Accomplish Big Goals With Objectives & Key Results (Christina Wodtke)

Accomplish Big Goals With Objectives &

Key Results

@cwodtke | [email protected]

www.eleganthack.com

I have worked many great places and done many impossible things.

Along the way, I have learned important lessons I’m here to share, including…

Don’t get sued

Once upon a time there was a start-up.

Hanna

Jack

Restaurant Suppliers

Restaurant Suppliers?

Hell no

Let’s talk to Jim

JimLet me tell you a story

“I looked out the window at the Ferris wheel of the Great America

amusement park revolving in the distance, then I turned back to

Gordon and I asked,

“If we got kicked out and the board brought in a new CEO, what do you

think he would do?”

Gordon answered without hesitation,

“He would get us out of memories.”

“Why shouldn’t you and I walk out the door, come back and do it

ourselves?” Andy Grove

Jim“let’s pretend we’ve already decided”

Hire a sales guy? Change the

website…

Hire a sales team.

Restaurant Suppliers!Restaurant Suppliers!

But wait, there’s more!

OKRsObjectives and Key Results

OKRs

Objectives

Key results

OKRs

O: Dream

KR: Success criteria

“Google did more than adopt it,” says Doerr. “They embraced it.”

OKRs became an essential component of Google culture. Every employee had to set, and then

get approval for, quarterly OKRs and annual OKRs.”

OKRs

O: Qualitative

Shoot for the moon dream

Objective: Establish epic value to Northern California Restaurant Suppliersas the best tea provider

OKRs

KR: Quantitative

“How do we know we met the objective?

KR: Hire a sales guyKR: redo the websiteKR: Place ads in Restaurant supply magazines

Jim

Those are tasks. Not results.

KR: Reorders at 85% KR: 20% of reorders self-serve KR: Revenue of 250K

JimYou want flexibility in the how, not the what.

Your turn!Objective:

KR

KR

KR

OKR Test

Objective: Is it aspirational & qualitative?

KRs: Is it a result or a task?

Is it measureable?Does it take a full quarter to achieve?

Is it really hard? 50% Confidence?

Objective: Establish epic value to suppliers

AND delight existing customers with a responsive customer service team

AND new order flow online to support reorders, reducing calls by 50%

Team reluctantly agrees

Hell no

Team Wiffed ALL

I want you to meet…

Raphael

You’re doing it WRONG

FOCUS

objective

UNITES EFFORTS

Key Results

DEFINES SUCCESS

IT’S NOT EVERYTHING

YOU DO

IT’S WHAT YOU HAVE TO DO

CADENCE

Commitment

Mondays are for promises

Fridays are for winners

Objective: Establish clear value to distributers as a quality tea provider

KR: Reorders at 85% 5/10KR: 20% of reorders self-serve 5/10KR: Revenue of 250K 5/10

Priorities this week

Next 4 weeks - Projects

OKR Confidence

Team Health:

Distributor satisfaction Health:

HealthYellow

P1

P1

P1

Green

Close deal with TLM Foods

Team struggling with direction change

3 solid sales candidates in for interview

Passive reorder notificationsNew self serve flow for distributorsMetrics for distributors on tea salesHire Customer service head

New Order flow Spec’d





OKR Confidence

Team Health:


Org HealthYellow

P1

P1

P1

Green






Commitment!





OKR Confidence

Team Health:


Org HealthYellow

P1

P1

P1

Green






Commitment!

Heads up!





OKR Confidence

Team Health:


Org HealthYellow

P1

P1

P1

Green






Commitment!

Heads up!

Discussion & Support!


KR: Reorders at 85% 5/10KR: 20% of reorders self-serve 5/10KR: Revenue of 250K



OKR Confidence

Team Health:


Org HealthYellow

P1

P1

P1

Green






Commitment!

Heads up!

Discussion & Support!

Protect what matters

DEDICATIONTO YOUR GOALS

TO YOUR TEAM

Fridays are for Wins & Wine

(or beer. or cake.)

Engineering demos

Engineering demosDesign demos


Sales & Bizdev shares wins


Sales & Bizdev shares winsBeer

Everybody needs bragging time

• Motivates team to have something to share

• Makes you feel like part of something special

• Show progress

Back to the Team

We’re doomed

You didn't make your

OKRs…

"I don't think we're marketing right"

"We had to deal with wrong orders and late deliveries to

Los Gatos"

"We didn't hire a second salesperson!"

"We had some problems with the performance of the

site"

Hold on! Most companies fail the first time they try OKRs

It’s OK.We’re trying

again… but this time

One OKR for quarter

One OKR for quarterWeekly check-ins


again… but this time


again… but this timeOne OKR for quarter

Weekly check-insFriday Celebrations

Team made 2 of 3 KRs!

Metrics are growing!

Series A

Happily ever after?

WHY CAN’T WE GET THINGS

DONE?

