OKRs Measure what Matters

If you haven't read 'Measure What Matters' by John Doerr, you're missing an important book that introduces the concept of Objectives and Key Results. It is a handbook for setting and achieving audacious goals. OKRs are a goal-setting framework that helps teams focus on their most important goals and track their progress. OKRs are designed to align teams and organizations, improve focus, and drive better performance.

OKRs are structured with two key components:

• Objectives: Qualitative statements that describe what a team wants to achieve.

• Key Results: Quantitative metrics that measure progress towards the objectives. Align Key Results to the Objective. Ensure that each Key Result directly supports the associated Objective. In this way, the achievement of Key Results collectively contributes to reaching the Objective. Assign Owners and Due Dates. Assign responsibility for each Key Result to a specific individual or team. Set clear due dates or timeframes for achieving the results.

Regularly Review and Update OKRs: OKRs are typically set on a quarterly basis, but they can be adjusted as needed. Regular check-ins, usually weekly or monthly, help teams track progress and make adjustments as necessary.

For example, an objective for a marketing team might be to "Increase website traffic by 10% in the next quarter." The key results for this objective might be:

• Increase organic traffic by 5%

• Increase social media traffic by 3%

• Increase paid search traffic by 2%

By tracking progress on these key results, the marketing team can measure their progress towards their objective and make adjustments as needed.

OKRs are effective at measuring what matters because they are focused on outcomes, not outputs. Outputs are the activities that a team does, while outcomes are the results of those activities. For example, an output for a marketing team might be to create 10 new blog posts in a month. An outcome for the marketing team might be to increase website traffic by 5%.

By focusing on outcomes, OKRs help teams to stay focused on the most important thing: achieving their goals.

Here are some of the benefits of using OKRs to measure what matters:

• Clarity: OKRs are clear and concise statements that everyone on the team can understand. This helps to keep everyone focused on the same goals.

• Alignment: OKRs align the team's work with the company's overall goals. This helps to ensure that everyone is working on the most important things.

• Transparency: OKRs are typically shared with the entire company. This helps to create transparency and accountability.

• Focus: OKRs help teams to focus on their most important goals and avoid getting sidetracked by less important tasks.

• Agility: OKRs are typically reviewed and updated on a quarterly basis. This allows teams to be agile and adjust their goals as needed.

Example OKR Set:

Objective: Increase Product Adoption

Key Results:

1. Increase monthly active users (MAU) from 50,000 to 75,000 by the end of the quarter (Owner: Product Team).

2. Improve user onboarding completion rate from 60% to 80% by the end of the quarter (Owner: User Experience Team).

3. Achieve a 15% increase in the number of paying customers by the end of the quarter (Owner: Sales Team).

Objective: Enhance Employee Engagement

Key Results:

1. Increase the employee engagement survey score from 75 to 85 by the end of the year (Owner: HR Department).

2. Reduce employee turnover rate from 15% to 10% by the end of the year (Owner: HR Department).

3. Implement at least two employee-driven initiatives for team-building and collaboration by the end of the quarter (Owner: Cross-functional Employee Committee).

OKRs can be cascaded throughout an organization, with individual and team OKRs aligned with those of the broader organization. They should stretch and challenge, but they must also be achievable. Regularly reviewing OKRs and discussing progress helps teams stay focused and adapt their strategies as needed to achieve the desired outcomes. OKRs are a powerful tool for measuring what matters and achieving goals. By using OKRs, teams can stay focused, aligned, and transparent, and they can be more agile in adjusting their goals as needed.

For further read on Objectives and Key Results (OKRs) and the "Measure What Matters" methodology:

Books:

• "Measure What Matters" by John Doerr - The foundation book explaining OKRs and how they can drive alignment and engagement.

• "Radical Focus" by Christina Wodtke - Builds on Doerr's work with more implementation practices for OKRs.

• "Objectives and Key Results" by Ben Lamorte - A hands-on guide for setting effective OKRs.

Founder Perspectives:

• "How Google Sets Goals: OKRs" - Article by Rick Klau on Google's internal use of OKRs.

• "Mastering OKRs" - Series by Felipe Castro, former Spotify executive on their learnings.

• "Why the secret to Amazing OKRs is Less Not More" - Blog by Freek Vermeulen on evolution of OKR practice.

Talks:

• "10 Tips for Making OKRs Work at your Company" - Talk by Rick Klau at Saastr Annual.

• "Using OKRs for Agile Transformation" - Talk by Mario Luedy at Agile Alliance conference.

Thought Leadership:

• "The Execution Factor" - HBR Article by John Doerr on driving breakthrough growth through OKRs.

• "Why the OKR Method is More Relevant Now" - McKinsey article on the role of OKRs in uncertain times.

The key sources above provide a mix of founder experiences, case studies, and thought leadership on effectively leveraging OKRs to drive focus and engagement.

Sash Barige

Initial post on Feb/07/2018

Photo: unsplash.com