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The Basics of OKR - Google's Secret Sauce

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OKR (Objectives & Key Results) is used by companies like Google, LinkedIn and Intel. It enabled them to achieve tremendous results. It can enable you to achieve the same.

Businesses and organizations have many things to get done. That requires you to focus on the essentials and be extremely goal-oriented. OKR is a great managent framework that enables you to do just that.

Publicado en: Empresariales, Tecnología
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The Basics of OKR - Google's Secret Sauce

  1. 1. OKR The Basics of @henrikjanvdpolBy Henrik-Jan van der Pol
  2. 2. OKR = Objectives & Key Results Companies using OKR It’s a way to run your life, your team or your company. It creates focus and prioritization. It aligns team effort and makes sure everybody is working towards the same goal. www.perdoo.com
  3. 3. Objectives & Key Results Objectives are goals. They tell you where to go. Each objective has a few Key Results. They indicate how you will get there. An Example You sell barbeques online. You want to grow revenue to 1 million this quarter (objective). Your Key Results could be: • Rank Top 3 in Google’s Search Results for ‘buy barbeque’ • Run a 20%-discount-campaign in 2 national newspapers www.perdoo.com
  4. 4. From the mission & vision, you can derive your Objectives. Together they tell you Where. Mission, Vision, OKRs, Todos Todos are the things you do to achieve your Key Results. Together they tell you How. www.perdoo.com
  5. 5. 4 OKR Rules • Set them annually and quarterly A quarter and a year are timeframes in which you really can achieve something. The same timeframes are also used to evaluate companies. • Don’t have too many 5 Objectives with 4 Key Results each is your maximum per quarter. Having more will only distract you from what really needs to be done. • Make them challenging. Research demonstrates that people who set challenging targets achieve more. Expect to get to 70-80% of your challenging target. • A KR must have a number. Numbers enable objective evaluation and create a learning process. www.perdoo.com
  6. 6. Your vision is the long term view. OKRs on a Time Scale From the mission & vision, you derive your annual objectives. Annual objectives split into quarterly objectives. www.perdoo.com
  7. 7. Grading Only Key Results get graded. An Objective’s grade is the average of its Key Results. A good Key Result always enables objective grading. Objective grading is necessary for learning. Grading shall never be used for employee evaluation. Some Guidelines • Use a scale from 0 to 1. Getting to 70-80% of your target will result in a .7 or .8 grade. • Grade your OKRs at the beginning of the next quarter. • If you constantly score a 1, your OKRs were not challenging enough. You should score a .7 or .8 www.perdoo.com
  8. 8. • • •• Brainstorm 2014 & Q1 Objectives Define Q2 Objectives Define Q3 Objectives Define Q4 Objectives etc. Draft KRs Draft KRs Draft KRs Draft KRs Grade previous OKRs 1 January Grade previous OKRs Grade previous OKRs Grade previous OKRs 1 April 1 July 1 October Timeline 2015 www.perdoo.com
  9. 9. Perdoo is the 1st OKR tool. Perdoo lets you easily manage & track your OKRs (Objectives & Key Results) and organize everything around it. #makethingshappen Signup for free at http://perdoo.com
  10. 10. About the author Henrik-Jan van der Pol @henrikjanvdpol http://linkd.in/1KxzaDV Click here to signup for a free Perdoo account Henrik-Jan is an early evangelist of OKR. Before founding Perdoo in 2014, he worked several years as a management consultant and implemented OKR at large multinationals. Perdoo’s approach to OKR is unique due to its focus on both employee engagement & performance improvement.

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