Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Introducing OKRs

105 views

Published on

As the pace of change continues to increase, implementing strategy and changing direction is still a major hurdle for most organizations. Companies now need to be able to focus, align and engage their people around dynamic and measurable outcomes - becoming more agile and flexible in their outputs and process while helping people understand how they connect with and impact their companies future success.

In this presentation, Carlos Oliveira will be presenting Objectives and Key Results, a simple goal setting framework popularized by Google and used by leadership teams across Silicon Valley.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Introducing OKRs

  1. 1. 1
  2. 2. ©AdaptiveX
  3. 3. • • • ©AdaptiveX
  4. 4. ©AdaptiveX
  5. 5. Since 2000, over 52% of Fortune 500 companies are gone
  6. 6. customers value realized for the customer businesses value realized for the business products or services problems wants needs Sourced: Melissa Perri - Escaping the Build Trap
  7. 7. customers value realized for the customer businesses value realized for the business problems wants needs $$$ products or services Sourced: Melissa Perri - Escaping the Build Trap
  8. 8. Customer Value Business Value ©AdaptiveX
  9. 9. Slide Credit: Jake Knapp and John Zeratsky
  10. 10. Slide Credit: Jake Knapp and John Zeratsky
  11. 11. Slide Credit: Jake Knapp and John Zeratsky
  12. 12. Slide Credit: Jake Knapp and John Zeratsky
  13. 13. Slide Credit: Jake Knapp and John Zeratsky
  14. 14. Increases the likelihood of building the wrong thing Slide Credit: Jake Knapp and John Zeratsky
  15. 15. Meme Credit: David Bland
  16. 16. Slide Credit: Jake Knapp and John Zeratsky Why are we doing what we’re doing?
  17. 17. 40% of employees in an organization know their company’s goals. - Chris Zook (Bain & Company) ©AdaptiveX
  18. 18. 7% of employees fully understand their companies goals and what’s expected of them. - Robert S. Kaplan ©AdaptiveX
  19. 19. Customer Value Business Value Employee Value ©AdaptiveX
  20. 20. “People are self-managing -- they don't need to be managed. Once they know what they need to do, they'll go figure out how to do it. What they need is a common vision. And that's what leadership is: [h]aving a vision; being able to articulate that so the people around you can understand it; and getting a consensus on a common vision.” – Steve Jobs
  21. 21. ©AdaptiveX
  22. 22. Objectivesandkeyresultsareagoalsetting frameworkusedtocreatealignmentand engagementaroundmeasurablebusiness goals(inshortercycles). ©AdaptiveX
  23. 23. ©AdaptiveX
  24. 24. Adaptive Helps the organization adapt and respond to change faster by using shorter cycles. ©AdaptiveX
  25. 25. Outcome Oriented Helps the organization emphasize outcomes over outputs by placing the focus on the results and not the tasks. ©AdaptiveX
  26. 26. Engaging By making goals bi- directional (with bottom- up input), it helps to create engagement and alignment. ©AdaptiveX
  27. 27. Transparent OKR are public and visible to help everyone know what everyone else is working on. ©AdaptiveX
  28. 28. Continuous By using regular check-ins or inspect and adapt cycles. OKR helps the organization keep a cadence in terms of tracking progress towards results. ©AdaptiveX
  29. 29. Doerr’s Goal Formula The Intent Must describe what you are trying to achieve and how you are going to measure its achievement. I WILL ______________ AS MEASURED BY ______________ Source Credit: Felipe Castro
  30. 30. Doerr’s Goal Formula Components The objective is what we want to achieve. The key results is how we know if we are getting there. I WILL <OBJECTIVE> AS MEASURED BY <KEY RESULTS> Source Credit: Felipe Castro
  31. 31. Qualitative Objective Create an awesome customer experience An inspirational and memorable, qualitative description of what we want to achieve. • Keep it short • Keep it memorable • Describe what you’ll achieve by end of the quarter Source Credit: Felipe Castro
  32. 32. Quantitative A way to measure progress and know that you’re moving towards achieving your objective. • 2 to 5 per objective (less is more) • Quantitative and measurable KeyResults: Increase net promoter score to 52% Increase repurchase rate by 10% Reduce customer acquisition cost by 5% Objective Create an awesome customer experience Source Credit: Felipe Castro
  33. 33. Quantitative A way to measure progress and know that you’re moving towards achieving your objective. • 2 to 5 per objective (less is more) • Quantitative and measurable KeyResults: Reach 50 daily active users Achieve 40% conversion rate from free to paid Objective Launch new product Source Credit: Felipe Castro
  34. 34. Activity-Based Value-Based Measures the delivery of output to the organization. Traditional measures: • Features • Tasks • On-Time, On-Budget, On-Schedule Measure the delivery of value to the organization or the customer. Modern measures: • Business Outcomes • Customer Behaviours • Employee Behaviours
