OKR Training Presentation.pptx

OKR Training Presentation

1. Agenda Part I: Concept What are OKRs and its components? Different levels of OKRs Part II: How to Write OKRs Part III: OKR Examples Set Goals like Google Examples of well-developed OKRs Part IV: OKR Best Practices Part V: Rolling Out OKRs Stakeholders’ roles & responsibilities The OKR cycle: Plan, Track, Review Part VI: OKRs & Performance Review OKRs can complement Performance Review Conclusion How to Prepare for OKR Planning Sessions

2. Part I: Concept

3. OKRs stand for: Objectives and Key Results OKR is a powerful goal management system used by companies & teams of all sizes (from startups to large corporations) to collaborate and stretch goals with focus and alignment. OKR framework requires regular check-ins, continuous feedback, collaboration and problem-solving.

4. …a little history lesson “Management by Objective” Pioneered by Andy Grove at Intel in 1970s John Doerr introduced OKRs to Google in 1999. Also, he’s the author of Measure What Matters , Click here to get a quick overview of OKRs and here to get detailed information in a free OKR 101 class.

5. Companies Using OKRs

6. ‹#› What are OKRs The Objective The What: the main thing you want to accomplish; y our objective will inform your actions. It isn’t always measurable, and that’s OK. The Key Results Quantitative metrics that measure progress toward your objective(s). It allows you to break down an objective into tangible milestones. For each objective, you will typically assign 3-4 key results. OKRs should be: Ambitious yet realistic Not directly tied to compensation S.M.A.R.T. Objective Key Result Key Result Key Result OKR Formula I will (Objective) as measured by (Key Results).

7. ‹#› Benefits Focus: OKRs prompt Senior Leaders to identify the right priorities Alignment : OKRs ensure everyone working towards the same goals that’s aligned with top-level objectives Accountability: OKRs enables Senior Leaders and Managers on how to allocate people and resources Transparency: OKRs allows better visibility for both senior leadership, employees and other stakeholders, e.g. investors Growth & Stretching: OKRs push companies to stretch and achieve beyond their current capabilities

8. ‹#› Basic “Rules” Maximum 5 Objectives with 3-4 Key Results each 60% Objectives from Bottom Up, 40% Top Down Set annually and quarterly Key Results must be measurable You either meet a Key Result’s requirements or you don’t — there is no gray area, no room for doubt. At the end of the designated period, typically a quarter, we do a regular check and grade the Key Results as fulfilled or not. Set at different levels: Company → Department → I ndividual Shared across the entire organization Not a tool for performance evaluation, but will complement it

9. ‹#› OKR Levels Company Wide OKRs: an OKR at the corporate level will speak to high-level goals Department OKRs: High level company goals can be broken down and assigned to departments Individual OKRs: Department level key results can be become next level objectives to individual employees and contributors

10. ‹#› OKR Levels EXAMPLE Company Wide OKRs: Objective: Become a market-leading business Key Result 1: Grow our revenue Key Result 2: Delight our customers with world-class support Key Result 3: Launch software 2.0 to improve UX/UI Key Result 4: Build a high-quality inbound lead pipeline Department OKRs: Objective: Build a high-quality inbound lead pipeline Key Result 1: Acquire at least 100 leads per week Key Result 2: Maintain lead quality above 50% Key Result 3: Increase # of calls per week to 250 Key Result 4: Increase CTR for email to 15%

11. Part II: How to Write OKRs

12. Guide to Company Objectives People Company Objectives Marketing Financials Operations Product Sales

13. ‹#› How to Write Objectives Objective = verb + what you’re going to do or achieve (business impact) Example: Achieve fi scal sustainability Provide world-class customer support Improve the stability of product Best Practice: Objectives should be motivating, short, memorable statements

14. ‹#› How to Write Key Result Key Result = verb + what you’re going to track + from X toY Example : Reduce the general budget variance from 11% to 5% Decrease churn rate from 15% to 5% Decrease unscheduled downtime from 3 hours to 1 hour Best Practice: Key Results are “Results” not “tasks” Key Results must be quantifiable and easily tracked or measurable

