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A Beginner's Guide to OKR!

A Beginner's Guide to OKR!

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A Beginner's Guide to OKR!

  1. 1. A Beginner’s Guide to OKR!
  2. 2. © Benzne. All rights reserved 3 Agile ITSM AI Design Thinking Culture Lean Kanban Visualization DevOps CI/CD Scrum SAFe XP Cloud Analytics Mindset People Process Technology Data
  3. 3. 4 Sudha Madhuri 18+ years of global experience as a Project/Program management Trainer 4 years as an Agile coach and a Trainer © Benzne. All Rights Reserved.
  4. 4. ‘What is OKR?’ Let’s Explore 5 © Benzne. All Rights Reserved.
  5. 5. OKR or Objective and Key Results is simply A Goal Setting Mechanism Genesis of OKR : A quick journey to the past 1954 1974 1999 2010+ Peter Drucker Creates MBO John Doerr Brings to Intel Google adopts OKR OKR grows in popularity 6 © Benzne. All Rights Reserved.
  6. 6. 7 © Benzne. All Rights Reserved.
  7. 7. Conventional Objective Systems ● Set on annual time horizon ● No description on how to arrive at the objectives ● Siloed ● Tied to compensation ● Top down approach ● Human components left out like personal goals and strengths Objective and Key Results A bi-directional Goal Setting Mechanism Anatomy of OKR 2 Key components as name suggests 1. Objectives 2. Key Results Objectives What one wants to accomplish… Significant, action-oriented and aspirational Key Results How objectives will be met. Good results are specific, time-bound, aggressive, verifiable & measurable Note: OKR is not an Employee Performance Tool 8 © Benzne. All Rights Reserved.
  8. 8. ‘Why OKR?’ Use Case 9 © Benzne. All Rights Reserved.
  9. 9. WHAT VS. HOW Biased towards ‘what’ needs to be done over ‘how’ it is to be achieved TIME HORIZON Typical annual cycles struggling to match increasingly agile businesses PRIVATE & SILOED Trapped and obscured in siloes, often lacking in transparency and commitment TOP-DOWN Objectives centrally planned, often cascaded sluggishly and ineffectively RISK APPETITE Often tied to compensation, driving a conservative, ‘safe’ performance culture Challenges with conventional objective settings? 10 © Benzne. All Rights Reserved.
  10. 10. + Overhaul objective settings Intrinsic vs. Extrinsic Motivation Bottom-up vs. Top-down Next right thing vs. Follow orders Stretch vs. Achieve Futuristic vs. Retrospective Organizational alignment vs. Siloed goals & KPIs 11 © Benzne. All Rights Reserved.
  11. 11. What will OKR bring to the table? For simplicity sake OKRs help to: ● Align, engage around measurable and ambitious goals ● All in one direction,with clear priorities and in constant rhythm FOCUS Limited objectives, KRs lead to sharp focus and discipline ALIGNMENT Get everyone aligned, engaged to pull in same direction COMMITMENT Commitment to goals through transparency of goals TRACKING Clear and systematic tracking of progress STRETCH Stretch objectives to challenge and have teams reach out 12 © Benzne. All Rights Reserved.
  12. 12. ‘How to Implement’ Practitioners View 13 © Benzne. All Rights Reserved.
  13. 13. INDIVIDUAL OBJECTIVES ALIGNED TO COMPANY OBJECTIVES OKR implementation framework - 30k ft view Sense of purpose-why? Company objectives-what/ Team Objectives Individual Objectives Purchase Mission/Values Key results-How? Key Results-How? Key Results-How? Actions/Initiatives Actions/Initiatives 14 © Benzne. All Rights Reserved.
  14. 14. A typical OKR cycle Brainstorm Annual & Q1 OKRs Nov Dec Feb Jan Mar Apr Communicate company wide OKRs for Year &Q1 Communicate team Q1 OKRs Staff share Q1 OKRs Begin Q2 cycle Brainstorm OKRs Communicate company wide Q2 OKRs Reflect & score Weekly check-ins to track progress 15 © Benzne. All Rights Reserved.
