Objectives and Key Results: Tips From An Okr Coach
Objectives and Key Results: Tips From An Okr Coach
Objectives
and Key
Results
Tips from an OKRs coach
by Ben Lamorte
7
common
problems
that OKRs Introduction to Objectives and Key Results (OKRs)
just might fix OKRs Defined
If any of these statements apply
to you, it may be time to explore Why OKRs really took off in 2013?
OKRs.
Benefits of using OKRs
1. My team members cannot
state the company’s business Ten Characteristics of Effective OKRs
strategy and what’s expected
of them to help achieve Examples & Types of OKRs
company goals.
2. I need a way to know my - Example of OKRs: People Operations
direct reports are focusing on
activities that best drive the - Coaching Example: Engineering Team
company forward.
3. We need alignment on Types of Key Results
objectives throughout the
company and especially Steps for getting started with OKRs
across teams.
4. Our performance Step 1: Draft YOUR OKRs
management system does
not help me do my job Step 2: Reflect on existing performance
better.
5. I can’t see how my management processes
contributions help the
company meet its objectives. Step 3: Define success for your OKRs deployment
6. I need visibility into what
“those people in department Step 4: Scope your OKRs project
X” really do.
7. My contributions at work Step 5: Launch your initial OKRs rollout
are neither measurable nor
celebrated. Additional OKRs Resources
Abstract
As the popularity of OKRs took off in 2013, my clients started asking me to recommend a book
outlining how to successfully deploy OKRs. Since I could find no such book, I’m writing a series of
white papers to share best practices, templates, and steps for implementing OKRs. Drawing from
experience coaching hundreds of managers, this first white paper is an introduction to OKRs and
summarizes steps to follow when first deploying OKRs.
In my experience, there is no single “right” way to implement OKRs that works best for all
organizations. Clients tell me that the OKRs process is one of the most important, creative,
and rewarding projects in their business career. Hopefully, these OKRs articles guide you to
measurable progress on your most important goals!
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Introduction to Objectives
and Key Results (OKRs)
“Employees who can measure their own progress or contribution are going to
develop a greater sense of personal responsibility and satisfaction than those
who cannot.”
OKRs Defined
OKRs is a critical thinking framework and ongoing discipline that seeks to make
employees work together, focusing efforts to make measurable contributions to
drive an organization forward.
It’s easy to come up with objectives. It’s hard to define Key Results. A Marketing
VP can easily state the objective “Increase demand in our solution.” Key results
describe how we will know if weachieved this objective. Taking the time to define
Key Results is one of the most impactful things anyone can do at work. In ready,
aim, fire, objective is ready, aim is Key Results, fire is successful attainment of Key
Results and, thus, meeting your objective.
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Why OKRs really took off in 2013?
OKRs is not a new management buzzword. Intel and Andy Grove are credited with
introducing OKRs to the business world in the 1980s. Key executives coming out
of Intel spread the word on OKRs. Gary Kennedy left Intel and introduced OKRs to
Oracle in the 1980s, John Doerr left Intel and went on to introduce OKRs at Google.
Recently, dozens of successful companies including LinkedIn, Sears, and Twitter
rolled out OKRs as a goals and performance management platform. So, if OKRs
have been around over 30 years, why the sudden explosion of interest in OKRs?
The short answer: Google.
In early 2013, Google Ventures partner Rick Klau delivered a presentation on how
Google uses OKRs. Klau’s tweet reflects his surprise that his OKRs workshop video
was going viral: @klau tweet:
“My OKRs video just passed 150,000 views. That’s about 149k
more than I thought it’d get”
John Doerr, a prominent venture capitalist and leading voice in the OKRs
community, described the four general benefits of OKRs in the 1990s:
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Here are three specific benefits my clients realize from using OKRs:
1) RESULTS, Key Results are results, not tasks. Tasks appear on a “to-do
NOT TASKS: list” and can typically be completed in a day. Key Results
reflect measurable progress by a target date and cannot get
done in a day. Tasks look like: “email a prospect” or “meet
with the new VP of Sales.” No concrete result is expected.
Key Results are not tasks. They look like: “X% increase in key
business metric Y” or “Meet weekly with the VP of Sales and
produce tasks lists” or “10 qualified opportunities added to
pipeline by end of quarter.” Key Results focus everyone on
bottom-line-relevant results, not tasks!
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3) FOCUSED: Each set of OKRs should include at most 5 Objectives focusing
on 1-3 Key Results for each objective. With OKRs, less is
more. Focusing on the two or three most critical objectives is
generally better than managing to a list of five.
4) OWNED: Your Objectives should originate from you, the OKR owner, not
corporate mandate. Instead of copying a corporate mandate
or your bosses Objectives, you should consider an Objective
that is within the control of you or your organization and
phrase it accordingly. You achieve more when you develop and
own your OKRs.
6) FREQUENTLY When setting your personal OKRs for the quarter, consider
UPDATED: how frequently you plan to update progress on each key
result. Breaking a Key Result into “baby steps” makes it easier
to make progress, provide updates on progress, and reflect on
how to refine your OKRs for the next quarter.
