OKR understands that strategy and tactics have different natural tempos since the latter tends to change much faster. The CEO’s OKRs usually are available on the Intranet. To do so, OKRs are public to all company levels - everyone has access to everyone else’s OKRs. The primary purpose of OKR is to create alignment in the organization. As a result, they invest their resources in achieving their goals and not on setting them. Intel’s original model set goals monthly, which required a lightweight process.Ĭompanies that adopt OKR reduce the time spent setting goals from months to days. Using OKR is straightforward, and the OKRs themselves are easy to understand. By using shorter goal cycles, companies can adapt and respond to change. Instead of using annual static planning, OKR takes an agile approach. But there are some core concepts: Agile Goals There is not a single way to use OKR, each company or team can adapt and tweak it, creating different versions of it. Most of all, they define what we mean by “Delight our customers.” A second team or company could use the same Objective with different Key Results. We want to increase the weekly visits, but we want it to be organic, not through an expansion of marketing spend. Once more having a set of Key Results helps create a healthy, sustainable OKR.
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We want to make our customers happy while keeping the costs under control. Therefore, we can include a countermeasure such as Customer Acquisition Cost. It might encourage us to make the customer happy at any cost. Do our customers feel so good about dealing with us that they would recommend us and buy again?īut measuring NPS and repeat purchases alone can send the wrong message. How can we measure if we are providing an awesome customer experience? Net Promoter Score and Repurchase Rate would be two good options. An example might be “Create an Awesome Customer Experience.” This sounds great, but how would you know if the experience is awesome? Remember, without measurement you don’t have a goal. “If it does not have a number, it is not a Key Result.”įirst of all, we need an Objective. As Marissa Mayer, a former Google’s Vice President, said: More than that and no one will remember them.Īll Key Results have to be quantitative and measurable. For each Objective, you should have a set of 2 to 5 Key Results. Key Results are a set of metrics that measure your progress towards the Objective. An Objective should motivate and challenge the team Objectives should be short, inspirational and engaging. Objectives are memorable qualitative descriptions of what you want to achieve. So, as the name implies, OKR has two components, the Objective and the Key Results: I will (Objective) as measured by (this set of Key Results). Without it, you do not have a goal, all you have is a desire.ĭoerr’s formula is the best way to explain the structure of an OKR: The key words here are “as measured by,” since measurement is what makes a goal a goal. I will _ as measured by _.Ī proper goal has to describe both what you will achieve and how you are going to measure its achievement. Doerr, who introduced Google to OKR, has a formula for setting goals: He started his career at Intel and went on to invest in companies such as Google and Amazon. John Doerr is one of the most successful venture capitalists of all time. Walmart, Target, The Guardian, Dun and Bradstreet, and ING Bank are also using OKR. It supported Google’s growth from 40 employees to more than 60,000 today.īesides Google, other companies use OKR, including Spotify, Twitter, LinkedIn, and Airbnb.īut the OKR system is not only for digital companies. Google adopted OKR in 1999, during its first year. OKR’s original concept came from Intel and spread to other Silicon Valley companies.
The goal is to ensure everyone is going in the same direction, with clear priorities, in a constant rhythm.
OKR is a simple, fast-cadence process that engages each team’s perspective and creativity.Ĭreating alignment in the organization is one of the main OKR benefits. The big difference from traditional planning methods? OKRs are frequently set, tracked, and re-evaluated – usually quarterly.
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