Introduction to OKRs
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The document provides an overview of OKRs (Objectives and Key Results), a goal setting framework used by companies like Google, Intel, and others. It discusses what OKRs are, how they work, their benefits, a typical implementation cycle including setting strategic and tactical OKRs, tips for writing objectives and key results, examples of OKRs for a perfume franchise, and resources for further reading.
Introduction to OKRs
- 1. How Google and Intel set ambitious goals and achieve them What are OKRs? How we use them? OKR FRAMEWORK
- 2. 2 08 09 07 The benefits Why to use OKRs History The History of OKRs introduction What OKRs are
- 3. 3 08 09 07 questions Still sceptical? common pitfalls Where to pay attention and how to avoid mistakes How do they work How OKRs work
- 4. What we doAt Cytech
- 5. What we doWe build software products for telecoms focusing on quality and efficiency 5 mCore Modular software platform for Mobile Marketing, Messaging and Payments Dashboards Business Intelligence and Analytics platform for Telecoms ProSMS Web SMS Software for SMEs in Greece and Romania
- 6. What we achievedWe managed to expand to 15 counties with almost the same team size 6 Thailand Mobile Marketing Runs successful campaigns for big retailers Mobile Payments Offers an alternative and modern way to pay via mobile Norway SMS Wholesale Transports huge volumes of SMS Brazil Kenya S.Arabia Ghana Greece VAS and PSMS Runs VAS for social media and int'l football clubs
- 7. 7 2014 2015 2010 CI/CD • Automated testing, integration and delivery • Release every two weeks • Installations update in 1 day Cloud • High Availability, Fail over, no hardware maintenance • Release every month • Installations update takes 3-4 days. SaaS • Common Infrastructure with no real automation • Release every two months • Installations update takes a week
- 8. How we did itWhat really helped us expand to more and bigger customers all over the world maintaining our flexibility 8 2014 2015 2010 K8s CI/CD Cloud SaaS 2017
- 9. What are OKRS - Objectives and key results A goal system and a simple tool to create alignment and engagement around measurable goals
- 10. ObjectivesMemorable qualitative descriptions of what you want to achieve. Objectives should be short, inspirational and engaging. An Objective should motivate and challenge the team Where do I want to go? 10 88% Key results A set of metrics that measure your progress towards the Objective. For each Objective, you should have a set of 2 to 5 Key Results. More than that and no one will remember them How will I know if I’m getting there?
- 11. 11 create alignment Public and nested goals evaluate the goals Frequently, usually quarterly track Key results Measurable and easy to grade set ambitious goals Engage talented people
- 12. 1970S 2018 and beyond Companies like Spotify, Twitter, LinkedIn, and Airbnb but also not digital companies like Walmart, Target, The Guardian use OKRs Intel John Doerr learned OKRs from Andy Grove Intel’s CEO while transforming Intel from a memory to a microprocessor company 2000S google Doerr introduces OKRs to Google’s management team and from that time on Google extensively use OKRs for quarterly and annual goals 12
- 13. OKRS benefitsWhat businesses have to gain from OKRs 13 speed Lightweight process that reduces resources spent on setting goals Agility Short cycles enables faster adjustments transparency Teams understand what the organisation’s goals are and how they can contribute alignment Teams move towards the same direction
- 14. OKRS benefitsWhat businesses have to gain from OKRs 14 bold goals Decoupling goals from compensation enable teams to set bolder goals focus Manageable few goals create focus autonomy Teams choose how to achieve their OKRs engagement Employees influence teams and company’s goals
- 15. A Typical cycleWhat are the steps for a common OKR cycle 15 Dependencies Teams map interdependencies and ensure alignment with other teams and initiatives Set Tactical OKRs Teams develop their Tactical OKRs using a bi-directional approach Weekly Check-ins Teams have weekly check-ins to track results and actions Set Strategic OKRs At the beginning of the year, the company defines a set of high- level strategic OKRs – preferably with input from the team Review Review the OKRs halfway down the quarter during a mid-term OKR review. Retrospective Have a quick retrospective/ lessons learned and start over
- 16. Strategic Goals First commit to company’s goals. Be sure they are bold enough Alignment Teams set their own OKRs according to company’s ones Update Objectives according to the evaluation. Make them bolder or quit them Evaluate & Grade Measure KRs frequently and evaluate team goals quarterly and company’s yearly The processWhere to start 16 Weekly Checkins Monitor progress and improve results frequently
