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Objectives and Key Results (OKRs)How to use the OKRs process to achieve great results in 2015 and beyond

@7Geese #OKRs2015

IT’S NICE TO MEET YOU.

Wendy Pat Fong Director of Customer Success

Amin Palizban CEO & Founder

AGENDA 1. History of Management by Objectives

2. Introduction to Objectives & Key Results (OKRs)

3. Attributes of an OKR

4. Cascading and Aligning OKRs

5. Closing, scoring, and learning from OKRs

6. OKRs Process Timeline

7. OKRs Common Pitfalls and Best Practices

8. Audience Q & A

MANAGEMENT BY OBJECTIVES

Management framework where managers set objectives (derived

from bigger objectives) and measure performance against it

Popularized by Peter Drucker in the 60s

Enforce all efforts are aligned with organization’s common goal

Eliminate gaps, friction, and duplication of work

Using self-control to drive performance rather than domination

Enable motivation, alignment, and better teamwork

MANAGEMENT BY OBJECTIVES

SMART Goals, KPIs, & Balanced Scorecards in 80s and 90s

OKRs is an MBO process invented by Intel and introduced to

Google in 1999 by John Doerr

After Google’s success with OKRs, Zynga, Dropbox, LinkedIn, and

many other tech companies adopted the process

Rick Klau from Google Ventures presented how Google does

OKRs in 2013 and it has become even more popular

ANATOMY OF A SINGLE OKR

Create multi-planetary life

- Send unmanned vehicle to Mars by 2002- Send humans to Mars by 2040

ANATOMY OF A SINGLE OKR

Conduct a great webinar on OKRs

- Have 50 attendees join- Finish on-time within 1-hour- Have 10 people commit to trying OKRs

ATTRIBUTES OF OKRS

Set quarterly and annually

Measurable & graded each quarter & stretch (70% achievement is good)

50% top-down and 50% bottom-up

Cascaded: Company, Department, Team, and Individual levels

Are publicly available to all the company

Maximum 5 Objectives per person with 4 Key Results

De-coupled from performance evaluations

CASCADING AND ALIGNMENT

CEO or the executive team set annual OKRs and then

derive quarterly OKRs for the organization

Each Key Result from company quarterly objective

becomes an Objective for managers one level down

The assigned manager then sets Key Results for the new

objective inherited in negotiation with her manager

The process is repeated until everyone in the company

has set their OKRs

CEO’s Objective

Department Leader’s Objective

KR KR KR

Team Lead’s Objective

Individuals Objective

KR KR KR

KR KR KR

KR KR KR

CASCADING AND ALIGNMENT

CLOSING, ASSESSING, & LEARNING

Every objective must be graded by employee/manager at end of the quarter

Google recommends rating all Key Results from 0-1 - average of all KR grades become the objective score- average of all objective grades become individuals overall score

If objectives are measurable, the objective progress can become the score

and then you can just say if the objective met or did not meet expectations

Important: Grading/assessment is meant to be for learning and reflection

purposes and not performance evaluations

OKRS PROCESS TIMELINE

Jan FebDec

Set and communicate Q1’s organization OKRs

Everyone to draft their Q1’s OKRs and align to

their manager

Managers meet with their direct reports to close/grade Q4’s OKRs

and approve Q1’s OKRs

Managers to have 1:1s at least once a month with their direct reports to

review progress on OKRs

Q4 Q1

PITFALLS & BEST PRACTICES

Demotivation if OKRs are too hard & linked to compensation

Takes CEO & Exec team commitment

Takes about 2 quarters to get right

Must be negotiated and not delegated

Focus on learning and continuous improvement

Make sure teamwork is promoted

Limit number of Objectives (max 5) and Key Results (max 4)

Q & AEmail wendy@7geese.com for any other questions

THANKS FOR JOINING!

A recorded version of this Webinar will be available on our blog at blog.7geese.com

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