good bad okr - felipe castro
TRANSCRIPT
![Page 1: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/1.jpg)
felipecastro.com
Good OKR
Bad OKR
![Page 2: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/2.jpg)
felipecastro.com
“Companies today have 21st-century
technology…
felipecastro.com
![Page 3: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/3.jpg)
felipecastro.com
mid-20th-century management processes… felipecastro.com
![Page 4: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/4.jpg)
felipecastro.com
…built atop 19th-century management
principles.”
Gary Hamel
felipecastro.com
Henry Ford
![Page 5: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/5.jpg)
Frederick Taylor
![Page 6: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/6.jpg)
Gary Hamel
Management was not invented to create
adaptable, innovative and engaging organizations.
felipecastro.com
![Page 7: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/7.jpg)
What problem they were trying to solve?
![Page 8: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/8.jpg)
Making people do the same thing over and over…
![Page 9: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/9.jpg)
Scaling Repeatable Work
felipecastro.com
![Page 10: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/10.jpg)
Organizations started mimicking the manufacturing model.
![Page 11: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/11.jpg)
felipecastro.com
Strategic Objectives
Strategic Initiatives
Delivering the initiatives becomes the goal
![Page 12: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/12.jpg)
felipecastro.com
Teams become activity factories,
focused on deliverables.
![Page 13: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/13.jpg)
We Are Agile!
felipecastro.com
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Build
Jake Knapp
Business case
?No measurement, no learning
![Page 14: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/14.jpg)
felipecastro.com
Did we deliver the promised benefits?
![Page 15: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/15.jpg)
felipecastro.com
What happens when you measure
outcomes?
felipecastro.com
![Page 16: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/16.jpg)
felipecastro.com
Surprise!
Most ideas fail.
![Page 17: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/17.jpg)
Most ideas fail
felipecastro.com
![Page 18: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/18.jpg)
Most ideas fail: non-optimized environment
felipecastro.com
33%
33%
33%1/3 generates positive results
1/3 generates no results
1/3 generates negative results
Source: Harvard Business Review - The Surprising Power of Online Experiments
![Page 19: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/19.jpg)
“At Google and Bing, only about 10% to 20% of
experiments generate positive results.”
felipecastro.com
![Page 20: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/20.jpg)
felipecastro.com
“The vast majority of [ideas] fail in
experiments, and even experts often
misjudge which ones will pay off.”
Ron Kohavi
![Page 21: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/21.jpg)
To succeed in an ever more digital world,
we have to reinvent how we plan and align.
![Page 22: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/22.jpg)
A Better Way
felipecastro.com
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Frequent Measurement, Fast Iterations
![Page 23: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/23.jpg)
felipecastro.com
The Alternative is OKR
![Page 24: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/24.jpg)
felipecastro.com
OKR is Hard…
felipecastro.com
![Page 25: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/25.jpg)
Everybody Falls the First Time
felipecastro.com
![Page 26: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/26.jpg)
Everybody Falls the First Time
• For many orgs, OKR represents a big cultural change.
• Companies make the same mistakes over and over.
felipecastro.com
![Page 27: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/27.jpg)
What are the most common OKR mistakes? felipecastro.com
![Page 28: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/28.jpg)
1. Setting bad OKRs
![Page 29: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/29.jpg)
Mistakes: Setting Bad OKRs
• People use OKR as a to-do list.
• They create Key Results that are not measurable and impossible to track.
• They lack focus and set too many OKRs.
felipecastro.com
![Page 30: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/30.jpg)
If everything is a priority, nothing is.
felipecastro.com
![Page 31: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/31.jpg)
2. Creating OKRs in Silos
felipecastro.com
![Page 32: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/32.jpg)
The “tunnel & bridge problem”
felipecastro.com
![Page 33: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/33.jpg)
Silos
![Page 34: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/34.jpg)
Mistakes: Creating OKRs in Silos
• Teams don’t align with each other and end up with conflicting OKRs, local optimization, and poor results.
felipecastro.com
![Page 35: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/35.jpg)
felipecastro.com
3. Treating OKRs as New Year’s Resolutions
felipecastro.com
![Page 36: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/36.jpg)
Mistakes: OKRs as New Year’s Resolutions
• Without follow-through, OKRs turn into a list of neglected and unachieved goals.
felipecastro.com
![Page 37: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/37.jpg)
Our Brain Focuses on the Solution
felipecastro.com
Did it work?
![Page 38: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/38.jpg)
We Need to Keep Score
![Page 39: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/39.jpg)
•Objective: A memorable and qualitative description of what we want to achieve.
•Key Results: How we keep score. Describe the outcomes we want to achieve: “We will know that we are successful if those metrics improve.”
The OKR Components
felipecastro.com
![Page 40: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/40.jpg)
felipecastro.com
Example: OKR
•Improve Net Promoter Score from X to Y.•Increase Repurchase Rate from X to Y.•Maintain Customer Acquisition Cost under Y.
Objective: Create an Awesome Customer Experience
Key Results:
![Page 41: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/41.jpg)
If you deliver all your tasks and
nothing improves, are you successful?
felipecastro.com
![Page 42: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/42.jpg)
felipecastro.com
Two Buckets
The outcomes you want to achieve.
OKRs
ActivitiesThings you are going
to do.(Outputs)
![Page 43: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/43.jpg)
Activities: What we believe we are going to do to reach our OKR: projects, tasks, programs…
Objective: A memorable and qualitative description of what we want to achieve.
