An Overview of OKR Based on the Book “Measure What Matters

In his book titled “Measure What Matters”, John Doerr clearly demonstrates -through examples and methods- how OKR has contributed to Google's growth of 10 times. OKR (Objectives and Key Results) is a process far beyond a performance management system, helping an organization leap forward and achieve efficient business results in line with its strategic goals. OKRs enable an organization to be visible, to have high and concrete enhancements in its value in a way to whet the appetite of other organizations, and to have a flexible and solid backbone allowing the organization to change its direction when necessary. The book makes in-depth explanations on the method used extensively by companies like Intel, Google, and Coursera to set and measure goals by using Objectives and Key Results (OKRs), yielding excellent results for decades. It introduces defining and cascading processes based on transparent goals that are collaboratively defined, and on clear indicators of how success is to be measured. This can turn into a process repeated at every layer of the organization to drive engagement and alignment. In essence, a structure aligned with the company's main strategy and implemented from A to Z, or end-to-end, is created. We seem to hear you asking "But how?". In brief, there are 5 superpowers of OKRs enabling this: F.A.C.T.S, i.e. Focus-Alignment-Commitment-Tracking-Stretching. 1. Focus on Priorities and Make a Commitment. OKRs function like a delicate scale allowing organizations to focus on the most important work and to be equally clear on what matters, and serve as the most powerful communication tool to be utilized. At this point, it is important for organizations to start by asking themselves the following questions: ● What is the most important goal I want to achieve? Why is it important? How do I know it is achieved/by which means can I measure it? ● Who are what I currently name as “main customers”? Who should be our main customers in the forthcoming period? If we define the profile of those customers, what kind of profile would it be? ● How well can we meet our customers' demands through the strategic goals we wish to achieve? ● How well are we responding to the most exciting opportunities that the market offers? Where and how should we be present and behave to achieve better? ● What are our services distinguishing us from our competitors, and what value do such services bring to our customers? 2. Align and Connect for Teamwork. Clearly shared OKRs connect personal goals to the company's game plan and identify the dependencies requiring cooperation among teams. This aligns with the company's values and keeps the team on track towards the goal. At this point, the important question is how good are we at increasing engagement among our high-potential employees? What can we do in this respect? What and which values hold us together? 3. Track for Accountability. OKRs are driven by data and activated through periodic controls that are conducted with a sense of accountability and through objective assessments. Considering all internal stakeholders (Shareholders, Employees, Managers) in communication within the organisation, what kind of matters must be taken into consideration? What should be the most profitable areas/products in the future? Who can proceed with what kind of engagement/accountability/coordination to make a difference with these fields/products today? 4. Review and Stretch or Change Where Necessary. By motivating us to do more than we thought we could, OKRs test our limits and give us the freedom to fail. Questions that can be asked at this point are as follows: What key initiatives are/should be taken essentially in the short and medium term? How is it currently possible to achieve the strategic goals I want to achieve with existing suppliers/employees/services I offer? What are our points of improvement? What would I quit doing, keep doing, or do differently? How do we integrate our new services with existing services and improve our profit margins? And while tracking, measuring and realizing all these, open dialogue, feed forward, recognition and appreciation are the most important performance management elements in implementing OKRs. Even in the absence of one of those elements, the probability of the other hanging in the air is quite high. Open Dialogue/Visibility: It implies inclusive and open communication between the manager and the employee, using the 'I' language. Feedforward: It means statements evaluating progress and aiming to reveal future potential based on data, circumstances, and observation that direct future performance. Recognition and Appreciation: It means giving the appreciation and honour to those who deserve it. Sometimes it is a "thank you", sometimes it is to allow the employee to present his/her work as an example of his/her best performance, and sometimes it is a cross-mentoring opportunity. Key results are achieved where goals are inspiring, encouraging, clear, measurable, time-adjusted (monthly, quarterly, etc.) and sometimes challenging, or in other words, where they provide employees with learning and development opportunities by leaving their comfort zone, and employees match up with their presence within the company and with the work they are performing. This enables employees to be aware of the priorities and the "cause" and "contribution" behind them, to focus and to decisively proceed on the path to the result. Key results must be absolutely measurable and contain high-bar figures. They must go beyond doing the work as usual. We do not aim to set perfect OKRs here. We always seek development and growth. Enabling cross-coordination between tasks/functions and setting of goals and creating space for an all-round perspective in determining OKRs yield highly efficient business results in both creating back-up and coming up with new and original ideas across cross-functions/tasks. Besides, it should always be remembered that OKRs are like dynamic and living organisms; they are in constant motion and have a 3-phase life cycle. 1. The Set-up/Design Phase: If OKRs are not constantly updated through established processes, they will turn into zombie objectives. As such, it is important to create OKRs and keep them up-to-date. The team needs to be involved in and to own and commit to the OKRs designed. 2. The Midlife Phase: Weekly follow-ups are particularly recommended. This process also reveals control and whether OKRs are aligned with reality. OKRs should be like railway tracks that can change direction; you should be able to easily switch to a different direction whenever you wish. Here, you can adopt the traffic light technique that has been used for years. Red: Stop. If the key results do not serve the purpose or are no longer valid/applicable, we understand that, once this is noticed, they need to be suspended, reviewed and renewed. Here, the important point is to ensure that everyone concerned is aware of this phase and consider the lesson taken from the previous one in setting the new one, and then identify the next OKR. Yellow: Change of perspective. It is the phase for transition to a new approach or for an update. Green: Start or continuation, launch phase. 3. Recovery and Repetition: There are 3 different recovery processes in this phase. The aim behind it is scoring, self-assessment and reflection. In scoring, evaluation is made based on objective data, proceeding automatically with a systematic approach in general. For example, a score of 70% and 100% is considered Green, a score between 40% and 60% is considered Yellow, and a score of 30% and below is considered Red. Taking compliance with the company culture in OKRs into account while measuring the most important one among all those processes enables being dedicated to the values and beliefs that keep the company alive, progressing by self-governance without being dependent on anyone else, and taking reliable and agile decisions. Thus, OKRs bring collaboration and trust into the company culture. While measuring what matters and creating an OKR-based structure for your company's future, go back to square one and ask the following questions for your company: What is the most important goal I want to achieve? Why is it important? What happens if I achieve or fail to achieve it? What results would I obtain if I dedicate my company to this? Smooth operation and efficient results of an OKR-based system depend, above all, on your capability to realistically answer these questions about your company.