OKRs: The Complete course for better planning & goal-setting | Prateek Soni | Skillshare

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OKRs: The Complete course for better planning & goal-setting

teacher avatar Prateek Soni, Product Manager | Start-ups

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

46 Lessons (3h 25m)
    • 1. Welcome to the course

    • 2. Why should you learn OKR framework?

    • 3. History of OKRs

    • 4. Anatomy of OKR framework

    • 5. Defining OKR framework

    • 6. The "OKR contract"

    • 7. OKRs vs KPIs

    • 8. Benefits of adopting OKRs

    • 9. OKR - Big picture

    • 10. How to write Powerful Objectives?

    • 11. How to write Powerful Objectives? - 2

    • 12. How to write Powerful Objectives? - 3

    • 13. Example-1: Powerful OKRs

    • 14. Example-2: Powerful OKRs

    • 15. How to write Powerful Key Results?

    • 16. How to write Powerful Key Results? - 2

    • 17. How to write Powerful Key Results? - 3

    • 18. Types of Key results

    • 19. Example-3: Powerful OKRs

    • 20. Example-4: Powerful OKRs

    • 21. Example-5: Powerful OKRs

    • 22. How many OKRs should we have?

    • 23. Common OKR mistakes

    • 24. How to find OKR cadence?

    • 25. Questions that will help you find cadence

    • 26. Dual cadence approach

    • 27. What's a Key result score?

    • 28. How to interpret key result scores?

    • 29. How to score Key results at the Start/ Mid and End of quarter?

    • 30. How to score binary Key results?

    • 31. How to score Objectives?

    • 32. Example - Scoring OKRs

    • 33. Case study - OKR scoring

    • 34. OKR template

    • 35. How OKRs work in an organization?

    • 36. Loose coupling of OKRs across org levels

    • 37. How OKRs vary with levels

    • 38. What's the process of creating OKRs in an org?

    • 39. Alignment of OKRs in an organization

    • 40. What is vertical alignment of OKRs?

    • 41. What is horizontal alignment of OKRs?

    • 42. How to sanity check OKRs after alignment?

    • 43. Understanding information flow in an OKR driven org

    • 44. Process steps - before the OKR period

    • 45. Process steps - during the OKR period

    • 46. Case study - Steve's personal OKRs

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About This Class

OKR framework is one of the most popular goal-setting and planning frameworks put in use across some of the most iconic companies of recent times (eg - Google, Facebook, Amazon, Intel, Dropbox, Adobe, etc)

It is a solid, precise and very powerful tool to bring in-depth and sharpness in your goal-setting process. It also helps teams to get focussed to drive their goals forward in an efficient way.

One can even use the OKR framework for their own personal goal setting. Individuals in both professional and personal settings have benefitted from the attributes of this tool.

This course is designed for people of all seniorities and experience levels. As a part of this journey, we will cover everything from OKR basics to advanced concepts and case studies.

What will you learn

  • What’s the history and background of OKRs and goal-setting frameworks in general

  • What are OKRs and what’s their anatomy?

  • What’s the value that each component of an OKR framework adds? How?

  • How to write powerful Objectives and Key results for every context (organization level, individual level or team level)?

  • What’s the difference between OKRs and KPIs and how do they interact with each other?

  • What are the best practices when working with OKRs?

  • What mistakes should you avoid in OKR implementation?

  • How to score OKRs? How scoring can differ at the beginning, mid and end of the quarter?

  • How OKRs work in an organization?

  • How do OKRs relate to other broad organizational planning tools like Mission, Vision, Strategy, Roadmap?

  • How should you align OKRs in an organization?

  • How to manage with OKRs?

  • What's an OKR retrospective and what’s the best way to run it?

Meet Your Teacher

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Prateek Soni

Product Manager | Start-ups


I am a Computer Science grad, but, later on, I moved on to Product Management as I enjoyed working on ambitious products from conception to fruition. I like to position myself as "a Product Management professional with a flair for tech, data, and entrepreneurship".

I have had stints in South East Asia and Europe in some of the largest internet companies in these regions. Highlights of my product management experience -

- Product Manager at Rocket Internet's fashion e-commerce company - Zalora (Singapore). Go-to online fashion destination in South East Asia. We catered to 8 countries and >5 million customers. I worked on their delivery/fulfillment products

- Product Manager at South East Asia's largest ride-hailing app - Grab (Singapore). An Uber compe... See full profile