  35. 35. • • • ©AdaptiveX
  36. 36. Budget Travelers Call Centres WWW Tickets Fees Automated Low Fare Flights Premium Service Single Aircraft Model Low Cost Airports Quick TurnaroundsCar Rental Hotel Insurance Maintenance Training Impersonal Airports Call Centres Where will you play? How will you Win? ©AdaptiveX
  37. 37. Vision Where do we want to be in 5 to 10 years? Annual Goal What do we plan to achieve in 1 year? Quarterly Objectives What do we plan to achieve in 1 quarter? Quarterly Objectives Key Results Key Results Key Results Key Results How will we know? Initiatives Initiatives Initiatives Initiatives What “things” will we try? Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% KR3: Reduce customer acquisition cost by 5% Company Objective: Team Objective: To be the most flown airline in the world To achieve the most daily departures in North America Team Objective: … … … Vision Annual Goal ©AdaptiveX Q1
  38. 38. Example Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  39. 39. Customer Customer Reduce Back Pain Customer’s objective Example Connect to what’s important in their lives Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  40. 40. Customer Has clean clothes Steps in the journey Use Reduce Back Pain Customer Customer’s objective Example Connect to what’s important in their lives Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% Learn ©AdaptiveX
  41. 41. Customer Has clean clothes SnapTravel Trivago Customer Steps in the journey Learn Use Reduce Back Pain Customer’s objective Example Connect to what’s important in their lives Fb Advert Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  42. 42. Customer Has clean clothes Marketing Page Learn Use Reduce Back Pain Steps in the journeyCustomer Customer’s objective Example Connect to what’s important in their lives SnapTravel Trivago Fb Advert Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  43. 43. Customer Has clean clothes Marketing Page Learn Use Reduce Back PainRedeem Special Offer Steps in the journeyCustomer Customer’s objective Example Connect to what’s important in their lives SnapTravel Trivago Fb Advert Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  44. 44. Customer Has clean clothes Marketing Page Learn Use Reduce Back PainRedeem Special Offer Richard Steps in the journeyCustomer Customer’s objective Example Connect to what’s important in their lives Airline Service SnapTravel Trivago Fb Advert Make Reservation In the System Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  45. 45. Customer Has clean clothes Marketing Page Richard Learn Use Reduce Back PainRedeem Special Offer Steps in the journeyCustomer Customer’s objective Example Connect to what’s important in their lives Airline Service SnapTravel Trivago Fb Advert Make Reservation In the System Book Flight Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  46. 46. SnapTravel Trivago Fb Advert Customer Has clean clothes Marketing Page Richard Learn Use Reduce Back PainRedeem Special Offer Steps in the journeyCustomer Customer’s objective Awareness to Registration Conversion Rate Example Connect to what’s important in their lives Airline Service Make Reservation In the System Book Flight Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  47. 47. SnapTravel Trivago Fb Advert Customer Has clean clothes Marketing Page Richard Discover Learn Use Reduce Back PainRedeem Special Offer Steps in the journeyCustomer Customer’s objective 2% improvement in the registration conversion increases flights booked by 10% Example Connect to what’s important in their lives Airline Service Make Reservation In the System Book Flight Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% ©AdaptiveX
  48. 48. Vision Where do we want to be in 5 to 10 years? Annual Goal What do we plan to achieve in 1 year? Quarterly Objectives What do we plan to achieve in 1 quarter? Quarterly Objectives Key Results Key Results Key Results Key Results How will we know? Initiatives Initiatives Initiatives Initiatives What “things” will we try? Company Objective: Achieve the most daily departures in the US KR1: Captured half of the top 50 US metro areas KR2: Increased flights booked by 30% KR3: Reduce customer acquisition cost by 5% Company Objective: Team Objective: To be the most flown airline in the world To achieve the most daily departures in North America (as measured by …) Team Objective: Achieve an awesome online customer experience KR1: Increase customer registrations by 2% KR2: Reduce calls to the call centre by 50% Vision Annual Goal AI Chatbot ©AdaptiveX Q1
  49. 49. ©AdaptiveX
  50. 50. ©AdaptiveX
  51. 51. ©AdaptiveX
  52. 52. ©AdaptiveX
  53. 53. • • ©AdaptiveX
  54. 54. ©AdaptiveX
  55. 55. ©AdaptiveX ✓ ✓ ✓
  56. 56. ©AdaptiveX ✓ ✓ ✓
  57. 57. ©AdaptiveX ✓ ✓ ✓
  58. 58. ©AdaptiveX
  59. 59. MBOs Intel OKRs “What” “What” and “How” Annual Quarterly and Monthly Private and Siloed Public and Transparent Top-down Bottom-up or Sideways (~50%) Tied to Compensation Mostly Divorced from Compensation Risk Averse Aggressive and Aspirational ©AdaptiveX
  60. 60. • • • • •

×