Using OKRs for the First Time Learn more at 7geese.com/okrs - - PowerPoint PPT Presentation

Using OKRs for the First Time

Learn more at 7geese.com/okrs

Presented by…

@7Geese #OKRs

WENDY PAT FONG Director of Talent and Operations, 7Geese

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• Align your team and achieve more, together.

7Geese is a team-driven, continuous, and transparent platform that helps

• rganizations rollout objectives and key results goal-tracking, values-based

recognition, and a continuous culture of coaching.

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

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Anatomy of an OKRs

OKRs is broken down into 2 components:

• A. Outcome: What is the end result of this
• bjective?
• B. Key Results: What specific and measurable

results should you set to reach the outcome?

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• Differences:

SMART Goals - Specific, Measurable, Attainable, Relevant and Time-bound Example: Increase our Revenue by 10% by the end of May 31st, 2016. OKRs break down the measurable and specific factors for achieving an objective

Example: Increase our Revenue by 10% by the end of May 31st, 2016 by increasing our conversion rate by 2%, by renewing 90% of our subscription, and by increase leads by 5%

Difference between OKRs and SMART goals

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

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Organizational Alignment

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Example of an Organizational Objective

Outcome: Continue to increase our MRR by 10% every month Key Result #1: Sell $350,000 to new customers Key Result #2: Automate quarterly invoicing for seats expansion Key Result #3: Renew 95% of annual subscribers

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Example of a Team Objective

Outcome: Sell $350,000 to new customers Key Result #1: Increase our conversion rate from 15% to 20% Key Result #2: Improve the qualification process Key Result #3: Reach $200,000 for North American market Key Result #4: Reach $150,000 for European market

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

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What about MBO?

FAQs - History

Commonly used by

• rganizations before OKRs

Concept is very similar OKRs encourages specific measures of success OKRs cascades all the way down to individual team members

What if we use KPIs? Can we still use KPIs or MBO?

KPIs - Key Performance Indicators In OKRs terms, they are equivalent of key results A great starting point is to define your KPIs on company and team levels before converting them into OKRs Yes - KPIs are converted into key results MBO can be used for long term strategic planning OKRs transforms into quarterly

• bjectives which focus on

execution and alignment from top to bottom

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We do not have metrics

FAQs - Key Results

If you plan on adopting OKRs, it is important to outline specific measures of success Key Results can be both qualitative and quantitative Recommended to support managers in finding team specific metrics as well

Key Results vs Tasks Key Results are not indicative

• f performance

Best practices call for 3-5 key results per objectives Key Results are NOT tasks - they are the final outcome of series of tasks Note that reiteration is key to successful OKRs implementation Sometimes, it might require trials and errors to find the right key results for teams and individuals Also remember that key results are not the only indicators of performance

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Is Quarterly too much?

FAQs - Fundamentals

Quarterly is a great cadence for many SMBs because it is not too long that objectives become

• bsolete but long enough to

make changes. There are some companies who set OKRs on an annual basis but it depends on agility and business processes.

What if people are not comfortable with public? Do all OKRs have to be stretched?

Education is key. Making OKRs public should be accompanied with regular coaching, open feedback, and communication. Start with company and team OKRs being transparent while educating on the benefits for individual level OKRs No - whichever option you decide to go with, clear expectations have to be set and properly communicated Not all OKRs on all levels have to be stretched

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How does OKRs affect performance reviews?

FAQs - Performance Management

OKRs should be seen as a framework to talk about performance and contribution Remember that OKRs only focuses on one aspect Day to day activities, core values, alignment to company, competencies and skills are also part of the equation

OKRs and Bonuses How to talk about OKRs for performance?

OKRs is decoupled from compensation OKRs can still influence compensation through pay for performance/bonuses structure Crucial part is to not consider OKRs as only sole indicator of performance Weekly updates is always a good start OKRs should also be about team and company performance. Communication around status and progress is key. Monthly 1-on-1 is recommended for managers and team members to connect and talk about progress, obstacles, and next steps

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The leadership team is not on board

FAQs - Change Management

To get the full benefits of OKRs, it is ideal that you have strong company OKRs to cascade them down OKRs can be used on a team level Ensure that the vision and direction is clearly communicated

Teams see OKRs as duplicating their work Managers are not on board

Teams often use their own softwares to track their contributions Important to outline that one of the main goals of OKRs is transparency Key Results are not tasks - tasks more likely to live in the team softwares Recommended to have a strong message behind OKRs for each role in the organization For managers, it is about team collaboration and being proactive OKRs is a great opportunity to provide real-time feedback regarding performance and improvement

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Takeaways

• Start simple!
• Identify and communicate benefits for each role

in the organization

• Customize the process to make it yours
• Reiterate, reiterate, and reiterate

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• Align your team and achieve more, together.

Tweet me @WendyPFong or @7Geese Find more on our OKR FAQ: https://7geese.com/okr-objectives-and-key-results-faqs/