OKRs For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1 Introducing OKRs
Chapter 1 Achieving Goals with OKRs
OKRs Are a Goal-Setting System
Seeing the Value in Goal Setting
Examining the Components of OKRs
Defining an “objective”
Writing a basic objective
Defining a key result
Writing key results
Comparing OKRs to Other Goal-Setting Systems
OKRs versus SMART goals
OKRs versus KPIs
OKRs versus 4DX
OKRs versus BSC
Chapter 2 The Benefits of OKRs
Overcoming Common Organizational Challenges with OKRs
Acknowledging the difficulty of executing strategy
The two main causes of execution failure
Measurement is crucial
Recognizing the challenge of sustaining growth
The slow drip of internal issues
Opportunities! So many opportunities!
Working with the threat of disruption
Understanding How Your People Will Benefit from OKRs
Focusing on what matters most
Aligning from top to bottom and beyond
Thinking vertically
The silo scourge
Rooting out dependencies
Increasing engagement
Driving accountability with strategic knowledge
Rising to the next level through visionary thinking
Working within a system that is easy to understand and use
Part 2 Preparing to Create OKRs
Chapter 3 First Things First: Identify Why You Are Creating OKRs
Knowing How Not to Kick Off Your OKRs Journey
Avoid having your administrative assistant call consultants
What to do instead
Don’t embark on a change effort lightly
What to do instead
Getting to Your “Why” for Creating OKRs
Determining your unique reason for implementing OKRs
The need for awareness and execution of strategy
A way to manage fast growth
The need to correct misalignment
A method for keeping the right focus
Knowing your why is crucial
Chapter 4 Filling Vital OKRs Roles within the Organization
Securing an Executive Sponsor: A Critical Component
Understanding Executive Sponsorship and Why It’s Important
Possessing knowledge of OKRs
Defining success and why you believe in OKRs
Championing the use of OKRs at the senior leadership level
Approving funding for the initiative
Determining your OKRs “playbook” with the champion and executive team
Serving as a final point of escalation on OKRs issues
Seeing sponsorship in action
Gaining executive sponsorship
Choosing Your OKRs Champion: A Vital Role for OKRs success
Understanding the role of an OKRs champion
Picking the perfect OKRs champion
Grasping why the champion is critical to OKRs success
Bringing OKRs Ambassadors On Board
Understanding the Role of an OKRs Ambassador
Serving as internal OKR expert and evangelist of the system
Coaching teams on creating and reviewing OKRs
Helping teams distinguish between business-as-usual work and OKRs
Acting as a point of contact for all things OKR-related for their area
Serving as liaison with other ambassadors and the champion
Outlining the Profile of an OKRs Ambassador
Maximizing OKRs Success with Ambassadors
Chapter 5 Determining Where and When to Create OKRs
Determining When to Use OKRs
Creating OKRs at the Company Level Only
Some benefits to starting at the top level
More benefits of starting at the top
Now for the disadvantages of top-level OKRs
Prerequisites for company-level OKRs
Creating OKRs at Both the Company-and Team Levels
Deciding which teams and units to include
Deciding between following the org chart or linking dependent teams
Creating customer-based OKRs
Creating Individual OKRs for the Entire Organization
Yes, Google does it, but you may not want to
More issues with individual OKRs
Considering Other Options for Where to Create OKRs
Piloting at a business unit or team
Advantages of a pilot program
Disadvantages of a pilot program
Using OKRs for projects
Using OKRs for support groups
The “yes” part of OKRs with support groups
The “but” part of using OKRs with support groups
Setting the Right Cadence for OKRs
Timing company-level OKRs (Hint: Annual works best)
Sizing up why annual OKRs work best for the top level
Allotting sufficient time for major shifts
Setting the cadence for key results
Determining whether quarters or trimesters are right for you
The quarterly cadence isn’t set in stone
The trimester as an alternative
Setting the OKRs timeline
Chapter 6 The Raw Materials of OKRs: Mission, Vision, and Strategy
Agreeing on the Definitions of “Mission,” “Vision,” and “Strategy”
Mission: Stating Why Your Business Exists
Yes, you need to take the time to create a mission statement
Knowing what makes an effective mission statement
If you already have a mission statement
Vision: Creating Your Picture of the Ideal Future
Understanding the ins and outs of vision statements
Knowing what makes an effective vision statement
Quantified and time bound
Brainstorming your vision statement
Strategy: Getting Your Priorities Straight
Understanding why strategy is critical to OKRs
Getting started with strategy
What do you sell?