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1. Welcome to the course: into the scores about okay, Ours where we learn how to set better goals and better plants. The goal setting and planning is a part off all of our lives. If you are a CEO or an executive, you do it for the whole country. You said the cold to the plans for the whole company. If you're a manager, you do it for your direct reports. If you're in an individual contributor, you do it for your set. For example, if you're a product manager and engineer, get root for yourself or for your product. E So it's very difficult o sort of get rid off this concept off cold setting in planning. Okay, ours are nothing but a framework that helps you do it better. So this is a framework that has been popularized in recent days because a lot of big companies like Google, Facebook, dropped balls, All the big names that we want to eventually work for are already working for those those companies they have deployed okay astray, work as their planning and goes into in this course mst take a stab at learning the okay, our framework itself, so we'll go through different aspects of the framework will learn the different terminologies that different concepts, and we'll try to apply them in different situations on and see why it's so popular and why it's so effective and why all these big names are used. 2. Why should you learn OKR framework? : been a very fair question to ask would be Why should you even learn about? Okay, free books, right? But there are many reasons to it, but I would like to highlight a few important ones. First of all, it's all about the opportunity itself. So if you see here, we have a list off a few companies that that have adopted. Okay, Arsene, some form. So if you plan to work there or if you're already working there, it would be nice to have okay ours understanding in your arsenal because then you will be able to understand the vocabulary that is being used in these companies are in these high growing companies as far as planning and Goethe is concerned. Also, the inherent bad with that okay, provides is that it lets you be more ready for today's agile and complicated landscape. You'll see in for the lessons, like how it it included gates, those kinds of advantages. But the main part here is that if you practice okay as you are able to respond to external and internal, similar in a more effective manner, I would also like to share an important finding that I got when I was talking to a bunch of folks regarding okay, as a preparation of the scores. So speaking two different kinds off executives that right So some started found us some of working as engineering managers, some working as project managers and some high growth companies. And the team that I got there waas around 70% off them who were working in companies that that most of us have heard about. So all the I agree and companies and the companies that get listed as top places to work for if, if you look at a sample set, basically 70% of them said that they have come across okay, Arsene somewhere form. So either they have used okay ours to manage expectations with their manager or manage expectations with their steak with this Or if there started founders they have used okay, ours and some form to somehow communicate and manage expectations with the investors. So there are different kinds off implementations to it. But around 70% responded by saying that yes, they have in some form participated with Okay, ours Now, I would not say that be a lot of attention on this temple. 70% because there is a lot off sampling bias to it. Right? Like I spoke to, a few people been arrive into some meet ups or whenever I spoke them over some webinar or you may. But my own network would have a sampling bias. Don't look at the number 70% as as an indicator. But what I would say is that with this anecdotal research where I understood what's there is a very high chance there's a really high tense that if you work for a growth company oh , are are actually one of the Fortune 500 companies. Uh, you would come across all cars, so it's really nice to be well aware off the different mediocrities off the okay, our framework, so that when you start working, you have that advantage. I have already mentioned it many times while introducing. Okay, ask that you can use it for different boxes so I can imagine that there might be some people out there who say that. OK, if you don't want to work or you don't have aspired worked for any of those companies that you mentioned, why do we still learn about okay? Ours because you can you spoke here for any sort of cold setting, so it could be your personal goals as well. So, for example, I also in 2020 have decided that I try to have some more cats for my my own personal aspirations. Andi, let's see how it goes. But I think it's a really good framework that gives you a very definitely mindset toe. Somehow crawl towards your goal with effectiveness on. Also, you can use it if you're working in an organization where, okay, ours are not really adopted. So when so widely but you can do is you can still use overcast for your own compartment. So if you have you and your own team us and use Okay, ask even though, let's say your managers or executives in your company or not using it. So that's the beauty off. Okay, Our framework like it can. It can even stand on its own, even though the whole organization is not really up for it. But, of course, it has a higher power. It's more effective than when it's implemented throughout. So then you leverage more advantages of Oak Africa, but that is not a deodorant or that is not a deep breaker in order to use Oh cares 3. History of OKRs: Let's look at the history off Boquillas. But in my opinion, most inventions are theories or principles that we see around this. They're not a result, often overnight, Eureka moment. Many times that happens as well, but its rate ridge on Okay, ours are no exception to that. And so care is also develop over time, and the first manifestation that we see off something similar to okay, ours is as earliest in 19 fifties. So Peter Drucker, who's one of the most popular management gurus, are. And if you are from management or marketing background, you would have heard this name a lot. He publicized security called the MP or free ball, or it's a sharp form for management by objectives. So basically what he like, what he suggested. Waas. Each organization should have set of objectives right from the executed level to the level coming down to the shop floor. So for him, the context was more the production related companies because in 19 fifties and sixties, that post really ready to have a pee like Google, you did not have any. Any such tech startups are tech companies. It was mostly production and manufacturing companies. That's why his context for embryo framework was set in that environment. So he said, I said that everyone should have a set of objectives and that object of set should be really comprehensive by compressive. He meant you should have objectives for your own, but you should also have the set of objectives that you need to fulfill in order to unlock some other people's objectives. Eso if there is any dependency, you should include that in your list of objectives on Dwight. Worse as well. If there are some things that you depend on, you need to make sure that that actually falls in the articular list of other people s. So this was like a very simple framework that he sort of publicized and it was actually undertaken by a lot of companies and they tried to work with it in different forms. Execution off embryo frame broke. Our management by objectives failed in a lot of companies and there are some really well document reasons behind it. Some of them are, for example, people would create the objectives with a set and forget approach. What I mean by that is that they would create the objectives, but they would not review it, treatment Lee enough that they would not update it. And all the time those objectives will become obsolete because business environment beat in 19 fifties or two thousands. It's never It's never very stable or not. Not very static. It's always changing, right? So you need to make sure that your objectives stain alignment with the requirements that your business needs to fulfill. And that was not happening like people would do it. That's what I'm exercising them. Probably forget about it. Another reason was that when Peter Drucker, when he when he published this impure framework in his mind intrinsically he meant it to be a more inclusive framework. So you need to include the person working on the shop floor in order to set objectives for esteem. But what ended up happening in a lot of companies was that it was more a top down approach , so the executives would actually create some objective spoke for themselves and their direct reports, and similarly it would come down to different levels. And for a normal employee, it would feel like there are a set of objectives that are being shoved down his throat, and he's not really engaged and he's not involved. His opinion is not really counted in in setting up those objectives. So this was this actually ended up being a bit negative instead of being more posturing. Because if you have such a such a feeling amongst employees that it's very top down, it creates in D moderation. It also creates a lack of engagement. So it did not bode well with any normal employees. Learning from the failures and limitation off impure frame book came The next situation for objective based management approach on this situation was merely spearheaded by Andy Cruyff . Who's this? Who was the CEO off Inter Cooperation from 1987 to 1998? So what he did Waas. He suggested certain guidelines and certain principles for his object of based management framework, which are still preserved in the current. Okay, after able that we see around us in different companies and that's one of the reasons he's considered like the father off, okay, our framework, let's go through some of the highlights off off. What he says is that should be about off such a framework. First of all, he said, there are two key questions that all the teams that are working with objectivity its management should follow. First of all, you should answer the question. Where do you want to go that it's more like your object, Oreo goal. And second, you should define How would you measure your success against that objective or how you pace yourself against that? How would you know whether you're getting there? Are not So these are the two trucks off, like these other two questions that form the crops off. Okay, our framework, as we know even today. Second, he brought in a concept off focus because what was happening with embryo free will was that people were creating a list off really a lot off objectives, like a compensate list, as I mentioned before. So what might end up happening is that you would have for your team more than 10 objectives that you need to go after in one years. And as we know, like, if you try to focus on everything, you're basically focusing on nothing. If everything is half ready, there's no variety. Right? So Andy Group brought in this concept off, limiting your okay as a limiting your objectives and key results so that you have that razor focus. He also brought in the concept off frequent kids because if you remember, we mentioned, a lot of companies were going after obsolete objectives because they would set it, and then they would forget about it. But when Andy Group suggested was that you should define your kids, like how often for your business should you review your Okay? Ours are surely review your objectives and key results, and then you should stick to that Galen's. It's really important, because then it would let your country be in sync with the external business environment, and that's really important. That was one of the reasons why India framework did not. It's succeeded a lot of companies. He this is probably one of my favorite was the next one. He also said that Okay, are should not be a legal contract. Now, this is a huge mind shift, you know, like if if in those days, like in 19 eighties, if you are setting up objectives for a team, it was really intuitive. Two great the people in that team, based on the results off those objectives, so you would decide their paychecks are or their bonuses, everything based on that. But this is something which Andy Proof said they said is a big He said that it's a big bit fall. If you want toe implement something like this because you should not look at these objectives and key yourselves as a legal contract for them, it's more off, like an understanding or our commitment that they make. But it's not something that should go one how much they own and what will their promotion speak? So this is really important. I think we'll touch upon this more in later sections. But it's one of the major postulates in my opinion, and the last thing is that he introduced also, I think God stretch. So what he said is that it should be your your goals should not be so comfortable that you are able to achieve it with 100% probability. So, he says said, a stretch that given that you work hard, they should still be only a 50% chance that you will achieve your goals because if you include that kind of stretch in euros, what would happen is that during the quarter or during the year, you will be forced to think really hard and come up with innovative solutions. Reached that goal. So if you set a goal, if you shoot for the stars, you end up also. If shoot for the moon, you end up in the stars. Even though scientifically, it makes more sense that if you shoot for the stars, you should end up on the moon because more is near. But anyways, you get my point, right? So that's why stress is really important. An obvious next question would be How did OK ours come from anti Cruz desk in Intel to becoming one of the most popular gold setting Freivalds? That is that it's used by a lot off high tech companies and a lot of growth startups shot answer to that would be John Dir on Google, and the story behind that is that gender actually worked with Andy groups really closely and worked with his object of based management approach, and he was really impressed by it. And he's still a venture capitalists in Silicon body and during his time there, when Google was also coming up in the early two thousands, he worked quite closely with Larry Page and Sergey Brin, who are where the farmers off Google. And that's how he sort of socialized that framework. And once Google took it up because Google was such a poster boy of the started market at that time, I think it was really the tipping point for for making the stream, but really popular because in two thousands and also still today, a lot of companies they like to imitate Kubel or Or they want with these learn from it and OK are skim out as fun off the management practices that Google uses. And they have been using it for for a long time. They started using it when they were less than 100 employees, so this was like a really good such a story for the stream work, which was taken up by a lot of companies. And it proved to be successful in a lot of other instances as well. And that's why that was the main reason it became so popular. Well, there is no officers statement by Handy group or gender are Google on this theory, but I think that's the link that I sort of established after I researched a bit on the history about okay, ours. So don't quote me on that in some court 4. Anatomy of OKR framework: Let's start to dive in by seeing toe How o care Feeble words If you look at the math me off . Okay, Our frame Well, there are a few white with confidence to it. You have the objectives are some people might call it goats. You have the key results. You have a score that you associate with with each key result and optionally. You might also include initiatives. Let's see what each of these components actually mean onboard to signify. Let's start with objectives. But objectives is a competent that help you answer where you want to be. So if at the beginning off the quarter you're setting your objectives for next quarter, you try toe think and try to come up with an answer as to where do you want yourself or your team or your profits to be by the end of that country? Quarter objectives. You're also be very consequent sites. It should not be very verbal is that you not include a lot of foods and should not be like a huge sentence. It's a