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Examples & Types of OKRs
Before rolling out OKRs, it’s useful to see examples of OKRs that follow best
practices and distinguish between the types of Key Results.
Key Result: 80 percent of 2015 People Key Result: Obtain a baseline with 200
Operations initiatives completed on valid responses to quantify employee
time and within budget by end of Q4. satisfaction with People Operations.
The first Key Result reflecting percent of “initiatives completed on time and within
budget” was easily created without assistance from an OKRs coach. The second
Key Result started out as “Develop a survey to measure satisfaction with People
Operations.” This second Key Result evolved into its final form with assistance from
an OKRs coach.
1 .7 .5 .3 .0
stretch target what we hope to almost what we what we know we no progress; an
that feels nearly achieve; difficult hope to achieve, can achieve with unacceptable
impossible to but attainable but not quite minimal effort result that requires
achieve explanation
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Example of OKRs with Coaching: Engineering Team
Let’s look at an excerpt from a real OKRs coaching session to illustrate how
coaching can dramatically improve the quality and effectiveness of OKRs. Here’s
an OKR that emerged after a coaching session for the engineering team at a large
software company.
Key Result: Document all Key Result: Obtain Key Result: 60% of
engineering engagements a baseline on the account managers in
with $100k+ prospects technical pass rate 1 region trained and
Grade 1= all documented, metric by end of Q2 certified on product X
.7=all but 1, .5=all but 2, Grade: 1=baseline selling technique by
.3= 1 documented, 0 reported, 0 end of Q2
Grade: 1=60%+,
.7=50-59%, .3=3 or
more trained, 0
Notice how the conversation below begins with a fuzzy objective that evolves into
three well-defined, effective Key Results to reflect how Engineering can support
Sales. The OKRs coach keeps asking questions that are designed to get the
Engineering VP to create an effective Key Result.
Engineering VP: My key objective is to help our sales team achieve their targets.
OKRs Coach: At the end of the quarter, how would we know if Engineering helped Sales
achieve their targets?
Engineering VP: Hmm, that’s a good question. (Pause)
OKRs Coach: OK, can you name a particular customer who purchased within the last
year where Engineering clearly contributed to the sales process?
Engineering VP: Actually, no. But that would be very good data to have. It’s not so
much that we help sales close deals, it’s more like we keep the prospect in the mix.
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Engineering VP: One Key Result would be to provide sales support for 5 major
prospects in Q2.
OKRs Coach: Is there a distinction between a major prospect and a minor prospect?
(make this clear by addressing ambiguity)
Engineering VP: Not really
OKRs Coach: Do you and the VP Sales agree on the definition of a “major prospect”
(ensures alignment across departments is jointly defined)
Engineering VP: Let’s replace “major prospect” with “prospect with $100k+ year 1
revenue potential.” Then we can run this definition by the VP Sales.
OKRs Coach: Have you measured the number of these sales support events in the
past? (to confirm metric history so we know the Key Result is measurable)
Engineering VP: No.
OKRs Coach: What is the intended outcome of Engineering providing sales support?
(probes intended outcome of achieving the goal to focus on results not tasks)
Engineering VP: It results in either a continuing sales process or kills the deal.
OKRs Coach: What if all 5 sales support calls result in dead deals? Will we have
achieved this goal? (boundary condition question to ensure alignment)
Engineering VP: No. The meeting is really not considered a success when we lose
the deal for technical reasons. Maybe we should define this as, “provide sales
support with no more than three $100k+ prospects deciding to not evaluate our
product for technical reasons.”
OKRs Coach: While this is heading in the right direction, the Key Result is now framed
negatively. I recommend the following positively framed version of this goal: Obtain a
baseline on “technical pass rate.” For example, if we have meetings with ten $100k+
prospects and eight of them advance without technical objection, the technical pass
rate is 80%. (ensures Key Result is positive)
The Engineering VP liked the idea of tracking technical pass rate. As a result of this
OKRs coaching session, the Engineering VP agreed to confirm with VP Sales that
technical pass rate is a useful metric to quantify the extent to which Engineering
contributes to sales.
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Types of Key Results
Key results tend to take three distinct forms: 1) baseline metric, 2) target metric,
and 3) milestone. Here are examples of each type of Key Result drawing from my
experiences with actual organizations.
A Key Result that seeks to obtain an initial value for a metric that will be used to
track progress.
Key Result: Count and report the number of invoices received each month
A Key Result that seeks to obtain a certain level of change from the baseline.
Let’s look at the three types of Target Metric Key Results: positive, negative,
and threshold.
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2.2 Negative Target Metric:
A Target Metric Key Result where less is better.
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3. Milestone Key Result
Key Result: Open a branch office in Australia with a full-time staff member
at the office during business hours to support our first customer in the
region.
This is a Milestone Key Result since it cannot be set up a metric. Milestone Key
Results can and should be broken down into smaller steps such as:
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Steps for getting
started with OKRs
Getting the workers in your organization to use OKRs may involve a fundamental
change to how they approach work. If you’re planning to lead a cultural change
at your organization, it’s critical that you begin with a deep understanding of the
new system. You’ll also want to obtain a baseline so you know where you are
before proposing any improvements.
