This document discusses objectives and key results (OKRs) and contrasts them with management by objectives (MBOs). It notes potential issues with an overemphasis on goals and provides examples of effective OKRs from Intel that were measurable and time-bound. The document advocates for OKRs that are aggressive yet achievable and focuses on both outcomes and processes to achieve them. It also emphasizes the importance of focus and commitment to execution over just setting goals.

1. OKR-Part-I
Introduction: Objective key
responsibilities - What we had missed.

2. warning!
Goals may cause systemic problems in organizations due to narrowed focus,
unethical behaviour, increased risk taking, decreased cooperation and decreased
motivation.
Use care when applying goals in your organization.

3. Management by Objectives-
Peter Drucker

4. Drucker aimed to map out
A principle of management that will give full scope to individual strength and
responsibility and at the same time give common direction of vision and effort,
establish teamwork and harmonize the goals of the individual with the common
weal.

5. MBOs vs OKRs
MBO
- “What”
- Annual
- Private and Siloed
- Top-down
- Tied to Compensation
- Risk Averse
OKR
- “What” and “How”
- Quarterly or Monthly
- Public and Transparent
- Bottom-up or Sideways (~50%)
- Mostly Divorced from Compensation
- Aggressive and Aspirational

6. Ideas are easy.
Execution is
everything.

7. Intel’s OKR

8. Objective
Demonstrate the 8080’s superior performance as compared to the Motorola
6800.
1. Deliver five benchmarks.
2. Develop a demo.
3. Develop sales training materials for the field force.
4. Call on three customers to prove the material works.
Key Results

9. Less is more.
“Innovation means
saying no to thousand
things.” - Steve Jobs

10. Operation Crush

11. Intel Corporate Objectives
Establish the 8086 as the highest performance 16-bit microprocessor family, as
measured by:
1. Develop and publish five benchmarks shoving superior 8086 family
performance (Application)
2. Repackage the entire 8086 family of products (Marketing)
3. Get the 8MHz part into production (Engineering, Manufacturing)
4. Sample the arithmetic coprocessor no later than june 15 (Engineering)
Key Results

12. Engineering Department Objectives
Establish the 8086 as the highest performance 16-bit microprocessor family, as
measured by:
1. Develop and publish five benchmarks shoving superior 8086 family
performance (Application)
2. Repackage the entire 8086 family of products (Marketing)
3. Get the 8MHz part into production (Engineering, Manufacturing)
4. Sample the arithmetic coprocessor no later than june 15 (Engineering)
Key Results

13. Focus and Commitment

14. Quantity Goal
- Three New features
- $50M in Q1 sales
- Ten Sales Calls
Quality Goal Result
- Fewer than five bugs per
feature in quality assurance
testing
- $10M in Q1 maintenance
contracts
- Two new Orders
- Developers will write cleaner
code.
- Sustained attention by sales
professionals will increase
customer success and
satisfaction rates.
- Lead quality will improve to
meet the new order threshold
requirement.

15. Effect and
Counter-effect

16. Weak
- Objective: Win the indy 500
- Key Result: Increase lap speed
- Key Result: Reduce pit stop
time.
Quality Goal Result
- Objective: Win the indy 500
- Key Result: Increase average
lap speed
- Objective: Win the Indy 500.
- Key Result: Increase average
lap speed by 2 percent.
- Key Result: Test at the wind
tunnel ten times.
- Key Result: Reduce average pit
stop time by one second.
- Key Result: Reduce pit stop
errors by 50 percent.

17. Next: Focus