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ITLC - OKR (Objectives & Key Results)

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ITLC - OKR (Objectives & Key Results)

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ITLC - OKR (Objectives & Key Results)

  1. 1. Objectivesand KeyResults Measure What Matters Hải Phạm, Tài Lê Sep-2019
  2. 2. 2 Whoweare • 17 years of experience in Software Development • Proven track record in delivering various offshore application development engagements and recently lead Digital Transformation Center • Technologies in Scope: Cloud Native Applications, Chatbot/AI, Robotics Process Automation, Mobile Apps, DevOps, ServiceNow • Scaled Agile, PMP, Mini MBA, eCornell's Executive Leadership and Certified Microsoft Professional • ITLC Founder • AI Product Lead at Sendo • 22 years experience in IT, in which he spent 10+ years on Technical Management and Product Development at technology-based organizations and technology startups
  3. 3. Sep - 2019 3 OBJECTIVES • Understands Management by Objectives and Balanced Scorecard • Implements Objectives and Key Results in your Digital Transformation Journey
  4. 4. 4 History 1954– Peter Drucker invented Management by Objectives or MBO 1970s – Andy Grove popularize the use of Objectives in Intel 1980s – Balanced Scorecard by Dr Kaplan and Dr Norton 2014+– OKR is popularized by John Doer to his portfolio companies. Was introduced to Google, then adopted by hundreds of companies such as Zynga, Sears, Twitter, Oracle, and so much more.
  5. 5. 5 ManagementbyObjectives A management model that aims to improve performance of an organization by clearly defining objectives that are agreed to by both management and employees Peter Drucker – 1954 Step 1 - Set Organizational Objectives Step 2 - Cascade Objectives to Employees Step 3 - Monitor Step 4 - Evaluate Performance Step 5 - Reward Performance Specific Measurable Achievable Realistic Time-bound
  6. 6. Nike: Bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete Shopify: Make commerce better for everyone, so businesses can focus on what they do best: building and selling their products TED: Spread ideas Amazon: To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online Southwest Airlines: To become the world’s most loved, most flown, and most profitable airline Google: To organize the world’s information and make it universally accessible and useful Loreal: To provide the best in cosmetics innovation to women and men around the world with respect for their diversity Tesla: To accelerate the world’s transition to sustainable energy 6 Examplesfromhighlysuccessfulbusinesses Vision
  7. 7. ManagementbyObjectives 7 Advantages Disadvantages • Costly & time consuming process • Difficult to define Goals • Increased paper-work • Reward-punishment approach • “Managers should avoid activity trap”, getting so involved in their day to day activities that they forget their main purpose or objective • Improved Performance, result-oriented process • Employee’s input in Goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization • Improved Communications • Career Development for employees • “No operating policy has contributed more to HP’s success … MBO” – Bill Packard, HP’s founder “It’s just another tool. It’s not the great cure for management inefficiency… Management by Objectives works if you know the objectives. 90% of the time you don’t” – Peter Drucker
  8. 8. 8 KeyPerformanceIndicators A key performance indicator (KPI) is a value used to monitor and measure effectiveness “If everything is a priority, nothing is.” • Employee turnover • Sales forecasts • Earned value • Cost variance • Schedule variance • Estimate to complete • Utilization rate • Percentage of overdue invoices Leading indicators contain guidance about future results Calories per day # Products added to portfolio # Articles Submitted % Test Coverage Lagging indicators measure performance in a period that is past Weight Customer Experience Score Revenue Growth # Defects leaked
  9. 9. TheBalancedScorecard-MeasuresthatDrivePerformance 9 by Robert S. Kaplan and David P. Norton HBR - JANUARY–FEBRUARY 1992 ISSUE https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2 Financial Perspective Goals Measures Internal Business Perspective Goals Measures Innovation and Learning Perspective Goals Measures Customer Perspective Goals Measures What must we Excel at? How do we look to Shareholders? Can we continue to improve and create value? How do Customers see us?
  10. 10. Samples 10 Objectives are high-level organizational goals Measures help you understand if you’re accomplishing your objectives strategically
