Introduction to Objectives and Key Results. The Basics & FAQ of OKRs.
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The document introduces OKRs (Objectives and Key Results), a goal-setting methodology used by companies like Google and LinkedIn. It discusses setting quarterly objectives and measuring progress with key results metrics. OKRs provide transparency and align goals from the company level down to individual teams and employees. Examples of objectives and key results are provided for marketing, sales, finance, and product management functions. Guidance is given on writing objectives and results, balancing stretch and roof-shot goals, and common mistakes to avoid.
Introduction to Objectives and Key Results. The Basics & FAQ of OKRs.
- 1. The Basics of OKRs Introduction to Objectives and Key Results Weekdone OKR Software: weekdone.com Jüri Kaljundi CEO & Co-founder
- 2. OKRs are your daily poster on the wall: What should I do next? What should I focus on? How far am I?
- 3. It’s said: “If there is one leadership and team management process anyone should try, it’s OKRs” Used by: Google, LinkedIn, Sears, Twitter, Yahoo and thousands of others. So should you.
- 4. What is OKR methodology? • Set quarterly goals – Objectives • Measure metrics progress – Key Results • Share it with leaders & co-workers • One direction everyone works towards • Aligned & linked hierarchy Company > Department > Team > Personal • Transparency and open clearly communicated teamwork weekdone.com 4
- 5. Importance of shared goal-setting via OKRs • Vision of where you want to get • Prioritization of how to get there • Know what's expected of you • Guide people towards right path • Daily focus on most important goals • Freedom inside your own sandbox weekdone.com 5
- 6. Example Company or Sales OKR • Increase Q2 recurring revenues – Increase average subscription size to at least $295 per month – Increase the share of recurring subscriptions vs one-time deals to 85% – Up-sell to 100 existing customers – Reduce churn to less than 1% monthly weekdone.com 6
- 7. OKR key points • 3-5 Objectives you strive for – Where you want to get • 3-5 Key Results to be achieved under each Objective – Metrics, to see if you’re getting there weekdone.com 7
- 8. Why limit amount of goals and metrics? • 3 O x 3 KR = 9 • 4 O x 4 KR = 16 • 5 O x 5 KR = 25 People can remember and focus on 9 things, but not 25 or more weekdone.com 8
- 9. Differences compared to other methods • Two-level grouping: – One O has multiple KRs • Everything is measurable • Limited amount of goals to focus • Linked from company to team to person • All public across the company • Goals are difficult, but not impossible • Often not tied to salary & bonuses weekdone.com 9
- 10. Objectives: your goals. The “What?” • Aspirational • Challenging • Qualitative • Time bound • Unambiguous weekdone.com 10
- 11. Key Results: evaluation of achievement. The “How?” • Measurable & Quantifiable • Objectively gradable • Achievable • Usually numerical • Actionable • Tangible • Outcome related Did we meet the Objective? weekdone.com 11
- 12. Key Result types • 0-100% progress • Any % value or x% to y% change • Euros, dollars • Items, units, articles, people • 1-5 or 1-10 grade rating • Milestones, stages, project phases • Deliverables, tasks, outcomes weekdone.com 12
- 13. Roof-shots • Definitely achievable and easier • Practical regular activities • “Business as usual” • Still pushing to be better Need to hit 100% weekdone.com 13
- 14. Moonshots • Stretch goals • Ambitious bold goal you might reach • Failure and risk-taking is an option • Challenging & uneasy • Push people to achieve more Even 60-80% progress or 2/3 is good weekdone.com 14
- 15. Keys to make OKRs a success • Less is more: max 3-5 Os and KRs • Evaluate and mark progress weekly – Comment on milestones • Say no to non-OKR activities • Think big, set goals that matter a lot • Reflect each week and at the end of Q how far you are weekdone.com 15
- 16. Common mistakes • Over 5 Os or KRs • Listing too small unimportant tasks • KRs not measurable, not numeric • Not understandable to co-workers • Continuous ongoing Q-to-Q goals have no growth • Not challenging enough weekdone.com 16
- 17. Usual schedule • Overlapping last Q review + new Q definition • 1-2 weeks before and after Q ends/starts • Mid-quarter review at 45 days – Or monthly each 30 days – Ideally on all company levels weekdone.com 17
- 18. Hierarchy of OKRs and linking • Top-down and bottom-up - both OK • Usually start from Company level • OK to do 1 or 2 levels only at first • Lower level O becomes higher level KR • Link weekly tasks to Objectives weekdone.com 18
- 19. Examples of bad KRs • Keep working on product roadmap • Talk to customers about our products • Make sure our employees are happy • Keep working on new website • Assure onboarding is done well • Continue the CRM project • Support our sales team weekdone.com 19
- 20. Try out Weekdone OKR software Sign up for free at Weekdone.com Browse the OKR Examples Database http://okrexamples.co/ weekdone.com 20
- 21. Helpful OKR resources Free OKR Guide E-book https://weekdone.com/ebook/okr-goal- setting-guide-template/ Employee Guide to Getting Started with OKRs https://blog.weekdone.com/employee- guide-getting-started-okrs/ weekdone.com 21
- 22. Example Company or HR OKR • Improve internal employee engagement – Reach weekly employee satisfaction score of at least 4.7 points – Conduct 3 monthly “Fun Friday” all-hands meetings with an external motivational speaker – Start using OKR’s in all 10 teams and 5 departments weekdone.com 22
- 23. Example Marketing OKR • Successfully implement the weekly newsletter – Grow subscriber base at least 5% per week – Increase the CTR% to above industry average of 3.5% – Finalize the content strategy, key messages and topic structure for next 6 months weekdone.com 23
- 24. Example Marketing OKR • Activate user-testing – Conduct at least 4 face to face testing sessions per month – Receive at least 15 video interviews from Usertesting.com – Make sure at least 80% of people interviewed are from core target group (Directors, VP’s, CEO’s, Division Managers) not random friends weekdone.com 24
- 25. Example CFO or Finance OKR • Improve annual budgeting and business planning – Receive business line budget proposals before Sept 1st – Conduct a daily planning session with each division manager before their proposals – Have each business line manager start using our online dashboards – Close the final budget by November 30th weekdone.com 25
- 26. Example Product Manager OKR • Implement new 360-degree product planning process – Divide exact clear roles between sales, marketing, design and development – Integrate user testing into planning phase – Integrate user testing into testing phase – Decide on input methods from design and development back into product management weekdone.com 26
- 27. Got questions? Feel free to get in touch with me: Jüri Kaljundi CEO & Co-founder, Weekdone E-mail: [email protected] weekdone.com 27