Ideas are cheap. Execution is everything.
How do you inspire your team to be insanely great--and accountable? Google, Zynga, KPCB’s John Doerr and Intel all used the Objective and Key Result approach (OKRs) as the secret for providing the discipline for radical growth. Many start-ups as well as established companies are adopting it, hoping to throw accelerant on their execution.
But OKRs are controversial and while they sound simple, they aren’t easy. Christina's been refining the OKR process with the start-ups she invest in and advises.
If you’re curious, learn more about OKRs here http://www.eleganthack.com/the-art-of-the-okr/
3. Once upon a time there was an old farmer who had
worked his crops for many years. One day his horse ran
away. Upon hearing the news, his neighbors came to
visit. “Such bad luck,” they said sympathetically.
“Maybe,” the farmer replied.
The next morning the horse returned, bringing with it
three other wild horses. “How wonderful,” the
neighbors exclaimed.
“Maybe,” replied the old man.
The following day, his son tried to ride one of the
untamed horses, was thrown, and broke his leg. The
neighbors again came to offer their sympathy on his
misfortune.
“Maybe,” answered the farmer.
The day after, military officials came to the village to
draft young men into the army. Seeing that the son’s leg
was broken, they passed him by. The neighbors
congratulated the farmer on how well things had turned
out.
“Maybe,” said the farmer.
4. When I joined
Linkedin, many
people said “interesting choice.”
They did not know why I’d join
a resume site.
When I joined Myspace, they
said good luck. It looked hard,
but possible.
When I joined Zynga they all
congratulated me on landing in
one of the hottest spots in the
valley.
I’ve learned to say “We’ll see.”
But one thing I did learn…
7. This start-up has a vision to bring delicious artisinal loose-leaf
tea to fine dining restaurants and discerning cafes.
There were two founders...
8. Hanna
Hanna was firstgeneration Chinese, and
loved the tea she grew up
with at her parents
house. She despaired of
getting a nice cup of
green dragon well after a
fine meal.
9. Jack
Jack was British, and
equally miserable at
cafes that could poach an
egg perfectly yet thought
earl grey was a who and
not a what. They knew
there were plenty of
great tea producers. So
they decided they would
connect great tea with
fine restaurants and
cafes that were snobbish
about coffee but
ambivalent about tea.
10. And because they went to Stanford and could do math,
they managed to raise a little money to make a go at it.
11. (because no one is
dumb enough to
start a company
with their own
money, right?)
12. After a happy six
months decorating
and office and hiring
engineers and
making a very pretty
website where buyers
could find tea
producers and order
tasty tea and giving
away tea at tech
meet-ups and even
closing a few deals
they started to feel a
little uneasy.
13. While they had another 18 months of
runway, they wondered what was going on.
They had many many little tea producers
signing up, but only two buyers. A lopsided
market is not a profitable market. Like
good little founders, they decided to go out
and sell more tea themselves, to learn more
about the market!
14. One day, Hanna came
back with a very big
order from a distributor.
This distributor sold tea
to all kinds of
restaurants, big and
small, as well as canned
good and dry goods and
coffee. Jack was both
happy and alarmed! He
was happy to see so
much money about to
come into the business,
yet this was not TO
PLAN. A few days later,
and then she did it again
and again.
15. Distributors?
Hell no
Hanna told Jack that they were doing better connecting to
distributors seeking to up-scale their offering than cafes. It was
time to rethink their market focus. Jack suspected this might be a
good choice. But before uprooting everything, he suggested they
talk with Jim Frost.
16. Jim
Jim Frost was the first angel who gave them money. He was a
valley veteran, and had seem many companies go under as well as
a few succeed.
They had to meet at a Starbucks near his office, which always
made Jack have small quiet meltdowns inside.
19. “I looked out the window at the Ferris wheel of the Great America amusement park
revolving in the distance, then I turned back to Gordon and I asked,
“If we got kicked out and the board brought in a new CEO, what do you think he would
do?” Gordon answered without hesitation,
“He would get us out of memories.” I stared at him, numb, then said,
“Why shouldn’t you and I walk out the door, come back and do it ourselves?” Andy
Grove
20. Let’s Pretend
• We are a B2B company
• We built a sales team
• We hired a CEO
21. Jim
By the time they had finished talking Jim and math had them
decided that selling to distributors that had relationships with
retailers was the answer. They achieved product/market fit when
they weren't even paying attention!
