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OKR uncovered - An Overview on OKR's - agile-minds.com

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Objectives and Key Results are widely discussed - but what are they? Why are they so important? What do you need to keep in mind when thinking about them?
This presentation of a talk given on a private meetup in Munich will provide some answers.

Veröffentlicht in: Kleinunternehmen & Unternehmertum
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OKR uncovered - An Overview on OKR's - agile-minds.com

  1. 1. Michael Maretzke COO gutefrage.net … and running agile-minds.com Get in touch: Twitter: @mmaretzke e-Mail: michael@agile-minds.com
  2. 2. OKRs push us far beyond our comfort zones. They lead us to achievements on the border between abilities and dreams. „Measure What Matters“, John Doerr
  3. 3. John Doerr Andy Grove 1999 OKRs „data driven goal hunting“ quantify instead of quality
  4. 4. Objectives & Key Results a framework to – set and align goals – measure achievement
  5. 5. Characteristics Objective – is ambitious – feels uncomfortable (if not, it‘s too small) Key Results – clearly make the objective achievable – are quantifiable – lead to objective grading
  6. 6. Benefits of OKRs ● most important topics surface - transparency ● focus effort – keep organization in sync ● accurate communication – importance clear to everybody ● measure progress – quantify, not qualify
  7. 7. OKRs – How? corporate objectives department objectives team objectives individual objectives one-on-one develop / negotiate key results & monitor individual progress staff meetings group of people develop / negotiate objectives & evaluate group performance
  8. 8. Who? What? When? Strategy - year Tactics - quarter Operations - bi-weekly All-Hands C-Level Department Heads Team Leads Team Members Planning of priorities Sprint planning Review, Retro, Status E-Mail, Celebration Review, Retro, Celebration OKR discussion & agreement Strategy discussion & agreement
  9. 9. Basics ● max. 5 Objectives with 4 Key Results ● 60% of objectives bottom-up ● all must mutually agree – no dictating ● don‘t connect performance eval with OKR ● 60-70% achieved? GOOD ● 40% and less? 100%? BAD
  10. 10. Where do OKR‘s live? values purpose vision mission mid term objectives key results forever management 5-10 years 3-5 years 1 year quarter
  11. 11. OKRs are ... ● set quarterly and annually (… but not in stone) ● measurable ● set at personal, team and company level ● publicly available to the entire company ● graded each quarter
  12. 12. Grading ● average of KR-achievements (no weighting or fancy calculation stuff) indication of progress→ ● 0.6-0.7 is target ● company wide scoring reinforces commitment ● low grades reassess: worth doing? what will→ we do differently to achieve goals? objectives still valid?
  13. 13. Who scores? ● individual scores own achievement and makes it public ● OKR owner explains grade and adjustments for next quarter on team / department level in public meeting ● CEO grades the whole company in public meeting
  14. 14. Example for Personal OKR O: Launch next major version of company‘s main product 0,7 KR: 1) Get 10.000 new registrations 0,6 2) Get published product reviews in three industry relevant publications 0,6 3) Achieve sign-up to trial ratio of over 25% 0,8 4) Finalize product document for Ad Network & secure engineering allocation to build in next quarter 0,9
  15. 15. Example for Team OKR O: Support marketing and sales with design deliverables 0,5 KR: 1) 12 infographics and slide sets 0,75 2) 1 special campaign marketing minisite 0,0 3) 10 product & support PDF documents 0,8 4) 2 PDF e-books, white papers or case studies 0,5
  16. 16. Example for Company OKR O: Extend company‘s positioning throughout the E-Car-Sharing value chain 0,5 KR: 1) 80% of our E-Cars shall be juiced by ourselves at a cost decrease of 10% 0,5 2) Decrease repair time from 5 days to 1 day for 80% of E-Cars 0,3 3) Conduct repairs by ourselves for 60% of defects 0,8 4) Increase Net Promoter Score from 80% to 90% 0,5
  17. 17. OKR‘s are just one piece in a ways bigger picture. https://flickr.com/photos/ofernandezberrios/2719757761 „Don‘t crash your organization.“ (Marty Cagan, SVPG) „Don‘t link financial compensation to OKRs - NEVER.“ (Marty Cagan, SVPG) „OKRs aren‘t going to compensate for your culture.“ (Ken Norton, Google) „Setting OKRs surfaces organizational problems – deal with them.“ (Ken Norton, Google)
  18. 18. Q&A

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