15. ‹#› Types of Key Result Trackable (progress can be tracked) Percentage Tracked Milestone Tracked Task Tracked Examples of trackable results are hiring for a new role, develop a marketing strategy, penetrate new region Measurable (progress can be measured) Increase Value Decrease Value Control Value Examples of measurables are revenue, the number of leads generated, churn rate, employee satisfaction levels, employee turnover rate

16. Part III: OKR Examples

17. Set Goals Like Google

18. OKR OKRs create alignment up and down the organization

19. ‹#› Let’s give it a try … Marketing OKRs Sales OKRs Customer Success OKRs Engineering OKRs Product Management OKRs Technical Support OKRs Operations OKRs Financials OKRs People (HR) OKRs

20. ‹#› Company OKR Examples Objective: Become a leader in the call center software market Key Results (as measured by…) 500 Clients $150,000 Annual Revenue Per Client $200M Total Revenue $10M EBITDA $200M Valuation

21. ‹#› HR - OKR Examples Objective: Increase Employee Engagement Key Results (as measured by…) Increase employee satisfaction score from 70% to 90% Improve glassdoor rating from 3 to 4 Increase employee participation in Peer Recognition program from 60% to 80%

22. ‹#› Marketing OKR Examples Objective: Build a High-quality Inbound Lead Pipeline Key Results (as measured by…) Generate at least 300 product signups per week Generate at least 50 demo/week through the website Maintain the MQL % above 70

23. ‹#› Sales -OKR Examples Objective: Grow Revenue from existing accounts Key Results (as measured by…) Increase annual renewal from 75% to 90% Increase monthly recurring revenue from $700K to $1M Increase the average number of seats from existing accounts from 10 to 30

24. ‹#› Customer Success OKR Examples Objective: Provide world-class customer experience Key Results (as measured by…) Create and stabilize customer onboarding process Decrease churn rate from 20% to 10% Increase NPS from 6.0 to 9.0

25. ‹#› Engineering OKR Examples Objective: Improve the stability of product Key Results (as measured by…) Decrease unscheduled downtime from 3 hour to 1 hour per month Increase automation test coverage from 60% to 80% Decrease number of emergency patches from 6 to 2 per quarter

26. ‹#› Product OKR Examples Objective: Improve the product’s UI to reflect customer needs Key Results (as measured by…) Test 3 new feature designs among our customer base & implement winning variation Optimize file storage & reduce the speed of the application by 30% Increase average user time by 5%

27. ‹#› Example Increase our company’s visibility to our target customers Run 3 webinars for trade organizations Add 50 new target customers to our email list Connect with 100 new target customers on LinkedIn Share relevant content on LinkedIn 2x/week Objective Key Result Key Result Key Result

28. ‹#› Example Increase our company’s visibility to our target customers - Head of Marketing Run 3 webinars for trade organizations – Marketing Manager Add 50 new target customers to our email list - Business Development Rep Connect with 100 new target customers on LinkedIn – Marketing Manager Share relevant content on LinkedIn 2x/week – Marketing Manager Objective - Owner Key Result - Owner Key Result - Owner Key Result - Owner

29. Company OKR Scale the number of leads sales are receiving from Marketing Increase sales by 50% over last quarter. Sales (CRO) Increase sales by 50% over last quarter. Secure $10M in bookings by end of Q1 Ensure at least 60% of sales team achieves quota. Attend 3 industry events by end of Q1. Marketing (CMO) Scale the number of leads sales are receiving from Marketing Reach 10k visitors/month via technical and non-technical SEO Increase Trial to Conversion to 10% Scale ‘best on the web’ cornerstone content to create traffic that converts to leads SDR Ensure at least 60% of sales team achieves quota. –Generate 300 SQLs by end of Q1. AE Secure $10M in bookings by end of Q1 - Achieve targets with 20% closed by end of month and 50% closed by end of month 2. PARTNERSHIP Attend 3 industry events by end of Q1 -10% of clients are returning customers . Product Marketing Increase Trial to Conversion to 10% - Increase Demo : Trial Sign-up to 60% MARCOM Scale content to create traffic that converts to leads -Generate over 10,000 visits for Organic Search to the new pages in one quarter MAROps Reach 10k visitors/month via technical and non-technical SEO -Reach an average page speed 1.5s

