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©AdaptiveX
•
•
•
©AdaptiveX
©AdaptiveX
Since 2000, over 52% of Fortune 500 companies are gone
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
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
Customer
Value
Business
Value
©AdaptiveX
Slide Credit: Jake Knapp and John Zeratsky
Slide Credit: Jake Knapp and John Zeratsky
Slide Credit: Jake Knapp and John Zeratsky
Slide Credit: Jake Knapp and John Zeratsky
Slide Credit: Jake Knapp and John Zeratsky
Increases the likelihood of building the wrong thing
Slide Credit: Jake Knapp and John Zeratsky
Meme Credit: David Bland
Slide Credit: Jake Knapp and John Zeratsky
Why are we doing what we’re doing?
40%
of employees in an organization
know their company’s goals.
- Chris Zook (Bain & Company)
©AdaptiveX
7%
of employees fully understand their
companies goals and what’s
expected of them.
- Robert S. Kaplan
©AdaptiveX
Customer
Value
Business
Value
Employee
Value
©AdaptiveX
“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
©AdaptiveX
Objectivesandkeyresultsareagoalsetting
frameworkusedtocreatealignmentand
engagementaroundmeasurablebusiness
goals(inshortercycles).
©AdaptiveX
©AdaptiveX
Adaptive
Helps the organization
adapt and respond to
change faster by using
shorter cycles.
©AdaptiveX
Outcome
Oriented
Helps the organization
emphasize outcomes over
outputs by placing the
focus on the results and not
the tasks.
©AdaptiveX
Engaging
By making goals bi-
directional (with bottom-
up input), it helps to
create engagement and
alignment.
©AdaptiveX
Transparent
OKR are public and visible
to help everyone know
what everyone else is
working on.
©AdaptiveX
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
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
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
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
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
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
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
•
•
•
©AdaptiveX
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
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
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
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
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
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
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
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
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
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
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
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
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
©AdaptiveX
©AdaptiveX
©AdaptiveX
©AdaptiveX
•
•
©AdaptiveX
©AdaptiveX
©AdaptiveX
✓
✓
✓
©AdaptiveX
✓
✓
✓
©AdaptiveX
✓
✓
✓
©AdaptiveX
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
•
•
•
•
•

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Introducing OKRs

  • 1. 1
  • 5. Since 2000, over 52% of Fortune 500 companies are gone
  • 6.
  • 7. 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
  • 8. 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
  • 10. Slide Credit: Jake Knapp and John Zeratsky
  • 11. Slide Credit: Jake Knapp and John Zeratsky
  • 12. Slide Credit: Jake Knapp and John Zeratsky
  • 13. Slide Credit: Jake Knapp and John Zeratsky
  • 14. Slide Credit: Jake Knapp and John Zeratsky
  • 15. Increases the likelihood of building the wrong thing Slide Credit: Jake Knapp and John Zeratsky
  • 17. Slide Credit: Jake Knapp and John Zeratsky Why are we doing what we’re doing?
  • 18. 40% of employees in an organization know their company’s goals. - Chris Zook (Bain & Company) ©AdaptiveX
  • 19. 7% of employees fully understand their companies goals and what’s expected of them. - Robert S. Kaplan ©AdaptiveX
  • 21. “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
  • 25. Adaptive Helps the organization adapt and respond to change faster by using shorter cycles. ©AdaptiveX
  • 26. Outcome Oriented Helps the organization emphasize outcomes over outputs by placing the focus on the results and not the tasks. ©AdaptiveX
  • 27. Engaging By making goals bi- directional (with bottom- up input), it helps to create engagement and alignment. ©AdaptiveX
  • 28. Transparent OKR are public and visible to help everyone know what everyone else is working on. ©AdaptiveX
  • 29. 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
  • 30. 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
  • 31. 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
  • 32. 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
  • 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: 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
  • 34. 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
  • 35. 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
  • 36.
  • 38. 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
  • 39. 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
  • 40. 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
  • 41. 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
  • 42. 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
  • 43. 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
  • 44. 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
  • 45. 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
  • 46. 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
  • 47. 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
  • 48. 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
  • 49. 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
  • 50. 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
  • 51.
  • 62. 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
  • 63.
  • 64.