lot of big time bound, so you should be able to move some needle on that objective within that quarter, it doesn't make sense to include objectives that are really long term, because then it would not really inspire you or drive you to make progress within that quarter. Your objective should also be qualitative. So as you can see here, we do not include any numbers they're like How about how much you increase the thing up our user base are like by what persons? They should shoot it, reduce or should you reduce the Chone? And so those numbers are not there because we have another competent key results which we'll talk about that basically takes care off the quantification. But object. It needs to be a qualitative, a really inspiring statement that when your team are yours when you yourself and you go through your objectives, you should feel motivated to try towards it within within the period off. You're OK. Review. Next comes the key reserves. In my opinion, key results are the heart off. OK, US key uses help you answer the question. How will we know if you have matter? Objectives are if you have made progress against our objectives, he results need to be really quantitative. So there should be no margin for any subjectivity in key results. Ideally speaking, there are cases we'll see in future that many a times were not able to make it quantitative always. But we should strive to achieve as much measurable and cognitive he results as possible. Also, key results should be stretched, so they should be stretched in a way that it motivates you to think innovatively on to push your boundaries. But it should not be stretched so much that it d motivates that he or ever self so This concept off stretch in a key result, it's It's more art than science, in my opinion, because I've seen teams they improve upon it from quarter to quarter because it helps you see where your LTD's and then try to push the bit further. Also, key results help you collaborate bit more. So if you go through the objectives off a particular team, you know broadly where where they're trying to go. But with key results, you bring specificity in the discussion. You know exactly what they're frank. So when you try to collaborate with teams or you try to communicate your progress, key results are are the main ingredient there. Let's look at port score means here. So scoring istan for each years old in this particle attempted It might look like you have only one score for both years olds, but that's just the formatting off this. Don't get confused with that. You should have a score for each years old. Some teams also scoring for objectives will actually cover scoring in greater detail and one of the subsequent sections. But in a nutshell water score means is that it's actually a combination off your confidence level on that key result and the progress that we've made on the key reserved. So what's the Big Ning off the quarter? It said that because in the evening off the quarter, you don't have any problems right here just getting started. So generally you start with a score off 0.5 because if you remember like, our key results are supposed to be stretched toe to an extent that even if you work hard, there's only a 50% chance or only a 50% confidence that you'll achieve that years old. That's why it's it's very standard for teams to start the 500.5 at the beginning, but the core and then you actually updated as you make progress, and as Europe confidence level on the achievement off that tears are changed because once you make progress, you unlock more information and you know better whether you'd be able to achieve it or not . So that's what a score means. It gives you a sense off. How far have you made made it on that cures it. The last component is initiatives, and as as you can see, I have mentioned that it's an optional competent. So initiatives are actually the list off things that you would want to know. What list list off tests you would want to do in order to move the key result and subsequently the objective. So it actually helps you answer. What are we going to do to get to our objectives? It's not very common for all the teams to include initiatives on on there, okay, attempted because initiatives they can change from time to time. So imagine that indistinct example. You want to add 500,000 additional new users and Cuban, so they might be different ideas that your team brainstorming bit you might add a new sign up flow for the project. You might increase the usage off referent program by rolling out some new features so they could be a lot of different ideas. But you might change those ideas depending on how you make progress. And if you discover new tastes. So that's my initiatives are generally not publicized to everyone, but it's also not wrong. Or it's not bad if you do that, because then it gives more visibility. But make sure that it's communicated and you have an expectation that initiatives might change within the quarter. So if you look at the hierarchy here in the okay, attempted, you basically have the objectives, then you have the key results. You can have multiple key results for an objective, and then you can have initiatives. And again, you can have multiple initiatives for each year's out on. This is how the okay a structure works, and then you score on on the key reserve 11. Sometimes you might score on objective level. We could see more examples, but it brought me speaking. This is what done at me off. I dont care framework is 5. Defining OKR framework: Now let's try to define. Okay. Are offering book okay? Are free work is a goal setting and planning tool. That facility. It's critical thinking and enforces an ongoing discipline, which ensures that employees working collaboration focused, focusing their energy and efforts on quantifiable contributions that drive organizational goals forward. I know it sounds like a lot of Jagan's and really complicated definition, but let's try to break it down and dissect it and see what it actually means. Let's see what it means to say, Okay, our framework, this is it's critical thing. Well, when you try to come up with your objective ski results and any sheriffs at the beginning off your quarter or you're OK review, period, you actually inherently answer a lot off critical questions. You try to see how your objectives are related to the broad purpose off your organization or the broad vision for your organization, and is achieving those objectives taking you closer to your vision. You also try and see if the key results are the right way off. Measuring success against those objectives, and the third important critical question that we try to answer is the any ships are all the tests that you decided you'll go after. Are they really going to have an impact on the key result on the objective? So I think these are the kinds off links which it's really vital on. Okay, are gives you like a opportunity to think about these questions. Let's take an example. Suppose you work in a company that has chosen at its objective on a company level, as achieve Q three financial targets, and the key results within that objective is we should have at least $500 million in top line revenue hand in a bitter just like a margin off at least $20 million. So let's say this is, ah, high 11 executive level company objective. Now, if you're working in that company in a team, if you try to come up with your own objectives, there are a few correlations that you would try to analyze. First of all, the objectives that you come up it you're trying to see if it's actually positively correlated to the objectives that the company has said. Will you be able to influence the company objectives when you try to go after your objectives? So far, it for example in this case, if the team level objective is improving measured delivery, satisfaction 11 or foreign commerce uses. If for this objective to be a really powerful objective, there should be some announces that suggests that if you go after the delivery satisfaction , it will eventually increase the revenue on the margin for your company. So maybe you did some announces where you found out that if you increase the satisfaction level artillery, then the customers, they're really happy they come back. So you don't have toe investment advertising to get those customers there anyways. Your recurring customers and they buy more stuff so you have more revenue and a better margin. And let's say you have a couple of years also under this objective off like reduced to every time by 10% and conduct a survey with 100,000 users with an average rating off seven out of 10. So basically the three critical questions that you have answered here is that is the object of related to the broad company purpose. Are these the right key results to data mine success or progress on this objective? And the initiatives that I have chosen? Are these the right initiatives to move my charism and then eventually, my objective. So four teams that really follow care frame will really well, like all the success stories that I have seen, the door care frameworks. It's not just coming up with the objectives out of thin air. It's about analysing your data, knowing your customers and your business and knowing exactly what Lee was. You pull on what kind of benefits with that liver result in. So this is thistle is kind of discipline that you will, it needs. It comes from ongoing analysis and understanding off your own business and your own Dobie. So that's why. Okay, a framework sort of gives you this opportunity to critically think all these connecting links in your business and try to convert them into objectives, key results and initiatives. Next, The definition says that. Okay. Offering Morgan forces in the online discipline if implemented correctly, people who come up with focus and practice okay, a framework. They would have a record cycle off reviewing the okay, ours scoring them and also coming up in new or focus for the next period. So this cycle off periodically revisiting the okay, Ours is something which gives you a lot of advantage in terms off being a giant and also in terms of responding to the different changing business environment. If you remember Peter Drucker's modern Embryo and why it fate in some of the companies, because there waas a tendency off set and forget like we mentioned before. So if you practice okay us properly, you will not fall into the trap, offsetting in forgetting you will actually review it and have always a set off. Okay, as that are really relevant for your business, not different companies and different themes and different individuals might want to stick to a different cadence for for their okay, reviewed cycle. Some might do it dearly. Some might do it, but it some I do it quarterly. It depends on the context off your business and the maturity in your market and purposes itself. We will talk more about Karen's in one of the subsequent lectures next. It also says that okay, a framework insurance that employees they work in collaboration. But if you look at the anatomy off, okay are like just discussed, it's actually a very simple and intuitive and very precise way off knowing exactly what a particular team company our individual will be going after in the next period. It gives you the objective, like high level gold for that particular a team. It also gives you the measure off. Success for that came in the form of key results and sometimes also tells me about the initiatives. Now, if you know all these things about any team, it's very easy to collaborate with them because you know what exactly is important for that team? You know exactly what kind of needle are trying to move on. You would then be able to come up with better answers to questions like, How can I help them? Or How can they help? Even they're achieving their objectives. So that's my own Parents are really powerful to for collaboration within the organization because people know exactly what other teams and other individuals are going after and then the negotiation process. It's much better also, if you think the example off Google, for instance. I remember seeing in one of their videos like one of the engineer managers. He actually mentioned that they used to have okay ours as a part off their organization browser, so imagine Browser is like a poetry where within the company you can go and you can see the teams that are in the company. The different individuals that are there in that team and you can actually look at their lead is like, therefore numbers their position and everything. So Google actually used to keep okay, ours also in the organization browser. So it was 100% transparency to our the company, right? From the CEOs to the guys, the engineers and the test engineers, whoever you could, you could see. Okay, as for everyone, and this is such a powerful things like, imagine you know exactly what each person in your organization or in your team is going after. Then it's the communication and everything is so much easier. I'm not sure if this still to have it, because the video that I'm refering to is probably a few years old, but I'm not sure that still keep that brackets, because now what is a big company? But I think for organizations and four teams, it's a is a part. It's a food for thought, because if you keep that level of visibility with a language of focus that everyone understands. Then you already have a huge competitive advantage over a lot of other people. Moving on OK or framework also helps people focus their energy and efforts. So this is coming from a guideline that we, I think briefly touched upon, that we should not have more than 2 to 5. Okay, ours like beautify objectives party more poor individual is is the sweet spot. Also, 2 to 5 cares for objective is very should try to target. It's not a very hard and fast rule, but this'll is like a general guideline. Generally, teams that worked really well with okay, ours This is where they try to stick in terms off the number of forecasts that they come up with for a particular period. So if you if you try to follow this, then you will be focusing your energy on those high impact and high priority. Okay, ours only. And that's really helpful than going after 15 million other things. I think when you come for though cares, it's very important to also know what should you not go after, Not just what should you go after, And in my opinion, that's more harder. Question what should you not go after? That's like a typical difficult privatisation problem. The definition also says that the contribution that big towards their objectives should be quantifiable. This ties back to the key results, and the significance of having numbers is the key results. There's a very relevant court hereby. Marissa Mayer Marissa Mayer is like one of the tech leaders from Silicon Valley, and she famously said that if a key result doesn't have a number in it, it is not a key result, and I tend to agree with her. So we've been seeing some of, for example, that sometimes it becomes a bit difficult to put in the number, but we should strive toe, optimize it. We should try to have as many key results with numbers as as possible. And the main reason toe that is to remove subjectivity. Because towards the end of the quarter, when you're sitting with your team or or video staplers or you're trying to create your own no care, they should not be any element off subjectivity there. Everyone should be on the same page. So, for example, when we discussed the key result for increasing delivery satisfaction, we had a key result there that the delivery time should reduce by 10%. Now there is no element of opinion here. Like if by the end of the quarter we have achieved on the 8% improvement, then basically are key results. Success is 80 buzzes, it's not 100 buzzing. And then if you have numbers there, it's easy toe come toe a common conclusion. Lastly, the definition says that Okay, ours should also try. Organization of goes forward. It's really important to have euro cars in a way that you're influencing something which is much bigger than you. Maybe could be the company purpose, the company vision for the company objectives. If you are making it for yourself as an individual, then also you should look at the vision for yourself and then make sure that you're okay. Ours for that quarter of that peered actually influencing that vision and helping you to inch forward on that vision. Because if you cannot Pinocchio s that are not really impacting any off the protocols. Then it's a vest