- About OKR
- OKR Format
- Types of OKRs
- OKRI (Objective, Key Results, Initiatives)
- Moonshots vs. Roofshots
- OKR is an alignment tool. But alignment can only happen when teams have structured conversations with each other to set priorities and solve interdependencies.
- OKR is a management tool, not an employee evaluation tool.
- OKR helps teams and organizations define shared success criteria.
- OKRs should determine whether a person or a team achieved success.
- Don’t turn your OKRs into a task list.
- When setting your OKRs, try to evaluate:
- Do you measure your effort or results?
- Are your OKRs focused on your objective or on the means to get there?
1 or more teams can share the same OKRs, but each team can have different initiatives.
- Frequently set, tracked and re-evaluated - usually quarterly
- What will you achieve and how you are going to achieve
A goal without a success metric is just a desire
as measured by
- Objectives should be simple,short and easy to memorize.
- memorable, inspirational,engaging,motivate and challenge.
- Objectives are ambitious and should feel somewhat uncomfortable.
- Objectives shouldn’t be boring. They can fit the organizational culture and be informal and fun. You can use slangs, internal jokes and even profanity - watever fits your culture.
- Objectives may rollover from one quarter to the next. e.g., such as “Delight our Customers”
- Set of metrics to measure progress.
- Each objective should have 2-5 KRs.
- KRs must be quantitative and measurable.
- Key Results can be the same overtime, just changing the targets.
- Types of Key Results
- Activity-based KRs
- Measure the completion of tasks and activities or the delivery of project milestones or deliverables.
- They usually start with verbs such as launch, create, develop, deliver, build, make, implement, define, release, test, prepare and plan.
- e.g. Release beta version of the product, Launch a monetizing tab, Create a new training program.
- Value-based KRs
- Measure the delivery of value to the organization or its customers. Measure the outcomes of successful activities.
- Typical structures
- Increase/reduce ABC-metric from X to Y
- Maintain ABC-metric in x (When we want to sustain one metric).
- Reach Y on ABC-metric (When we are doing something new).
- Improve net promoter score from X to Y
- Improve average weekly visits per active user from X to Y
- Improve engagement (users that complete a full profile) from X to Y
- Reduce infrastructure costs from X to Y,
- Maintain availability during migration in 99.99%
- Activity-based KRs
Types of OKRs
- Strategic OKRs - longer term (annual), company or big department level
- Tactical OKRs - Shorter term (quarterly), team level with a mid-quarter review
- you need time to develop initiatives, measure their impact and iterate
- when creating their tactical OKRs each team has to answer two questions:
- How can we contribute to the strategic OKRs?
- Which of the key results included in the strategic OKRs may we impact?
- OKRs cannot be based on activities for three main reasons:
- 1) We want a results-focused culture, and not one focused on tasks.
- 2) If you did all your tasks and nothing improved, that is not success.
- Success is improving something: Customers are more satisfied, sales are higher, costs have been reduced.
- 3) Your action plan is just a series of hypotheses
- The lean startup methodology taught us that an idea is just a non-validated hypothesis.
- when setting OKRs, focus on the destination, not on the means to get there.
OKRI (Objective, Key Results, Initiatives)
- Objectives: What we want to achieve.
- Key Results: How are we going to measure our progress?
- Initiatives: What are we going to do to reach our OKR: projects, tasks or activities.
- Initiatives are just bets and have to change if the numbers aren’t improving.
- Instead of tracking the delivery of a project, we should measure the indicators that motivated it in the first place.
Moonshots vs. Roofshots
- Moonshots are ‘Stretch goals’
- Just beyond the threshold of what seems possible
- Success means achieving 60-70%
- Can demotivate people if they can only 60% every time.
- Lack of accountability and commitment (hey, it’s just a stretch goal)
- Best practices
- Have one Moonshot KR per objective and others as roofshots
- Goals that are hard but achievable
- Success means achieving 100%
- OKR cadences
- 1st OKR period: Apr 1 to Jun 1
- 1st OKR review: May 15
- Weekly check-ins must happen - even during scrum (OKRs shouldn’t turn into New Year resolutions)