This presentation outlines the idea of Objectives and Key Results (OKR). It is based on the book by John Doerr, and the concept popularized at Intel, Kleiner Perkins, and Google.
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Objectives and Key Results (OKR) are a popular leadership process for setting, communicating and monitoring goals and
results in organizations. The goal of OKRs is to connect company, team and personal objectives in a hierarchical way to
measurable results, making all employees work together in one unified direction.
A big part of OKRs is making sure each individual knows, what's expected of them at work. OKRs are kept public in front of
everyone, so people and teams move towards the same goals and know what others are focusing on.
OKRs consist of a list of 3-5 high-level objectives. Under each objective, usually 3-5 key measurable key results (KRs) are
listed. Each key result has a progress indicator or score of 0-100% that shows its achievement. Usually OKRs are part of a
recurring quarterly planning and progress review process. While majority of OKR usage is quarterly, some companies also set
annual or monthly OKRs.
1. Set Organizational Objectives Set 3 – 4 Objectives for the organization.
What are OKRs?
Definition
Steps Explanation
2. Determine Key Results
Determine the 3 – 4 key results (per objective) that are the most effective and
efficient way to help achieve each objective.
3. Set Individual/Team Level Objectives
Key results from the previous steps become objectives for a individual/teams. At
this step an individual/team lead takes responsibility for one of the above KRs.
4. Set Individual/Team KRs
Set 3-4 key results that needed to achieve the individual/team level objectives
from step 3.
5. Process Updates and Final Review
Update all relevant parties at some pre-set interval (barring the need for
emergency meetings) about progress. At the due date make an assessment for
whether or not individual/team objectives were successful (from 1-100%). If not
diagnose what went wrong and what needs to be done in the future.
It should be noted that Key Results can change dynamically as needed. If it is determined that a KR
is not effective, or there is a more efficient way forward, the KRs can be updated at any point
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Clarity – The process of setting OKRs and working towards them means that everyone in
the organization knows exactly what we are working towards, and how their actions feed
into that. This means that there are no “black box” floors/teams and everyone has an
understanding of how they play into the larger picture and why their day to day actions
matter. OKRs ensure that no two people are working in different directions because goals
are clearly defined.
Collaboration – One of the primary benefits of OKRs is the ability to link and connect
from the bottom up. Once organizational level objectives are set individuals and teams set
their personal OKRs to help achieve what needs to be done. Those leading an OKR can
request the resources they need from others quickly. Additionally, If you’re unsure about
how to tackle a personal objective feedback is readily available. Conversely, if you think
an objective can be achieved in a better way – you can provide that feedback regardless
of title/rank. This system promotes meritocracy above all else.
Accountability – Because OKRs are headed up by one person it is much easier to
quickly gauge progress and diagnose where things have gone wrong (in the event that
they do). This does not mean punitive measures – OKR accountability is more about
learning from the process and moving on.
Flexibility – At the end of the day you decide what you think is the best way to tackle an
objective. You set the key results (with feedback from the team) and take ownership of the
process. This is why so many tech firms use this process. What we do is complex and
dynamic and you need to have the flexibility to achieve objectives through your own
creative process.
Key Advantages of OKRs
“Why should we bother with OKRs?”
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Earn a Profit
Ensure that the
franchise is profitable
for FY 2018
Example of the OKR process
Step 1: Set Organizational Objectives
This is a simple example for an
American Football Team. This
objective has been set by the
General Manager, after consulting
with stakeholders
Tips for developing Objectives:
• Objectives are set at the management level (with open feedback) and answer “Where do we want
this organization to go”
• Objectives are ambitious and may feel somewhat uncomfortable and are meant to rolled over for
several quarters even years.
• Pick just three to five objectives - more can lead to over-extended teams and a diffusion of effort.
• Avoid expressions that don’t push for new achievements, e.g., “keep hiring,” “maintain market
position,” “continue doing X.”
• Use expressions that convey endpoints and states, e.g., “climb the mountain,” “eat 5 pies,” “ship
feature Y.”
• Use tangible, objective, and unambiguous terms. It should be obvious to an observer whether or
not an objective has been achieved. Research shows more specific goals can result in higher
performance and goal attainment.
