This document provides an overview of Objectives and Key Results (OKRs), a goal-setting framework used by companies like Google. It discusses how OKRs can be used to define ambitious objectives and quantifiable metrics to measure progress towards goals. OKRs are set at the individual, team, and company level on a quarterly basis. The document outlines best practices for writing OKRs, including keeping the number of objectives and key results low, ensuring objectives are qualitative and key results are quantitative and measurable. It also discusses how OKRs can provide benefits like focusing effort, communicating priorities, and establishing indicators to measure organizational progress.
7. Management by Objectives
A process of defining objectives within an organization
so that management and employees agree to the
objectives and understand what they need to do in the
organization in order to achieve them.
KPIs
OKRs
8. KPIs
You define aspirations and monitor progress
KPIs help monitor something that needs to be
consistently productive
Emphasis is on measurement rather than aspiration
9. OKRs
Objectives state what change the organization wants to
see in a KPI over a specific period in time.
KRs state how you will measure the incremental
movement toward to objective.
12. Google in 1999 – Year 1
“Google did more than adopt it,” says Doerr. “They embraced it.”
OKRs became an essential component of Google culture. Every employee had to set, and then
get approval for, quarterly OKRs and annual OKRs.”
17. The OKR Process
Overall Company Objectives
Division Objectives
Group Objectives
Individual Objectives
18. Best Practice
Max 5 – Objectives + Max 4 Key Results
60% Objectives are Bottom Up
Mutual Agreement
Performance Evaluation of Individuals
60%-70% : Good
Continue incomplete Key Results in the next 1/4
19. End Product
One Goal – Focuses Effort & Fosters Coordination
Linked Objectives & Key Results support Company
Fun!
20. Keys to do good OKRs
Set quarterly & annually
Measureable
Personal, Team, Company
Publicly Available
Graded Each Quarter
21. Grading your Objectives
0.6 – 0.7 should be the Target
Scores matter less than process
Company wide scoring reinforces commitment
Use low grades to reassess priorities
22. OKR Quarters
Company wide quarterly meet
Important to list the company wide OKR result
Important to explain the result
Set OKRs for next quarter
23. Benefits
Disciplines Thinking
(major goals will surface)
Communicates Accurately
(lets everyone know what is important)
Establishes Indicators for Measuring Progress
(shows how far ahead we are)
Focuses Effort
(keeps efforts in line with each other)
24. Let’s pretend!
I turned to Gordon and said,
“If we got kicked out and the
board brought in a new CEO,
what do you think he would
do?” Gordon answered
without hesitation, “He
would get us out of
memories.” I stared at him
numb, then said, “Why
shouldn’t we walk out of the
door, come back, and do it
ourselves.”
- Andy Grove