OKRs

Objectives & Key Results

OKRs are a simple process that help drive all types of organizations forward.

Today

- Introduce OKRs

- Show some examples

- Define a set OKRs for the company

- Define a first draft of OKRs for each team/department

Introduction

OKRs are a collaborative goal-setting protocol for companies, teams, and individuals.

First used at Intel by Andy Grove in the 1970s

(where John Doerr worked)

John Doerr is a VC & an early investor in Google

Invested $11.8M for a 12% stake in Google in (1998).

His net worth is ~ $126 Billion as of Jan 2021.
 

John Doerr

"Ideas are easy. Execution is everything."

John Doerr used his own succesful experience at Intel & Sun to legitimize & introduce OKRs to Google in 1999. 

A management methodology that helps to ensure a company focuses efforts on the same important issues throughout the organization.

OKRs, short for Objectives & Key Results, are

OKRs provide focus & alignment

OKRs are a collaborative goal-setting protocol for companies, teams, and individuals.

An OBJECTIVE is the

"What"

needs to be achieved

An Objective should be

- Significant

- Concrete

- Action oriented

- (Ideally) Inspirational

KEY RESULTS benchmark and monitor the

"How"

we get to the objective

A Key Result should be

- Specific

- Time-bound

- Aggressive

- Realistic

- Measurable

- Verifiable

Once the key results are completed, the objective is necessarily achieved.

You either meet a key result or you don't.

(otherwise the OKR was poorly defined in the first place)

Today, my OBJECTIVE is to build a planning model for the company, as measured by three KEY RESULTS

Example

KR#1: Finish this presentation on time

KR#2: Create a first set of OKRs for our company

KR#3: Gain 100% commitment from people in the room to implement OKRs.

Why use OKRs?

2) "Specific" hard goals produce a higher level of output than "vaguely worded" ones

Source: original experiments conducted by Edwin Locke, Psychology Prof. University of Maryland, 1970.

1) "Hard" goals drive performance more effectively than "easy" goals

90% of subsequent experiments confirmed Edwin Locke's insight

that productivity is enhanced by well-defined challenging goals.

Source: Deloitte, Deloitte Review, Issue 16, Jan. 2015

"Clearly defined goals that are written down and shared freely... create alignment, clarity, and job satisfaction"

OKRs are widely adopted by successful companies of all types

• Tech companies (Google, Dropbox, Slack, Spotify)
• Entreprise companies (Disney, BMW, Exxon, Samsung)
• Startups (e.g. Kindred, later acquired by Salesforce)
• Not-for-profits

Now, let's try some examples...

The Unicorns Ice-Hockey Team

OKRs

Head Coach
OKRS

Offensive coach
OKRs

Defensive coach
OKRs
 

Special Teams coach
OKRs
 

General
Manager
OKRs

OKRs Structure

SVP of Marketing

Create a winning & profitable team

• KR: Win the league
• KR: Fill home stands to 90% capacity

General Manager

Win the league

• KR: Attack scores at least 2 goals per game on average
• KR: Defense allows fewer than 2 goals per game on average
• KR: Power play special teams have at least 65% scoring conversion rate

Head Coach

Attack scores at least 2 goals per game on average

• KR: Maintain a > 70% pass completion rate for offense
• KR: Create at least 5 shot opportunities per period
• KR: Convert at least 15% of shots taken

Offensive Coach

Defense allows fewer than 2 goals per game on average

• KR: Maintain a > 70% pass completion rate for defense on average
• KR: Allow less than 5 shot opportunities per period
• KR: Maintain a 15% goal shutout during the season

Defensive Coach

Power play special teams have at least 65% scoring conversion rate

• KR: Practice 3 different set-pieces every week
• KR: Create 6 shot opportunities per power play
• KR: Convert 20% of shots taken

Special Teams Coach

Fill home stands to 90% capacity

• KR: Sell > 60% of all tickets through yearly memberships
• KR: Increase direct sales from website by 20%
• KR: Increase social media channel sales by 10%

SVP of Marketing

Another quick example

A simple template

[Objective], as measured by [KR#1]

[KR#2]

[KR#3]

Now, it's your turn.

Think about what you should achieve in the next 3 months, next year, next three years?

Think about some challenges that could prevent you or the company from achieving those things.

Thanks!