  11. 11. BalancedScorecard 11 Advantages Disadvantages • Expensive and Time Consuming • Attention to Measurement • Poor Support from Employees • It can’t be copied precisely from examples • Provides a Clear Picture • Indicates Company Performance • Makes Goals Achievable • It helps your employees see how their individual goals link to the organizational strategy
  12. 12. Break 15 minutes Sep-19 12
  13. 13. OKR 13
  14. 14. Activities vsResults 14 • Activities/Outputs • Receipt request • Update CV • Search new job • Contact to networks • Boring • Learning news skill • Raise strong • Hard work • Goals: 10k$/month • 10,5 k/month • News job
  15. 15. OKR-Top4PremierLeague 15 • Buying 2-3 good record players • Developing 2-3 new tactics • New healthy receipts for player performance improvement • Max point >>> Win >>> Draw >> Loss • Score/Sub score • Performance/Healthy
  16. 16. OKR-Components 16 Mission & Vision Annual Strategic Goal 1 Annual Strategic Goal 2 Quarterly Objective 1 Quarterly Objective 2 Quarterly Objective 3 Key Result 1 Key Result 2 Mission & Vision Strategic Goals Objectives Tactics & Tasks Activity 2Activity 1 Long Term This Year (& 5 years) This Quarter Today
  17. 17. OKR–Engagement 17
  18. 18. BestPractice 18 UsefultipsforcreatingObjectivesandKeyResults • Each team, department or individual should have 3-5 objectives • Objectives should be achieved in a certain timeframe (e.g. one quarter). It is not an ongoing task • Objectives must be ambitious. • There are 1-3 key results per objective • Key results are measurable • They are the steps needed to achieve an objective • They describe outcomes rather than activities • It keeps your company aligned • It helps you focus on what’s really important • It drives transparency • It measures progress
  19. 19. OKR-Process 19 Priorities Discuss Kick off Retrospective Review
  20. 20. Exercise:OKRLaunchMVPin3months 20 • KR1# - Write scope of MPV – Month 1 Talk with 5 potential customers, ask for their pain points Draw mock-up, organize talk to validate solution with 5 potential customers • KR2# - Implement and deploy 3 key features – Month 2 2-week sprints • KR3# - Test & Fix bugs – Month 3 Test with 5 persons, face-2-face Final sprint for release – week 4 5 minutes
  21. 21. Objective:Makeourcompanyfamousonline Good vs Bad Key Results • KR#1 : Generate 100,000 views on Youtube channel • KR#2: Get 10,000 additional Instagram followers • KR#3: Increase organic search traffic to our website by 10% • Make videos for Youtube • Get more Instagram followers • Improve SEO 21
  22. 22. OKR–Simpletool 22
  23. 23. Why&Challenges 23 1. Simple 2. Synergy 3. Agility
  24. 24. OKRExamples • Training/Education • Objective: Design and launch internal Employee Academy • KR1: Survey 15 team leaders on our education needs and gaps • KR2: Talk to 3 other companies HR Directors on how they do internal education • KR3: Define 10 training modules and design content for each • KR4: Conduct first 3-day team offsite to test out the Academy curriculum • Product Management • Objective: Successfully launch version 3 of our main product • KR1: Get over 10000 new signups • KR2: Get published product reviews in over 15 publications • KR3: Achieve sign-up to trial ratio of over 25% • KR4: Achieve trial to paid ratio of over 50% 24 https://okrexamples.co/ • Content Marketer • Objective: Content Marketer OKR Examples • Successfully implement the weekly newsletter • Finalize the content strategy, key messages, and topic structure for the next 6 months • Grow subscriber base at least 5% per week, getting to 50,000 readers • Increase the CTR% to above industry average 3.5% • Account Manager • Objective: Research and improve customer satisfaction • Exceed Net Promoter Score (NPS) of over 8.0 • Get 1000 survey responses to annual satisfaction survey • Conduct 50 phone interviews with top customers • Conduct 15 phone interviews with recently churned customers • Present an action plan of 10 improvements for next quarter
  25. 25. OKR–Resource 25 Template https://www.atiim.com/resources/okr-goals- excel-template/ https://okrtemplates.com/ https://www.perdoo.com/blog/okr-spreadsheet- template/ https://mooink.online/2019/02/12/okr-template/ https://okrexamples.co/
  26. 26. DigitalTransformation Key building blocks 26 Digital Customer Interactions from 25% to 50% %Customers use Auto- Check-in/out: from 0% to 15% Increase Sales revenue through digital channels from 0% to 10% Digital workforce: % BOTs from 10% to 50% Worker Enablement: % department uses new communication platform from 0% to 50% Samples Goals/KPIs
  27. 27. Summary Sep-19 27 Peter DruckerIf you can’t measure it, you can’t manage it
  28. 28. ThankYou 28

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