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OKR Workshop

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Workshop Objective

Train leaders on the OKR process

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Workshop Key Results

  • 80% of attendees understand the OKR process
  • 80% of attendees comfortable with leading the process with their teams

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WORKSHOP GOALS

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Intro to OKRs

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Objectives and Key Results (OKRs) combine an Objective: a big-picture, aspirational target or outcome, with multiple Key Results: tactical, measurable milestones.

Objective: What you want to achieve.

Key Results: How you know you achieved it. Key results may be quantitative or qualitative, but should be objective and observable.

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Common OKRs implementations outline an organization’s goals at the annual, semi-annual, and/or quarterly levels. Often, OKRs tie to an organization’s 3-5 year vision or strategic intent. OKRs exist at the company-wide, department/team, and individual-levels.

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WHAT ARE OKRS?

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Focus

Limiting the number of objectives keeps the organization's attention and resources dedicated to finishing goals, not starting new ones.

Alignment

OKRs unite the business at all levels to swarm and accomplish the most important priorities.

Commitment

OKRs are what the leadership team and employees agree are the most important goals for the organization for the next three, six, or twelve months.

Tracking

OKRs are easy to implement and track, anyone can make it work with a spreadsheet. Regular check-ins keep the organization honest and aware of progress.

Stretching

OKRs are realistic but also difficult and aspirational. 100% completion is not the expectation. OKRs push businesses to strive and do more than they thought was possible.

BENEFITS OF OKRS

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How are OKRs different from Key Performance Indicators (KPIs)?

How are they different from SMART goals?

HOW ARE OKRS DIFFERENT?

Specific, Measurable, Attainable, Realistic, and Time-Related (SMART) goals look a lot like OKRs but there are some key differences (source: whatmatters.com):�

    • SMART Goals help set objectives (what we want to achieve), but they do not include key results (how we know we achieved). They can be a familiar and useful way to set an objective.
    • SMART Goals are a guideline, not a framework. SMART Goals are a way to write goals. OKRs are a framework for setting, adapting, measuring, and continuously improving goals.
    • Good Key Results may look like SMART goals.

Key Performance Indicators (KPIs) are metrics used to track operations, systems, and processes in your organization. Examples of KPIs include uptime, conversion rates, or average ticket response time. KPIs are different than OKRs (source: whatmatters.com)�

    • OKRs have a direction, measurement, and purpose, KPIs only have a measurement.
    • KPIs make excellent key results to measure objectives. For example, net promoter score is a KPI. Increasing the 90 day rolling Net Promoter Score 10% could be a good key result for an objective to improve customer satisfaction.

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Annual OKRs

Quarterly OKRs

(Company Level)

Quarterly OKRs

(Department Level)

Quarterly OKRs

(Individual Level)

Organizational OKRs set targets for the year and quarter

Departments and teams set OKRs based on quarterly goals

Individuals set OKRs based on organization and team goals

Individuals identify areas for improvement

Teams propose OKRs based on lessons learned

The organization responds to the feedback of its teams

OKRS ARE TOP-DOWN AND BOTTOM-UP

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Preparation

1st Q / 1st Month

1st Q / 2nd Month

1st Q / 3rd Month

2nd Q / 1st Month

2nd Q / 2nd Month

Annual OKRs

Quarterly OKRs

Department OKRs

Implement Tech

Monthly Review

Retrospective / Scoring

Monthly Review

Quarterly OKRs

Department OKRs

Monthly Review

Retrospective / Scoring

Monthly Review

2nd Q / 3rd Month

  • Annual OKRs inform Quarterly OKRs
  • Cycle repeats each quarter

WHAT DOES A TYPICAL IMPLEMENTATION LOOK LIKE?

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WHO USES OKRS?

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How To Create OKRs

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An Objective is a broad, qualitative goal designed to propel you forward in a desired direction.

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Answers the question, "What do you want to do?"

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Objectives are aspirational, inspirational, and achievable - yet stretching. Don't sandbag yourself - what are you really trying to do?

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WHAT IS AN OBJECTIVE?

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Questions to ask:

  • Where is the company aiming to go in the next 5 years? (Vision)
  • Why does the company exist? (Purpose)
  • What are the Annual Objectives, prioritized by the Company, in the coming year?
  • What are the Quarterly Objectives, prioritized by the Company, in the coming quarter?
  • What are the highest-level, top-priority outcomes that must occur in your Department, in the coming quarter, that help drive the Vision, Purpose, and Annual Objectives?
  • What are the highest-level, top-priority outcomes that must occur in your Department, in the coming quarter, that must be done despite the Annual Objectives?
  • What does your Department, then, need to do?

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HOW TO CREATE AN OBJECTIVE

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  • Inspirational: Create something bigger and bolder.
  • Attainable: Recognize limits exist.
  • Doable in the specified time interval
  • Controllable by the Team: OKR owner must control the outcome.
  • Provide Business Value: Creates direct, tangible value for the enterprise.
  • Qualitative: Expressed in words, not numbers.

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WHAT MAKES A GOOD OBJECTIVE?

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Key Result is a quantitative statement that measures the achievement of an Objective.

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Answers the question, "How will you know if you've met your Objective?"

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Key Results are best outcome-oriented. Key Results help quantify vague and nebulous words in the Objective.

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Every Objective has two to five Key Results associated with the Objective.

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WHAT IS A KEY RESULT?

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Questions to ask:

  • What are the specific, measurable outcomes that verify/validate the Objective is undeniably accomplished?
  • Could the Objective be accomplished, without completing the Key Result?
  • Could you complete the Key Result, without advancing the Objective?
  • How can the Key Result be measured (binary, percentage, etc.)?
  • Is the Key Result already expected (i.e. a KPI) or aspiration (i.e. driving change)?