Key Results: How we keep score. Describe the outcomes we want to achieve: “We will know that we are successful if those metrics improve.”
Separating OKRs from Activities
felipecastro.com
Park ideas here
![Page 44: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/44.jpg)
Key ResultsMeasure outcomes: the value and the benefits you deliver to your customers or your company. They are measurable on a sliding scale.
ActivitiesAre 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
![Page 45: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/45.jpg)
felipecastro.com
How to Be Successful with OKR
felipecastro.com
![Page 46: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/46.jpg)
The OKR Cycle
felipecastro.com
Set
Achieve
Align
![Page 47: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/47.jpg)
The OKR Cycle: Set
felipecastro.com
Achieve
Align
Set
![Page 48: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/48.jpg)
Don’t wait for the perfect metric
felipecastro.com
![Page 49: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/49.jpg)
felipecastro.com
OKRs can be imperfect
![Page 50: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/50.jpg)
Baby steps towards better measurement
![Page 51: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/51.jpg)
felipecastro.com
Bidirectional Conversations
Around the Outcomes you Want to Achieve
![Page 52: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/52.jpg)
felipecastro.com
The OKR Cycle: Align
Achieve
Align
Set
![Page 53: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/53.jpg)
Creating Silos
Teams
Who manages the “white space”?
![Page 54: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/54.jpg)
Align Around Outcomes, Not Structures
• “Focus on goals that you can control” is a terrible advice.
• It creates silos as every problem that requires cross-team coordination is stranded.
• Instead, create alignment around the outcomes you want to achieve using shared OKRs.
felipecastro.com
![Page 55: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/55.jpg)
Shared OKR
• Two or more individuals/teams share the same OKR.
• Each team has different activities.
• The shared OKR creates a temporary virtual team that has a joint check-in to sync progress and track results.
felipecastro.com
![Page 56: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/56.jpg)
The OKR Cycle: Achieve
felipecastro.com
Achieve
Align
Set
![Page 57: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/57.jpg)
Weekly Check-ins
![Page 58: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/58.jpg)
Create a Follow-through Cadence
•The Check-in is a weekly ceremony for measuring OKRs and adjusting the corresponding activities.
•Adopting it is crucial to success.
•Can be merged with existing ceremonies or meetings.
felipecastro.com
![Page 59: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/59.jpg)
Good or Bad?
felipecastro.com
![Page 60: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/60.jpg)
Bad OKRs: Bad Objectives
• Proactively integrate a broad range of African perspectives into ONE’s work, align more closely with African priorities, and share and leverage ONE’s political capital to achieve specific policy changes in and toward Africa.
• Transform ACME into a company that is able to quickly and consistently introduce new business models, disruptive technologies, innovative solutions and 100% digital customer journeys.
felipecastro.com
![Page 61: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/61.jpg)
felipecastro.com
You are doing it wrong if…
![Page 62: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/62.jpg)
felipecastro.com
If you have to stop to breathe while reading
your Objective.
felipecastro.com
![Page 63: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/63.jpg)
felipecastro.com
If you sound like a McKinsey consultant
from the 80’s.
felipecastro.com
![Page 64: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/64.jpg)
Bad OKRs: Bad Objectives
• Reach 1 billion hours of watch time per day.
felipecastro.com
![Page 65: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/65.jpg)
Good OKRs: Good Objectives
• Make the Web as Fast as Flipping Through a Magazine (from Google in 2008).
• Delight our Customers.
• Help more people around the world.
felipecastro.com
![Page 66: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/66.jpg)
Bad OKRs: Non-Measurable Key Results
• Focus on hiring A player managers/ leaders.
• Provide innovative products.
• Ensure ongoing mentoring/ coaching opportunities.
felipecastro.com
![Page 67: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/67.jpg)
Key Results are measurable.
felipecastro.com
![Page 68: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/68.jpg)
“If it does not have a number,
it is not a Key Result”Marissa Mayer
felipecastro.com
![Page 69: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/69.jpg)
Bad OKRs: Activities as Key Results
• Implement the PayPal integration.
• Complete BlueJeans rollout to final users by end of the quarter.
• Deliver functional data marts for HR and Sales.
• Develop sales training materials for the field force.
felipecastro.com
![Page 70: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/70.jpg)
“Key Results must be results.”
Christina Wodtke, author, Radical Focus
felipecastro.com
![Page 71: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/71.jpg)
Bad OKRs: Counting Activities
• Deliver 100% of my tasks.
• Increase the number of items delivered from X to Y.
• Publish 5 articles.
• Define and measure 3 new UX metrics.
felipecastro.com
![Page 72: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/72.jpg)
Good OKRs: Good Key Results
• Reduce customer complaints due to product quality from X to Y.
• Reduce the number of calls to agents due to itinerary changes from X to Y.
• 75% of customers prefer our product to the competitors in blind taste test.
felipecastro.com
![Page 73: Good Bad OKR - Felipe Castro](https://reader031.vdocuments.us/reader031/viewer/2022012021/61689db2d394e9041f712bb1/html5/thumbnails/73.jpg)
felipecastro.com
OKR Coach,Partner @ Lean Performance
felipecastro.com
linkedin.com/in/meetfelipe@meetfelipe
Felipe Castro