new bottle to the bar. • Every year, he drinks 6 whisky bottles on average. Paulo Caroli
  23. Individual Activity: 12 Bottles

  24. Question: • Considering that the cabinet holds 12 bottles of

    whisky and that my friend drinks an average of 6 bottles per year, how long does it take on average for him to drink one bottle of whisky? felipecastro.com (A) 6 months. (B) 3 months. (C) 2 months. (D) 1 year. (E) 2 years.
  25. 12 Bottles of Whisky felipecastro.com Focused on one bottle: 2

    months Drinking from 12 bottles: 2 years Paulo Caroli
  26. When you see a company that can’t get anything done,

    it’s because they are drinking from 12 bottles at the same time. felipecastro.com
  27. “Maybe instead of having 20 projects that move slowly, we

    should have 3 that move fast.” Senior Executive from a Fortune 500 Company felipecastro.com
  28. felipecastro.com Single small team should have ONE OKR per quarter.

    felipecastro.com
  29. Up to 5 Key Results. Less is more. felipecastro.com

  30. You have to stretch a LOT OKR Fake News #2:

    felipecastro.com
  31. felipecastro.com Stretch goals require extending oneself to the limit to

    reach them.
  32. “The sweet spot for OKRs is somewhere in the 60-70%

    range.” felipecastro.com
  33. “The sweet spot for OKRs is somewhere in the 60-70%

    range.” felipecastro.com
  34. Why do we need ambitious OKRs? felipecastro.com

  35. It’s tremendously hard to get teams to be super ambitious.

    They tend to assume that things are impossible, rather than figuring out what’s actually possible. Larry Page, Google Co-founder and CEO
  36. Moonshots Ambitious goals that force the team to reinvent itself

  37. Moonshots appear unattainable given current practices, skills, and knowledge. felipecastro.com

  38. felipecastro.com • Just beyond the threshold of what seems possible.

    • Aspirational: Success means achieving 60-70% in aggregate. Moonshots
  39. felipecastro.com • Just beyond the threshold of what seems possible.

    • Aspirational: Success means achieving 60-70% in aggregate. Moonshots The 60-70% range is arbitrary.
  40. Example: Moonshots • Let’s say it currently takes 60 days

    to implement the product. felipecastro.com Traditional Approach Reduce implementation time from 60 days to 30 Moonshot Reduce implementation time from 60 days to 1
  41. Even if you only get to reduce the time to

    5 days, that would still be a major achievement. felipecastro.com felipecastro.com
  42. Moonshots Can Cause Problems • Lack of motivation: Achieving only

    70% of the OKRs can demotivate some people, especially in the beginning. • Lack of stretch: Sometimes people think that “70 is the new 100” and settle for it. • Not accepting failure: Managers may push teams always to reach 100% of them. felipecastro.com
  43. Two types of Key Results felipecastro.com

  44. felipecastro.com • Just beyond the threshold of what seems possible.

    • Aspirational: Success means achieving 60-70% in aggregate. • Hard but achievable. Not a walk in the park. • Success means achieving 100%. Moonshots vs. Roofshots
  45. Roofshots: Make the trains run on time felipecastro.com

  46. The proper use of Moonshots is by far hardest “building

    block” of OKR.
  47. felipecastro.com • Just beyond the threshold of what seems possible.

    • Aspirational: Success means achieving 60-70% in aggregate. • Hard but achievable. Not a walk in the park. • Success means achieving 100%. Moonshots vs. Roofshots Start here
  48. Adopting moonshots is a journey. Start with roofshots and set

    more ambitious OKRs over time. felipecastro.com
  49. Fake News #3: felipecastro.com OKR is a To Do List

  50. felipecastro.com Goals can act as hamster wheels

  51. Are we measuring effort or value? felipecastro.com

  52. If you deliver all your tasks and nothing improves, are

    you successful? felipecastro.com
  53. felipecastro.com “Half of Netflix’s high-level strategies failed. Half. ” Gibson

    Biddle, Former VP of Product felipecastro.com
  54. That is why…

  55. “Key Results must be results.” Christina Wodtke, author, Radical Focus

    felipecastro.com
  56. Our Brain Focuses on the Solution felipecastro.com Did it work?

  57. felipecastro.com Buckets The outcomes you want to achieve. OKRs Activities

    Things you are going to do. (Outputs)
  58. Key Results Measure outcomes: the value and the benefits you

    deliver to your customers or your company. They are measurable on a sliding scale. Activities Are outputs. Everything you deliver: tasks, projects, programs, features, epics and initiatives associated with achieving team or company-level OKRs. They are usually binary (done or not done). Key Results vs. Activities felipecastro.com
  59. “It’s not a Key Result unless it has a number”

    Marissa Mayer felipecastro.com
  60. Having a number is not enough felipecastro.com

  61. felipecastro.com “So What?” Key Results should stand the “so-what” test.

