I am a big fan of the OKR protocol, I feel it is one of the best protocols for colloborative team work and can be used along with other frameworks like Lead and Lag, NorthStar and Job to be done.
I recently made a presentation for an organistaion and thought should put text version here.
Understanding Objectives and Key Results (OKRs)
Objectives and Key Results (OKRs) are a collaborative goal-setting protocol for companies, teams, and individuals. They help define what an organization aims to achieve (Objectives) and how to measure those achievements (Key Results).
Key Attributes of OKRs
OKRs should be measurable and transparent. They foster an environment of transparency, objectivity, and shared accountability within an organization. Here are some key attributes of well-designed OKRs:
- Measurable: OKRs must include specific metrics that allow for tracking progress and outcomes.
- Transparent: Goals should be openly shared throughout the organization, ensuring everyone knows what is being pursued.
- Achievable: Objectives should be ambitious yet attainable, motivating teams to strive for excellence.
Case Studies on OKR Implementation
Here’s how Google, YouTube, and Intel implemented OKRs:
Google adopted OKRs in 1999, introduced by John Doerr, which helped achieve 10x growth and its mission to “organize the world’s information.” They define Objectives as WHAT to achieve and Key Results as HOW (measurable, verifiable). Google champions aspirational (“10x”) goals, where hitting 70% is considered success, fostering innovation and risk-taking. Larry Page and leaders use OKRs for planning, tracking, and coordinating priorities, making them a “simple tool” for their “think big” ethos.
Intel (Operation Crush)
Andy Grove developed OKRs at Intel in 1971. “Operation Crush” (1979-1980) utilized them as a “secret weapon” to regain microprocessor market dominance. The objective was to “dominate the mid-range microcomputer component business,” with Key Results like “Win ten new designs for the 8085”. This stretch goal, eventually aiming for 2,000 design wins, drove rapid transformation and collective commitment across all departments, proving OKRs’ power to mobilize an entire workforce.
YouTube
YouTube set an audacious stretch OKR: to reach one billion hours of daily user watch time by 2016, a 10x increase. This involved pivoting their core metric from “views” to “watch time” to align with user satisfaction. Despite internal skepticism, leadership, including CEO Susan Wojcicki, committed to this “impossible” objective. Through a rigorous, data-driven approach and countless “tiny advances,” YouTube achieved the goal ahead of schedule, fostering a culture of “thinking bigger.”
Poorly Designed OKRs
It’s crucial that the completion of all key results leads to the attainment of the objective. If not, it’s not an OKR. A poorly designed OKR will result in the objective not being achieved even after all KRs are met.
Achieving Your Objectives
Objectives should be supported by achievable Key Results. You cannot have an Objective if there are no supporting KRs.
Building Your Goal Muscle
You need to build your goal muscle gradually, incrementally. This means setting goals from the bottom up. Teams and individuals should be encouraged to create roughly half of their own OKRs in consultation with managers to promote engagement. Setting all goals top-down can corrode motivation.
How Many OKRs?
Organizations can have a top-level organizational OKR, a departmental OKR, and a personal OKR. However, it’s important to adhere to the principle of “less is more.” A limit of three to five OKRs per cycle allows companies, teams, and individuals to focus on what matters most.
Conclusion
OKRs serve as a foundational element that enables organizations to define audacious goals, maintain focus and execution, and cultivate a culture of ambitious innovation. By making goals and progress transparent and objective, OKRs reduce ambiguity and subjective biases, ultimately leading to enhanced performance and accountability.
For those interested in diving deeper into the world of OKRs, consider exploring how they can transform not only organizational performance but also individual engagement and success.
I made a PPT and if you would like to check the PPT click here!