30. Part IV: OKR Best Practice

31. What make s a “good” OKR?

32. ‹#› OKR Traits Ambitious but not unattainable Set as S.M.A.R.T. goals The Objective can be “soft;” the Key Results should be more concrete Every OKR is owned by exactly one person If one person owns all Key Results, they own the OKR If Key Results are owned by multiple people, choose one to own the OKR OKRs are transparent to the entire organization

33. ‹#› OKR Types Committed OKR Something that must get done during the current quarter Ex: A sales target or a key hire You should achieve 100% of a Committed OKR Aspirational OKR Something that is focused on the bigger picture or ambitious goals

34. ‹#› OKR Types “Standard” OKR: The team knows what to do to achieve the objective, they just need to be aligned on what a successful outcome looks like. “Hit Our Numbers” OKR: Identify financial and operational targets numbers we need to hit for the quarter/year – this becomes the baseline for other OKRs “Experimental” OKRs: Success is not entirely clear because it’s an experiment or a new initiative without a lot of historical data – KRs are more about inputs and what we want to learn from the experiment “Project-Based” OKRs: Key Results tend to be milestones for project completion, but need to avoid a common trap: OKRs are about Prioritization, not Project Management. There should be a KR that identifies key output or desired outcome. “Process” OKRs or “Implement” OKRs: Identify key steps and create a documented process Schedule training(s) to train people in the documented process Establish Scorecard/KPIs to enforce the process and create accountability

35. ‹#› OKR Traps & Mistakes Failing to differentiate between committed and aspirational OKRs Business as usual OKRs Timid aspirational OKRs Sandbagging your OKRs OKRs should stretch your time Low value Objectives Insufficient Key Results You didn’t list all key results that need to happen in order to get the job done Overcomplicating the OKR process Getting stuck in what is an Objective vs. what is a Key Result

36. ‹#› Questions to Ask Are these the right priorities? Are they clear to everyone? Are KRs about business outcomes? Or are they a list of milestones/deliverables? Do we have the people, budget, time, and resources needed to achieve these? Which one of these is most likely to go sideways? How can we manage that risk? Which OKRs can be completed by a single person or team, vs. those that depend on other teams? Which OKRs require the Senior Leadership Team to buy in? If we achieve these OKRs, was that a great quarter?

37. Part V: Rolling Out OKRs

38. ‹#› Stakeholders Roles & Responsibilities Senior Leadership = Program Executive Sponsor Owns the “Why” for the transformation (Send kick-off message) Owns company OKRs HR = Program Captain Oversee the overall program to ensure adoption & consistency Responsible for employee training & engagement Chief of Staff - Program Champion Owns OKR calendar for company & departments Ensure alignment across all departments Department Heads Department level OKR planning Department huddles & check-ins Team Managers Plan Team level OKRs & Individual level OKRs Individual Check-in & Review Individual Contributors Plan Individual level OKRs Check-in & Update

39. OKR Cycle Plan, Track, Review

40. ‹#› Planning OKRs Planning Cycle Annual & quarterly At all levels of the company, for all team members State of the Company Address Share senior leadership quarterly OKRs Quarterly Conversations Two weeks prior to quarterly planning, everyone should be talking to all direct reports Find out what they are doing and use that to help plan the next set of OKRs Reporting tools Anything cloud-based tool that allows everyone to see each others OKRs (Ex: 15Five, Google Docs) At Convoso: we use Ninety.io

41. Meeting Rhythm Strategy Workshop Strategy Workshop Strategy Workshop Strategy Workshop

42. ‹#› Meeting Rhythm Annual Planning 1-2 days with senior leadership 3 Year Vision, Annual Objectives Quarterly Planning 1 day with senior leadership Review Quarter, Quarterly Objectives Discover Challenges & Opportunities Team Strategy Workshop (Quarterly) 2-4 hours with respective department leadership Brainstorm and talk about key strategic initiatives Level 10 Meeting (Weekly) 90 minutes as a divisional leadership group Stay on track with Quarterly Numbers and Objectives Daily Huddle 15 minutes with entire team or department Status updates, remove obstacles

