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Building Measurable Outcomes with OKRs www.AgilityHealthRadar.com
Building Measurable Outcomes with OKRs
www.AgilityHealthRadar.com
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Agile as a delivery
mechanism
Delivery Agile
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Strategy
Tactics
Operations
Culture
Big Bets, Long Feedback Cycles
Project-based, Static Annual Planning
Top-Down, Command & Control
Waterfall development/ project management
Operations + scattered experiments
Kanban / Scrum
unagile
Companies today need end-to-end agility
End-to-End Agility
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Strategy
Tactics
Operations
Culture
Waterfall development/ project management
Operations Kanban / Scrum
Tactics Safe-to-fail Experiments, Short Feedback Cycles
StrategyData Driven, Iterative, Hypotheses Validation
Culture Aligned Autonomy Around Outcomes
To move to end-to-end agility,
we have to reinvent how we plan
and align.
Static Annual Planning
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Strategic Objectives
Strategic Initiatives
?
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Progress is measured by outputs,
not outcomes.
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Marty Cagan, Silicon Valley Product Group
“Teams today are often feature factories, with little regard for whether
the features actually solve business problems.”
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The Forgotten Column: Did It Work?
John Cutler
DoneTo DoIdeas DoingAchieved Desired
Outcome
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What happens when you measure
outcomes?
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Surprise!
Most ideas fail.
Most ideas fail
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In a non-optimized environment:
Most ideas fail: non-optimized environment
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33%
33%
33%1/3 generates positive results
1/3 generates no results
1/3 generates negative results
“At Google and Bing, only about 10% to 20% of
experiments generate positive results.”
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“The vast majority of [ideas] fail in
experiments, and even experts often
misjudge which ones will pay off.”
Ron Kohavi
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The Alternative is OKR
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• Silicon Valley's agile alignment framework.
• Used By Google, Spotify, Twitter, LinkedIn, AirBnB, Dropbox…
• Simple, fast-cadence, bi-directional.
OKR: Objectives and Key Results
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OKR é Difícil…
Core Concepts
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•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
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Key Results are measurable.
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“If it does not have a number,
it is not a Key Result”Marissa Mayer
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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:
“Key Results must be results.”
Christina Wodtke, author, Radical Focus
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“Defining outcomes is hard for people because they only worked in companies where they had to define outputs.” Barry O’Reilly, author, Lean Enterprise
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Outcomes Thinking is hard.
Having a place to park ideas helps with the
transition. felipecastro.com
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Two Buckets
The outcomes you want to achieve.
OKRs
ActivitiesThings you are going
to do.(Outputs)
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
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Park ideas here
Key ResultsMeasure outcomes: the value and the benefits you deliver to your customers or your company. They are measurable on a sliding scale.
Activities
Are outputs. Everything you deliver: tasks, projects, programs, deliverables, features, epics and initiatives associated with achieving team or company-level OKRs. They are usually binary.
Key Results vs. Activities
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Treat activities as experiments.
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Example: OKR + Activities
•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:
•Launch feature X.•Redes ign the cus tomer journey.•Run 3 new experiments.•Develop a new customer engagement metric.
Activities:
Not a copy of your roadmap
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How to Be Successful with OKR
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The OKR Cycle
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Set
Achieve
Align
Setting OKRs
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Achieve
Align
Set
Begin with the end in mind
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Key Results: How we keep score. We will know that we are successful if those metrics improve.
Objective: What we want to achieve.
Your intuition tells you to start here.
But you should start here instead.
Begin with the end in mind
• Work backward.
• Start with the outcomes you want to achieve and write your Key Results first.
• Then create an Objective that will make your OKR engaging and memorable.
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Don’t wait for the perfect metric
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OKRs can be raw,
imperfect
Baby steps towards better measurement
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Aligning OKRs
Achieve
Align
Set
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.
• Create alignment around the outcomes you want to achieve using shared OKRs.
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Achieving OKRs
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Achieve
Align
Set
Create a Follow-through Cadence
• Don’t treat your OKRs as New Year’s Resolutions.
•The Check-in is a weekly ceremony for measuring OKRs and adjusting the corresponding activities.
•Adopting it is crucial to success.
•It can be merged with existing ceremonies.
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AboutSallySallyElatta,CEOAgileTransformationInc.
Developer>Architect>Trainer&Coach>EntrepreneurEnterpriseBusinessAgilityStrategist
PublicSpeaker|ThoughtLeader|BusyMom☺[email protected]
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