- 18. Use expressions that convey endpoints and states, e.g., “climb the mountain,” “eat 5 pies,” “ship feature Y.” Three to Five objectives - more can lead to over-extended teams and a diffusion of effort Use unambiguous terms It should be obvious to an observer whether or not an objective has been achieved Avoid expressions that don’t push for new achievements, e.g., “keep hiring,” “maintain market position,” objectivesTips for setting objectives 18
- 19. Three KRs Determine around three key results per objective Evidence Measurable milestones should include evidence of completion and this evidence should be available, credible, and easily discoverable. Measurable Key results express measurable milestones which, if achieved, will directly advance the objective. Outcome Key results should describe outcomes, not activities key resultsTips for developing key results 19
- 20. stretch Goals “We set ourselves goals we know we can’t reach yet, because we know that by stretching to meet them we can get further than we expected.” Google roofshots Goals that are hard but achievable uncomfortable Take you out of your comfort zone balanced Should be hard but not as hard as to demotivate you go further Make you go after targets that you think you can’t reach 20
- 21. team OKRS How to develop meaningful team OKRs 21 connection Do the team priorities connect to any of the organizational key results not a task list It’s not what the team wants done, rather than what the team wants to achieve dependency Are there things missing that others think this team should be working on
- 22. Frequent check-insEither weekly or monthly according to the type of OKRs 22 forget scoring or not? Use Value-based Key Results and just measure them. Simpler for the teams and less time spent setting OKRs impediments & initiatives What is slowing the team? What are we going to do to improve results? Progress & confidence What changed since the last Check- in? How confident are we that we reach each KR?
- 23. grade OKRS How to quickly get a grade for your OKRs 23 Publicly grade OKRs are typically shared and graded annually and quarterly. Team leaders explain the grade and any adjustments for the upcoming quarter 60% - 70% Scoring lower may mean the organization is not achieving enough of what it could be. Scoring higher may mean the aspirational goals are not being set high enough. performance evaluation Contributions and impact to the larger organizational OKRs
- 24. Common mistakesThe most common mistakes in OKR implementations 24 top-down Trust your team and help them understand how they can contribute Too many Representation of your top priorities. Less is more here. copy Google Understand the principles and adapt Set & Forget Not a new year’s resolutions. Track at a regular cadence silos Achieving alignment will be impossible measurable Every Key Result has to be measurable.
- 25. examplesOKRs in real life - A perfume franchise 25 COMPANY OBJECTIVES • Increase the number of stores by 20% • Increase profit by 10% Increase profit by 10% • Implement a supplier registration reverse auction system and save 10% on purchases • Outsource the distribution fleet to stores and reduce costs by 25% • Launch seasonal campaigns on Valentine’s Day, mothers and fathers days and double the revenue from the past year. Increase the number of stores by 20% • Select 40 new franchise candidates by March • Train 30 of them before June • Sign contracts with 25 of them before September • Open 20 stores before December
- 26. 26 Train 30 of them by June • Develop new materials and PPTs by April • Give an intensive 1- month course before May • Select at least 30 of those who completed the course by June To open 20 stores by December • Assist the 25 franchisees to choose business points by September • Buy materials and start renovations by October • Open at least 20 new stores by December (before Christmas!) Select 40 new franchise candidates by March • Receive 500 resumes before January • Select 60 interview candidates by February • Choose 40 of the interviewees before March HR training Sign contracts with 25 of them before September • Collect documents and registration information by July • Send draft contracts by August • Have at least 25 contracts signed by September traininglegal ops
- 27. Castro’s OKR Guide http://felipecastro.com google ventures video https://youtu.be/mJB83EZtAjc re:work OKR guide https://rework.withgoogle.com/guides/ set-goals-with-okrs John Doerr’s new book https://www.amazon.com/ dp/0525536221/ atlassian’s playbook https://www.atlassian.com/team-playbook/plays/okrs Betterworks blog https://blog.betterworks.com/keys-okr- success-qa-john-doerr/ ResourcesUseful material for further research 27
- 28. Vagelis Antoniadis Contact me on 28 www.cytechmobile.com twitter.com/vanton_ www.linkedin.com/in/vanton vanton@cytech.gr www.cytechmobile.com Science and Technology Park of Crete, Heraklion, Greece Phone: +30.2810.314127 - Email: info@cytechmobile.com