Design Rules for OKRs
<ul>
<li>
Source: [
<a class="litnote tooltip" href="/literature/@doerr2018">
@doerr2018
<span class="tooltiptext">
Measure what matters: OKRs: the simple idea that drives 10x growth
</span>
</a>
]
</li>
<li>
Tags:
<a href="/tags/management-books">
#management-books
</a>
<a href="/tags/effective-management">
#effective-management
</a>
</li>
</ul>
<p>
Although the general idea of OKR (see:
<a class="wikilink" href="/literature/202112050837_definition_of_okrs/">
definition of OKRs
</a>
) can seem clear, being able to successfully launch an OKR system within a company takes some effort, especially in designing the OKRs and how they are used.
</p>
<p>
The first aspect that must be considered is that the OKRs should not be used as the metric for performance of individuals. Although this is repeated in [
<a class="litnote tooltip" href="/literature/@doerr2018">
@doerr2018
<span class="tooltiptext">
Measure what matters: OKRs: the simple idea that drives 10x growth
</span>
</a>
], little information is given on how to separate both concerns.
</p>
<p>
Since Objectives are aspirational, it is better to make them always a stretch, or a
<strong>
BHAG
</strong>
(Big Hairy Audacious Goal). If you know you'll reach the objective with absolute certainty within a given timeframe, then this tools is not the appropriate one.
</p>
<p>
Key Results must be quantifiable to the point where a number between 0 and 1 can be assigned to the level of completion. They can also be color-coded: 0-0.3 is red, 0.3-0.7 yellow, 0.7-1.0 green.
</p>
<p>
<em>
Google
</em>
aims for completion rates of around 0.7, the stretch is reaching to that 1.0. According to anecdotes, Doerr always wants to see
<em>
more red
</em>
in the boards. If everything is green, it means people is not being pushed enough.
</p>
<div class="admonition note">
<p class="admonition-title">
Note
</p>
<p>
Although the rules are repeated through the book, almost all the examples given failed at following the guidelines, for example this Key Result:
<em>
Sustain current global progress to ensure the environment is conductive to eradication push
</em>
[page 132]. Is not measurable, and it sounds like an objective more than a result.
</p>
</div>
Comment
Share your thoughts on this note. Comments are not public, they are
messages sent directly to my inbox.