  62. 10 minutes to present your OKRs to the board. felipecastro.com

  63. Or imagine that you are presenting your OKR to a

    character from your favorite TV show. felipecastro.com
  64. What is your OKR? felipecastro.com

  65. What is your OKR?

  66. My Key Result is… Create an engagement program. felipecastro.com

  67. So What?!? Have we been able to actually increase engagement?

    felipecastro.com
  68. My Key Result is… Develop a new website. felipecastro.com

  69. So What?!? Are we getting more customers? Has conversion improved?

    What is the benefit? felipecastro.com
  70. Good Key Results make a difference. felipecastro.com

  71. “But John Doerr included activities as OKR examples in Measure

    What Matters” Lame argument felipecastro.com
  72. I am a huge fan of John Doerr HUGE.

  73. The theory is great. The examples are awful. felipecastro.com

  74. Let’s see three examples from the book felipecastro.com

  75. felipecastro.com Institute a culture that attracts and retains A players

    •Focus on hiring A player managers/ leaders. •Ensure ongoing mentoring/ coaching opportunities. •Create a culture of learning for development of new and existing employees. Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by: •Develop and publish five benchmarks showing superior 8086 family performance. •Repackage the entire 8086 family of products. •Get the 8MHz part into production. •Sample the arithmetic coprocessor no later than June 15. Reach 1 billion hours of watch time per day [by 2016], with growth driven by: •Search team + Main App (+ XX%), Living Room (+ XX%). •Grow kids’ engagement and gaming watch time (X watch hours per day). •Launch YouTube VR experience and grow VR catalog from X to Y videos.
  76. felipecastro.com Institute a culture that attracts and retains A players

    •Focus on hiring A player managers/ leaders. •Ensure ongoing mentoring/ coaching opportunities. •Create a culture of learning for development of new and existing employees. Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by: •Develop and publish five benchmarks showing superior 8086 family performance. •Repackage the entire 8086 family of products. •Get the 8MHz part into production. •Sample the arithmetic coprocessor no later than June 15. Reach 1 billion hours of watch time per day [by 2016], with growth driven by: •Search team + Main App (+ XX%), Living Room (+ XX%). •Grow kids’ engagement and gaming watch time (X watch hours per day). •Launch YouTube VR experience and grow VR catalog from X to Y videos. Things we can’t measure
  77. felipecastro.com Institute a culture that attracts and retains A players

    •Focus on hiring A player managers/ leaders. •Ensure ongoing mentoring/ coaching opportunities. •Create a culture of learning for development of new and existing employees. Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by: •Develop and publish five benchmarks showing superior 8086 family performance. •Repackage the entire 8086 family of products. •Get the 8MHz part into production. •Sample the arithmetic coprocessor no later than June 15. Reach 1 billion hours of watch time per day [by 2016], with growth driven by: •Search team + Main App (+ XX%), Living Room (+ XX%). •Grow kids’ engagement and gaming watch time (X watch hours per day). •Launch YouTube VR experience and grow VR catalog from X to Y videos. Activities Things we can’t measure
  78. felipecastro.com Institute a culture that attracts and retains A players

    •Focus on hiring A player managers/ leaders. •Ensure ongoing mentoring/ coaching opportunities. •Create a culture of learning for development of new and existing employees. Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by: •Develop and publish five benchmarks showing superior 8086 family performance. •Repackage the entire 8086 family of products. •Get the 8MHz part into production. •Sample the arithmetic coprocessor no later than June 15. Reach 1 billion hours of watch time per day [by 2016], with growth driven by: •Search team + Main App (+ XX%), Living Room (+ XX%). •Grow kids’ engagement and gaming watch time (X watch hours per day). •Launch YouTube VR experience and grow VR catalog from X to Y videos. Activities Real Key Results Things we can’t measure
  79. felipecastro.com Institute a culture that attracts and retains A players

    Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by: Reach 1 billion hours of watch time per day [by 2016], with growth driven by: •Focus on hiring A player managers/ leaders. •Ensure ongoing mentoring/ coaching opportunities. •Create a culture of learning for development of new and existing employees. •Develop and publish five benchmarks showing superior 8086 family performance. •Repackage the entire 8086 family of products. •Get the 8MHz part into production. •Sample the arithmetic coprocessor no later than June 15. •Search team + Main App (+ XX%), Living Room (+ XX%). •Grow kids’ engagement and gaming watch time (X watch hours per day). •Launch YouTube VR experience and grow VR catalog from X to Y videos. Activities Real Key Results Things we can’t measure HR dept from a random startup in 1976 Today
  80. Who do you want to learn from? OR felipecastro.com in

    1976 Today
  81. felipecastro.com OKR Trainer, Founder @ Lean Performance felipecastro.com linkedin.com/in/meetfelipe @meetfelipe

    Felipe Castro