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The Guide to Objectives and Key Results (OKRs)

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Objectives and Key Results is the goal setting framework used at companies like Google, LinkedIn, and Intel. John Doerr, partner at KPCB, passed on Objectives and Key Results to Google helping them grow from 50 to 50,000 people. This is the complete guide to OKRs, containing everything you need to know (even exclusive slides and examples from Doerr himself.)

Published in: Leadership & Management
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The Guide to Objectives and Key Results (OKRs)

  1. 1. 1 The Guide to OKRs
  2. 2. 2 A Brief History
  3. 3. 3 The Good and Bad of MBOs The Good The Bad • Infrequently updated • Siloed • Management-driven • Tied to performance reviews and compensation • MBOs ushered in era of results-oriented management
  4. 4. 4 A Brief History
  5. 5. 5 The OKRs 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 • Not tied to performance reviews/compensation
  6. 6. 6 So… What are OKRs?
  7. 7. 7 The guide to OKRs OKRs are a management methodology that helps companies focus effort on the same important issues throughout their organization
  8. 8. 8 Objectives • 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… What I want accomplished
  9. 9. 9 Key Results • Clearly make the objective possible • Measurable • Limited in number • Time related How I will accomplish it
  10. 10. 10 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
  11. 11. 11 Now that you’re convinced…how do you actually do OKRs?
  12. 12. 12 John Doerr’s famous football example
  13. 13. 13 General Manager Head of PRHead Coach OBJECTIVE Make $ for owners KEY RESULTS 1. Win Super Bowl 2. Fill stands to 88% OBJECTIVE Win Super Bowl KEY RESULTS 1. 200 yd/game passing attack 2. 3rd ranked defense in NFL 3. 25 yd punt return average OBJECTIVE Fill stands to 88% KEY RESULTS 1. Hire 3 colorful players 2. Get 2 Monday night games 3. Highlight key players
  14. 14. 14 Head of PRHead Coach OBJECTIVE Win Super Bowl KEY RESULTS 1. 200 yd/game passing attack 2. 3rd ranked defense in NFL 3. 25 yd punt return average OBJECTIVE Fill stands to 88% KEY RESULTS 1. Hire 3 colorful players 2. Get 2 Monday night games 3. Highlight key players Offense Defense Special Teams Scouts Publicity Agent News Staff OBJECTIVE 200yd/game passing attack KEY RESULTS 75% Completion OBJECTIVE 3rd ranked defense in NFL KEY RESULTS Less than 100 yd passing per game OBJECTIVE 25 yd punt return average KEY RESULTS 3 blocked punts OBJECTIVE Hire 3 colorful players KEY RESULTS Visit top 25 colleges OBJECTIVE Get 2 Monday night games KEY RESULTS 5 ESPN special features OBJECTIVE Highlight key players KEY RESULTS Hire 10 new cheerleaders
  15. 15. 15 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 - Too 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
  16. 16. 16 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 Larry’s Objective Win Super Bowl Owner Status Grade • 1. 200 yards a game passing attack Jeff • 250 yrds/game • 2. 3rd ranked defense in NFL Joe • 9th ranked defense • 3. 25 yard punt return average Aaron • 10 yrds punt return avg TOTAL 1 0.7 0.4 0.7
  17. 17. 17 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 “OKRs are a timeless framework, but the methods for implementing them are antiquated. They need to be modernized.”
  18. 18. 18 Goal Science™ Thinking Connected Supported Progress-based Adaptable Aspirational Transparent and aligned Social reinforcement and recognition Frequent and measurable feedback Flexibility to respond to changing priorities Retrospection to encourage excellence
  19. 19. 19 Connected Transparent, aligned and all individuals participate People view their manager’s goals 20% more often than their own
  20. 20. 20 Supported Working transparently with social reinforcement and recognition 27% of @mentions are made by someone other than the goal owner
  21. 21. 21 Progress-based Frequent, measureable feedback and ongoing wins Goals updated in the first month are 3X more likely to be updated frequently
  22. 22. 22 Adaptable Flexibility to respond to changing priorities and business needs 88% of stall points are within the control of the company
  23. 23. 23 Aspirational Retrospection to encourage excellence Top-performing department at an industry leading energy company: Average progress: 82% Average score: 97%
  24. 24. 24 Why use BetterWorks for OKRs? Disciplines Thinking 1 Communicates accurately • Lets everyone know what’s important • …and supports everyone with relevant feedback 2 Establishes indicators for measuring progress • …and captures your progress in real-time 3 4 Focus efforts • Know exactly what you're working on • And WHY you are working on it!
  25. 25. 25 @betterworks BetterWorksHQ BetterWorks BetterWorks

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