The acronym OKRs stands for Objectives and Key Results. Behind the scary terms is a goal-setting framework designed to foster alignment and focus. It started at Intel, but they've been more recently associated with Google. They drive everything via OKRs, using stretch targets to spark innovation.
These 2 companies are huge, both way past the 10,000 employees mark. So it could be tempting to dismiss OKRs as a sluggish model for big Enterprise, but in reality, it's a tool that can benefit every team regardless of their size.
The rules of OKRs are simple, but it takes time and efforts to do it right. This is probably not the first post you read on the topic, but we strive to be different by offering you a pragmatic approach to implement OKRs.
Rushing OKRs without preparedness is a sure way to confuse your team and drop morale.
In this guide we will help you grow your outcome-driven muscle gradually. You'll see how you can get started with simple goal-setting practices, and slowly adopt OKRs principles as you get comfortable.
We divide that journey in 4 stages.
|Stage 1||Stage 2||Stage 3||Stage 4|
|Focus on outputs||Outcome-driven||Outcome-driven||Outcome-driven|
|Top-down directives||Top-down directives||Top-down directives||Top-down directives|
|Bottom-up contributions||Bottom-up contributions|
You'll find 4 articles to help you move from one stage to another, using Tability as a supporting platform.
But before diving into the tutorials, let's see why OKRs are challenging.
Most organizations start with a simple model. By doing a set of activities, you will increase your revenues and grow your customer base.
It translates into teams putting a lot of emphasis on tracking their outputs: features being releases, sales calls made, support cases being closed. The more throughput we see, the better.
The problem with this approach is that it lacks focus. Measuring the activity of your teams will give them a strong incentive to produce more. But, without a clear direction for the company, you're likely to see people wasting efforts on different priorities.
In the picture above, teams are working equally hard, but they're not aligned. As a result it will be difficult for your business to grow effectively as your teams might be working against each other.
This is what happens when your Product team ships some features that your Marketing team is not prepared to promote. Or when your Marketing team launches a campaign without the support of your Customer Success team.
The OKRs framework helps you flip that thinking around.
Rather than looking at outputs, you focus first on defining the outcomes you want.
By having a clear idea of where you want to be, you will be able to help everyone in your organization understand what they need to do to get there.
Instead of letting your teams decide what direction they should take, you define the North Star that will guide their efforts. By doing so, you ensure that everyone is driving towards the same goals.
It may only take a couple of paragraphs to explain OKRs but flipping the flow Activity -> Outcomes is freaking hard.
A common mistake is to think that having a set of goals written on a page is enough to consider yourself outcome-driven. This is only a tiny part of the transformations that need to happen if you want your organization to be truly outcome-driven.
|Leadership controls||Leadership inspires|
|Top-down strategy||Bottom-up ownership|
|Passive contributors||Empowered teams|
|Producing deliverables||Delivering value|
|Siloed roadmaps||Shared North Star|
|Yearly targets||Quarterly goals|
Rather than tackling everything at once, you should start by setting the foundations of a good goal-setting culture. Then, as you get more practice and experience you'll be able to start sharing ownership of the goal-setting with your team.
In this guide we'll use Tability to save time and help you focus on the organizational changes, rather than having to craft a spreadsheet.
Tability is a lightweight goal-tracking platform for teams. It creates fast feedback loops on outcomes and makes it easy to see progress.
We designed it so that you can start small with simple goals and grow progressively into more sophisticated usage like OKRs.
Now let's dive in and start the tutorial!
Send us your questions and feedback via Twitter at @tabilityio