off effort and so basted exercise 6. The "OKR contract": okay? Yes can also be looked at as a contract which is known legal and not fighting. This is very important. So if if you were to translate your okay ours and the expectations that okay are set in in the form of wonder How would it look like the attempted would be something like this? The plan to achieve the objective Andi even know that they have achieved it when the hit kr one to entry and they plan to achieve this by a particular timeframe which is your okay review time. Let's take an example. Let's say if you are walking in a tech company and then your team has come up with an objective to improve website responsiveness how the contractual warding off it looked like it would be the plan to achieve or you plan to improve website responsiveness on We know we will have achieved achieved it when the improved page load time by 5% reduced image low time by 20% and enable measurement off load times with 98% accuracy on we plan to achieve the spike. You you do off 2019 so any object of key result and the time friend time frame can be actually worried like this, and this gives like a like a very contract jewel feel to it, but I'll come back to the non dealer dot banning. But if you remember correctly and the group suggested that, okay, ours or objectives should not really be used for data mining. Anyone's success in their organization and there is a very important reason behind it supposed. Let's say you start giving bonuses out to people, depending on the achievement off. Okay, ours. What would happen is that they would come up with objectives which are not really stretched , so you would lose one of the core principles off objectives and key results. That's why it's important toe use, okay, just to facilitate a discussion but not really used them directly toe incentivize people. That's what this contractual agreement it's needs to be non legal and non binding 7. OKRs vs KPIs: one of the common misunderstandings that I came across was how people confused Okay, ours and GPS, even though both of them are totally different concepts. So okay, ours, our objectives and users, as we mentioned in all these lectures, is actually a goal setting and planning framework. It helps you answer questions like where you want to be and how do we know if we're getting there? What an objective is a post truth basically tells you the goal or where do you want to be like it gives you a board picture off where you aspire to be at the end of your okay Review period on key result helps you measure against that objective and figure out if you're getting there. Keep your eyes, on the other hand, is basically just a key performance indicators, so they just let you understand what exactly happened in your universe. So let's take an example if your objective is improved customer attention and your if your key results within that objective is that increase NPS score from set 70 to 80 and reduce customer chan from 40 to 30% now. In this case, KP eyes are the customer Chun and MPs because what they're helping you to understand is that how exactly in your business things are moving. So MPs score is a k p I. R indicator that would help you understand how satisfied are you customers. Customer John is a K b A. That will help you understand. How often are the customers abandoning you as as a business? So that's why I keep. The eyes are basically totally different from Nokia's in the sense that they are indicators that can be used within the O care so they can be used in the key desserts in order to make them more powerful. But both of them are totally different concepts, and in fact you should use KP eyes in the key results. As we discuss that kids and should be more quantitative on if they will be more quantitative, there is a highlight Penis, in fact, almost 100% probability that they will have a KPL in that ID smiling toe. Take this discussion up because there's always confusion around misunderstanding. Okay, ours and KPs, even though they're not totally related. As as a concept just that KP eyes are used to know cares 8. Benefits of adopting OKRs: what are some of the key benefits are or cares, but first of all, it can help you drive. Alignment between teams are hospital individuals because locals are great and simple. Tool toe. Make sure that people understand what you're going after and for your mayor, for success is. And if this happens and it's easy to find alignment and to negotiate efforts between different deeps. Also, it helps bringing transparency and better communication because the power off okay relies in coming up with your objectives accusers and making it visible to everyone that that it impacts. Our people were influenced right to some extent. Then, once they know that once they see that and once they see the updates off scores that you do toe the objectives and kills ALS, then it's It's a brilliant tool toe. Make your properties transparent and also, once it's transparent. It's also a great tool, a simple tool to understand, to use for communicating your progress, and I'll take struggling. Okay, also help springing acidity and responsiveness. Why? Because people who work with okay a frame will tend to use it frequently to update the scores and to come off your gas for the next quarter or next period. Now, if that happens that you're always in constant touch with your objectives and you try to change them or adapt them as and when needs arise in your business, it also helps to bring in focus and execution now because, okay, Afrin look suggests that you should not have more than 2 to 5. Okay, ours for for a bottle of beer. So by the very nature of this postulate, it says that there should be focused. And also, if you go through Castro, constantly update the scores and to come up with New Yorkers in the next quarter than your you're taking away all the distractions that my above you don't date 11 because you're refering to your objectives and kills us frequent enough so that your focus stays on those objectives. Okay, is also one of the tools that people usedto bringing more engagement, if especially if there's an organization where there's a problem off employee engagement, Okay, it's are a great way to do that. Why? Because the employees they feel really engaged when they try to come up with their own objectives because as a free work, it's very bottom up. It's not that top down. So the employees they feel that they're managing their own destiny on that's why they're more engaged. Last but not least, okay. It's also enforce critical thinking and ambitious schools. There is this concept off stretch that we will see a lot more in in our subsequent lectures that in general, when you set your objective and key reasons, it said that your Kiesel should be in a way that even if you work hard, there's only a 50% chance of achieving it by the end of the court. Now, this kind off practice or a guideline helps you do a lot of innovative thinking and to try to come up with solutions that would help you push that envelope and and to achieve that stretched school. Also okay, are by the very nature it helps you dive into some critical thinking. You answer questions like, what kind of initiative should I be going after to make sure my kids are moves? And what kind of measures should I have for my key result? That's the best way to judge whether from success in that objective on So these are kinds of hard questions that you constantly find answers for when you're using okay, our framework, and that's really useful because it helps you get into that mode of critical thinking. 9. OKR - Big picture: Let's see where does go care fit in the big picture? You might have heard about dumb steak Mission vision strategy. I just wanted to take a step back and see how, okay US after contract with these students now, Mission vision strategy can be often organization off a company, often individual whatever. But generally it's it's taken on an organization level. So stop with the top in despair. Mint. So mission and vision are related to the overall broad purpose off the organization Mission is really long term like Mission, ideally, should not even change in the lifetime, often organization, unless there is a huge favorite that accompanied us. Or if there's like a total change of business model. So mission tells you, why do you exist? Like it's the true North. That's what you're there for. That's the crew bumpers off organization Vision Vision is actually a picture of the future , so it's a little more shot down than mission. So it's moving like it's in alignment with the mission, but it gives you like a particle of future picture of that future, so you might have heard terms like Vision 2020 or Vision 2030 so that's like a really long term goal or long term picture. But still it could change after after those Kenyans. Strategy is how you will get there, How you get to that vision on it doesn't include all the details. It's more long term undertaking. So strategy generally includes the sequence off things that you would want to do and see fends off things only at a high level, not every little detail about it. So mission and vision basically gives you the direction where you want to go on strategy tells you how you would get their road map is also very sick little strategy in the sense that it also sequences the initiatives that are the makings that you want to do to get to your vision. Now. OK, Alaska, after this leveled off strategy and road map. So okay, are is more execution based, too. And if you see the questions that it answers that you also briefly touched upon before is that objectives tell you where you want to be in the near term, so objectives are never like a vision like OK, I want to be there. After 20 years, objectives on morning Adam and I need them. I mean the okay, our review cadence wherever you set for your team. So object is only talk about very want to be at the end of that cycle, and the results let you see how. How will you know if you're getting there? Also in the near term and initiatives, what will you do to get there right? So, basically, object lives and key results. What they do is that they take cues from the purpose, the broader purpose, the strategy and turns into a more tactical near term view that can be used for execution and for tracking and monitoring your progress on your execution. Let's take an example. A real world example. Let's say there's a company mission off. Serve consumers through online and physical stores and focus on selection price. Inconvenience, Not this mission statement is actually a really example for one of the top e commerce companies out there. Now you can see that this governments the true not you, should always be serving consumers through online and physical stores, and you should always focus on selection price inconvenience. Now, if someone reads this in the executive team in that company or in anyone in that company, for that matter, they will know that they will have to always tried for selection, price and convenience. A better version off that. So if you look at this company, okay? As that executive teams actually came up it, they're saying that get provide fastest delivery to American cancer customers at lowest costs. Now, this is actually currently taking cues from the company mission itself. I have not laid down the vision and the strategy, But given this mission statement, it's not hard to imagine that the vision would be in that direction off improving convenience and sedation and price so you can see, like your broader purpose is somehow going the okay, ours for your company, right? And then the key result within them within that particular object, it will be there. Okay, you prove till every time from three days to do this without increasing cost of delivery. Right? So this is a company that well, okay, which is taking its inspiration from the mission and vision and the overall purpose. Now, if you look it some of the other teams that are maybe working in that company, let's say you have a fulfillment of operations department, Like the department that takes care of everything. All the oppressions in in this poetically e commerce company. They would take cues from the company. Okay, are sort of company objectives. So because the company objectives already inspired by mission, this department socha will also be indirectly or in some way inspired by the mission because they are trying to influence the company. Okay, Are so there indirectly trying to influence the vision off that company. So here, let's say they say expanse, same diff delivery footprint in North America. Right? So because probably did some analysis and figured out that if you have a same day delivery in more areas than that would bring down the overall delivery time, right? So that's why they took cues from here and then came up with their own objectives. You can see one thing is very interesting here, that company department, and eventually we'll see one of the team shipping check out team. They're not copying each other's. Okay? Ours, they're internalizing the okay. Are are the purpose off a broader organization and then coming up with the objectives that they can fulfill and that would eventually move the needle on those broader objectives. So companies doing using the vision and mission the department is doing using the company Oh, chaos. And then if you move one step further shipping, check out, which is, let's say, a team within this department. What they're doing is they're understanding the department level object of sank years ALS and then trying to come up with their own objectives in a way that they can influence the department level objectives and key results. So, for example, here they're saying increased same the delivery option utilization on the check out because probably they did not. Isn't that difficult out that if they move this objective, they would be ableto do like some changes and some optimization for the department level objective sank yourselves. One very lazy, wayto get influenced by your brother objective is to just copy their key results on this happens a lot like I'm not kidding. This is this is one of the practices that I've seen so many times for people who intend to do is that they think the objectives and years als off that said the department. And then it's safe there, working in the department. They would use the key results as their objective. I would really advice against this practice because then what you're doing is that you're not really thinking through the different possibilities off objectives that you can have your just taking, like the key results set on level above you and just taking it us as your objective. We just which is not going to be the most optimal way of coming up with object of some key reserves for yourselves. 