OKR best practices.pdf
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This document provides guidance on using Objectives and Key Results (OKRs) for goal setting and alignment. It outlines the best practice flow for setting OKRs, including determining overarching objectives, defining team and individual OKRs, and establishing initiatives and key results. It also discusses how to write good objectives and key results, and compares OKRs to key performance indicators. Management processes for OKRs including weekly check-ins, monthly reviews, and quarterly retrospectives are also covered.
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OKR best practices.pdf
- 1. Objectives & Key Results How to achieve focus & alignment
- 2. The best practice goal- setting flow How to write good OKRs OKRs vs Initiatives OKRs vs KPIs Management processes What we will cover
- 3. Getting started Best practice goal- setting flow
- 4. What do we want to impact? Customer behavior Internal workflows Finance results Employee growth Overarching Objective Team B OKR Team C OKR Team Initiatives Personal plans Personal plans Personal plans Team Initiatives Personal plans Personal plans Personal plans Personal plans Team Initiatives Personal plans Personal plans Personal plans Personal plans impact Team A OKR What can we change/improve in a quarter What will we do to drive that change? Who does what by when? impact How are we going to impact that? A problem several teams will be solving together KPIs Strategy Personal plans Outcome- focused goal- setting flow
- 5. KPIs How it works Company Os and Teams OKRs Initiatives & Weekly Check- ins to monitor health metrics and set performance expectations to determine what needs to change & improve to achieve better results to focus on the right things and get them done
- 6. Overarching Objective Team B OKR Team C OKR linking Team Initiatives Personal plans Personal plans Team Initiatives Personal plans Personal plans Team Initiatives Personal plans Personal plans Team A OKR linking Company- wide alignment Directional statement, no measurable KRs Example Alignment quality: best practice
- 7. Alignment: Company Os and Team OKRs May not represent the company org chart directly Transparent and straightforward goal- setting process Will not work in companies with transparency issues Clear connection between the Company goals and personal level contributions Process will not follow itself - everyone needs to be onboard Only 2 layers of goals and no management overhead for the progress tracking process Clear ownership of outcomes at every level Wins Possible challenges Alignment quality: best practice
- 8. OKR Best Practices How to write good OKRs
- 9. Objective - improvement area Key Results - measurable outcomes Team OKR structure Initiatives - activities
- 10. Objective - improvement area we will focus on [driving this change] to [solve this problem] Objectives
- 11. Implement a process Make tech processes self- explanatory to improve employee onboarding Risk management Implement a risk management process when choosing new contractors to avoid penalties Increase leads Present a stronger value proposition to nurture interest at an early stage Achieve 50% increase in revenue Improve customer long- term engagement to facilitate retention and higher LTV Very Poor Good Focus area Why it matters Objectives
- 12. Qualitative & Inspirational Objectives are not KPI targets (business metrics) Objectives are not cascaded deliverables Objective should be a "problem statement" Vocab: improve, achieve, identify, maximize, etc. Objectives
- 13. Questions to write Objectives What problems are we facing? How do we solve them? What's stopping us? What could be changed for us to have better results as a team? Objectives
- 14. Key Results OKR Best Practices
- 15. Key Results - measurable outcomes is the problem solved? what does success look like? how can we measure change? Key Results Measurable and Actionable If it doesn't have a number, it's not a Key Result Not a mix of business- as- usual metrics Not a one- off activity 3-5 KRs per Objective
- 16. Objective: Improve customer long- term engagement to facilitate retention and higher LTV Team level Objective - Client Success What we want to achieve (Key Results) - Value-based outcomes, success criteria Improve slides Increase the number of second meetings from 20% to 60% Start tracking data in a CRM Implement a CRM system (in 5 stages) Organize webinars Achieve 1500 attendees (potential clients) to our webinars in total 1-choose the tool, 2-training, 3-import data, 4-build dashboards, 5-present results What we do (initiatives) - Activities, tasks, projects, outputs 5 0 1 2 3 4 80% 0% 1500 0 measurable on a sliding scale qualitative outcome clear milestones what for? to improve 1st impression? what for? Initiatives vs KRs measurable outcome
- 17. Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 60 % 5 milestones 1500 attendees Objective: Improve customer long- term engagement to facilitate retention and higher LTV 46% Increase the number of second meetings from 20% to 60% Implement a CRM system (in 5 stages) Achieve 1500 attendees (potential clients) to our webinars in total OKR Example Client Success Team 1- choose the tool, 2- training, 3- import data, 4- build dashboards, 5- present results 3 m 40% 30 att
- 18. KPIs vs KRs Achieve $ 1 mln in Q1 Close 40% more deals in March KPIs need to be monitored and analyzed, they are not clearly actionable KPI targets might be hard to impact in one quarter Underperforming KPIs might be associated with several problems, so which one will you focus on? Q1 Q2 Q3 Q4 Target 0k 250k 500k 750k 1 000k 1 250k January February March April May 0 20 40 60 80 Increase customer lifetime value from $2.5k to $6k 2018 2019 2020 2021 2022 0k 2k 4k 6k 8k
- 19. KPIs vs KRs Increase customer lifetime value from $2.5k to $6k 2018 2019 2020 2021 2022 0k 2k 4k 6k 8k Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 15 % 1 hour 15 % Establish regular communication with customers to keep them engaged 53% Increase the # of email responses from 2% to 15% Reduce the response time in live chats from 6h to 1h Increase 2nd meetings requests from 10% to 45%
- 20. Questions to write Key Results How will we measure change? What are the success criteria this quarter? What can we impact as a team? What can we measure to see a direct connection between our actions and KR progress? Key Results
- 22. Initiatives Initiatives prioritizing what we do based on the impact on the KRs Do - learn - iterate - do Make sure your effort has value (impact on KRs)
- 23. What is a good OKR? OKR Best Practices
- 24. Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 10 mln 50 % 3 mln Achieve 3x growth 46% Increase revenue from 5 to 10 mln Increase the # of customers by 50% Each salesperson sells 3000K Is this an OKR? These are business metrics January February March April May 0 20 40 60 80 They reflect performance but don't say how you are going to improve it
- 25. Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 100 % 100 % 100 % Launch a new process 46% Create a dashboard by 01/10/2022 Prepare the documents Make a presentation Is this an OKR? These are projects (outputs) - what we do They keep us busy but why are we doing them in the first place?
