OKRs

Achieving our most important goals

Vicente Goetten – Aug 2016@goetten

“Many companies get comfortable doing what they have always done, with a few incremental changes. This kind of incrementalism leads to irrelevance over time, specially in technology, because change tends to be revolutionary not

evolutionary”

Eric Shmidt, Jonathan Rosenberg

“Don’t tell people how to do things, tell them what you need done and let them surprise you with their results”

General George Patton

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What is OKR?

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What is OKR?

OKR stands for OBJECTIVE KEY RESULT

System originated at Intel (Andy Grove implementing Peter Drucker’s Management by Objective system) and used by folks at Google, Zynga, LinkedIn, and General Assembly to promote rapid and sustained growth. O Stands for Objective, KR for Key Results. Objective is what you want to do, Key Results are how you know if you have achieved them. OKRs are set annually and/or quarterly and unite the company behind a vision.

But it all starts with a MISSION!

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What is OKR?

Mission

“Our mission is to build unrivaled products adding value for our clients, through the knowledge, creativity, and dedication of our people, leading to superior results to our shareholders”

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What is OKR?

Mission

“Open Happiness”

“Ideas worth spreading”

”Organize the world’s information”

“Positively impact one billion people”

“Connect the world through games”

Uniquely yours

Highly aspirational

Neither narrow nor technology specific

Aimed at Heart & Mind

Declared with sincerity & confidence

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What is OKR?

Objective

The Objective is inspiring and motivates you and your team. It’s a single sentence, it should be qualitative and inspirational! Use the language of your team! It’s like a mission statement, only for a shorter period of time.

”You know you have a good objective when you leap out of bed in the morning eager to make it happen”.

Examples:

- Build a valuable platform for restaurant suppliers to manage orders

- Launch an awesome MVP for our game to iOS

- Cloud a round that lets us kill it next quarter

- Transform Palo Alto’s coupon using habits

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What is OKR?

Key Result

Key Result (KR) is about how to meaningfully measure progress. The progress is measured by output not outcome. It helps to make sure your team are always making progress toward that desired end state. No matter how many other things are on your plate. Key Results keep the objective Real. You know you have the right KR when you are a little scared you can’t make them.

Performance Revenue Quality Growth Engagement

• 25k downloads / day• Revenue of $50k/day• Invited users invited 2 more to join the app• Satisfaction score of 8/10

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What is OKR?

This week

P1: Finish compsP1: Debug order flowP2: Call customer XP2: Plan team picnic

Your objective

KR: X acquisition 5/10KR: X Retention 5/10KR: X Revenue 5/10

Next 4 weeks pipeline

Item 1Item 2Item 3

PS: Only big stuff

Health Metrics

Customer satTeam healthCode health?

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Quick guide to implement OKRs

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OKRs – How to implement (A Quick Guide)

Once you have a GOOD mission statement:

• Collect suggestions for objectives (each leader bring suggestions from the teams)

• Define with the leaders 2 objectives for the period (year or quarter). Not more than 2

• Define 3-4 metrics for each one of the objectives (quality, growth, engagement, revenue, performance)

• Make your OKRs PUBLIC for the entire company (everyone needs to know how they can make a difference)

• Have the teams to break down the OKRs into their own OKRs (traceability)

• Begin the weekly meetings with OKRs (every Monday?)

• Have weekly celebrations about your achievements (every Friday?)

• Define your OKRs once a year or every quarter

• Don’t forget your Health Metrics!

If you shoot for the moon, you may not make it but it’s a hell of a view!

Christina Wodtke – Radical Focus: Achieving your most important goals

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