Who are your customers?
Why do customers buy from you — what is your value proposition?
Playing 21 Questions
Subquestions for “What do you sell?”
Subquestions for “Who are your customers?”
Subquestions for “Why do customers buy from you? What is your value proposition?”
Part 3 Creating OKRs
Chapter 7 Preparing to Create OKRs
Training Your Organization for OKRs Success
Grasping why training is critical
Mastering the fundamentals
Boosting confidence
Speeding up learning
Preparing for training
Considering who should lead the training
Deciding who should receive the training
Providing materials to be read before training
Getting your training off to a good start
Warming up with an icebreaker or introductions
Including your executive sponsor
Working with the Training Curriculum
Starting with a story
Giving your participants a history lesson
Defining your terms
Illustrating an effective OKR with an example
Distinguishing between the types of key results
Sharing the characteristics of OKRs
Learning by doing
Kick Off Your Shoes Hotels OKRs case study
Interview with Melissa Jacobs, Chief Executive Officer
Finishing strong
Knowing whether virtual training is effective
Being prepared
Knowing your material
Offering interactive activities
Setting expectations for everyone
Keeping the session relatively short
Determining Your OKRs Philosophy
Weighing whether to use business-as-usual activities for OKRs
Drawbacks of BAU as OKRs
When BAU as OKRs may be appropriate
Creating a dashboard of “health of the business” metrics
Chapter 8 Rolling Up Your Sleeves, Part 1: Creating Objectives
Working with the Various Types of Objectives
Looking ahead: Annual objectives
Facing the here and now: quarterly or trimester OKRs
Dealing with necessary on-the-fly objectives
Walking through the Process for Creating Objectives
Asking the fundamental objective setting question (based on the cadence)
Making a list of possible objectives
Sequencing your list
Make the objective attainable
Consider the timing of various objectives
Choosing the most important objectives
Using your formula
Exploring Other Ways to Help You Set Objectives
Using rituals
Drawing on the wisdom of crowds
Considering what’s holding you back
Incorporating the Characteristics of Effective Objectives
Making it qualitative
Making it meaningful to you
Ensuring that it’s doable in the time period
Aligning it vertically and horizontally
Keeping it easy to read and understand
Controlling the necessary resources
Providing business value
Chapter 9 Rolling Up Your Sleeves, Part 2: Creating Key Results
Looking at the Types of Key Results
Metric key results
Milestone key results
Walking through the Process of Creating Key Results
Determining your business impact key result by asking the fundamental question
Telling the story of success using leading key results
Telling the story by working backward
Telling the story by measuring the objective
Don’t look for perfect key results
Using the formulas
Incorporating the Characteristics of an Effective Key Result
Making it quantitative
Shooting for stretch — but ensuring that it’s attainable
Limiting the number of key results
Making it specific
Ensuring that it’s a key result, not a task
Fighting the “You can’t measure what we do” syndrome
Chapter 10 Making Your OKRs Even Stronger
Ensuring Alignment among OKRs
Using vertical alignment to drive strategy execution
Think connecting, not cascading
The problems with cascading
The power of intrinsic motivation
Focus on connecting, not cascading
Achieving horizontal alignment by managing dependencies
Answering Some FAQs about OKRs that You’re Sure to Get
What if I can’t measure business impact during the quarter?
What is the difference between committed and aspirational OKRs?
Is it okay to use meeting-based key results?
