Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs

business
management

1 Executive Summary Cheatsheet: Measure What Matters with OKRs

“Ideas are easy. Execution is everything”

I will (Objective) as measured by (Key results)

1.1 Why OKRs

OKRs bring superpowers to your organisation, so everyone working towards the most important priorities.

  • Focus - on highest priorities

  • Alignment - everyone working as a team in unison towards a common goal

  • Commitment - public accountability

  • Transparency - making visual the ‘scoreboard’ will bring the team working together

  • Stretch - goals need to be ambitious and motivating (expect to fail if truly ambitious)

1.2 Defining Your Most Important Objectives (The “What”)

  1. Start with your North Star Objective - bigger inspirational goals over a year or longer.

  • What are you trying to achieve?

  • What’s your definition of success?

  1. Answer these questions to brainstorm your cycle’s OKRs (usually one quarter)

  • What are the most important things that need to get done over the next 90 days?

  • What needs to change from where you are today?

  • What are you going to start doing? stop doing?

  1. Refine:

  • OKRs are your top priorities: 2-3 (Is this what you are already doing?)

  • Can you say it more simply?

  • Ensure it is: Significant, Concrete, Actionable-oriented, Inspirational

1.3 Defining Measurable Key Results (The “How”)

Key Results are the how you’ll achieve your Objectives.

If complete, they will guarantee the objective is met.

It must be measurable objectively without argument whether it is passed (yes or no).

Ask: What are the 3 to 5 critical outcomes that need to be met to achieve this objective?

They should be: Specific, time-bound, aggressive yet realistic, measurable and verifiable.

Not action items from to-do list

What will change / improve because of the actions?

Example:

  • Objective: Increase customer engagement on our social media platform.
  • Key Result 1: Increase follower count by 25% by the end of Q4.
  • Key Result 2: Achieve a 15% increase in average engagement rate (likes, comments, shares) by the end of Q4.
  • Key Result 3: Generate 1000 new leads through social media campaigns by the end of Q4.

More examples: https://www.whatmatters.com/get-examples

Other key points

  • Committed OKRs are expected to complete in full. Aspirational OKRs allow for more audacious goal-setting

  • OKRs should not be tied to compensation. This will produce side-effects like sandbagging, where employees don’t set ambitious enough targets. A good OKR score is 0.7 (vs 1.0 for always completing your targets)

  • OKRs can be inputs, outputs or outcomes. Inputs are more in your control, whereas outcomes have the biggest impact.

  • Balance quantitative KRs with at least one that is more about ensuring quality, that helps with risk management

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