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The basics of OKR - Google's secret sauce

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The basics of OKR - Google's secret sauce

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The acronym OKR stands for Objectives and Key Results, a popular goal management framework that helps companies implement strategy. The benefits of the framework include improved focus, increased transparency, and better alignment. OKR achieves this by organizing employees and the work they do around achieving common objectives.

OKR helps entire companies communicate company strategy to employees in an actionable, measurable way. It also helps companies to move from an output to an outcome-based approach to work.

The acronym OKR stands for Objectives and Key Results, a popular goal management framework that helps companies implement strategy. The benefits of the framework include improved focus, increased transparency, and better alignment. OKR achieves this by organizing employees and the work they do around achieving common objectives.

OKR helps entire companies communicate company strategy to employees in an actionable, measurable way. It also helps companies to move from an output to an outcome-based approach to work.

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The basics of OKR - Google's secret sauce

  1. 1. OKR The Basics of @henrikjanvdpolBy Henrik-Jan van der Pol
  2. 2. OKR = Objectives & Key Results Companies using OKR It’s a way to run your life, your team or your company. It creates focus and prioritization. It aligns team effort and makes sure everybody is working towards the same goal. www.perdoo.com
  3. 3. Objectives & Key Results Objectives are goals. They tell you where to go. Each objective has a few Key Results. They indicate how you will get there. An Example You sell barbeques online. You want to grow revenue to 1 million this quarter (objective). Your Key Results could be: • Rank Top 3 in Google’s Search Results for ‘buy barbeque’ • Run a 20%-discount-campaign in 2 national newspapers www.perdoo.com
  4. 4. From the mission & vision, you can derive your Objectives. Together they tell you Where. Mission, Vision, OKRs, Todos Todos are the things you do to achieve your Key Results. Together they tell you How. www.perdoo.com
  5. 5. 4 OKR Rules • Set them annually and quarterly A quarter and a year are timeframes in which you really can achieve something. The same timeframes are also used to evaluate companies. • Don’t have too many 5 Objectives with 4 Key Results each is your maximum per quarter. Having more will only distract you from what really needs to be done. • Make them challenging. Research demonstrates that people who set challenging targets achieve more. Expect to get to 70-80% of your challenging target. • A KR must have a number. Numbers enable objective evaluation and create a learning process. www.perdoo.com
  6. 6. Your vision is the long term view. OKRs on a Time Scale From the mission & vision, you derive your annual objectives. Annual objectives split into quarterly objectives. www.perdoo.com
  7. 7. Grading Only Key Results get graded. An Objective’s grade is the average of its Key Results. A good Key Result always enables objective grading. Objective grading is necessary for learning. Grading shall never be used for employee evaluation. Some guidelines • Use a scale from 0 to 1. Getting to 70-80% of your target will result in a .7 or .8 grade. • Grade your OKRs at the beginning of the next quarter. • If you constantly score a 1, your OKRs were not challenging enough. You should score a .7 or .8 www.perdoo.com
  8. 8. • • •• Brainstorm 2014 & Q1 Objectives Define Q2 Objectives Define Q3 Objectives Define Q4 Objectives etc. Draft KRs Draft KRs Draft KRs Draft KRs Grade previous OKRs 1 January Grade previous OKRs Grade previous OKRs Grade previous OKRs 1 April 1 July 1 October Timeline 2015 www.perdoo.com
  9. 9. Perdoo brings the three ingredients for growth—strategy, goals, and people—together on an easy-to-use platform. It enables CEOs to communicate the strategy in real-time, so that teams and employees can align their efforts to drive the results that matter— using KPIs & OKRs. Sign up for a free Perdoo account here. Unlimited goals & users. Free forever.
  10. 10. About the author Henrik-Jan van der Pol @henrikjanvdpol http://linkd.in/1KxzaDV Henrik-Jan van der Pol is a tech entrepreneur and former management consultant on a mission to help companies realize their ambitions. Working as a consultant, he realized that too many organizations fail to achieve the results they desire. Henrik learned first-hand that goals bridge the gap between today’s reality and a desired future, and are a powerful tool to focus, align & engage the organization. This resulted in him launching Perdoo—a goal management software for business—together with Jonathan in late 2014.

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