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What is OKR?

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Learn all the fundamentals about OKR (Objectives and Key Results) from an OKR coach to do it the right way.

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What is OKR?

  1. 1. What is OKR? www.leanperformance.com
  2. 2. How Silicon Valley sets goals?
  3. 3. OKR: Objectives and Key Results
  4. 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.
  5. 5. Created by Intel
  6. 6. @meetfelipe Agile Goals 1Instead of annual static goals, OKR uses shorter planning cycles, usually quarterly.
  7. 7. @meetfelipe Simplicity 2 To enable frequent goal setting, OKR is simple and lightweight. Set goals in days instead of months.
  8. 8. Adopted by Google in 1999
  9. 9. @meetfelipe from 40 to +60.000 Enabled the company to scale
  10. 10. @meetfelipe from 40 to +60.000 Enabled the company to scale OKR is used both by small teams and large enterprises.
  11. 11. Who is using OKR?
  12. 12. @meetfelipe John Doerr
  13. 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. 14. Doerr’s Goal Formula I will ____ as measured by ______
  15. 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. 16. @meetfelipe Measurement A measurement culture is an integral part of OKR
  17. 17. Doerr’s Goal Formula I will (Objective) as measured by (this set of Key Results)
  18. 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. 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. 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. 21. @meetfelipe Engaging Objectives Goals don’t have to be boring. 3
  22. 22. @meetfelipe Objectives should be engaging and fun. They can be informal, using slangs, jokes, and even profanity – whatever fits the company culture.
  23. 23. @meetfelipeAchieve Rocket Growth
  24. 24. @meetfelipe Give sleepy users a shot of Red Bull
  25. 25. @meetfelipe Provide Kick-Ass Service
  26. 26. Two main types of Key Results: Value-basedActivity-based
  27. 27. Value-based Key Results Measure the delivery of value to the organization or the customer.
  28. 28. Focus on the destination, not on the means to get there.
  29. 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. 30. Transparency OKRs should be public. Everyone has access to everyone else’s OKRs and current results. 4
  31. 31. 5Regular ceremonies for tracking results. Check-ins
  32. 32. Check-ins •Regular ceremonies for tracking results. •OKRs vs putting out fires. •Focused on improving results and not on giving excuses.
  33. 33. Nested Cadences Strategy, tactics and operations move at different speeds. 6
  34. 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. 35. Tactical shorter-term OKRs for the teams High level strategic OKRs for the company Regular check-ins for follow-through
  36. 36. @meetfelipe Bidirectional Goal Setting 60% of the OKRs are created bottom-up. 7
  37. 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. 38. Advanced Topics
  39. 39. Moonshots 8 Bold, ambitious goals that make the team rethink the way they work
  40. 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. 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. 42. Leave the Moonshots for later
  43. 43. Decoupling Rewards 9 Separating goals from salary and promotions to incentivize challenging goals.
  44. 44. “[OKR] should be just one input used to determine how well an individual is doing.” High Output Management, Andy Grove
  45. 45. Learn more about OKR OKR Guide leanperformance.com/en/okr

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