43. Priorities this week
P1
Close deal with TLM Foods
P1
New Order flow
P1
# solid sales canidates in for
interview
OKR Confidence
Objective: Establish clear value to
distributers as a quality tea provider
KR: Reorders at 85% 5/10
KR: 20% of reorders self-serve 5/10
KR: Revenue of 250K
5/10
Key Risk Factors: Need new self-serve system
up in first month
Mondays each team lead shares:
•Week’s Priorities ( toOrg Health
get help & make
Next 4 weeks - Projects
commitment)
Team Health:
Passive reorder notifications
Team struggling with direction
•Near serve flow forroadmap (heads up!)
New self term distributors
change
Metrics for distributors on tea sales
•OKR confidence
Hire Customer service head
Distributor satisfaction Health:
•Key health indicators
Yellow
Green
44. Priorities this week
P1
Close deal with TLM
Foods
P1
New Order flow Spec’d
P1
Commitmen
3 solid sales candidates
t!
in for interview
Next 4 weeks - Projects
Passive reorder notifications
New self serve flow for
distributors
Metrics for distributors on tea
sales
Hire Customer service head
OKR Confidence
Objective: Establish clear value to
distributers as a quality tea
provider
KR: Reorders at 85% 5/10
KR: 20% of reorders self-serve
5/10
KR: Revenue of 250K 5/10
Key Risk Factors: Need new self-serve
system up in first month
Org Health
Team Health:
Yellow
Team struggling with direction
change
Distributor satisfaction Health:
Green
45. Priorities this week
P1
Close deal with TLM
Foods
P1
New Order flow Spec’d
P1
Commitmen
3 solid sales candidates
t!
in for interview
Next 4 weeks - Projects
Passive reorder notifications
New self serve flow for
distributors
Heads up!
Metrics for distributors on tea
sales
Hire Customer service head
OKR Confidence
Objective: Establish clear value to
distributers as a quality tea
provider
KR: Reorders at 85% 5/10
KR: 20% of reorders self-serve
5/10
KR: Revenue of 250K 5/10
Key Risk Factors: Need new self-serve
system up in first month
Org Health
Team Health:
Yellow
Team struggling with direction
change
Distributor satisfaction Health:
Green
46. Priorities this week
P1
Close deal with TLM
Foods
P1
New Order flow Spec’d
P1
Commitmen
3 solid sales candidates
t!
in for interview
Next 4 weeks - Projects
Passive reorder notifications
New self serve flow for
distributors
Heads up!
Metrics for distributors on tea
sales
Hire Customer service head
OKR Confidence
Objective: Establish clear value to
distributers as a quality tea
provider
Discussion
KR: Reorders at 85% 5/10
KR: 20% of reorders self-serve
& Support!
5/10
KR: Revenue of 250K 5/10
Key Risk Factors: Need new self-serve
system up in first month
Org Health
Team Health:
Yellow
Team struggling with direction
change
Distributor satisfaction Health:
Green
47. Priorities this week
P1
Close deal with TLM
Foods
P1
New Order flow Spec’d
P1
Commitmen
3 solid sales candidates
t!
in for interview
Next 4 weeks - Projects
Passive reorder notifications
New self serve flow for
distributors
Heads up!
Metrics for distributors on tea
sales
Hire Customer service head
OKR Confidence
Objective: Establish clear value to
distributers as a quality tea
provider
Discussion
KR: Reorders at 85% 5/10
KR: 20% of reorders self-serve
& Support!
5/10
KR: Revenue of 250K 5/10
Key Risk Factors: Need new self-serve
system up in first month
Org Health
Team Health:
Yellow
Team struggling with direction
change
Protect
what
matters
Distributor satisfaction Health:
Green
58. "I don't think we're
marketing right"
"We had some problems
with the performance of
the site"
"We had to deal with
wrong orders and late
deliveries to Los Gatos"
"We didn't hire a second
salesperson!"
So many excuses….
74. Thank You
Please contact me if you need help
setting up this system at your
company.
@cwodtke
www.eleganthack.com
Hinweis der Redaktion
Once upon ati me there was an old farmer who had worked his crops for many years. One day his horse ran away. Upon hearing the news, his neighbors came to visit. “Such bad luck,” they said sympathetically.
“Maybe,” the farmer replied.
The next morning the horse returned, bringing with it three other wild horses. “How wonderful,” the neighbors exclaimed.
“Maybe,” replied the old man.
The following day, his son tried to ride one of the untamed horses, was thrown, and broke his leg. The neighbors again came to offer their sympathy on his misfortune.
“Maybe,” answered the farmer.
The day after, military officials came to the village to draft young men into the army. Seeing that the son’s leg was broken, they passed him by. The neighbors congratulated the farmer on how well things had turned out.
“Maybe,” said the farmer.
When I joined Linkedin, many people said “huh, that’s interesting.” Many did not know why I’d join a resume site.
When I joined Myspace, they said good luck. It looked hard, but possible.