10. How to write Powerful Objectives?: Do you remember the okay? A template that we just discussed. So we have objective. He results, score and initiatives. In this section we will cover. What are the best practice is to create objectives and key results. Scores are something that will cover in the subsequent section and initiatives. There is no real practice for it because it's something that it's very specific to your business. These are just the tasks that we do in order to achieve a key result. Let's start with the best practices for creating objectives. The first best practice is creating objective and not an initiative. What I mean by that is, let's say, if you have a sample objective, create Facebook communities in Q 2 2019 That's a your team brainstorm, and you guys came up with this objective reality. Now this objective doesn't feel like the purpose for the cool off your team is to do this in Q. Doing off 2019 it feels more like a task. It feeds more like a means to an end. Creating Facebook communities cannot be your goal, because what's the value that it generates? It feels like something that you need to do in order to achieve somewhere. So whenever you come up with an objective that feels like a task and not an end result, and also it sounds like a means to an end, it sounds like something that you do along the journey to reach your goal. Or it doesn't answer the question where you want to be. And instead it answers the question to What should you do? Then it means that you haven't initiative at your hand. It's not really an objective. So whenever you have such a situation, where you actually have an initiative instead often objective after brainstorming, if you come up with an initiative that fulfills those conditions that we just discussed, that means you need to convert it to an objective. So it's not that difficult. Basically, what you need to do is that create Facebook communities and Q 2 2019 You want to find the reason why do you want to that? So asked why multiple times Why do I want to create more Facebook communities because it will increase my falling on social media? Why do you want more falling? It's on social media because it will increase our customer base. So now we have reached more like a goal because now you can say that your objective is actually to increase customer base in Q 2 2090 And creating Facebook communities wasn't means to an end. That's why, like it's important that you come up with your objectives and dense, try to gather grace whether you have selected an initiative. And if that's the case, use the five wise approach or as many wives as you want, use them and come upto the underlying cause on the underlying goal that you're tryingto unlock and use that as objective. Why should you know? Why should I even bother that if you have an initiative as an objective? What's wrong in that? You might ask this question, but it's really sub optimal if you have initiative as an objective and there are a few really valid reasons for it. First of all, you don't know if there is a causation relationship between your initiative that part you're trying to achieve. So, for example, if you create communities, you are not sure if you end up increasing customer base, and if you start just that objective, create more Facebook communities. Then you would not even think about whether creating Facebook of any pieces increasing my customer base or not, because customer base is nowhere listed in your objective. Also, you narrow down the solution space. Creating Facebook communities might be one of the Western priest customer base. There might be some other cheaper and more effective ways. And if you just select, create Facebook community as your A Z, your objective. Then you're not even letting the room for your team or for yourself to come up with those other innovative ideas. So that's why you basically come up with a very sub optimal solution when you use an initiative as an objective and lastly the okay, a framework itself says that objective should answer the question off where you want to be now. Creating Facebook communities is not the end. That's not where you want to be. By creating Facebook amenities means nothing when you actually want to be is to create Facebook communities. Andi have that support the increase off customer base. So the answer off where you want to be is answered by the objective increased customer base into you to 2090 and not by the objective create Facebook communities in here to 2019 11. How to write Powerful Objectives? - 2: moving on our next rule says that your objectives should stop with the world. This is a very basic concept, but people tend to overlook it. I have seen cases where people they want to target an objective saying increased customer acquisition acute 2019. But just out of laziness and just to be more precise, they just use customer acquisition. That's their objective. And they will not include increase as a world there in their objective, because if you write customer acquisition, did things that that exactly conveys what they want to do. But that's actually not the case, because if you use of work that did reminds the action that you want to date for that objective. So, for example, if you use just customer acquisition, if there is, someone else was not involved in creating the okay, ours. If they look at your okay, ours and read this objective, they would not be sure as to what you're trying to do. Are you trying to maintain customer acquisition? Are you trying to reduce it? Are trying to increase it so under stairs of work, you don't know the direction off effort that needs to be taken are the direction of effort that you're striving for. That's when it's really important to have a work and gently to start with the world for objectives next year. Objectives should be inspirational, but it should be attainable. So it's really nice to use phrases like most successful in company's history highest level ever. Instead off using phrases which are more like a status school like maintain conversion rate or keep providing service to the customs. So it's nice to use phrases that trigger off sense of motivation in the team where they might feel that they're going after something. It's really is inspiring, and it is kind of unprecedented. So if you are able to frame your objectives in this way, it might add that additional power to your objectives. I understand it might not be possible every time, so you should strive to get as many objectives to be more inspirational as possible. So let's take some examples. For instance, if you have an objective where you want to maintain the Laden's level of your off your website, let's say if you're working in a website development company, then if you just use maintained website laden sea level as your objective That might not inspire people that might just tell them they're OK. Keep doing what you're doing just made in the lead in sea level. But if you actually add a context which is more inspirational to the objective with says maintained website laid in sea level in local activity areas. So here it gives you that challenge that okay, you have a challenge off Logan acuity areas. But despite that, keep on mandating the website late and sea level. This is a good objective, in my opinion, because it gives a sense that you're pushing the envelope. So whenever you create an objective, just try to look at the wording and see whether you are giving a sense off pushing the envelope, pushing the boundaries, because that could be really writer in order to trigger that extra smidgen off motivation in your team and the people who are working with that object. But there's a caveat here. You should not push your inspiration to a level that it becomes unattainable. So, for instance, if you are working in the health care software company and then you have, like a startup, which is not that big lesson 2030 people. So, of course, for you to become boards number one healthcare software APP company in 1/4 this kind of impossible. It probably the like the probity off doing that, it's maybe 0.1 or something. So if you use your objective has become words. Number one Health here says in 2019 Q 2 then this is kind of impossible, and your team inherently knows that it's impossible. So they would not have been feel the urge to go after the subjective. So they were just on the surface. Try to get in agreement with this objective, but that's not something that is really inspiring them because they know it's not possible . So inspiration in an objective should help you push the envelope but should not be so stretched that teams feel de motivated are disengaged from your objective. Third, it should be qualitative, desperate, so your objective needs to be qualitative. The reason yet we do not want to include numbers in the objective is because that purpose is served by the key results. So key results actually take care of the exact measures and the quantitative Nissen your goals. The purpose of objective is to actually create a word picture off. Where do we want to be? Let's take an example. So if you have an objective and improve NPS score from 60 to 80 this is not really going with the lines off how an objective should be because this is not inspirational. It's giving you a prescription in the form off some numbers that increase it from 60 to 80 . But instead of that, if you use an objective, improve customer satisfaction as a measure and be a skin, then it gives you a broader context that by increasing the NPS score, you are actually improving customer satisfaction. So your eventual goal is to increase customer satisfaction as Mitterrand and be escape now . The key result within this objective could include on these numbers. It could include saying that MPs survey should we cannot get for it least 30% off user base and MPs score should increased from 60 to it. So the objective should be inspirational. A qualitative world picture off where you want to be, and key results are more concrete numbers that tell you that once you have achieved those numbers, that's when you know that you have reached your objective 12. How to write Powerful Objectives? - 3: Another important thing is that your objectives should be controllable by the team that is going after it. So, for example, if you choose object for an engineering team that says increased sales off your version two off SAS platform now sales process is totally different from ingenuity. They probably do not have any control over it. But if you assign them this objective, they know they won't be able to achieve it and they will get disengaged and they will get a pretty motivated because in the start of the quarter itself, you know it's not within the realm off cross possibility or their off effort, and they won't be able to go after the subjective and if even 11 off these objectives in their objective. This is such that it motivates, then it will actually eventually disengage them from all the other objective suspect, and we're reduced the power off, your whole okay are initiated. That's why it's important to include wounded. The objectives for for the teams that are controllable about them so not include okay, arts that are not really that cannot be directly affected by the team. Your objective should also be time bound Generally speaking, objectives should be achievable within your okay, are you, period? So if you decided to review your okay ours every quarter, you should come up with the objective step are possible to achieve within that O care period. It might happen that you won't be able to achieve it completely, but you should be able to do some movement on that objective within the period. For example, if you use an object like increased customer centric city now, this is not really a time bound objective. This is something your company are you or your team needs. True. Throughout the lifetime off your work, you will always be in prison customers intracity. And that's something which feels more like a mission or a vision which is more longer to avoid these kinds off objectives on try to come up with objects which are more more relevant for a shorter for a period where you review your okay, ours. It's okay sometimes to have objectives which are a bit longer term than your okay, a review period. But if you have such a case trying to bring down here objective into different milestones. So, for example, if if your objective is increased customer centric city because you want to do it for next two or three years and have a lot of efforts against it. Then maybe try to break it down to a more relevant milestone, which is achievable within this okay period. For example, let's say increase customer satisfaction level in North America. So that's something which can be measured rate. You can measure the surveys or the scores NPS course for North America and I receive. Actually, this objective moved because if you have a more time ball objective where it feels achievable or at least considerably achievable within the period, then that would motivate the team or instead off having objective it is more long. So long term objectives also provide, like a good sense off direction, but that purposes so mostly by the vision and the mission statement. So if you have an objective which fields really long term track, going to it somehow in your vision and mission statement and leave the objectives and accusers for a more execution, go to my quarter level of granularity next year. Objective should also be a high priority up to this. Now, one of the guidelines off. Okay, Ours is that you should not include a lot off objectives. So you should generally try to have 2 to 5 objective spur quarter or cooperate and 2 to 5 priety key reserves for our objective. Now, if you're coming with such a focus on, if you do not include highest priority highest impact objectives, then that means that you're focused is in the wrong place. If you include low bratty objectives, that means people aligned the whole team. The whole are behind some efforts, which are not going to move the needle by that much. That's why when they are drafting okay, ours come up with all the lists off objectives that you want to have and try to privatize them by the impact that they might have on your brought a focus. So some questions that you can ask yourself while privatizing objectives is what still turned to effort ratio for this objective. So if I put in X amount of effort, do I get a better return on this objective compared to others are not. If that's not the case, then maybe I should consider some other objective next. Also, try to see whether that objective is critical around. There might be some objectives that do not feel like a very high priority objective in terms of return and effort. But they're really critical because there they have a time sensitivity. So, for example, companies getting prepared for Brexit that might be a very higher criticality objective. So, if you haven't example off improved organizations compliance with new Brexit regulation, even though that might, that objective might not compete that well on return to effort ratio. But it's a critical object of that needs to be done before Brexit. So that's why include those objectives as well. So when you're privatising, look at return effort and also the criticality off objectives, the next fight a super body. This is one of those pitfalls that Adam by a lot off teams. So what they do is that they use some abbreviations or some Jeralyn's that I understand are understood to them. But others do not understand that at all. So, for example, if you haven't objected like reduced C a C in to attack in Q 2 2019 Now Gap is a very well known term, its customer acquisition cost, so people know it gently, really well, if they're from marketing or business backgrounds. But if you are using the okay as to also communicate and collaborate with staplers, we're not really aware off marketing journalists. It might actually not hurt to use the whole time. Did you use customer acquisition costs in Q 2 2090 So generally it's a good rule of thumb to not use a lot of abbreviations or, if you are using them, make sure that everyone who can zoom you're okay, ours. They're aware of what that means. 13. Example-1: Powerful OKRs: Let's look at this example and try to pretty get on at lest these objectives thank you's It's So the objective is saying that you should pose engaging instagram content of our current targets. And the key results say the first INSTAGRAM followers should be increased by 35% 2nd average number of shares for post should be greater than 2000. An average number of likes purple should be greater than 2000. Not if you step back and see the objective actually feast more like a test that you need to do in order to achieve some of those key results. So it does not really feel like an objective. It doesn't tell you what, Where do you want to go? Where do you want to go? Cannot ever be only about posting instagram content. Where you wanna go is always about something broader than a particular task. So in this case, that's one of the things that maybe we can improve with the objective. Now they're coming to the key results. I think they're quite powerful in the sense that there there were a precise they did not have any jardins or any abbreviations. So it's not really confusing and also their very quantitative. They precisely tell you the target that you should try to achieve. So here, as you can see, because our objective feels like a task. If you ask why, Why don't we want to post engaging instagram content and then you come up to the roof costs , which will be our object about the route result that we want to have. So in this case it would be improved Instagram profiles, footprint and engagement. So the reason you want to post instead of going and engaging Instagram Pontin and increase all these metrics is because at the end, your goal is to improve Mr Around profiles, footprint and engagement That's a better and a more powerful object they've instead of using the current one, which is post getting instagram. 