  15. 15. OKRs in action - a few examples ENGINEERING DEPARTMENT OBJECTIVES (Q2) Deliver 500 8MHz 8086 parts to CGW by May 30 Key Results • Develop final art to photo plot by April 5 • Deliver Rev 2.3 masks to fab on April 9 • Test tapes completed by May 15 • Fab red tag start no later than May 1 CORPORATE OBJECTIVE Establish the 8086 as the highest performance 16-bit microprocessor family, as measured by the below Kr’s KEY RESULTS • Develop and publish five benchmarks showing superior 8086 family performance (Applications). • Repackage entire 8086 family of products (Marketing) • Get 8MHz part into production (Eng., Manufacturing) INTEL – OPERATION CRUSH OBJECTIVES (1980) Focus Inspire Commit 16 © Benzne. All Rights Reserved.
  16. 16. OKRs in action - a few examples CORPORATE OBJECTIVE Reach 1 B hrs of watch time per day [by 2016], with growth driven by the below KRs Key Results • Search time + Main App (+XX%), Living room (+XX%) • Grow engagement and gaming watch time (X watch hours per day) • Launch YouTube VR experience and grow VR catalog from X to Y videos COMPANY OBJECTIVE: DELIGHT CUSTOMERS Feeding people is a sacred trust. To maintain that trust, we have to deliver the very best client service and the very best food quality. To succeed as a business, we must ensure that our customers are so happy with our service and product that they have no choice but to order more pizza and to rave about the experience with their friends Key Results • Net Promoter Score of 42 or better • Order Rating of 4.6/5.0 or better • 3. 75% of customers prefer Zume to competitor in blind taste test. YOUTUBE ZUME PIZZA Stretch Inspire Frame Why “Aligned” 17 © Benzne. All Rights Reserved.
  17. 17. OKR Hygiene / Common Pitfalls to avoid Lack of transparency . Lack of vision . Mind your stretch Have a grading system to evaluate the results Alignment and not just cascading – bi-directional goal setting . Have an OKR Shepard/Champion Lack of flexibility Lack of accountability 18 © Benzne. All Rights Reserved.
  18. 18. ABC IPL Team Owner Objective: Make money for owners Key Results (KRs) - WIn IPL 2020 - Increase live telecast hours of ABC matches to x%+ 19 © Benzne. All Rights Reserved. OKRs in action - a few examples Head Coach Objective: Win IPL 2020 matches by x% Key Results (KRs) -Batting scores of 200+ runs / game -Top 3 position in team fielding statistics -Best team bowling impact nos. Marketing Head Objective: Increase live telecast hours of ABC Key Results (KRs) -Upgrade Team branding -Improve media coverage -Revitalize promotion programs -Highlight local talent Bowling Coach Objective: Best team bowling impact nos. Key Results (KRs) -2 Purple Cap Candidates Batting Coach Objective: Batting scores of 200+ runs / game. Key Results (KRs) -Top 3 batting average in powerplay Publicist Objective: Improve Media Coverage Key Results (KRs) -Players to attend X charity events -Share event photos on social media Scouts Objective: Highlight Local Talent Key Results (KRs) -Get 2 local youngsters in the side
  19. 19. ‘OKR & AGILE’ 20 Build a culture of intrinsic motivation, and engagement, blend with focus and alignment – business and personal Balances employee autonomy and accountability across non-traditional agile teams OKR cadence ideally suited for today’s fast decision cycles and volatile business needs Suited to leverage structure of self-organized, empowered, autonomous teams Inherently promotes and enables a risk taking culture Mode of continuous objective management aligns well with rapid learning and development needs of agile employees and teams 20 © Benzne. All Rights Reserved.
  20. 20. ‘Questions’ We might help you :) 21 © Benzne. All Rights Reserved.
  21. 21. Some References 22 Check out our blogs at www.Benzne.com/blogs https://hbr.org/ Measure what matters by John Doerr © Benzne. All Rights Reserved.
  22. 22. © Benzne. All rights reserved THANK YOU www.Benzne.com

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