- 26. Step- by- step example OKR Best Practices
- 27. Company level question 1 We are good at keeping our customers but we are not closing enough new deals. What is wrong and what needs to change for us to appeal to more clients? Company level
- 28. Sales thoughts Early on our customers are asking similar questions and we can take a proactive approach to suggest solutions before they become issues. More active early stage engagement could help us close deals faster. Sales
- 29. Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 3000 views 20 % 25 % Improve our early stage communication process to boost engagement with the new clients 46% Reach 3000 views on the how- to tutorial video Reduce the ratio of how- to questions in the chat from 60% to 20% Increase the % of email responses from 12 to 25 % Good OKR examples Sales Team
- 30. Marketing thoughts We have been losing organic traffic to competition and we don't have a unique offering anymore. We can leverage our relationships with long- term customers to create stronger social proof. Marketing
- 31. Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 15 % 20 % 500 deals Leverage our long- term relationships to increase our credibility and stand out from competition 46% Increase the number of referrals from clients from 2% to 15% Achieve 20% engagement rate on our published testimonials Close at least 500 new deals coming from social proof efforts Good OKR examples Marketing Team
- 32. Product Product thoughts First- time users take 5 minutes on average to explore the product and a big part of them never comes back. How do we pitch the right features to the right segment and get them to experience the aha moment faster?
- 33. Key Results KR KR KR Initiatives Weekly Check- ins Comments 3 25 % 20 % 15 % Improve first- time user onboarding experience to get users to discover value faster 46% Increase the % of enterprise clients who use feature X within 7 days after sign up from 10 to 25 % Increase the % of individual users who set up feature Y within 7 days after sign up from 2 to 20% Increase % of users who login 3 times within 10 days after sign- up from 5 to 15 % Product OKR Good OKR examples
- 34. Company level question 2 We need to scale our operations but we have many flaws in our internal processes. How do we fix that? Company level
- 35. Operations Operations thoughts We have many assumptions on the topic of what is not working well but no clear picture. We need to pick our battles and understand how to move forward from here.
- 36. Good OKR examples Admin team Key Results KR KR Initiatives Weekly Check- ins Comments 3 5 stages 20 feedback Research workflow improvement opportunities to facilitate increase in productivity 53% Develop a strategy based on the analyzed needs Feedback from 20 team managers analyzed 1- internal interviews; 2- webinar; 3- brainstorming; 4- confirmation; 5- final proposal draft KR 70% feedback Reach at least 70% positive feedback responses about the 3d party productivity training
- 38. Quarterly workflow 1-2 weeks before Ongoing review process Setting Company Os and Team OKRs Execution Weekly Team OKR Check- ins Monthly reviews Quarterly OKR retrospective 1st month 2nd month 3d month
- 39. Weekly Team Check- ins Current OKR status. What did we achieve/complete? What did we learn from last week? Set new priority Plans for next week. 1. 2. 3. 4.
- 40. Monthly Cross- Team Reviews Stop doing Start doing Continue doing
- 41. Company- wide Retrospective general feedback and references which problems did we focus on? what went well? what would we do differently? which open questions do we have? how satisfied are you with the impact your effort has produced? Rate on a scale from 1 to 5 1 2 3 4 5 what additional references and updates would you like to share? add graphs, screenshots, miscellaneous comments Not at all Very much type names and praise here what did we learn? live questions & comments live questions & comments live questions & comments live questions & comments live questions & comments Special thanks and shoutouts type names and praise here type names and praise here Choose the color and drag a dot to a place on the scale from 1 to 5 When a team's presentation is finished, give other teams 2 minutes to add their feedback or comments to sections Get template
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