the guide to objectives and key results
DESCRIPTION
Objectives and Key Results is the goal setting framework used at companies like Google, LinkedIn, and Intel. John Doerr, partner at KPCB, passed on Objectives and Key Results to Google helping them grow from 50 to 50,000 people. This is the complete guide to OKRs, containing everything you need to know (even exclusive slides and examples from Doerr himself.)TRANSCRIPT
The Guide to OKRs
The Guide to OKRs
A Brief History
The Good
• MBOs and S.M.A.R.T goals
ushered in era of results-
oriented management.
The Bad
• Infrequently updated
• Siloed
• Management-driven • Tied to performance
reviews/ compensation
The Good & The Bad of MBOs and SMART
The Guide to OKRs
The Guide to OKRs
A Brief History
The OKR Revolution • Objectives and Key Results (OKRs) are
invented at Intel
• KPCB’s John Doerr brings OKRs to Google and
more
Benefits
• Quarterly vs. Annual process
• Transparent and aligned
• Aspirational
From Drucker to Doerr
• Not tied to performance reviews/compensation
The Guide to OKRs
So…what are OKRs?
The Guide to OKRs
OKRs are a management methodology that helps companies focus effort on the same
important issues throughout their organization
The Guide to OKRs
Objectives what I want accomplished
• Personally significant and aspirational
• Should get you out of bed in the morning
• Significant for company
• Aligned w/, and supported by, entire org
As measured by…
The Guide to OKRs
Key Results: how I will accomplish it
• Clearly make the objective possible
• Measurable
• Limited in number
• Time related
The Guide to OKRs
Why use OKRs? • Disciplines thinking
• Communicates accurately
• Inspires confidence that everyone is working together
• Establishes indicators for measuring progress
• Focuses effort
• Know exactly what you’re working on
OKRs tell you & your team what you’re doing THIS quarter & importantly, what you are NOT.
Rick Klau Product Partner at Google Ventures
The Guide to OKRs
Now that you’re convinced…how do you actually do OKRs?
The Guide to OKRs
John Doerr’s famous football example
The Guide to OKRs
John Doerr Sand Hill Unicorns General Manager
Larry Page - Head Coach Win SuperBowl
1. 200 yrd/game passing attack 2. 3rd ranked defense in NFL 3. 25 yds. punt return average
@Jack - Head of PR Fill Stands to 88%
1. Hire 3 colorful players 2. Get 2 Monday Night games 3. Hightlight key players
Make $$$ for Owners Key Results:
1. Win Super Bowl 2. Fill stands to 88%
The Guide to OKRs
John Doerr Sand Hill Unicorns General Manager
Larry Page - Head Coach Win SuperBowl
1. 200 yrd/game passing attack 2. 3rd ranked defense in NFL 3. 25 yds. punt return average
Defense #3 Defense
Less than 100yrd passing a game
Offense 200 yrd passing
attack 75% completion
Special Teams 25 yrd punt return
average 3 Blocked punts
New Staff Get 2 Monday Night Games 5 ESPN special
features
Scouts Hire 3 colorful
players Visit top 25
colleges
Publicity Agent 3 weekly
front-pagers Hire 10 new cheerleaders
@Jack - Head of PR Fill Stands to 88%
1. Hire 3 colorful players 2. Get 2 Monday Night games 3. Hightlight key players
Make $$$ for Owners Key Results:
1. Win Super Bowl 2. Fill stands to 88%
The Guide to OKRs
Some Best Practices to Remember • Focus on 3-5 objectives at a time
• With 3-5 key results for each
• At LEAST 60% of objectives should be bottom up
• T o o much top-down dictation kills motivation and aspiration
• Performance evaluations should be completely separate from OKRS
• Keeping the two separate encourages workers to set aspirational OKRs.
• Tying the two together stunts innovative thinking, and leads to sandbagging.
The Guide to OKRs
Grading OKRs
• Grading and reflecting on past OKR progress is critical for setting future OKRs
• According to John Doerr & Google, a total grade of 60 - 70% = sweet-spot.
0.7
Larry’s Objective Win Super Bowl
1. 200 yrds / game passing attack
2. 3rd ranked defense in NFL
3. 25 yrd punt return average
Owner Status Grade
Jeff
Joe
Aaron
250 yrds/game
9th ranked defense
10 yrd punt return avg
1
0.7
0.4
TOTAL
The Guide to OKRs
“OKRs are a timeless framework, but the methods for implementing them are antiquated. They need to be modernized.”
Taking OKRs to the Next Level • They have not reached their full potential
• Held back by antiquated implementation
• OKRs are powerful when they are:
• Adaptable and dynamic. NOT static.
• Open and connected. NOT siloed.
• Fortunately, innovative technologies and Goal Science™ are bringing OKRs into the modern age Kris Duggan
CEO of BetterWorks
The Guide to OKRs
Progress-Based
Frequent, measurable feedback and frequent
wins
Connected
Vertical/horizontal alignment and
clarity
Aspirational
Greater achievement and encourage
excellence
Adaptable
Flexibility to respond to changing goals and
business needs
Supported
Working transparently with social reinforcement
and recognition
Modernize OKRs with BetterWorks The Goal Science™ pillars
The Guide to OKRs
Connected • Alignment cascades bottom-up, top-down, and peer-to-peer
• Goals are visible to encourage accountability
The Guide to OKRs
Supported
• Intuitive feedback loops through you peers, direct reports, and leaders
• Relevant comments, updates, and progress surfaced in real-time
The Guide to OKRs
Progress-Based
• Progress is the single greatest motivator in the workplace
• Real-time visualizations of your progress capitalize on that motivation
• Check-in to your goals through a single access point from any device, anytime
The Guide to OKRs
Adaptable
• Once a year feedback is not relevant feedback
• Real-time updates ensure that you are getting true measures of progress
• Agile businesses are successful businesses. The ability to adapt and edit goals on the fly is a necessity.
The Guide to OKRs
• Specific and ambitious goals lead to higher performance than easy or general goals
• Goal Science supports the “OKR sweet spot” of 60-70% completion
• This removes reservations / fears about falling short of a stretch goal
Aspirational
The Guide to OKRs
Why use BetterWorks for your OKRs?
• Disciplines thinking
• Communicates accurately
• Lets everyone know what’s important...
• And supports everyone with relevant feedback
• Establishes indicators for measuring progress...
• And captures your progress in real-time
• Focuses effort
• Know exactly what you’re working on...
• And WHY you are working on it!
The Guide to OKRs
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