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The Basics of OKRs
Introduction to Objectives and Key Results
Weekdone OKR Software:weekdone.com
Jüri Kaljundi
CEO & Co-founder
OKRs are your daily poster on the wall:
What should I do next?
What should I focus on?
How far am I?
It’s said:
“If there is one leadership and team management process anyone should try,
it’s OKRs”
Used by: Google, LinkedIn, Sears, Twitter, Yahoo and thousands of others.
So should you.
What is OKR methodology?
• Set quarterly goals – Objectives
• Measure metrics progress – Key Results
• Share it with leaders & co-workers
• One direction everyone works towards
• Aligned & linked hierarchy
Company > Department > Team > Personal
• Transparency and open clearly communicated teamwork
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Importance of shared goal-setting via OKRs
• Vision of where you want to get
• Prioritization of how to get there
• Know what's expected of you
• Guide people towards right path
• Daily focus on most important goals
• Freedom inside your own sandbox
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Example Company or Sales OKR
• Increase Q2 recurring revenues
– Increase average subscription size to at least $295 per month
– Increase the share of recurring subscriptions vs one-time deals to 85%
– Up-sell to 100 existing customers
– Reduce churn to less than 1% monthly
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OKR key points
• 3-5 Objectives you strive for
– Where you want to get
• 3-5 Key Results to be achieved under each Objective
– Metrics, to see if you’re getting there
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Why limit amount of goals and metrics?
• 3 O x 3 KR = 9
• 4 O x 4 KR = 16
• 5 O x 5 KR = 25
People can remember and focus on 9 things, but not 25 or more
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Differences compared to other methods
• Two-level grouping: – One O has multiple KRs
• Everything is measurable
• Limited amount of goals to focus
• Linked from company to team to person
• All public across the company
• Goals are difficult, but not impossible
• Often not tied to salary & bonuses
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Objectives: your goals. The “What?”
• Aspirational
• Challenging
• Qualitative
• Time bound
• Unambiguous
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Key Results: evaluation of achievement. The “How?”
• Measurable & Quantifiable
• Objectively gradable
• Achievable
• Usually numerical
• Actionable
• Tangible
• Outcome related
Did we meet the Objective?
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Key Result types
• 0-100% progress
• Any % value or x% to y% change
• Euros, dollars
• Items, units, articles, people
• 1-5 or 1-10 grade rating
• Milestones, stages, project phases
• Deliverables, tasks, outcomes
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Roof-shots
• Definitely achievable and easier
• Practical regular activities
• “Business as usual”
• Still pushing to be better
Need to hit 100%
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Moonshots
• Stretch goals
• Ambitious bold goal you might reach
• Failure and risk-taking is an option
• Challenging & uneasy
• Push people to achieve more
Even 60-80% progress or 2/3 is good
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Keys to make OKRs a success
• Less is more: max 3-5 Os and KRs
• Evaluate and mark progress weekly
– Comment on milestones
• Say no to non-OKR activities
• Think big, set goals that matter a lot
• Reflect each week and at the end of Q how far you are
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Common mistakes
• Over 5 Os or KRs
• Listing too small unimportant tasks
• KRs not measurable, not numeric
• Not understandable to co-workers
• Continuous ongoing Q-to-Q goals have no growth
• Not challenging enough
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Usual schedule
• Overlapping last Q review + new Q definition
• 1-2 weeks before and after Q ends/starts
• Mid-quarter review at 45 days
– Or monthly each 30 days
– Ideally on all company levels
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Hierarchy of OKRs and linking
• Top-down and bottom-up - both OK
• Usually start from Company level
• OK to do 1 or 2 levels only at first
• Lower level O becomes higher level KR
• Link weekly tasks to Objectives
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Examples of bad KRs
• Keep working on product roadmap
• Talk to customers about our products
• Make sure our employees are happy
• Keep working on new website
• Assure onboarding is done well
• Continue the CRM project
• Support our sales team
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Try out Weekdone OKR software
Sign up for free at
Weekdone.com
Browse the OKR Examples Database
http://okrexamples.co/
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Helpful OKR resources
Free OKR Guide E-book
https://weekdone.com/ebook/okr-goal-setting-guide-template/
Employee Guide to Getting Started with OKRs
https://blog.weekdone.com/employee-guide-getting-started-okrs/
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Example Company or HR OKR
• Improve internal employee engagement
– Reach weekly employee satisfaction score of at least 4.7 points
– Conduct 3 monthly “Fun Friday” all-hands meetings with an external motivational speaker
– Start using OKR’s in all 10 teams and 5 departments
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Example Marketing OKR
• Successfully implement the weekly newsletter
– Grow subscriber base at least 5% per week
– Increase the CTR% to above industry average of 3.5%
– Finalize the content strategy, key messages and topic structure for next 6 months
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Example Marketing OKR
• Activate user-testing
– Conduct at least 4 face to face testing sessions per month
– Receive at least 15 video interviews from Usertesting.com
– Make sure at least 80% of people interviewed are from core target group (Directors, VP’s, CEO’s, Division Managers) not random friends
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Example CFO or Finance OKR
• Improve annual budgeting and business planning
– Receive business line budget proposals before Sept 1st
– Conduct a daily planning session with each division manager before their proposals
– Have each business line manager start using our online dashboards
– Close the final budget by November 30th
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Example Product Manager OKR
• Implement new 360-degree product planning process
– Divide exact clear roles between sales, marketing, design and development
– Integrate user testing into planning phase
– Integrate user testing into testing phase
– Decide on input methods from design and development back into product management
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Got questions?Feel free to get in touch with me:
Jüri Kaljundi
CEO & Co-founder, Weekdone
E-mail: jk@weekdone.com
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