RADICAL FOCUS

Objective: Establish epic value to suppliers

AND delight existing customers with a responsive customer service team

AND new order flow online to support reorders, reducing calls by 50%

Objective: Establish epic value to Northern California Restaurant Suppliersas the best tea provider

Wait!We can’t just forget about RevenueCodeHealthCustoemrSatisfactionSalesHiring

PUSH VS PROTECT

Team Health:


Org Health

Yellow

Green




OKR Confidence

COMMUNICATION

“WHEN YOU ARE TIRED OF SAYING IT, THEY ARE STARTING TO HEAR IT”

– JEFF WEINER



Key Risk Factors: Need new self-serve system up in first month



OKR Confidence

Team Health:


Org HealthYellow

P1

P1

P1

Green



# solid sales canidates in for interview


New Order flow

Monday

Restate that goal!

It’s a conversation




OKR Confidence

Do these efforts more us closer to the goal?

Keep a backlog of ideas

Experiment with what impacts the OKRs

FIGHT! ARGUE!


P1

P1

P1



New Order flow

What are we doing next toward that goal?

Make sure everyone know what’s happening

Ask for help

Track trains that never arrive



Is our goal hurting anything we care about?

Team Health

Code Health

Customer Satisfaction

Revenues

Team Health:


Org Health

Yellow

Green


STATUS EMAILS

OKRS rewritten, reevaluated in

every status

FRIDAYS

Restate the Goal in Wins

• Engineering demos

• Design shows

• Sales brags

• Customer service stories

• Business Development crows

• Everybody SHARES WINS TOWARDS GOAL

“WHEN YOU ARE TIRED OF SAYING IT, THEY ARE STARTING TO HEAR IT”

– JEFF WEINER

Important Unimportant

Urgent

Not Urgent

DO now!

Drop itPLAN it

Delegate

TOMORROW NEVER COMES

MAKE IT URGENT

PLAN

JUST DO IT

LIES!

MISSION

Start here

Google

to organize the world‘s information and make it universally accessible and useful

Amazon

“to be Earth’s most customer-centric company, where customers

can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices”

Philz mission is to “Better Peoples Day.”

All Are

• Short (or have a mini-version)

• Clear

• Inspirational

• Memorable

SET YOUR OKRS WELL

Examples

• Product is embraced by the marketplace

• Platform delights developers and users

• Become the community online for creatives

All Are


• Clear

• Inspirational

• Memorable

• Time bound

Does your objective make you jump out of bed in the morning?

OBJECTIVE IS A MISSION FOR

THREE MONTHS

GOOD KEY RESULTS

HOW DO YOU KNOW?

HOW DO I KNOW?

Ratings?

Sales?

Reviews?

Blog posts?

Articles?

Tweets?

Likes?

RESULTS vs TASKS

O: Book is available and generating buzz

• Kr: Publish book on amazon

• Kr: Contact a PR person

• Kr: Give a keynote on book topic


• Kr: Review copies out to beta customers and 100 influencers resulting in 5 reviews of 4< stars

• Kr: Dec sales of 1K

• Kr: 5 cold leads for talks/workshops from book

“WHAT GETS MEASURED, GETS

MANAGED“PETER DRUCKER

PREPARE TO FAIL

SAND-BAGGING

OVER REACHING

NO CADENCE

FAIL & LEARN

know your Missionset your Objectives

choose your Actionslearn from your Results

do MOAR

BUT WAIT THERE’S MORE

GOODBYE RATRACE

OBJECTIVE: BE

FINANCIALLY

STABLE, PRESERVE

HEALTH

DO WORK I LIKE.

KR: EARN 30K

OVER THREE

MONTHS DOING

WORK I’D DO EVEN

IF I WASN’T PAID

KR: HAVE A

MANAGEABLE

BUDGET TO

PREDICT

EXPANSES

KR: ZERO ACID

REFLUX, ZERO

BACK PAIN

HELLO, DREAMLIFE

Thanks to my awesome students in my Designer as Founder class. Especially An, Justin, and Jack for their lead roles.They were paid in pizza, just like a real startup.

As Harry Max for not suing me when I use his picture.

Thank You

@cwodtke

www.cwodtke.com

I coach teams and individuals to make dreams into realities.

New Book coming soon! Get notified at alert.theexecutionerstale.com

Tips on OKRS• Set only 1 OKR for the

company, unless you have multiple business lines. It’s about focus.

• OKRs are not the only thing you do, they are the one thing you must do. Expect people to keep the ship running

• Give yourself 3 months for an OKR. How bold is it if you can do it in a week?

• Keep the metrics out of the objective. The objective is

• In the weekly check in, open with company OKR then do groups

• OKRs cascade; set company OKRs, then groups/roles, and then individual’s.

• Weekly OKR check in is a conversation. Be sure to discuss change in confidence, health metrics and priorities

• Encourage employees to suggest company OKRs.

