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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