When I joined Zynga they all congratulated me on landing in one of the hottest spots in the valley.
I’ve learned to say “We’ll see.”
But one thing I did learn
Once upon a time there was a start-up.
Once upon a time there was a start-up.
This start-up has a vision to bring delicious artisinal loose-leaf tea to fine dining restaurants and discerning cafes.
There were two founders.
Hanna was first-generation Chinese, and loved the tea she grew up with at her parents house. She despaired of getting a nice cup of green dragon well after a fine meal.
Jack was British, and equally miserable at cafes that could poach an egg perfectly yet thought earl grey was a who and not a what. They knew there were plenty of great tea producers. So they decided they would connect great tea with fine restaurants and cafes that were snobbish about coffee but ambivalent about tea.
And because they went to Stanford and could do math, they managed to raise a little money to make a go at it. (because no one is dumb enough to start a company with their own money, right?)
(because no one is dumb enough to start a company with their own money, right?)
After a happy six months decorating and office and hiring engineers and making a very pretty website where buyers could find tea producers and order tasty tea and giving away tea at tech meet-ups and even closing a few deals they started to feel a little uneasy. While they had another 18 months of runway, they wondered what was going on. They had many many little tea producers signing up, but only two buyers. A lopsided market is not a profitable market. Like good little founders, they decided to go out and sell more tea themselves, to learn more about the market!
One day, Hann came back with a very big order from a distributor. This distributor sold tea to all kinds of restaurants, big and small, as well as canned good and dry goods and coffee. Jack was both happy and alarmed! He was happy to see so much money about to come into the business, yet this was not TO PLAN. They were here to connect fine dining and fine tea!
A few days later, Hann used her connections to close another deal with another distributor. It was a lot of money, but Jack was even more alarmed. This distributor did not want to use the nice self-serve website they built. Hann had to enter in their information by hand... and would every time they wanted to order! How would that scale? But it was soooo much money. and then she did it again and again.
Then, a few weeks later, Hann pulled Jack into their conference room. They had to kick out their lead programmer, as he liked to hide there to code quietly. Hann pointed out to Jack that they were doing better connecting to distributors seeking to up-scale their offering than cafes. That a single sale with a distributor resulted in more money per sales call. The restaurants didn't like like evaluating tea producers using the site either. Perhaps it was time to rethink their market focus. They went back and forth for awhile, but Jack, because despite being a designer he could also do math, realized this might be a good choice. But before uprooting everything and telling new stories to the employees and hiring a salesperson, he suggested they talk with Jim Frost.
Jim Frost was the first angel who gave them money. He was a valley veteran, and had seem many companies go under as well as a few succeed.
He was wise and insightful and could surely help the figure this out.
They had to meet at a Starbucks near his office, which always made Jack have small quiet meltdowns inside. By the time they had finished talking Jim and math had them decided that selling to distributors that had relationships with retailers was the answer. They achieved product/market fit when they weren't even paying attention!
“I looked out the window at the Ferris wheel of the Great America amusement park revolving in the distance, then I turned back to Gordon and I asked,
“If we got kicked out and the board brought in a new CEO, what do you think he would do?” Gordon answered without hesitation,
“He would get us out of memories.” I stared at him, numb, then said,
“Why shouldn’t you and I walk out the door, come back and do it ourselves?” Andy Grove
You can “try on” ideas, and work them through as if they were your decided strategy, to see if they make sense.
Jim Frost was the first angel who gave them money. He was a valley veteran, and had seem many companies go under as well as a few succeed.
He was wise and insightful and could surely help the figure this out.
They had to meet at a Starbucks near his office, which always made Jack have small quiet meltdowns inside. By the time they had finished talking Jim and math had them decided that selling to distributors that had relationships with retailers was the answer. They achieved product/market fit when they weren't even paying attention!
Jim Frost had another piece of advice
Now Hann and Jack were ready to focus the company on growth. And Jim had given them a little tool to help them with it. It's called OKRs.
Used at google
Popularized form john doer
Used at google
Popularized form john doerr
Used at google
Popularized form john doer
Used at google
Popularized form john doer
Used at google
Popularized form john doer
Dind’t make OKRS
Jim Frost had another piece of advice
Tough guy but
"We had some problems with the performance of the site""We had to deal with wrong orders and late deliveries to Los Gatos""I don't think we're marketing right""We didn't hire a second salesperson!"
Dind’t make OK
"We had some problems with the performance of the site""We had to deal with wrong orders and late deliveries to Los Gatos""I don't think we're marketing right""We didn't hire a second salesperson!"
RS
"We had some problems with the performance of the site""We had to deal with wrong orders and late deliveries to Los Gatos""I don't think we're marketing right""We didn't hire a second salesperson!"