What is OKR?
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OKR, or Objectives and Key Results, is a goal-setting framework designed to create alignment and engagement around measurable goals, typically reset quarterly. It emphasizes setting engaging, measurable objectives, and incorporates a blend of bottom-up and top-down approaches for goal creation, promoting transparency and regular tracking. Notable advocates include John Doerr, who highlights the importance of defining clear objectives and measurement criteria to assess progress.
![“[OKR] should be just one
input used to determine how
well an individual is doing.”
High Output Management, Andy
Grove](https://image.slidesharecdn.com/lpwhatisokren20170306-170307003021/85/What-is-OKR-44-320.jpg)
What is OKR?
- 2. How Silicon Valley sets goals?
- 3. OKR: Objectives and Key Results
- 4. @meetfelipe OKR is a goal setting framework used in Silicon Valley. It is a simple system to create alignment and engagement around measurable and dynamic goals, usually reset every quarter.
- 6. @meetfelipe Agile Goals 1Instead of annual static goals, OKR uses shorter planning cycles, usually quarterly.
- 7. @meetfelipe Simplicity 2 To enable frequent goal setting, OKR is simple and lightweight. Set goals in days instead of months.
- 8. Adopted by Google in 1999
- 9. @meetfelipe from 40 to +60.000 Enabled the company to scale
- 10. @meetfelipe from 40 to +60.000 Enabled the company to scale OKR is used both by small teams and large enterprises.
- 11. Who is using OKR?
- 13. •John Doerr is one of the most successful venture capitalists of all time, having invested in Amazon and Google. •Doerr, who worked at Intel and introduced Google to OKR, has a simple formula for setting goals: John Doerr
- 14. Doerr’s Goal Formula I will ____ as measured by ______
- 15. Doerr’s Goal Formula I will ____ as measured by ______ A goal has to describe both what you want to achieve and how you are going to measure its achievement.
- 16. @meetfelipe Measurement A measurement culture is an integral part of OKR
- 17. Doerr’s Goal Formula I will (Objective) as measured by (this set of Key Results)
- 18. Doerr’s Goal Formula I will (Objective) as measured by (this set of Key Results) OKR has two components, the Objective (What we want to achieve) e a set of Key Results (How will we know if we are getting there).
- 19. OKR: Components 2.Key Results: How are we going to measure our progress? •2-5 per Objective. •Quantitative & Mensurable. 1.Objective: An inspirational and memorable qualitative description of what we want to achieve. •Short. •Fits the team’s culture - Don’t have to be boring.
- 20. •Increase Net Promoter Score to 52%. •Reduce revenue churn to 1%. •Increase average weekly visits to 3.3 per active user. •Increase non paid (organic) traffic to 80%. •Increase engagement (users that complete a full profile) to 75%. Objective: Delight our customers OKR: Example Key Results:
- 21. @meetfelipe Engaging Objectives Goals don’t have to be boring. 3
- 22. @meetfelipe Objectives should be engaging and fun. They can be informal, using slangs, jokes, and even profanity – whatever fits the company culture.
- 24. @meetfelipe Give sleepy users a shot of Red Bull
- 26. Two main types of Key Results: Value-basedActivity-based
- 27. Value-based Key Results Measure the delivery of value to the organization or the customer.
- 28. Focus on the destination, not on the means to get there.
- 29. Separate OKRs from activities •Objective: What we want to achieve. •Key Results: How are we going to measure our progress? •Initiatives: What we are going to do to reach our objective: projects, tasks, activities…
- 30. Transparency OKRs should be public. Everyone has access to everyone else’s OKRs and current results. 4
- 31. 5Regular ceremonies for tracking results. Check-ins
- 32. Check-ins •Regular ceremonies for tracking results. •OKRs vs putting out fires. •Focused on improving results and not on giving excuses.
- 33. Nested Cadences Strategy, tactics and operations move at different speeds. 6
- 34. @meetfelipe Strategy and tactics have different natural tempos, as the latter tends to change much faster. To solve this, OKR adopts different cadences:
- 35. Tactical shorter-term OKRs for the teams High level strategic OKRs for the company Regular check-ins for follow-through
- 36. @meetfelipe Bidirectional Goal Setting 60% of the OKRs are created bottom-up. 7
- 37. @meetfelipe Instead of using the traditional top-down cascading, OKR uses a market-based approach that is simultaneously bottom-up and top-down.
- 38. Advanced Topics
- 39. Moonshots 8 Bold, ambitious goals that make the team rethink the way they work
- 40. “Moonshots” vs “Roofshots” •Stretch Goals •Just beyond the threshold of what seems possible. •Success means achieving 60-70% •Goals that are hard but achievable. •Success means achieving 100%
- 41. “Moonshots” vs “Roofshots” •Stretch Goals •Just beyond the threshold of what seems possible. •Success means achieving 60-70% •Goals that are hard but achievable. •Success means achieving 100% Start here
- 42. Leave the Moonshots for later
- 43. Decoupling Rewards 9 Separating goals from salary and promotions to incentivize challenging goals.
- 44. “[OKR] should be just one input used to determine how well an individual is doing.” High Output Management, Andy Grove
- 45. Learn more about OKR OKR Guide leanperformance.com/en/okr