The history of OKR - Objectives and Key Results

Objectives and Key Results OKR The best practice of setting and communicating company, team and employee objectives and measuring their progress based on achieved results. Objectives: • ambitious • qualitative • time bound • actionable by the team Key Results: • measurable and quantifiable • make the objective achievable • lead to objective grading • difficult, but not impossible Company Team Personal "It's not a key result unless it has a number." Marissa Mayer YAHOO! Implementing OKR's: 1) List ~3 objectives you want to strive for on each level. 2) For each objective, list 3-4 key results to be achieved. 3) Communicate objectives and key results to everyone. 4) People regularly update each result on a 0-100% scale. 5) When objective's results reach 70-80%, consider it done. 6) Review OKR's regularly and set new ones. Results can be based on Growth Performance Revenue Engagement # Best Practices 3 70% key results per objective Set quarterly objectives at any time Reviewed monthly or weekly in front of all Public and online Sweet spot to achieve % of the results employees # History First developed and implemented by 1970's Andrew Grove, President, at Intel. Andy Grove's introduction to OKR's in "High Output Management": HIGH OUTPUT MANAGEMENT WITH A NEW INTRODUCTION Where do I want to go? How will I know I'm getting there? 1999 Popularized by John Doerr, VC at Kleiner Perkins Caufield & Byers to his portfolio companies. In 1999 told Larry, Sergey and team at Google to implement it. Used at Google successfully to this day. e ergunizationa edke far managers at all les 2014+ ANDREW S. GROVE President of Intel # Famous Users Google sears Swipely ORACLE Linked in 14% 58% 13% 47% employees understand their company's strategy and direction émployees say their manager clearly communicates goals and objectives of workers feel engaged by their jobs are satisfied with their organization's system for managing their performance * Goals must be supported by the entire organization. * Goals must be measurable or have quantifiable targets. * Goals should be aggressive yet realistic. КРСВ John Doerr "We put the whole company on that, so everyone knows their O.K.R.'s. And that is a good, simple organizing prin- ciple that keeps people focused on the three things that matter – not the 10." Mark Pincus CEO of Zynga OKRS should become more important the more senior an employee becomes. When you're in a leadership position, "You are sending the signal to the rest of the organiza- tion that 'this matters," Weiner says. in Jeff Weiner CEO of Linkedin "The right way to look at OKRS is a way to communicate so there's clarity of purpose." "Having public goals forces different types of thinking around how people ask for help from others," Davis says. "OKRS are not designed to be used as a weapon against your employees," he says. "They are a tool for motivating and aligning people to work together. They increase transparency, accountability and empowerment." Angus Davis CEO of Swipely $4.2 mln In an organization of 1000 employees, moving a workforce from low to high engagement can have an impact of over # Examples of good OKR's Increase our recurring Improve internal employee engagement Implement user-testing revenue process • The share of monthly sub- scriptions increased to 85% • Average weekly satisfaction score of at least 4.8 points • Conduct weekly Fun Fridays all-hands meetings with an external speaker • Conduct at least 4 face to face testing sessions per week • Average subscription size of at least $295 per month • Receive at least 15 video interviews per month from Us- ertesting.com • Reduce churn to less than 1% monthly • Implement OKR's in all teams and departments by January 31st • Make sure at least 80% of people interviewed are from our core target group (Direc- tors, VP's, CEO's) # Online tools for OKR reporting Weekdone brings OKR's to the digital age. It seamlessly combines them with best practice reporting methods, most notably the PPP's aka the Plans, Progress and Problems. ANDROID APP ON Google play https://weekdone.com Download on the App Store M Weekdone - building great companies zynga.