Here’s a summary of the 5 key steps all organizations should take when rolling
out OKRs.
I often get questions like, “How can we get going with OKRs?” or “How do we know
if our organization can really benefit by rolling out OKRs?” or “Our engineering
team has Jira and already does weekly sprints, so they won’t want to do OKRs,
and since engineers are a large part of our organization, I don’t think we’re a good
cultural fit.”
All of these statements are excuses for delaying the inevitable: figuring out what
you should actually be doing and making real progress at work.
1. Are you focusing on the most important activities at work each day?
2. If you had $200k more budget to launch a new project, do you know what it
would be?
3. Can you name the 3 things you did last quarter that made the most impact?
4. Can you describe an example of a project that you started on but were able
to quickly stop working on once you realized it was no longer a priority?
5. Do you track at least one metric and update it at least once per quarter so
that you see a bar go up consistently to reflect your team’s progress?
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Exercise: Draft YOUR OKRs
Defining a decent set of measurable results can be very difficult. If you can do it on
your own, great, but for most of us, getting feedback from a peer or experienced
OKRs coach can be invaluable when getting started with OKRs.
Remember, OKRs are not the same as annual performance reviews. Nor do OKRs
replace an existing corporate performance dashboard application or project
management system.
A B C
Not effective Seems effective to Effective for me
someone, but not me
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Performance management solution providers seek to expand usage and adoption
of their products across departments and to individual contributors. However,
after surveying 100s of attendees at conferences, only a few have responded with
C - Effective for me. The first C responder happened to use OKRs while working at
Zynga. He claimed that even though his experience with OKRs was not all positive,
it was the only time he felt that a performance management system was actually
designed to help him do his job better rather than simply to create dashboards
and reports that looked good in management meetings and board presentations.
It’s quite ironic that many OKRs projects fail due to a lack of agreement about the
goals of the OKRs project itself! It is critically important to define what would have
to happen for your performance management system to be a success AND to
determine whether you want performance management to focuson reporting and
compliance or improve decision making and document positive impact as reported
by employees and customers.
Begin with a critique of your existing system by identifying what’s working and not
working. Then define what a successful system looks like at your organization.
Here are five examples that cover some success criteria themes I’ve heard over the
last 10 years. Would you consider any of the following results a success?
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Brainstorm and document your OKRs project success criteria with key leaders.
As your refine and focus this list of criteria, consider using Key Results to define
the achievement of your OKRs project objective. Then, present and confirm your
success criteria frequently with everyone involved.
Here are some questions designed to serve as inspiration to help you develop your
project scoping document. An OKRs coach can quickly help you scope your project
and define a phased implementation plan.
1. What is the scope of your initial 4. Who will drive OKRs at your
OKRs deployment? company?
a. Entire company a. COO / VP Operations
b. Single business unit b. CEO
c. Single department c. CFO / VP FP&A
d. Few individual contributors d. Head of Human Resources
e. Other
2. How deep into the organization will
we use OKRs? 5. OKRs cadence
a. Executives only a. Most organizations set OKRs
b. All people Leaders quarterly. Does that work for
c. Individual Contributors you?
b. Will OKRs be used to begin team
3. OKRs sequencing meetings?
a. Top-down: start at C-level,
cascade down to direct reports 6. What additional resources will
b. Bottoms-up: start with team support OKRs?
leaders, get C-level approval a. OKRs software?
b. OKRs coaching/training?
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Step 5: Launch your initial OKRs rollout
Once you’ve scoped your project, most successful deployments begin with a
phased rollout plan. Here are some key tips to making your initial rollout a success:
Once you’ve completed these 5 steps for getting started with OKRs, you will
want to explore how best to sustain and improve your company’s use of OKRs
going forward. Future white papers will include best practices for sustaining your
OKRs project, as well as more examples of OKRs by function, case studies from
organizations willing to share tips for rolling out OKRs successfully, and an analysis
of the emerging OKRs software vendor landscape.
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Preliminary titles include:
4. OKRs for CEO Direct Reports -- Pick up the Tempo and Pass It On
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Additional Resources
Books
1. High Output Management by Andy Grove introduces OKRs
2. How Google Works by Eric Schmidt & Jonathan Rosenberg, with Alan Eagle,
details Google’s use of OKRs
Videos
5. Google Ventures Video featuring Rick Klau on OKRs, 80-minute workshop detailing
how Google uses OKRs
6. Small Wins (authors of the Progress Principle), Harvard research analzying the
importance of making progress at work
7. Simon Sinek - Biological explanation of why OKRs work
8. Executioner’s Tale: 20 minute video by Christina Wodtke, Fable of how OKRs
saved a small startup
Social Media
1. OKRs LinkedIn Group Network with OKRs users, vendors, and analysts
2. Quora OKRs Topic Get the latest questions and answers from OKRs experts
3. The OKRs Blog Get my latest tips for implementing OKRs
Ben Lamorte coaches business leaders to define and make measurable progress
on their most important goals. Building off his success helping hundreds of
managers draft and refine their team’s OKRs, he founded OKRs.com.