14. Example-2: Powerful OKRs: moving on to the next example. Let's say you have an objective increased market share by 30% by end of next quarter, and that's you have key results within it customer base shooting priest about 40% revenue jumped by 20% and brand awareness by 50%. Now here, one of the obvious things that some off you might comment after going through some previous lectures is that why is the objective quantitative here? Because it just says that the main purpose of objective was to give a word picture or at least tell you in words in a qualitative way. Where do you want to be? And it should be more inspirational. So why don't we have number here, and does it even make sense? Or is it even right? Well, in my opinion, it's okay to use some high level numbers in your objective because sometimes if you use company white or market right numbers, they actually help you make the objective more inspirational. And it motivates the team to drive towards that objective. So that's why here market share is one of the metric that you can use any object because it's a very high level accompany. Why KP I that that is something which will only help you to make your object of small inspirational. But there, instead of market share. If you use some number, which is very specific, for example, had a like number off female subscribers should increase by whatever. Then that's not a very powerful objected because then it moves more towards being a key. Is that or moves more towards being a task? So it's okay to use numbers. I mean, I didn't eat object. It should be able to paint a picture in a qualitative manner. But it's okay to use numbers if it's actually helping your cause off, making it more inspiration. Because here, if someone reads that we have to increase market share at 30% that definitely brings up the motivation level, because this looks like a very ambitious and really relevant goal. 15. How to write Powerful Key Results?: let's move on to some of the principles that you can use to create more powerful cures. Olds Again, The first principle is about avoiding initiatives. I think creating key results are using initiatives as key results is more prevalent if you compare it to using ancient Texas objectives. This is one of the very obvious issues that people come across. So they generally Korean initiatives and they considered ask users. And this is again not very optimal. We'll see the reasons why it's not. We'll take a similar example like it took last time. So let's say your key result that you came up with for the objective acquire new customers . Is that built and new Facebook abilities. Now the question that you can ask yourself is that just built and new Facebook communities , as a key result, tell you that you have reached your objective, are that you have a quiet new questions, or does it feel more like a truly side? Essentially, if you're cures of it, answers the question off. What are we going to do instead off? How we know that we're getting to the objective on If it feels like a task, that means that you have an initiative as your care. So if you have an initiative, as you accuse that, the question that you can ask yourself to convert it toe more optimal key result is that what needle will be moved by doing this and by how much? So, for example, if your KR was built 10 Facebook communities and we agree that this feels more like a task or this does not really answer the question off whether we are going to be objective. So we understand that this is an initiative. So how do we convert this to make it to a cure? Is it now the question that you ask yourself is what needle will be moved by doing this, and by how much? And the answer to that for this particular example, is that if you build 10 new 10 Facebook communities, our subscribers been increased by 10 x, and historically, we have seen that for every 10 subscribers we get to new customers, so our customer base will increase by two times, so I'm more optimal. Key result would be increase your customer base by X times. The reason I'll be said here increased a small base by three times is because I want to add a stretch to our key result. But you get the hang of what we actually did. So we started with what is that task that we have considered that he result and try to see if you do that task, what needle are we going to move and include that need, Lord, that keep er that matrix, which is the customer base in this example, include that in your key result. So a more conducive and a more optimal key result in this example is increased customer base by X times or three times two times. 16. How to write Powerful Key Results? - 2: moving on. This is one of the most important rules for a key reserved, and they should be followed as much as possible. So your key results primary purpose is to objectively determine if you have reached your objective or not. And by objectively data mining, you mean that there should be no room for opinion off people. And this can only be achieved if your numbers in your key result. So, for instance, if you have an objective, improve our websites responsiveness into to 2019 then there are two possibilities off here is is that you get them off it. One is that you have a more while that if users which says improve page lower latency by leaps and bounds. And second, a more quantitative one where it says exactly like improve page loaded and see by 10%. What's the problem with the first years of the problem with that is that there is a room for interpretation. What we mean by leaps and bounds doesn't mean 2% 25%. What does it really be so towards the end off your period or quarter, when you try to score against these cures us you would not know if you have really achieved your key result, then henceforth, the objective are not so. That's why if you have numbers, everyone in the room when they try to score or when they try to decide success against that key result, everyone can be on the same page because numbers their absolute. There is no room for interpretation with numbers. That's why we can say exactly whether we achieve our objective or not. If you have a key result that has a And as I mentioned in one of four introductory lessons that if a key result doesn't have a number in it, it's not a key result. This is said by Marissa Mayer, and I totally agree with this notion. Your kids aren't should also be a bit stretched. Why should be stretched? Because if you can comfortably achieve it, then you will not be triggered for any innovative thinking. So it's always good to include a little bit of stretching Your key result. A general rule of thumb that people follow for stretch is that in the big me off the quarter, your key result should be so stretched that even if you work hard. There is a 50% chance of achieving it by the end of the quarter. So what would happen is that you would be forced to think ready creatively and come up with solutions. Toe. Try to achieve that. And once you tried to achieve a stressed key result, then you will achieve a little more than what you would have a cheap if you were really comfortable. Generally, an average score of 0.7 for your key results 0.6 point seven is actually a good stretch. So that means that you had stretched it good at an optimal level. If you hit one all the time, that means you're not stretching it. If you're achieving all your key results, that means you have not really stretch. Your kid is a set up, and the next corporate should consider being more ambitious with your kisses. If it's all this 0.5 and if you're executing perfectly, that means maybe you're stretching too much, and you need to be a bit less ambitious in the next quarter. Because if you do not, if you constantly underachieve on your key results. Despite putting in the best effort that for preserving the motivation after a while, so it's important to have the stretch at the right level. If you remember one of the examples set, Peter, you figured out that if we built 10 Facebook communities, you'll be able to increase testimony base by two times. But we including our key reserve that increased customer base by three times because being to restoration stretch so two times was being more comfortable. If you include three times and you'll be forced to take more, what else should I do? We apart from building Facebook communities, that will help me increase my customer base. So that's why stretch results in a lot of innovation. A lot of times now, it's very important that you don't stretch every years old. For example, if you have a key result saying hire 10 senior engineer's, you do not want to stretch unnecessarily to hire 15. Ingenious, because if you let's say, end up achieving 15 engineer ski result, then you might want it, the budget and the work for them. So no every key reserve, it is meant to be stretched. Generally, it's good to ask yourself a question if the target that I'm trying to achieve with this key result is a fixed and specific value. Then I don't need to stretch it. If it's something that I need to just improve, then I can stretch it. So, for example, empty it score or customer acquisition or customer chant. These are the kinds off KBS that I always want to improve for my business. But hiring more people having X number of people is not something that I would want to do continuously. I have a specific requirement there, and that's why I don't need to stretch those kinds of results. 17. How to write Powerful Key Results? - 3: another really important character stick off a powerful years old is that it should be balanced or it should highlight tradeoffs. What I mean by that let's say you have accuser acquired 10 million additional users. So this care is on in itself is not complete because you can acquire 10 million additional users by giving them away $100 worth of free coop wants. So the cost of acquisition would be very high. So it's important that you have a key result that gives you the measure that you want to achieve. But it also highlights what is the trade off. So in this case, acquire 10 million additional users at the same customer acquisition cost of $5 per user. This is now completely result because it shows you what you want to achieve, which is 10 million additional users but at the same time and shows you the cost at that. You should achieve that. So whenever you have a cute isn't that you're trying to increase a K p i or a metric by some amount, you should also highlight the train off or what would be the consequence off increasing escape here and highlight upto work, constrain and limit. Do you want to baird those consequences? So, in this case for acquiring additional users, we do not want to move beyond $5 per user customer acquisition cost. And this is a very normally, whenever be optimized, any single k p A. In a business, generally, some other KPK takes it. So it's always about managing your trade offs and figuring out and putting York users in a way that it highlights those trade offs. Another best practice is to avoid business as usual key results What I mean by business as usual key results. There are certain things, certain achievements that you would do as apart as a normal part of your job. So, for instance, if you're a manager and if you have a lot of direct reports to take one on one meetings with them, it's a part of your job. You don't need to put in your like these meetings in the form of a key result in your okay are sheet because if you included in your okay are sheet, it could tell you the impact off. Okay, ours itself, because, okay, as if you remember, are supposed to be more ambitious and they're supposed to be a bit stretched. So if you include some business as usual, normal job by Kiki results that would dilute the effectiveness off. Okay, ours. I have seen teams that do both ways, so sometimes they there are some things that also like to include everything as a part of their kid. Is it? It's not wrong, just that the effectiveness off. Okay, ours are not optimized if you do it this way. Last best practice for key results is that we should try to minimize finery key results by asking what needle will be moving by doing this and by how much. This is actually a reiteration off. Avoiding initiatives s key results Initiatives ask years. It's hard, sometimes also known as finery. Key results. They're quite finally because either you do it or you don't do it because either you do a particular task or you do not do it. Let's take an example toe further solidify this particular concept. So let's say you have an objective increase our company's warehousing footprint in North America. So this is your objective. Now let's say if you come up with a key result which says, Open a new automated warehouse in New Jersey. So your team and you decided that this would be your key result that once you are automated , once you open and automated warehouse in New Jersey you have achieved this year isn't so. This is a binary key result because it feels like a task and also inspired me because there is not going to be any midway about it. Either the warehouse will get open or it will not get open. So that's why it's a zero on or one situation. And that's why it's a binary key result, and more often than not, you're buying Ricky. Results are some form of a task. So in this case, if you try to remove the spine Ricky result and turned into a more meaningful and more optimal key result, then we should ask the question. What needle will be moving by doing this? What needle believe moved by opening this new warehouse in New Jersey and by how much we removed that needle. So the answer to that is that the warehouse coverage at least coast will increase from 50% to 65% If you open this new warehouse in New Jersey. No. Once we have answered this question, the this particular answer is a more optimal key result than your initial cures it. So instead of having opened a new warehouse in New Jersey as your result, it's better to have. The key reserve has increased warehouse coverage in East Coast from 50% to 65% or whatever it was like, depending on the stretch that you want to, why this kind of fluky result is more optimal. Because now, if your team actually goes into the quarter with the objective off increasing companies warehousing, footprint and it has a key result that increased warehouse coverage in the schools for 54 50 to 65% then basically they're free to choose different ways that can help to increase this coverage. Because previously when you just told that in creak, open up a new warehouse in New Jersey, you got prescribing what exactly needs to be done or task needs to be done. So there was not a lot of room for innovation, but by giving them this key result where they just have to increase the warehouse comrades in the East Coast, they're open to do a lot of things. Maybe they can find a cheaper place toe open a new warehouse, which will also result in the similar impact and would also save you cost. So that's why here's a star. Finally, they tend to be sub optimal because they prescribe something. The press prescribe a particular task. So you're approaching me to minimize as many buying Ricky results as possible. But as you can see here in order to reduce my Nicky results and convert them into a proper he reserved with numbers with the progress on some particular matrix that takes a lot of announces. So, for example, how much coverage will increase by opening up a new warehouse in New Jersey is not an easy problem to answer, because you would have to get your analytics team working on that, simulating something's and coming up with the numbers. So I understand it's not always possible to get rid of buying recuses, but we should try to minimize them as much as possible. 