Can OKRs change during the quarter?
Valid reasons for changing OKRs mid-quarter
Invalid reasons for shifting OKRs midstream
How do you position your teams for success in creating OKRs?
Telling a consistent story
Working with your team leaders
Are there any shortcuts to creating OKRs?
Shortcuts to effective OKRs
Areas that have no shortcuts
Part 4 Managing with OKRs
Chapter 11 Holding OKRs Review Meetings
Determining Your Meeting Cadence
Holding weekly meetings
Topics for weekly meetings
Don’t be boring!
Holding monthly meetings
Going monthly to avoid the “set it and forget it” syndrome
Questions to raise during monthly meetings
Conducting end-of-period retrospectives
Getting the ball rolling: examining results
Exploring deeper questions for a specific OKR
Getting the Most from Your OKRs Meetings
Scheduling meetings in advance
Asking simple questions
Keep focusing on learning
Managing your expectations
Keeping the meeting moving
Evaluating the meeting
Chapter 12 Scoring and Analyzing OKRs Results
Scoring OKRs
Understanding What and How to Score
Scoring example 1: Maximizing the impact of a national sales conference
Interpreting the scores
Scoring example 2: Maximizing a rental investment
Interpreting the scores
Scoring milestone key results
Deciphering your OKRs scores
Taking the colorful approach
Gauging your level of stretch
Establishing the scoring sweet spot
Analyzing OKRs results
Considering OKRs software versus “old school” methods
The pros of using Google and Microsoft apps
The cons of using the old-school tools
The advantages of dedicated OKRs software
The disadvantages of OKRs software
Choosing the best option for you
Knowing What to Look for in Selecting OKRs Software
Corporate strategy and strategy execution tools
Guidance for team OKRs
Integration capabilities
Planning and capabilities
Reporting capabilities
Administration capabilities
Other important software capabilities
Chapter 13 Making OKRs Stick
Laying the Foundation for OKRs Success
Viewing OKRs as a journey, not a project to complete
Celebrating success
Knowing how OKRs fit
Providing an expert’s credibility for the doubters
Knowing how to fast-track your success
Supplying ongoing guidance
Knowing What to Look for in a Consultant
Maximizing Your OKRs Success
Providing ongoing training
Supplying resources and support
Resources to consider
Supportive messaging
Continuously evaluating and refining
Evaluating your OKRs program
Refining your OKRs process
Using the system
Part 5 The Part of Tens
Chapter 14 Ten Common Questions about OKRs
Do OKRs Link to Performance Reviews?
Should You Link OKRs to Incentive Compensation?
How Many OKRs Should You Have?
How Do You Overcome Resistance to OKRs?
What’s in It For Me? Why Should I Care about OKRs?
Where Can I Find a Library of Potential OKRs for My Business?
What Do We Do When We Can’t Control the Key Results?
How Do You Balance Stretch OKRs with a High-Achievement Culture?
How Do You Know Whether OKRs Are Right for Your Organization?
Can Business-as-Usual (BAU) Activities Serve As OKRs?
Chapter 15 Ten “Musts” to Ensure OKRs Success
Know Why You’re Implementing OKRs
Have an Executive Sponsor, Champion, and Ambassadors in Place
Provide Training (and Lots of It) to Those Who Will Be Creating OKRs
Create an OKRs Playbook
Don’t Go Too Far Too Fast
Ensure Consistency in How Your Teams Write OKRs
Don’t Set Them and Forget Them
Go Beyond the Numbers to Learn from OKRs
Learn and Evolve over Time
Get Professional Help If You Need It
Chapter 16 Ten Tips for Creating Effective OKRs
Know the Organization’s Strategy
Learn How to Write a Technically Sound OKR
Make Objectives a CRAFT Project
Be Specific
Always Tell the Story of Success with Key Results
Don’t Look for Perfect Key Results
Balance the Equation
Align Vertically and Horizontally
Make It a Collaborative Effort
Focus on What Really Matters
Index
EULA