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HOW TO CREATE A KEY RESULT

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  • Quantitative: Measurable, and not a matter of opinion.
  • Aspirational: Stretch the limit while remaining attainable.
  • Specific: Avoid unnecessary ambiguity.
  • Owned: Those responsible for execution have a seat at the table.
  • Progress-Based: Able to demonstrate progress regularly.
  • Aligned: Reviewed with leadership; reviewed with teams who you depend on and whom you depend.
  • Drive the Right Behavior: “You get what you measure.” Think about secondary effects.

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WHAT MAKES A GOOD KEY RESULT?

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Examples

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O: Drive-up MRR to new levels

EXAMPLE - SALES

    • KR1: Increase number of closed customers from 600 to 900
    • KR2: Increase average subscription from $200 to $300 per month
    • KR3: Increase the retention rate from 95% to 98% for the last 90 days

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  • Inspirational? Create something bigger and bolder.
  • Attainable? Recognize limits exist.
  • Doable in a Quarter?
  • Controllable by the Team? OKR owner must control the outcome.
  • Providing Business Value? Creates direct, tangible value for the enterprise.
  • Qualitative? Expressed in words, not numbers.

IS THE OBJECTIVE...

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O: Gather customer feedback on product changes

EXAMPLE - GROWTH

    • KR1: Conduct 12 in-depth interviews with existing customers
    • KR2: Listen in on 36 sales calls
    • KR3: Get 1,000 surveys responses on customer satisfaction survey

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  • Quantitative? Measurable, and not a matter of opinion.
  • Aspirational? Stretch the limit while remaining attainable.
  • Specific? Avoid unnecessary ambiguity.
  • Owned? Those responsible for execution have a seat at the table.
  • Progress-Based? Able to demonstrate progress regularly.
  • Aligned? Reviewed with leadership; reviewed with teams who you depend on and whom you depend.
  • Drive the Right Behavior? “You get what you measure.” Think about secondary effects.

ARE THE KEY RESULTS...

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O: Improve satisfaction with customer support team

EXAMPLE - CUSTOMER SUPPORT

    • KR1: Increase good and great ratings from 40 to 60
    • KR2: Develop 15 full answers to common questions
    • KR3: Improve first time response rate from 60 to 30 minutes average

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  • Inspirational? Create something bigger and bolder.
  • Attainable? Recognize limits exist.
  • Doable in a Quarter?
  • Controllable by the Team? OKR owner must control the outcome.
  • Providing Business Value? Creates direct, tangible value for the enterprise.
  • Qualitative? Expressed in words, not numbers.

IS THE OBJECTIVE...

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Executing with OKRs

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Company Responsibilities

Facilitator Responsibilities

Makes final decisions on OKRs

Facilitates agreements on OKRs

Executes on OKRs

Supports identifying bottlenecks inhibiting execution

Communicates OKR decisions to company

Prepares executives for communications

Executes on intra-month OKR meetings

Provides agendas for intra-month OKR meetings

Implements OKR tracking tool

Supports and advises tool implementation

RESPONSIBILITIES WITH OKRS

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Google Sheets

  • Best for small teams or executive-only implementations
  • Drives focus on building an organizational mindset first, before heavy technology rollouts
  • Great to keep things simple

Enterprise Platforms

  • Best for large teams with multiple levels
  • Creates reporting transparency to drive extra support and accountability
  • Great to integrate with coaching conversations, 1-1s, and project management

OKR TOOLS

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Scoring criteria

  • 0.7 to 1.0 - We successfully completed the Key Result with documented, verifiable evidence.
  • 0.4 to 0.6 - We made meaningful progress on the KR, but fell short of our intent.
  • 0.0 to 0.3 - We failed to make real progress on this KR.

Scoring targets

  • Objectives are meant to be ambitious and should feel somewhat uncomfortable.
  • The "sweet spot" for an OKR grade is 0.6 to 0.7.
  • Consistent scores of ~0.9 means we're sandbagging. We didn't set our targets high enough. Limited stretch and growth opportunities.
  • Consistent scores of ~0.4 means we're too aggressive. We set our targets too high and were too ambitious.

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SCORING OKRS

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Infrastructure

  • Quarterly OKR Setting
  • Monthly OKR Reviews
  • Biweekly/Weekly OKR Reviews
  • Embed OKRs into your one-on-one team meetings

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Discipline

  • Making the OKRs a priority - remember: they represent the most important priorities for everyone
  • Saying “no” to shiny objects
  • Specifying the outcomes, not the outputs
  • Clear responsibility / delegation

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MAKING OKRS STICK

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Common OKR Failures

Solutions

Lack of senior leadership sponsorship and usage of OKRs

Start with the CEO

Rolling out OKRs too quickly

Implement a phased approach

Lack of adequate OKR training throughout the company

Use a trained facilitator

Attempting to capture all work and projects in OKRs

Focus only on change priorities

Limited perception of value versus investment (“too much overhead, takes too long”)

Cultivate buy-in into the process across the team

Lack of regular use, review, and learning (“setting and forgetting”)

Follow a weekly/biweekly/monthly cadence to track and pivot

Changing the OKRs too many times mid-cycle (shiny objects)

Create a barrier to unconscious changes

Too many strategic priorities

Select the top priorities only

COMMON OKR FAILURES & SOLUTIONS

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Learn more

Visit chasedamiano.com to learn more about aligning your team to common goals.