18. Types of Key results: What are the different types off key reasons that you can have that. Broadly speaking, there are three types off key results that anything or any individual or any company could have. First type is the baseline establishment key dessert. So these are the key results that measure your success on your ability to measure a particular indicator. Let's take an example. So if you have an objective, improved page load late and see for our application, there could be a key reserve base like yours are saying we are able to measure page load time with least 98% accuracy. So what it does is that this particular key reserve measures your success on your ability to even measure your primary KPL, which is your patient legacy. So these kinds of key results based on the results are generally useful. Then you have a new product where you don't have ability to measure a lot of different metric that you would like to measure. So it's it's OK, and it's nice to keep one of these Baseline kills us to make sure that your first of all implementing whatever features you need in order to measure some of these numbers that you would need. Next comes the KP based uses. So KP I BST results are basically targeting an improvement in an existing metric or a k p a . This is one of the most common forms off years olds. And also this is one of the key reasons that we should always strike to have, because KPBS key reasons are very progress oriented. So you would have kids us, for instance, image payday loan debt and see by 15%. Now this this gives you a very clear indication off what you want to do, like what do you want to achieve and also its progress or ended. So, for example, by the end of the quarter, if you are able to achieve only 10% improvement in Beijing or agency, you will know that you have achieved to do what three are to turn off off. Your kid isn't so. Keep basically, desserts are easier to score in comparison to the other key results, and these are also very powerful because they definitely show you what exact business indicators are moving. Lastly, we also have the final Ricky results that we just discussed some time back so by Mary Key results are the cues us that are in the form off a zero or a one. Either it happened or did not happen. These kinds of presents are not the most optimal one. As you can refer to in one of our previous lectures, you should always try to minimize by anarchy results. So whenever we have a case that that feels like a task or something that either will happen or will not happen, we should try to find out what needle will be moved by doing, or by achieving that kids of and by how much and whatever is your answer to this question can be your new key result. Instead of that bind freaky dessert. So this minimization is not always easy. So that's where many a times we end up with somebody hears us. But a general rule of thumb is that you should not have majority off your key results as binary Keyser's, because if that's the case, maybe you're not putting in thoughts enough to convert them into KP base results where you have a progress or you have an indicator that you're trying to 19. Example-3: Powerful OKRs: in this example you can see like you have an objective off minimize website downtime to 0.2% during Christmas season. So as we all know your Christmas a lot off websites out there Amazon suppose every every other website, they get a lot of traffic. And it's not a very uncommon problem for detective on in these companies to somehow fight against website downtime. So that's a This particular team has the objective of minimizing website downtime to not more than 0.2% during the Christmas season. Now the key results that they came up with is first occasional evidence he should not be more than three minutes again. Second backup servers can be timely spot and third created dashboard to visualize end to end system journey for 99% off uses. Now what kinds off key results are these? Let's try toe getting grace them in the different categories that we discussed previously. So first facial laden C should not be more than three milliseconds is a campy I based he result because it is actually targeting one of the KPs, which is spatial redundancy, and it's giving a target for it, which is not more than three minutes again. The 2nd 1 It feels like a binary key result, because either the backup servers will be timely. Spina are they want. But here you can see it's also not really quantitative. There is some, like there is an opportunity to make it more quantitative so we can actually convert. It can would've been very reserved toe KP based here is that with some analysis off our business and our data, So here how it can be converted toe KPBS here is that is that backup service can be spun up within 15 minutes. So instead of saying they can be time he spun up, which is only giving a feeding off a CEO or one like a binary key result you can actually associate. Okay, ph there. Which is what is the time to spin up your backup servers and that if that is within 15 minutes, then you have achieved this key deserved. So that's how you can change it. Toe backup cells can be spun up within 15 minutes. Now the last one, it's actually a to your case off baselines Establishment Key result. It's very common when your business is going through some major changes to do some effort in order to bring invisibility off numbers as to what's happening there. So in that case, baseline key result is actually a good way. So here in Christmas season, you would really need to know how the journey off users is on on your website. So how? Which, at which point, are they facing the problem? Which point it's slower breaking in your in your system. So that's why this case is that makes sure that you work somehow toe create that dashboard that can visualize at least 90% off the users journey, so that 99% they're also adds an element off key babies. So that's why if let's say, you create a dashboard that is only able to go over 50% of the uses, that means you have achieved on the 50% off your kid off your key results here 20. Example-4: Powerful OKRs: Let's try to critically analyze a set of objectives as a part of this case. So let's say you have an objective off some HR or some injury leadership team where they want to. Bootstrap ah, highly productive engineering team and the Keys is that they have is first, hire five engineers by end of Human 20 22nd Establish a baseline off team productivity by measuring output per Virginia per week and heard habit least 40% off. Engineers attend at math system Architecture course. Now these three key users are basically going to tell you whether you have successfully bootstrap a highly program engineering team or not, because that's the bubbles off key results because they tell us whether we have reached our objective or not. And all these three start with a score of 30.5 because probably there is a 50% chance of achieving these by the end of the court. Now, let's try to see what's going on here and pretty try to analyze and comment on these objectives. Thank you visits. Some of my comments would be that the objective. Just by meeting it, you do not specifically know what the team's focus is going to be in the next quarter. That's fire. You needed these key desserts. As you can see that this could be an objective for any any HRT. And if someone just goes through your objectives, they cannot find out what is the code that you're trying to achieve in the square. So that's why here is a very important point that object despite themselves, even though they aspire to, I'll be more inspiration and qualitative. They really impart the right level of information that is needed. That's why key results are sort of the heart off. Okay, ours now coming to the key results. If you look at the first here, isn't here. It says that you need five engineers by end off Q 1 2020 Now you do not need to stretch these kinds of years. It's because if you need five engineers specifically, if you have budgeted for five engineers, you do not want to increase your stretch toe higher seven or 10 original engineers. Because these kinds off key reasons which target a particular value beat in terms of number of hires or a particular KP around you, we should not stretch those because probably in this case, you hire more engineers, maybe you don't have book for them or you don't have the budget for them. So that's why it's important to ask yourself if I'm trying to stretch. My key result does. Does this world look you here is a given either stretch or it's actually a precise value that I'm trying to target. The second key result says about the baseline establishment. So as we mentioned, Baseline Establishment is one of the forms off users that you might have, because in this object, if you're trying to bootstrap a highly productive ingenuity, it's also sort of mandatory that you have a measure off for its productivity for you on your driving, measure it over time and see if it's improving our evidence, which the special between that you like. So that's why this is a baseline establishment key result where you would use this to set up some dashboards, which may be measured. How much delivery will waas done by each engineer and try to find an aggregate across team and make it available to the HR manager, our engineering manager, so that they can see what's a productivity never left you coming on to the last few days That habit east 40% of engineers attend advanced system architecture pours. But this 70 progress based here isn't like you have 40% engineers attending a particular course that up skills them. You can even go up to 60 or 70 depending on the resource is in the tank. These kinds of results can be stretched where you do not have a specific target, as was the case for our for skis that you wanted to hire specifically five engineers because that was the need of the hour. So here you can include some stretch and also you can see like this is not really a part off the direct walk off engineers. But it's okay to include sometimes some key results which are not directly impacting your objective. But it has some sort off indirect influence on your objective. 21. Example-5: Powerful OKRs: in this example you have okay, ours off the team that wants to increase the quality off the inversion releases so they have the objective as improved quality off our version releases looks like a really inspirational and also very quality event clear objective. And within this object, if they have a few key results so the first years and says no more than five critical but spirits because the more bells you have that means that quantity has deteriorated a bit more. So that's why they have kept a treasure off five Kregel Boksburg. But police second into an automated testing coverage for 95% of use cases and heard we should not deliver less than 100 points per quarter. Now coming to these key results, they are really well balanced. Why, because basically the 1st 2 key results, which is reducing the critical bots on increasing the automated test. They take care of the quality of for centuries, and that is being indirectly to our object and like we should increase the quality. But the third key reserve is actually the tradeoff. So as we mentioned that your key results should also include the trade offs and not just always paying into the objective. So here the trade off is that we should not deliver less than 100 points per quarter. So if you try to reduce boats and increase automated test, and if you have infinite resources at your disposal, you can do it with releasing, like less number off points in every quarter. So you're basically slowing your company or your organization down just to improve the quality. So here in the Turkey is that it actually tells what costs are being willing to bear in order to have that above mentioned level of quality. So that's why these kinds of OK odds are quite helpful to define a trade off that might exist in order to achieve that objective and to specifically save what level of trade off are you willing to take a hit on? 22. How many OKRs should we have?: How many? Okay, ours are the most conducive for the most optimal. How maney against should a team have some people say that sometimes might be 10 people pay something. Some things might be 100 people big. Should both of them have a signal standard for number of Who cares outside? Yes, toe irrespective off the size off the team. Your objectives and key is ALS should not be a lot. So you should try to limit your objectives and kills us to to to five objectives and 2 to 5 key results for objective. Now, let's say if you have a lot off resource is if you have a huge team, what you can do is you can have multiple Kiir's multiple initiatives for each of those key results. Because, remember, initiatives are actually the world that you do. So if you have a bigger team, then, of course, have as many initiatives as you want under those 2 to 5. Okay, ours. So the reason being wanted restrict is because it gives focused through the whole organization. Now let's say if you have a team off 100 people and you came up with 20 okay, ours then as overall, as as an organization, everyone is actually going after those 20 objectives. Which doesn't make sense. Because then if let's say I'm or my team is working on one of those 20 objectives, and if I need help from someone else for that person, my objective might not be important because he has his own to other objectives. So if you spread yourself too thin in terms off a lot of objectives, even in a bigger team, that's not the most optimal way to work. That's why it's recommended that you have 2 to 5 okay, ours for your organization or department or tea at whichever level you're setting it and then have as many initiatives under those depending on your resource number. Now this is not a hard and fast rule. So of course, let's say if you are in the context or you have a situation where you cannot skip having less than 10 okay, ours. Let's say then it's OK, you can have it. There is no hard rule against it, but the idea here is that you should try to limit and try to force your yourself to do those hard privatisations and come up with those highest impact to 50 cares 23. Common OKR mistakes: Let's look at some of the common mistakes that you can do while working with. Okay, Our framework. The first mistake is that you do not socialize. Euro cares if you're working in an organization one of the key benefits off. Okay, Ours is that it present its communication and transparency in the organization. The other team, other. The individuals didn't know what you are working on our What's your goal for the quarter? And similarly you know about theirs through the old cars. So if you do not really socialize it, if you do not make it transparent across the organization, you limit the benefits that you can get out of this framework. Second mistake issue either said too many. Okay, Ours or you said too few. Okay, ours. If you said to many or cares, then basically you will spread yourself too. Then you will not be able to focus properly. If you said to fuel cans a few, let's say only have one. No care for your whole team. Then you would not have enough meat. Not enough work on that. The team can go after, so you might have a lot of idle time from the team where they're not really going after more objectives. So that's why it's said that the sweet spot here in terms of the number of okay ours for team are for individual is around 2 to 5. Of course, it's not hard and fast. It depends on your context and your situation, but it should not exceed a lot more than five feet. You normally like 10 or 20? Okay, ours for for a particular period and similarly on the other side, it should not be too few. Doesn't make sense. We have only one OK for a team of 20 people. Her mistake is that you sometimes end up setting and because scares us. So if you have an objective improver companies Environmental sustainability in Q two off 2020 one of the key results for it could be drastically reduced coming for print off or company. Now there is an ambiguity in the skiers up because first of all, as you might have guessed, it's not quantitative. So what does drastically reduce me? This is not clear, and it is not the same for from person to person. For me, drastically reduce might mean really reduction by 2%. For someone else, it might mean production by 50% so we don't know what exactly it means. So that's why there is an ambiguity with this key result, and more often than not, you can remove them really by putting in some numbers or some KP eyes in your key desert. So, for example, in this case, a better key result will be reclaims carbon footprint by 20% while maintaining a profit margin off i percent. Now why? This is not an because cuter than it's a very precise one is because, first of all, it gives you a target off your carbon footprint reduction. Second, it also gives you gives you allow costs that you're that you're allowed to incur for achieving this kind of an impact. So you can also in Cree, you can also reduce carbon footprint by 50%. But that might mean you're reducing your profit margins by a lot because you are spending a lot of money in sustainable development. But maybe if you want to keep that tradeoff, you want toe reduce carbon footprint, but at the same time not kill the business, and this is a brilliant keys to capture that notion. So you reduce carbon for premature 20% but maintain profit margins or 5%. Next mistake is not align