OKRs and Agile Sitting on a Tree - Agile Austin.pdf
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The document discusses the integration of OKRs (Objectives and Key Results) within agile frameworks, primarily through Scrum principles, emphasizing their role in enhancing organizational alignment and focus. It outlines several challenges in OKR implementation, such as excessive focus on output rather than outcomes, command and control versus autonomy, and the need for collaboration across teams. Additionally, it offers strategies for overcoming these challenges and leveraging agile practices to improve OKR effectiveness.
OKRs and Agile Sitting on a Tree - Agile Austin.pdf
- 1. 1 OKRs and Agile Sitting on a Tree… w/ Yuval Yeret
- 2. Yuval Yeret SAFe Fellow/SPCT | Scrum.org PST | Business Agility Coach/Trainer | Professional Scrum w/ Kanban Co-creator & Steward
- 3. OKRs - An Example using this session’s objective Objective Key Results Learn how to effectively use OKRs leveraging Scrum Have a high level understanding of OKRs - Why / What / How Be able to describe and identify at least 3 OKR implementation challenges you might encounter Be able to describe success patterns to overcome at least 3 OKR challenges leveraging Agile/Scrum principles and practices Bonus: Be able to describe how to use Agile/Scrum practices to help improve any OKR implementation (including outside of Agile/Scrum context) Bonus: Be able to pitch Scrum as a solution to flailing OKR implementations
- 5. In order to execute effectively on what matters most (your strategy), you will need to … Overcome: ► silos, politics and turf wars ► the ongoing grind (aka whirlwind) Through OKRs that provide ► Organizational Alignment ► Focus
- 6. OKRs - an Alignment Framework OKRs stand for “Objectives and Key Results.” It is a collaborative goal-setting methodology used by teams and individuals to set challenging, ambitious goals with measurable results. OKRs are how you track progress, create alignment, and encourage engagement around measurable goals. source: https://www.whatmatters.com/faqs/okr-meaning-definition-example
- 7. Why do we need an Alignment framework?
- 8. Business and Transformational OKRs Transformational OKR - e.g. Improving Agility Business OKR - Building Solutions to capture unrealized Value
- 9. @ScrumDotOr g 2 9 Challenges and Success Patterns with implementing OKRs
- 10. Why it matters? Excessive WIP ● Decreases organizational productivity ● Confuses priorities ● Increases context switching ● Impedes the flow of value ● Everything is important == Nothing is important #1. Too many OKRs OKRs…
- 11. What to do about it ● Not everything needs to be an OKR!!! ● KPIs - running the business (Operational Value Stream) ● OKRs - for developing your strategic differentiators (as measured by significant impact on a KPI) (in a Development Value Stream) ● Apply Focus/Flow - Stop Starting Start Finishing #1. Focus OKRs on Developing/Growing the Business
- 12. BTW - What can we also say about the work to Develop/Grow the Business (vs running it)? 12
- 13. OKRs / Development Value Stream KPIs / Operational Value Stream 13 OKRs typically require complex work…
- 14. #2. Output/Activity focused (tasks / milestones) OKRs Why it matters? ● Remember - OKRs typically live in the complex domain… ● Fixes specifications designs too early ● “Feature Factory” ● Impediment to Autonomy and Innovation Output-focused OKRs Objective: Release ALICE v1 Key Results: ● Develop Rear and Side Camera Distance Warning ● Fix 10 major/critical defects ● ALICE Gold Subscription ● Customer onboarding wizard
- 15. What to do ? Output-focused OKRs Outcome-focused OKRs Well-formed Outcome-focused OKRs Objective: Release ALICE v1 Objective: Increase market position within the autonomous delivery market Objective: Achieve a dominant position within the autonomous delivery market Key Results: Key Results: Key Results: ● Develop Rear and Side Camera Distance Warning ● Ability to deliver in dense metro areas through parallel parking ● Increase serviceable market to 75% including dense metro areas ● Fix 10 major/critical defects ● Improve customer satisfaction rating ● Increase Net Promoter Score from 35 to 60 ● ALICE Gold Subscription ● Focus on driving repeat business ● Improve repeat business rates from 60% to 80% ● Customer onboarding wizard ● Onboard new customers ● Acquire 15% new customers over the next 12 months 1. Identify type of OKR (awareness of output-focus) 2. Shift towards outcome-focus Objectives and eventually KRs Assume Variability - Preserve Options Decentralized Control / Autonomy Customer collaboration over Contract Negotiation
