Objectives & Key Results (OKRs)

OKRs is an acronym for “Objectives and Key Results” and is a popular, frequently used tool for goal-setting to help teams reach for and measure progress in their most ambitious projects. An objective is a concrete, action-oriented goal. They Key Results part of the OKR model focuses on the key performance measures that will monitor progress toward meeting the objective. Key Results should be both aggressive and realistic, and most importantly, should be quantifiable and measurable. This presentation describes OKRs and provides a template for any individual, team or organization can use to develop and measure their OKRs.

Transcript

1. © Copyright InnovationPoint LLC Best Practices in… Cascading Objectives & Key Results upBOARD
2. The Problem 70% of companies fail to execute their strategic plans 90% of managers don’t know their company’s top 3 business strategies
3. Objectives & Key Results
4. The key result has to be measurable. But at the end you can look, and say without any arguments: Did I do that or did I not do it? Yes? No? Simple. No judgments in it.” -- John Doerr I will ____________________ as measured by ____________________.
5. Why? Motivation Alignment Agility Speed
6. Why? Time % Work Complete 10% 100% 50% 70% of project work completed in last 30% of time
7. Why? Time % Work Complete “Sprints” achieve more faster with better results
8. Sprints Define Goal Do Work Evaluate Progress Sprint (2-4 weeks) A set period of time during which a certain task or activity is completed and then reviewed, usually no more than one month in duration What do we need to accomplish by the end of the sprint? How will we get this done? Based on what we achieved, what did we learn, and what’s the next logical step?
9. Traditional Planning • Annual • Bi-annual or annual “evaluations” • May or may not be measurable • May or may not cascade Objectives & Key Results • Quarterly (or more frequent) • Many check-ins and adjustments • Always measurable • Designed to cascade Why?
10. OKR Framework • Key Results are outcomes — not tasks • If you can’t measure it, it’s not a good Key Result • Focus on customer outcomes • Don’t skimp on ambition (70% success is good!) • Keep the number of Key Results to a minimum (no more than 3-5 for an objective and ideally less) What we want to achieve Objective How we will measure success Key Results What we’ll do to achieve objective Initiatives/Actions
11. SMART metrics can track progress OKRs push innovation. 70% is success!
12. Engage Teams to Define OKRs Principles Questions Begin with the key result in mind What do you want to happen as a result of this objective? Be Sensory Specific What would people see, hear, feel or do that tells you we are achieving the objective/result? Find potential Measures - Metrics Based OKRs - Task Based OKRs What can you count and quantify (metrics) OR record qualitatively (successful action) as evidence of the result STRENGTH: How much can you rely on this measure as an indicator of the result? FEASIBILITY: How easy is it for us to capture this data?
13. Examples • Reduce costs by 10% • Add 15 new customers • Increase net promoter score by 2 points • Increase organic website traffic to 70% of overall visitors • Raise quality scores by 10%
14. Team Department Organization Enterprise Objectives Enterprise Objective 1 - Enterprise KR1 - Enterprise KR2 - Enterprise KR3 Org Objective 1 (ENT KR1) -Organization KR1 -Organization KR2 -Organization KR3 Org Objective 2 (ENT KR2) - Organization KR1 - Organization KR2 Org Objective 3 (ENT KR3) - Organization KR1 - Organization KR2 - Organization KR3 Dept Objective 1 (ORG KR1) -Department KR1 - Department KR2 Dept Objective 2 (ORG KR2) - Department KR1 - Department KR2 Dept Objective 3 (ORG KR3) - Department KR1 - Department KR2 - Department KR2 Team Objective 2 (DEPT KR2) - Team KR1 - Team KR2 - Team KR3 Team Objective 1 (DEPT KR1) -Team KR1 - Team KR2 - Team KR3 Team Objective 3 (DEPT KR3) - Team KR1 - Team KR2 - Team KR3 Enterprise Strategy Mission, Vision, Goals Each Objective includes “Key Results” that become the Objectives for the next layer Individual My Objectives (Ind OKRs) - Ind KR1 - Ind KR2 - Ind KR3
15. OKR Quarterly Cadence - 3 weeks Month 1 Month 2 Month 3 1 Org / Team Definition Sessions 2 Team Refinement Session 3 Individual OKRs & Actions Phase 1 Create & Align OKRs Phase 2 Agile Implementation Define & Cascade Refine & Align Implement, Check-in and Adjust Start, Stop, Continue Plan Implement, Check-in and Adjust
16. Assignment 1. Convene a representative group from your organization 2. Review your Enterprise strategy and/or business objectives • Remember, your organization may not have a role in supporting every Enterprise Objective 3. Consider the capabilities and skills your team possesses 4. Identify which Enterprise Objectives you can support this quarter or this year. 5. Complete one template for each Objective you will support • Update the logo with your organization • Enter the Enterprise Goal and Objective your organization can support • Write a Key Result Statement and identify a single owner who is accountable for the Key Result • A “Key Result” is a specific and measurable activity with quantifiable outcomes that will lead to the successful achievement of the objective • Define Success Measures and how your realistic target measure will be delivered over four quarters • Define the Key Actions required to deliver the Key Result and the Owner and Success Measures for each
17. Enter Enterprise Strategic Goal here Enterprise Objective: Obj. # here Enter Enterprise Objective here Key Result: Accountable: Key Result statement here (action focused with quantifiable results) Name of Key Result Owner here Success Measures: Quarterly Targets (measured across four quarters to reach annual target goal) Stretch Goal (quantifiable best case): $$##%% Q1 Q2 Q3 Q4 Target Goal (quantifiable realistic case): $$##%% No. Key Actions Owner Performance Metric #.1 #.2 #.3 #.4 #.5
18. 3. Engage all students to ensure professional success Enterprise Objective: Obj. 3.2 Establish life-long relationships with all students Key Result: Accountable: Create student evaluation model [action] and administer to 2500 students [measure] Kathy Success Measures: Quarterly Targets (measured across four quarters to reach annual target goal) Annual Stretch Goal (quantifiable best case): 4000 student tests Q1 Q2 Q3 Q4 Annual Target Goal (quantifiable realistic case): 2500 student tests 0 250 500 1750 No. Key Actions Owner Performance Metric 3.2.1 Define and build free student testing offer Name Student offer launched on website ready for promotion 3.2.2 Create marketing and promotional plan and budget Name Marketing & promotional plan and budget created 3.2.3 Establish partnerships to create new distribution channel Name Partnership formally established with 1000 students taking free test 3.2.4 Establish agreements with top 10 universities Name 10 formal agreements with 1000 students taking exams 3.2.5 Create peer-to-peer referral marketing model Name 500 signups based on referral program C p a t K t M “ o o I o K r c d i q r s T
19. Create dashboards
20. Page 20 upBOARD Cascading Objectives & Key Results (OKRs)
21. The Solution Cascading Objectives & Key Results – up, down and across the organization Define & View Enterprise Objectives Cascade OKRs Track Results 1 2 3
22. 1. Define & View Enterprise Objectives Define & View Top Level Objectives and Results in an Integrated Dashboard Page 22
23. 2. Cascade Objectives Cascade Objectives & Key Results Page 23
24. 2. Cascade Objectives Cascade Objectives & Key Results Page 24
25. 3. Track Results Track OKR results for the Organization, Teams (Managers) and Individuals Page 25
26. Get Expert Advice & Coaching Custom Embedded Training Videos Ensure Success Page 26 https://vimeo.com/392105996 https://vimeo.com/391332006