Measure What Matters

Measure What Matters - John Doerr

Introduction to OKRs

Objectives and Key Results (OKRs) are a collaborative goal-setting protocol pioneered by Andy Grove at Intel and later adopted by successful companies like Google. As John Doerr puts it, “Ideas are easy. Execution is everything.” OKRs provide a framework for that execution.

• Objective: WHAT is to be achieved
• Key Results: HOW we get to the objective, benchmarking and monitoring progress

OKRs are not a substitute for sound judgment or strong leadership. Instead, they’re a tool to focus efforts on the same important issues throughout an organisation, enabling frontline autonomy and linking goals to a team’s broader mission.

OKRs strip away all distractions that will arise when running a business and bring them back to focus, the high-leverage activities a business should work on to move forward with maximum impact. These objectives are not something abstract; You have top-level objectives which trickle down to department and individual objectives, all made collaboratively and fortifies the top level objective.

What makes OKRs work is the key results component, which defines what success looks like and correlates objectives with measurable results that establishes what success looks like for each objectives.

OKRs are not linked to any financial incentive schemes. Only that way people can truly embrace theStretch for amazing principle.

The Four OKR Superpowers

1. Focus and Commit to Priorities

• Limit OKRs to 3-5 per cycle
• Set goals from the bottom up (about 50%)
• No dictating: OKRs are a cooperative social contract
• Stay flexible: “OKRs are inherently works in progress”

Larry Page of Google exemplified this by setting aside two days per quarter to personally scrutinise the OKRs for each software engineer.

2. Align and Connect for Teamwork

• Make OKRs public and transparent
• Connect teams’ goals to company strategy
• Allow for cross-functional coordination
• Avoid cascading goals by rote

Google found that “a market-based approach, where over time our goals all converge because the top OKRs are known and everyone else’s OKRs are visible” works better than strict top-down cascading.

3. Track for Accountability

• Make OKRs trackable and adaptable
• Conduct frequent check-ins (preferably weekly)
• Use OKR shepherds to facilitate the process
• Perform objective scoring and subjective self-assessment

At Google, the benchmark check-in cycle is monthly at a minimum, though goal discussions are so pervasive that formal meetings sometimes become unnecessary.

4. Stretch for Amazing

• Set both committed and aspirational objectives
• Aim for 60-70% attainment for stretch goals
• Use stretch goals to drive innovation and problem-solving
• Balance ambition with realism

Google embraces this philosophy, accepting that failures—at an average rate of 40 percent—are part of their territory when pursuing ambitious goals.

Implementing OKRs

Goal Setting

• Make objectives specific, time-bound, and action-oriented
• Ensure key results are measurable and verifiable
• Align individual OKRs with company objectives
• Review and adapt OKRs as circumstances change

Doerr emphasizes, “If you set a crazy, ambitious goal and miss it, you’ll still achieve something remarkable.”

Tracking and Grading

• Use a simple color system (e.g., red, yellow, green) for progress
• Conduct regular check-ins and updates
• Grade objectively at the end of each cycle
• Reflect on lessons learned and areas for improvement

Culture and Communication

• Foster a culture of transparency and accountability
• Encourage open communication about progress and challenges
• Use OKRs to drive engagement and internal networking
• Separate OKRs from compensation discussions

As Doerr notes, “When people help choose a course of action, they are more likely to see it through.”

Continuous Performance Management: CFRs

Complement OKRs with Conversations, Feedback, and Recognition (CFRs):

1. Conversations: Regular exchanges between managers and contributors
2. Feedback: Bidirectional or networked communication among peers
3. Recognition: Expressions of appreciation for contributions

Implement a system of ongoing performance management, including:

• Monthly one-on-ones
• Quarterly progress reviews
• Semiannual professional development conversations

Google’s approach includes five critical areas of conversation between manager and contributor:

1. Goal setting and reflection
2. Ongoing progress updates
3. Two-way coaching
4. Career growth
5. Lightweight performance reviews

Best Practices

• “Less is more”: Be selective in goal-setting
• “Ideas are easy. Execution is everything.”
• Encourage “creative confrontation” - facing problems directly and unapologetically
• Use OKRs to “work on the business, instead of just working in the business”
• Remember: “OKRs are a tool, not a weapon”
• Be patient but resolute in the implementation

Case Studies and Examples

1. Google: Used company-wide OKRs to rally all hands around “Code Yellow,” a battle against latency.
2. YouTube: Shifted focus from views to watch time, using a four-year OKR with rolling annual objectives and quarterly key results.
3. The Gates Foundation: Used OKRs to focus on vaccines, which make an enormous difference in productive life years (measured by DALYs - Disability-Adjusted Life Years).