- 16. Bring empiricism into your goal setting using Evidence-based Management Inspecting and adapting HOW (to achieve a goal) • what’s needed to achieve a Key Result? Inspecting and adapting the WHAT/WHY (the goal itself) • The relevance of the Key Result or even the Objective itself
- 17. #3. Command and Control - Too Detailed, Too Strict, Top-Down Cascading Why it matters? ● Strict Cascading kills Autonomy / Initiative ● Leads to task/output orientation by the time teams create KRs OKR OKR OKR OKR OKR OKR OKR
- 18. What’s the difference between OKRs and MBO? https://www.whatmatters.com/resources/okr-and-mbo-difference-between
- 19. OKRs are intended to be an Alignment framework that leverages autonomy https://engineering.atspotify.com/2014/03/spotify-engineering-culture-part-1/
- 20. #4. Alignment != Command & Control What to do about it ● High-level OKRs inform rather than prescribe ● Teams / Teams of teams define their own OKRs - Bottom-up and sideways ● Align/relate through “Why Now” ● Take inspiration from Scrum Sprint Planning structure OKR OKR OKR OKR OKR OKR OKR
- 21. #5. Many OKRs require collaboration/dependencies across the organization https://www.linkedin.com/pulse/improving-focus-alignment-organizing-around-okrs-managing-yuval-yeret / Why it matters? ● Coordination overhead ● Tempting to divide and conquer / cascade into output/task OKRs (since each team/product/value stream cannot own outcomes)
- 22. What to do about it ▪ Organize around Value - Identifying/ Assessing products/teams topology using an OKR lens ▪ Also unlocks engagement/ motivation through Purpose #5. Many OKRs require collaboration/dependencies across the organization
- 23. #5. OKRs run in parallel to Scrum artifacts/commitments Why it matters? ● Confusion - What do we use as Input for Sprint Planning? PBL? OKRs? Both? ● When are OKRs created? How? How do we keep them realistic? ● What’s the relationship between Product Goals, Sprint Goals and OKRs? OKRs (Across the Business) Scrum (typically in IT / Product Development)
- 24. #5. OKRs run in parallel to Scrum artifacts/commitments What to do about it ● Use OKRs to guide PBL management/refinement ● Inspect how you’re doing on OKRs during Sprint Review and use that to adapt the Product Backlog
- 25. #5. Leveraging OKRs in the Sprint Review Or, leveraging a Sprint Review to inspect and adapt execution towards your OKRs… OKRs KPIs
- 26. Can we use Scrum/Agile principles and practices to improve how our organization uses OKRs? Can that help us drive towards Business Agility and leveraging Agile/Scrum more widely across our organization? 26
- 27. Follow up https://www.linkedin.com/in/yuvalyeret/ https://www.scaledagileframework.com/applying-okrs-in-the-scaled-a gile-framework/ https://scaled agile.com/con necting-okrs-k pis-ovss-and- dvss-in-safe/ Loan Origination Credit Scoring System AI Underwriting Channels Core Bankin g https://www.linkedin.com/pulse/imp roving-focus-alignment-organizing- around-okrs-managing-yuval-yeret/ https://www.linkedin.com/pulse/fixing-o kr-theater-using-agilescrum-principles- yuval-yeret/ https://www.linkedin.com/pulse/improving-f ocus-alignment-organizing-around-okrs-m anaging-yuval-yeret/ https://www.scrum.o rg/resources/eviden ce-based-managem ent-guide https://www.scrum.org/courses/professional- agile-leadership-evidence-based-manageme nt-training
- 28. My Upcoming Public Workshops 28 https://www.madisonhenry.com/public-training/pro fessional-agile-leadership-ebm-may-1-2023 Including special opportunity to learn about how to improve/fix your OKRs using EBM and agility https://www.madisonhenry.com/public-training/pro fessional-scrum-with-kanban-apr-10-11-2023 use code austin100 for $100 discount