Use OKR - Objetives and Key Results to Optimize Portfolio Management

OKR - Objetives and Key Results

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2. © 2017 FORRESTER. REPRODUCTION PROHIBITED.
WEBINAR
Use Objectives And Key Results To
Optimize Portfolio Management
Margo Visitacion, Vice President, Principal Analyst
June 15, 2017. Call in at 10:55 a.m. Eastern time

3. We work with business and
technology leaders to develop
customer-obsessed strategies
that drive growth.
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Agenda
›Companies struggle to articulate value.
›OKRs add a dose of pragmatism to measurement.
›Reinvent your management approach.

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Agenda
›Companies struggle to articulate value.
›OKRs add a dose of pragmatism to measurement.
›Reinvent your management approach.

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Transparency needed to win in age of the customer
Source: Forrester Data Global Business Technographics
®
Priorities And Journey Survey, 2017; Total sample size: N=18,277

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70% consider
BRM important.
Strategic
budgeting — 30%
annual effort
49% say
decisions made
based on
qualitative data
Value realization: an ongoing challenge
48% actively
measure
54% strategic
investment never
realized
30% seek to
improve planning.

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Current KPIs lack clarity

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Valuable, but old-school

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It’s easy to build the wrong KPI
Faster time to market

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Does this really demonstrate what we need to know?
Faster time to
marketKPI
Schedule variance
Number of
milestones missed
Number of blocking
issues
Metrics

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Does this really demonstrate what we need to know?
Faster time to
market
Do we have bad
project
management?
KPI
Schedule variance
Number of
milestones missed
Number of
blocking issues
Metrics
Question

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Does this really demonstrate what we need to know?
Faster time to
market
Do we have bad
project
management?
KPI
Schedule variance
Question
Number of
milestones missed
Number of
blocking issues
Metrics

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We need to ask the right questions for the right focus
Faster time to market
How many times do we
miss delivery dates?
Do we have bad project
management?
Goal
Questions

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Direct focus to solve the problem
Faster time to
market
How many times do
we miss delivery
dates?
Do we have bad
project
management?
Goal
Schedule variance
Number of gates
failed
Questions
Percentage of
rework due to
defects
Percentage over
allocated resources
Number of
milestones missed
Number of
blocking issues
Metrics

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Agenda
›Companies struggle to articulate value.
›OKRs add a dose of pragmatism to measurement.
›Reinvent your management approach.

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Today’s business climate needs insights to be:

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What is an OKR?

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OKR structure creates realistic traceability

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Sample:
Objective
OrganizationKey results KPI

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Relationship between KPI and OKR
Annual
Quarterly

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OKRs provide basis for better KPI definition

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Using KPIs to manage portfolios

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Value, capacity, and time to realize
Strategic portfolios
Value
Capacity
Time-to-
realize
•Value
delivered
on time
•Leads
converted
•Velocity
•On-time
delivery
•Percentage
spend on
transformation

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Agenda
›Companies struggle to articulate value.
›OKRs add a dose of pragmatism to measurement.
›Reinvent your management approach.

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Reinvent your management approach
›Identify cross-functional key results.
›Employing a big room planning session to identify objectives
›Clarify prioritization of the “how-tos.”
›Measure together in collaborative reviews.
›Be consistent and visible.

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Thank you
© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Margo Visitacion
[email protected]