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Example of the OKR process
Step 2: Determine Key Results
Earn a Profit
Ensure that the
franchise is
profitable for FY
2018
Fill stands to 88%
Due: Dec. 31st 2018
Led by: Head of PR
Win the Super bowl
Due: Feb. 4th 2018
Led by: Head Coach
Tips for developing key results:
• Management determines up to 5 key results per objective, and KRs evolve over time.
• Key results express measurable milestones which, if achieved, will directly advance the objective.
• Use the S.M.A.R.T goal setting framework
• Key results should describe outcomes, not activities. If the KRs include words like “consult,” “help,”
“analyze,” “participate,” they’re describing activities. Instead, describe the impact of these activities,
e.g., “publish customer service satisfaction levels by March 7th” rather than “assess customer
service satisfaction.”
• For every KR that has a process outcome (eg. ‘build 300 cars’) there should also be a
corresponding quality control KR (eg. ‘ensure no more than 2% of cars fail safety
inspections’)
Next the GM, together with the
executive team, sets 2 KRs that he
believes will help achieve overall
objective
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Example of the OKR process
Step 3: Set Individual/Team Level Objectives
Fill Stands
Fill stands to 88%
for the 2018 FY
Fill stands to 88%
Due: Dec. 31st 2018
Led by: Head of PR
Win the Super bowl
Due: Feb. 4th 2018
Led by: Head Coach
The Organizational KRs then
become the Objectives for the Head
Coach and Head of PR
Win the Super
Bowl
Rank First Place by
the Feb. 4, 2018
Slides were created with a Canadian with extremely limited understanding of American Football.
Forgive the dates/rankings/titles if they don’t make sense
Head of PR
Head Coach
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Win the Super Bowl
Rank First Place by
the Feb. 4, 2018
Team has a 200yd Passing
Avg
Due: Before week 1 of Preseason
Led by: Offensive Coach
No. 3 in Defensive Stats
Due: Feb 4th 2018
Led by: Defensive Coach
Avg 25 Yard Punt Return
Due: Before week 1 of Preseason
Led by: Special Teams Coach
Example of the OKR process
Step 4: Set Individual/Team KRs
Not shown here but the Head of PR will also work directly with their team to define KRs for the
objective of 88% stand fill rate
Next the Head Coach, together
with the coaching team, sets 3
KRs that he believes will help
achieve team objective of winning
the Super Bowl
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Brief History of OKRs
Company Key
Executive(s)
Description
Andy Grove
• Andy Grove, considered to be one of the best managers of all time, created Objectives and
Key Results (OKRs). He used the process while he was Director of Engineering, and later
CEO at Intel
• Objective was to build a system that wouldn’t stifle innovation but would have everyone
working towards a common goal
• John Doerr learned Grove’s system first hand during his time at Intel, and applied and
adapted it while he was a partner at Kleiner Perkins (KP)
• Doerr notably transformed the system to include a feedback loop (review system)
• Doerr is considered the primary driver of the proliferation of the system as he taught the
methodology to all of KP’s portfolio companies
• Brin & Page adopted the system after learning about it from Doerr
• Google is one of the best examples of how to adapt and use an organizational OKR system
• Google formalized the practice and uses it to lead all 85,000+ staff members
• Every member of Google sets personal OKRs and everyone can see all OKRs at a
personal and organizational level
• The Lee brothers adopted the system after learning about it from Doerr
• Albert Lee sought to improve the system after tripling his staff (from 8 to 30) but,
frustratingly, finding that productivity and output did not even double
• The Lee brothers revolutionized the connectivity aspect of OKRs by introducing cross
channels and capacity pages
• Gini adopted OKRs for her healthcare start-up, Nuna, after learning about it from Doerr
• Gini sought to improve the system after failing to implement the system in her organization
twice (over the course of 4 years)
• Nuna revolutionized the cycle time reviews, and the concept of adaptable OKRs (dropping
OKRs midcycle if things weren’t working)
John Doerr
Sergey Brin
Larry Page
Albert Lee
Mike Lee
Gini Kim