Using OKRs for the First Time Learn more at 7geese.com/okrs
Presented by… WENDY PAT FONG Director of Talent and Operations, 7Geese @7Geese #OKRs
e x p r e s s Align your team and achieve more, together. i o f b 7Geese is a team-driven, continuous, and transparent platform that helps e organizations rollout objectives and key results goal-tracking, values-based h recognition, and a continuous culture of coaching. a v i o
agenda 1. What are Objectives and Key Results 2.How to get started 3.Frequently Asked Questions 4.Q&As
What are Objectives and Key Results? • Goal setting methodology driven by outcomes • Using outcomes instead of tasks as a driver, OKRs encourage accountability on every level • OKRs is about EXECUTION
e x p Anatomy of an OKRs r e s s OKRs is broken down into 2 components: i o A. Outcome: What is the end result of this f objective? b e B. Key Results: What specific and measurable h results should you set to reach the outcome? a v i o u r
e Difference between OKRs and x p r SMART goals e s s Differences: SMART Goals - Specific, OKRs break down the measurable i Measurable, Attainable, Relevant and specific factors for achieving o and Time-bound an objective f b Example: Increase our Revenue by Example: Increase our Revenue by 10% by the end of May 31st, 2016 by 10% by the end of May 31st, 2016. e increasing our conversion rate by 2%, by h renewing 90% of our subscription, and by a increase leads by 5% v i o
What makes OKRs different • Set quarterly • Measurable and can be graded • Stretch and challenging outcome • 50% top down; 50% bottom up • Publicly available
Organizational Alignment using OKRs
e x p Organizational Alignment r e s s i o f b e h a v i o u r
e x Example of an Organizational p r Objective e s s i Outcome: Continue to increase our MRR by 10% every month o f Key Result #1: Sell $350,000 to new customers b Key Result #2: Automate quarterly invoicing for seats expansion e h Key Result #3: Renew 95% of annual subscribers a v i o u r
e x p Example of a Team Objective r e s s i Outcome: Sell $350,000 to new customers o f Key Result #1: Increase our conversion rate from 15% to 20% b Key Result #2: Improve the qualification process e h Key Result #3: Reach $200,000 for North American market a v Key Result #4: Reach $150,000 for European market i o u r
Check-ins • Cadence: Mondays are for promises; Fridays are for winners • The key for any group is to use OKRs on a regular, rhythmic basis • Status Updates on a monthly basis
e FAQs - History x p r e s What about MBO? What if we use KPIs? Can we still use KPIs or MBO? s i Yes - KPIs are converted into key Commonly used by KPIs - Key Performance o results organizations before OKRs Indicators f b MBO can be used for long term Concept is very similar In OKRs terms, they are e strategic planning equivalent of key results OKRs encourages specific h OKRs transforms into quarterly measures of success A great starting point is to define a objectives which focus on your KPIs on company and team v OKRs cascades all the way down execution and alignment from levels before converting them i to individual team members top to bottom into OKRs o u r
e FAQs - Key Results x p r e s We do not have metrics Key Results vs Tasks Key Results are not indicative s of performance i If you plan on adopting OKRs, it Best practices call for 3-5 key o Note that reiteration is key to is important to outline specific results per objectives successful OKRs implementation f measures of success b Key Results are NOT tasks - they Sometimes, it might require e Key Results can be both are the final outcome of series of trials and errors to find the right h qualitative and quantitative tasks key results for teams and a individuals Recommended to support v managers in finding team Also remember that key results i specific metrics as well are not the only indicators of o performance u r
e FAQs - Fundamentals x p r e s Is Quarterly too much? What if people are not Do all OKRs have to be stretched? s comfortable with public? i No - whichever option you Quarterly is a great cadence for Education is key. o decide to go with, clear many SMBs because it is not too f Making OKRs public should be expectations have to be set and long that objectives become b accompanied with regular properly communicated obsolete but long enough to e coaching, open feedback, and make changes. Not all OKRs on all levels have to h communication. be stretched There are some companies who a Start with company and team set OKRs on an annual basis but v OKRs being transparent while it depends on agility and i educating on the benefits for business processes. o individual level OKRs u r
e FAQs - Performance Management x p r e s How does OKRs affect OKRs and Bonuses How to talk about OKRs for s performance reviews? performance? i OKRs should be seen as a OKRs is decoupled from o Weekly updates is always a good framework to talk about compensation start f performance and contribution b OKRs can still influence OKRs should also be about team e Remember that OKRs only compensation through pay for and company performance. h focuses on one aspect performance/bonuses structure Communication around status a and progress is key. Day to day activities, core values, Crucial part is to not consider v alignment to company, OKRs as only sole indicator of Monthly 1-on-1 is recommended i competencies and skills are also performance for managers and team o part of the equation members to connect and talk u about progress, obstacles, and r next steps
e FAQs - Change Management x p r e s The leadership team is Teams see OKRs as Managers are not on board s not on board duplicating their work i Recommended to have a strong To get the full benefits of OKRs, it Teams often use their own o message behind OKRs for each is ideal that you have strong softwares to track their f role in the organization company OKRs to cascade them contributions b down e For managers, it is about team Important to outline that one of collaboration and being h OKRs can be used on a team the main goals of OKRs is proactive level transparency a v OKRs is a great opportunity to Ensure that the vision and Key Results are not tasks - tasks i provide real-time feedback direction is clearly more likely to live in the team o regarding performance and communicated softwares improvement u r
e x p Takeaways r e s s i • Start simple! o f • Identify and communicate benefits for each role b in the organization e h • Customize the process to make it yours a • Reiterate, reiterate, and reiterate v i o u r
e x p r e s s Align your team and achieve more, together. i o f b Tweet me @WendyPFong or @7Geese e Find more on our OKR FAQ: https://7geese.com/okr-objectives-and-key-results-faqs/ h a v i o
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