OKRs are a simple methodology to create focus and strategy alignment

1. OKRs
Objectives & Key Results
Dvir Zohar
Dvir@simpledo.co.il

2. Management By Objectives (MBO)
Peter Drucker (1954)
Feedback
Organizational Objectives
Progress Control
Employee Objecives

3. 56%
Increasing in profits (70
researches)
Management By Objectives (MBO)

4. Objectives ara highly effective
managerial tool
Alignment with
strategy
Visibility
Focus &
motivation

5. People act according to their objectives !!
The case study of IAF
maintenance factory

6.  Specific – target a specific area for improvement.
 Measurable – quantify indicator of progress.
 Assignable – specify who will do it.
 Realistic – given available resources.
 Time-related – specify when the result(s) can be
achieved.
SMART Objectives
George Doran (1981)

7. Balanced Scorecard
Robert Kaplan, David Norton (1992)
Financial
Customer
Internal
processes
Learning
and growth
Hierarchy of
objectives,
driven from strategy
Incentives
64%
of large
companies

8. OKRs - Objectives and Key Results
Google (1999)
At Google, we like to think big. We use a process called objectives and
key results (OKRs) to help us communicate, measure, and achieve
those lofty goals.
It is crucial that as Google employees and managers we make
conscious, careful, and informed choices about how we allocate our
time and energy — as individuals and as members of teams.

9. The OKR method became very popular

10. Effective OBJECTIVES
(3 - 4 Objectives per team, Quarterly)
Aggressive yet
realistic
Tangible,
unambiguous
Provide high
value

11. Effective KR
0-0.3
0.4-0.6
0.7-1
 Measurable milestones
 Describe outcomes, not activities
 Include evidence of completion

12. Committed vs. Aspirational OKRs
Committed
A clear understanding of how
to achieve it. Expected to be
1.0
Aspirational
How we’d like the world to look, even
though we have no clear idea how to get
there. Expected to be 0.7

13. Main Business Vs. improvement OKRs
Main Business
Guiding everything
Improvements
Projects besides the main business –
Infrastructure, quality improvement, HR

14. Planning & Progress Monitoring
 Initiatives - specific actions that are derived from the
OKRs
 Progress status meetings
 Tool

15. OKR Traps
 Lack of managerial progress monitoring
 Five minutes OKR
 Low-Value Objectives
 Business-as-usual OKRs
 Insufficient KRs
 Failing to differentiate between committed and aspirational
OKRs

16. Example 1
Key results
 Till 31.7 – reducing the number of open Critical & High
bugs to less than 8
 Till 31.8 – reducing the number of open Critical & High
bugs to less than 5, Mid bugs less than 30
 Till 30.9 – reducing the number of open Critical & High
bugs to less than 5, Mid bugs less than 15, Low bugs
less than 30
Objective: Improving the quality of product
ABC

17. Example 2
Key results
 Till 31.7 –
 Till 31.8 –
 Till 30.9 –
Objective: Reducing the number of customer
issues that are solved by R&D

18. Example 3
Key results
 Till 31.7 –
 Till 31.8 –
 Till 30.9 –
Objective: Improving the CI/CD infrastructure

19. Example 4
Key results
 Till 31.7 –
 Till 31.8 –
 Till 30.9 –
Objective: Improving the architecture of product
yyy

20. Example 5
Key results
 Till 31.7 –
 Till 31.8 –
 Till 30.9 –
Objective: Improving the knowledge of team
DDD

21. OKRs Summary
 Alignment with strategy
 High value
 Aggressive, yet realistic
 Clear key results
 Monitoring
Dvir Zohar
Dvir@simpledo.co.il