Author: John Doerr
My recommendation: 4/5
Summary: John Doerr’s famous method for how companies should achieve their goals via OKRs (Objectives and Key Results).
My Takeaways:
OKRs stand for Objectives and Key Results
OKRs are a popular management tool used in technology and many successful Silicon Valley companies to help achieve company goals. OKRs must illustrate clear business value.
Objectives (the “whats”) express goals and intent. They are meant to be aggressive yet realistic. They must also be tangible, objective and unambiguous. They should be obvious to the rational observer whether it has been achieved.
Key results are the “hows”. They express measurable milestones, which will advance the objective in a useful manner to their constituents. Must describe outcomes not activities. (Published XX pages by date). Must also provide evidence of completion. (i.e. published metrics reports).
2 types of OKRs. “Committed” and “Aspirational”. Committed OKRs are ones that can be adjusted to ensure they are complete. Aspirational (BHAGs) OKRs express how we want the word to look like, even though we don’t have an idea to get there or don’t have the resources.
Aspirational OKRs should be carried from quarter to quarter if not complete. They should be stretch OKRs that strive for 10x improvement.
Move from annual performance management to continuous performance management.
Implement ongoing ‘CFRs’. Conversations, Feedback and Recognition in concert with goal setting. Continued CFRs keep day-to-day work on point and genuinely collaborative.
Performance feedback is 2-way and uses surveys for ongoing feedback.
Culture aligns a company’s top line OKRs with its vision, mission and north star values.
Use OKRs to promote transparency and accountability
Make sure the metrics are unambiguous.
There should only be 3-5 OKRs per cycle to help focus teams and individuals on what they should and should not focus on.
OKRs first address what the main priorities are and determine what to focus on first.
Founders have to model their behavior.
Leaders must constantly communicate the “why” behind a company’s top OKRs so that people remember them and understand the meaning.
Pair quantitative key results with qualitative results to avoid being narrowly focused. (Ford Pinto example)
Focus on only a few key objectives.
Publicly commit to objectives and stay steadfast.
Sharing OKRs transparently seeds collaboration in an organization.
The best way of implementing OKRs is a mix of top down and bottom up. This connects teams across the organization.
Connected companies are quicker companies.
People are more likely to complete their goals if they have a stake in it.
Have stretch goals measured by OKRs. Studies find that stretch goals help motivate workers and help keep them engaged.
Don’t be afraid to change OKRs if needed.
Stretch goals at Google mean “10X-ing”
Managers are based on the quality of their decisions, not the amount of time they put in working. OKRs help with the decision making process.
OKRs help ICs think like executives, which helps the company in the long term.
Ideas are easy. Execution is everything.
Resources
- whatmatters.com