Measure whats matters ppt

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You can download full version of
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Book of Measure What
Matters was written
by John Doerr, an
accomplished investor
who co-funded Google
and Amazon. He is also
considered as a God in
the world of venture
capital; and dubbed
the Godfather of Silicon
Valley.

Measure What
Matter contains a
series of principles
and strategies for
growing business
performance
exponentially. This
principle can also be
used to hone personal
development.

The main concept in this
book includes how to
effectively manage
OKR = Objectives +
Key Results

OKR = Objectives + Key Results
Objectives : what is the main
goal you want to achieve
Key Results : a measurable
indicator that shows we have
succeeded in achieving our
goals

OKR Example
Objectives : to be a market leader
Key Results :
• Achieving sales of USD 100 billion
this year
• Customer satisfaction score above
99 on a scale of 1 - 100

OKR Example
Objectives : to increase the effectiveness of
social media marketing activities
Key Results :
• To get 100 customer prospects per month
through social media marketing activities
• To increase the number of followers by
50% every month on all social media
accounts

OKR Example
Objectives : To make high-quality products
Key Results :
• The defect rate fell to 0% in the first half of
this year
• Number of customer complaints on product
quality = zero (zero complaint)

OKR Example
Objectives : to reduce employee turnover
(reduce the number of employees who resign)
Key Results :
• Employee satisfaction scores are 9 on a
scale of 1 – 10
• The percentage of employee turnover
decreased by 40% compared to last year

4 Key Steps to
Successfully Implement
the OKR System

Step 1: Formulate OKR Optimally for
Each Work Unit
13

Each work unit and
every level starting
from the lowest,
middle and upper
levels of work units
must formulate
OKR optimally
according to their
needs and
challenges.

Each work unit
should create 3 –
5 objectives.
Then each
objective is
accompanied by
1 – 3 KR (Key
results)

OKR of every business unit must be
measurable, challenging, with clear
deadline, and also aligned with the
corporate goals
16

OKR must meet vertical alignment. This
means that the OKR of the work unit below
must be in line with the OKR of the work unit
above it.
In addition, OKR must also meet the
principles of horizontal alignment = OKR
must support each other between one work
unit and another. So synergy is created. Don't
let the OKR of one department be out of sync
with the OKR that other departments want to
achieve.

Examples of OKR that meet vertical alignment.
Sales Manager OKR:
• Increase sales by 50%
OKR Supervisor and Sales Staff :
• Double the number of prospect buyers
• Increase the frequency of visits to customer
prospects from 1 to 2 times per month

Examples of OKR that meet horizontal
alignment.
Production Manager OKR:
• Increase the level of competence of
production staff in all departments
HR Manager OKR :
• Increase the amount of training on
production skills
• Develop a mentoring program for production
staff

Step 2: Outline a Detailed Action
Plan to Achieve OKR
20

The next step that needs to be done after
the OKR is arranged in each work unit is: to
describe this OKR into a more detailed
action plan.

The Action Plan contains a series of key
activities that need to be carried out in
order to achieve OKR. Specifically, each
action plan must at least consist of the
following elements:
• Type of activity or key activities to be
carried out
• When will it be done?
• Who's in charge?
• What results to expect?

The Action Plan includes the
activities that need to be carried out
for sucessfull OKR. Here are some
examples of the main activities that
need to be carried out to realize
OKR........

Key Results : To increase the number of followers by 50%
every month on all managed social media accounts
• Action Plans:
• Prepare a content schedule for the next month,
containing the amount and types of content that
must be created and uploaded
• Execute the content plan that has been compiled
above (e.g. upload 2 contents per day for all
social media accounts)
• Conduct weekly evaluations to measure which
content has the highest engagement, and serve
as input for next month's content plan

Sample of Action Plan
Key Results :
• Implementing attractive incentive and bonus
schemes in the first quarter of this year
• Action Plans:
• Developing new policy proposals and incentive
system (completed week of February 4)
• Obtaining approval from the Board of Directors
for new incentive proposals (week 1 March)
• Socializing and implementing the new incentive
system (week 3 March)

Without a detailed action plan for
each prepared OKR, it will be difficult
for us to achieve the expected OKR.
A systematic action plan is a BRIDGE
to realize the predetermined OKR.

Step 3: Monitor OKR
Achievement Regularly
27

To be successful, the implementation
progress of OKR must always be
monitored. The company should have
PERFORMANCE DASHBOARD capable of
displaying various data on OKR
achievement regularly and accurately.
Through this dashboard, all team
members can monitor the progress of
achieving OKR objectively.

Companies
should develop
DASHBOARD
PERFORMANCE
APPLICATION and
can easily be
accessed via the
smartphone
screen.

The PERFORMANCE DASHBOARD APPLICATION can
also be accessed from various gadgets

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Sales Analysis
Example of performance
dashboard display

Example of
performance dashboard display
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Total Page Views
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Unique Page Views
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Monetized Page Views
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Presentation
Author

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Example of performance
dashboard display

Steps that need to be taken in the monitoring
stage:
1. Each work unit is required to perform
performance review meeting to discuss
OKR achievements, at least once a
month
2. In each review session, each work unit is
required to discuss performance
improvement plan and solutions to
overcome existing obstacles.

When OKR is not achieved, you MUST
focus on SOLUTION; NOT blaming
others or looking for excuses.
A SOLUTION mentality, and not a
blaming mentality, needs to be
cultivated in order to create a high-
performance work climate.

The review process for the achievement of
OKR must be carried out regularly and
consistently. Because with this
mechanism, performance improvement
plans can continue to emerge. Through
this review, the performance
accountability of each team is managed
and maintained. Without a regular review
process, the implementation of OKR will
not run optimally.

Step 4: Linking OKR Achievements to
the Bonus System
37

In order to motivate employees to
achieve OKR, it is necessary to have
an attractive bonus scheme for work
units that are able to achieve OKR
successfully. On the other hand, work
units that fail to achieve OKR, could
not get a bonus.

Example of linking OKR achievement
with bonuses:
• 100% OKR achievement or more, then
bonus 3 times salary
• OKR Achievement 96 – 100% = bonus
1 times salary
• OKR Achievement 90 – 95 = bonus 0.5
times salary
• OKR achievement below 90 = zero
bonus

Recap 4 steps of implementing OKR
successfully:
1. Each work unit must develop a
measurable and optimal OKR
2. Elaborate OKR in a more detailed
Action Plan
3. Monitor and review the achievement of
OKR every month
4. Associate OKR achievements with
BONUS

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