• Friday celebrations is an Learn more: http://www.eleganthack.com/the-art-of-the-okr/

http://www.eleganthack.com/the-art-of-the-okr/

FUNDAMENTALS

MISSION

Find your North Star

Google

to organize the world‘s information and make it universally accessible and useful

Amazon

“to be Earth’s most customer-centric company, where customers can

find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible

Philz mission is to “Better Peoples Day.”

Eatclub

Bring Joy to Work through Food

All Are

•Short (or have a mini-version)

•Clear

• Inspirational

•Memorable

WHAT’S YOUR MISSION?

SET YOUR OKRS WELL

Examples

• Product is embraced by the marketplace

• Platform delights developers and users

• Become the community online for creatives

All Are


• Clear

• Inspirational

• Memorable

• Time bound

Does your objective make you jump out of bed in the morning?

Is it hard to do (but possible with effort) in one quarter?

GOOD KEY RESULTS

HOW DO YOU KNOW?

HOW DO I KNOW?

Ratings?

Sales?

Reviews?

Blog posts?

Articles?

Tweets?

Likes?

RESULTS vs TASKS


• Kr: Publish book on amazon

• Kr: Contact a PR person

• Kr: Give a keynote on book topic


• Kr: Review copies out to beta customers and 100 influencers resulting in 5 reviews of 4< stars

• Kr: Dec sales of 1K

• Kr: 5 cold leads for talks/workshops from book

“WHAT GETS MEASURED, GETS

MANAGED“PETER DRUCKER

Rule of thumb for product OKRs

KR 1: Revenue

KR 2: Adoption or usage (users)

Kr 3: Satisfaction

ARE MY GOALS DIFFICULT?

But not impossible

PLANNING WITH OKRS

THE CONE OF UNCERTAINTY

I can predict what will happen tomorrow

I can guess about next month

I’m lying to myself if I say I know what’s happening next year

4 O, 3 KRS

O: POSITION BOOK IN MARKETPLACE

Kr: book published digitally on amazon

Kr: review copies out to beta customers and 100 influencers resulting in 5 reviews of 4< stars

Kr: Dec sales of 1K

Q1 Q2 Q3 Q4O: EPIC BOOK ADOPTION

O: OKR CONFERENCE

O: SECOND BOOK IN MARKETPLACE

Act as if it were true

Until it’s proven wrong

Then adjust

COMMIT WEEKLY






OKR Confidence

Team Health:


Org HealthYellow

P1

P1

P1

Green





New Order flow

Mondays each team lead shares:• Week’s Priorities ( to get help & make

commitment)• Near term roadmap (heads up!)• OKR confidence• Key health indicators

SLOT IN EFFORTS TOWARD OBJECTIVE

Keep a backlog of ideas

Experiment with what impacts the OKRs


P1

P1

P1



New Order flow

HEADS UP

Make sure everyone know what’s happening

Ask for help

Track trains that never arrive



IS CONFIDENCE UP OR DOWN?

It’s a conversation




OKR Confidence

Health Metrics

Team Health

Code Health

Customer Satisfaction

Revenues

Team Health:


Org HealthYellow

Green


PUSH VS PROTECT

Team Health:


Org HealthYellow

Green





OKR Confidence

STATUS EMAILS

CELEBRATE

Who celebrates?

• Engineering demos

• Design shows

• Sales brags

• Customer service stories

• Business Development crows

• Everybody SHARES WINS

LEARN

SAY DO

] Why?

WHY?

“WHEN YOU ARE TIRED OF SAYING IT, THEY ARE STARTING

TO HEAR IT” – JEFF WEINER

HOW TO

ARE MY GOALS DIFFICULT?

But not impossible

Timeline

2 weeks before the end of the quarter, your know how you’ve done with your OKRs

Timeline

2 weeks before the quarter, start setting OKRs

Timeline EoQ

1. Review OKRs, and call them

2. Write out accomplishments

3. Reviews and Bonuses

Timeline B0Q

1. Gather company input

2. Execs set company goals

3. Teams set goals

4. Individuals set goals

Team goals

•Pick as aspect of the company OKRs you can own

•Make new OKRs from it

PERFORMANCE

Performance ReviewsDon’t

• Wait until he end of the year

• Base them on OKR completion (leads to sandbagging)

• Dawdle or procrastinate

• Try to be a buddy

Do

• Have them quarterly

• Have the employee write a 500 word essay on her accomplishments

• Be quick, light and frequent

• Be fact based

• Be compassionate

Thanks to my awesome students in my Designer as Founder class. Especially An, Justin, and Jack for their lead roles.They were paid in pizza, just like a real startup.

As Harry Max for not suing me when I use his picture.

Accomplish Big Goals With Objectives & Key Results (Christina Wodtke)

Business

kr kr kr

okrs kr

website kr

dream kr

sales guy kr

reorders selfserve kr

quality tea provider

sales team