43. Tracking OKRs = Weekly Meeting (L10) 90 minutes every week Accountability checkpoint Ensure Quarterly OKRs and KPIs stay On Track Communicate company updates Solve Issues – anything that’s throwing you Off Track

44. ‹#› (L10) 90-Minute Agenda Good News (5 minutes) Review Scorecard (5 minutes) Review OKRs (5 minutes) Headlines (5 minutes) Review To-Do List (5 minutes) Issues List (60 minutes) Build Issues List and Prioritize Identify, Discuss, Solve (IDS) Wrap-up (5 minutes)

45. ‹#› Issues List Build Issues List Any OKRs that are Off-Track Any Scorecard KPIs that were missed Any negative headlines Anything else important that needs discussion Prioritize the List Pick the top 3 issues Or, sort the list into categories Start with the highest priority issue and “IDS” Identify: What is the real issue here? Discuss: What are the options for resolving? Solve: What are the decisions and next steps?

46. ‹#› Reviewing OKRs Total OKR completion How many OKRs got done in a quarter? Shoot for 80% of total OKRs set. When OKRS don’t get completed, look at them individually as well. Getting 80% of the way toward a massive stretch goal may have more value than 100% completion on an OKR that was set to be very safe. Advanced version: OKR weighting Give each OKR a “weight” for difficulty and also assess % completion to determine final score

47. ‹#› Grading OKRs The Andy Grove method of grading OKRs is a simple “yes” or “no” approach A more advanced way is to score each Key Result on a scale from 0-1 “0” equates to failure and “1.0” means the Objective was completely achieved. Within these metrics, each individual Key Result is graded and averaged to score the Objective. The scale goes like this:

48. Part VI: OKR & Performance Review

49. ‹#› OKR vs. Performance Review OKR: Goal-Setting & tracking methodology that helps organizations set and measure goals Helps organizations and employee increase engagement in setting and achieving important goals Results & Outcomes driven Not directly tied to compensation Performance Reviews: Standardized tool and process to assess the individual performance over a certain period of time Involve feedback around effectiveness and efficiency of work Also assess Attitude, Mindset & Soft Skills to align with Core values Process and Productivity driven Basis for compensation & promotions An individual performance is not a good indicator of if OKRs were accomplished or not

50. ‹#› Incorporate OKRs in Performance Review Determine which Key Results the individual employee is responsible for Have individual employees add these Key Results on their performance scorecards Have the individuals provide progress update at least once a quarter for each Key Results Evaluate individual employee based on both the outcomes AND the process and their attitude Make OKR-related behaviors a part of the performance review process OKR is not the basis for performance evaluation, but one of the factors that are taken into account during the evaluation process.

51. Wrap Up How to Prepare for Planning Sessions

52. ‹#› Prepare Review the Organizational Goals Review the Annual Plans across your division’s different departments Be prepared to answer the following questions: What are the biggest challenges facing my Division? What are my Division’s top 3 to 5 priorities over the next 90 days? Weekly check-ins for tracking results and realigning assignments

53. ‹#› Additional Resources Read the book Measure What Matters (or watch videos on → whatmatters.com ) For Specific OKR Examples for Company and Departments: click → Get Examples Watch the video on → “How Google Sets Goals: OKRs”

54. ‹#› Rocks OKRs Rocks are a metaphor for high priority goals The term was popularized by Stephen Covey, author of 7 Habits of Highly Effective People , and later adopted in business operating systems including EOS and Scaling Up Rocks should be written in a way that’s specific, measurable, and time-bound (SMART) A Rock should have only one owner, to create accountability Rocks combine the business objective, work to be done, and the measurable outcome into one statement. OKRs are high priority goals that show how different activities (the Key Results) can be aligned to support a given Objective The use of OKRs was pioneered by Intel CEO Andy Grove and then brought to Google by venture capitalist John Doerr OKRs show how different leaders can work together OKRs allow for separation of the overall business objective from the key results that measure success Key Difference: Rocks vs. OKRs