focused within the organization. What might happen is that if your organization is working with okay, ours. So you have different teams. They're working with their own. Okay, ours. But if everyone is not aligned, they would just be walking on being focused on there, okay? And they would not really be caring so much about if they're OK. Ours are contributing to the broad company vision and also if there, oh cast are in alignment with people who are other themes or other individuals and organizations. So this would result in everyone being really focused. But all four goes in different directions, so resulting in a lot of this is effort and not really benefiting the organization at all. And that's why it's said that you're okay or should be aligned before you start walking towards them within the organization. Next mistake is that you set up over stretch are under stretch. OK, ours overstretched. No cares other ones where you're aiming too high. And if you keep on doing this or a bit of time. Then you and your team might be demoted because no one wants to set up objectives and kills us and never deliver on them or under deliver on them constantly. If it happens it for a portrait, it's okay. But if it keeps on happening, this might result in a big T moderation driver. Prosperity on the other side on the stretching focus is also a problem. Why? Because if you under stretch OK, ours, then you do not push the envelope and you do not maximize your potential. So you stay comfortable. But you're not really achieving as much as you could have achieved with your resources and your and your talent. But that's something you're limiting yourself to by putting out under stretch. Oh cares. Next mistake is setting. OPR is in the top don't manners. So if you remember management by objective framework that Peter Drucker popularized in 19 fifties sixties, this was one of the flaws with that, like most of the objectives were coming top down. So the manager was so upsetting the objective for the team or the supervisors and the supervisors was setting for the team. So it was all top down and as an individual in the team, you are not really feeling engaged to this process and you did not really what, into your objectives and keys is because you were not a part of writing part off coming up with those. So that's why it's it's actually a major issue if you try to rule out locals in the top down manner where people are not coming up with their own objectives, because then engagement reduces and motivation reduces and therefore the whole effectiveness off. Okay, offering book comes down. Next mistake is one of the most common ones that you already discussed in our previous lectures. Issues the hospital initiatives as object of sent years else. If you use tests initiated sex object of ski results, then basically you reduce your solution scope. You do not look at the final outcome that you're trying to achieve, but you look at the things that you have to do so you never think about other things that you could have done to achieve a similar or better output. So that's why objectives and kids that should be kept at the level off the outcome that we want to achieve and not really include the tasks that would have to do to achieve that outcome. Lastly, as we discussed before, as well, you should not use Okay, Aster data mine employee performance. Because if you start to do so, then what will happen is that employees, they will be incentivized to set under stretched. Okay, as so, if I'm getting bonus based on my score off, my key result, then in the next quarter, what I'll do is that I set up already under stretched. He deserved that. I haven't for sure achieve it and maybe overachieve it. And then because now I'm thinking just about my bonus for my promotion, and I'm setting okay, as based on that thinking, it is not the right way to do so. That's where it's really important to decouple your objective and gold sitting with your incentives 24. How to find OKR cadence?: you discuss time and again that you should review your okay, ours often enough. So you should revisit euro gastritis, score them, and then come up with New York asked for the next period. Ah, very obvious question would be. How often do that not? There is no right answer for all the cases here, there's no one right answer here. It depends on your context. So there are a few factors that I would like to discuss with you, which might help you to mind your own kids or your own frequency off reviewing. Okay, us. If you look at this graph here, it shows that there is like an inversely proportional relationship between the parents and maturity. So as the maturity increases, your cadence comes down and vice a versa. Now, maturity here refers to the majority off a lot of different factors, first of all, the stage of the business itself. So if your business is really new, it's not mature it all, it's a starter. Then it might make sense. You have hired kids because if you have a new business than it's you, you discover a lot of new things pretty much every day and you do not want to have your objectives that you decided once, even though you discover a lot of new things, you're not updating them right, But this is not the right approach. So you would want to update your objectives and like, revise them as soon as you discover something significant. So that's why better to have a higher kids. But if you have a statement business, on the other hand, you don't need that high a cadence because things are not very uncertain. You sort of know how things pan out so you can do it maybe once a year or tries to hear right. Similarly, if you let's say, try to use your okay, ours for like for individuals. So, for example, if you're a manager and then you have direct reports but whom you use focus to manage dead a little bit or to manage expectations that you have from them as far as there will disconcert, then also you can refer back to this particular relationship between kids and maturity. So if the employee is really new, not really mature in the company, then probably wants to have a frequent in is because then you would get usedto like how it's time, what is and what his style of delivery is. So maybe in the only days it's better to have frequent cannons to okay as discussed with him, the whole gastritis. Score it together and see how it pans out. But if you have an established employees walking with your organization for 10 15 audience , then maybe you do not need that level of frequency when you discuss and review his okay, ours. So maybe you can do it once 1/4 or depending on your region cycle for four employees you can manage Your case is next is also the stage of the market, So not just your business, but also the market, it said. Let's say if you're working in a secular, which is like artificial intelligence and machine learning for a really cool application, then because it's a very destructive sector where new technology and new companies are coming up every day, it might make sense with frequent games because you do not want to stay away from the market. You don't want to stay away from the competition and the on the market landscape because it's changing really rapidly because It's a destructive industry, so in this case, have frequent gains. But on the other hand, if you're honest in a stable industry or more mature industry, then you can have a lower cadence. Because if it's a mature industry probie, there are not a lot of disruptions happening. And then you do not need to be so responsive to it because you have seen that the market has stabilized now and you know pretty much all the factors that move around so you can have a lower careless there. 25. Questions that will help you find cadence: Let's go to some of the questions that can help you find your gates. Some of these questions might feel very similar to the fact is that we discussed in the last lecture, but it might give a new perspective. If you look at it in a question. For first of all, you should ask yourself, How often do we want feedback on our objective secures its so this, as you can see it, signifies the intent. So irrespective off your situation, how new the marketers are hard you your cos If U. S a team or us individual want to have frequent feedback in the form off scoring your kid isn't, then it might make sense to have a high cadence. So this what you really want? If you want it to be that burden off course, there's nothing stopping you from that from having a higher cadence on on the broken records. Second question at four pays your mom Britta's make new releases, so this is ready to the market like me Discuss before. If it's a very destructive market, it's not very mature where new competitors are propping up and they're also releasing a lot of new things pretty much every week, then much better for you to have more frequent kiss. I would recommend even going up the next sent off a month here, like absent companies and disruptive areas that have monthly kids. So they update their okay as every month. Which might make sense, given the market is will be so fast. The next question is how mature are being though care process that we just roll it out. This is also very important question because again, this question gives you an indication that irrespective off your situation or your businesses situation if let's say you are new to okay, process, it might make sense to do it more frequently because you might have got a gotten a hang off it so far, that book air process it seems very simple, but there are some things which might go wrong but your right to do it. So if you if you're really new to it, it's probably better that you do it more frequently, make more mistakes, learn from them and improve upon your process. So once you are sure that okay, now you're coming up with a really powerful objectives and key results and it's actually showing some results that you can move back to a lower kids. But initially it makes sense to act as a higher, higher frequency Recycle. Next is what face our operations in Is it nation place wrong face or maturity face. This is bracing that one of the factors we discuss, like your company's new, have higher kids. If it's really established, really old, then probably don't need a hard gains, and you can review your Okkas once a year or so if you want. Next is what's the gag to stick off our sector? Is it destructive or is it stable? So this is really to the industry, and this is also very similar to what we discussed that if if you have a destructive a non mature market that have our kitchens, other ones have a lower kitchens and have against which is more comfortable for you 26. Dual cadence approach: now some companies also follow What is called to work here is much but do against What I mean is that you have different cadence off review euro chaos depending on the lead. So here you can see an example that you have an organization that has at the company or organization liver, the bottom level teams and then individuals. So as you can see, like the propensity off change. And you can also imagine that's very intuitive to imagine, like the propensity off change of the likeliness off change off. Okay, artists on a company level is much lower if you compare it to the focus at an individual or a team level. The reason for that is because though gas on a team or unusual level are more very, execution only ended. So if you remember some of the examples off company level Okay, Azzedine level. Okay, Ours company level locators were actually talking about really broad calls. We have to create the financial target. We have to have this much margin with this much revenue. And then team never goes for talking about specific objectives that would help you achieve that company. Okay, so if Dr Bartok prove the delivery performance or improve improve the same day delivery footprint, those kinds of things, right? So a lot of companies, what they do is they tried, Toe said. Their country never focus, not as frequently. So maybe by and we'll or animal. And then on the execution level, which is the departments and teams and individuals they do a quarterly review off. Okay, ours. So what this would help them achieve is that your overall goal is not changing that frequently that you would still be aiming for those financial results. But the execution you can review every quarter. So it gives like a good balance off having that focus on the company level, but also that flexibility on the execution. I've seen the smarter work pretty well for some organizations, but it depends like if let's say it depends again on your context right to it. But it might not both for your company or Mike probably leave it up to you. It's maybe what experimenting and thinking about such a martyr you can different gates 27. What's a Key result score?: let's look into the scoring off the results. If you remember from our introduction, we mentioned that score is actually a combination off how confident you are. You achieve a certain amount of progress on that years and on also the promise itself. The results can actually score from 0 to 1. So you can have, Acuna said, from 0.21 point 0.0 says that nothing has been achieved. No progress made on that particular hears that and 1.8 point zero signifying that it has been achieved completely, sometimes also used 0 to 10 as the scale for years old. Scoring. Now which one do you want to use? This something which is off your own personal choice. If you use your to them than you, probably skip a bit of decimal handling. But there is no right or wrong here. A few for you to choose where it was. Skill deeds fit for you. Score is actually a combination off the anticipated progress level by end of the period. On the confidence level, I haven't come down to what exactly it means, but right now let's look at this formula so score is equal to anticipated progress by end of quarter multiplied by the confidence level to achieve that progress. Now, if you try to understand this in the form off words, what it actually means is that at any point in time, when you're trying to score a key result, you're answering this question. How much impact will you be able to achieve by the end of the quarter? And what's the confidence off reaching that progress level? So let's take an example. Let's say, if you have a key result improved NPS by 20% in Q 2 2090 and then somewhere in the middle of the quarter, you are, let's say, 90% confident that you will achieve 15% improvement in MPs and not the complete 20% according to your initial care. So let's say you a 90% confident of achieving 15% improvement and PS by end off you do 2019 then the score would actually be 0.75 in 2.9. Why points and five in 2.9, because points and five shows that you have made 15% improvement. When you had initially set out to achieve 20%. So you have achieved 3/4 off what you initially set out to achieve. So that's your progress by the end of the quarter, or the promise proportion percent age by the end of the quarter and 0.9 signifies your confidence off achieving that 15% improvement in MPs. So even though the formula might sound a bit complicated, it's actually always about answering this question. It's very important that you keep this question in mind. How much impact would you be able to achieve by the end of the quarter? And what's the confidence off reaching that progress level? I would also like to say that even though this looks like a very mathematical formula, it doesn't have to be very mathematically. Do not have to go into the mats binging calculation sessions for a couple of days just to come up with your score. It needs to be really ballpark, so you need to do like a napkin mat in order to come up with a score. Just try to answer this particular question every time you're tryingto score your key result. Let's take an example like, for example, in this case when you have to improve NPS by 20% in Q 2 2019 It could be possible that in the middle of the quarter, you know that these are the 20 or 30 initiatives are features that we have to implement in order to achieve this kind of MPs improvement. But in the middle of the quarter, we only implemented five or 10 of them, and the velocity off development doesn't look like we'll be able to complete 100%. So maybe you take a rough guess and you come up with a team that okay, maybe you cover only 3/4 off the features that we set out to complete. So that's why maybe you will be able to achieve only 3/4 of the progress that if you compare it to an initial target of 20% that's why 200.75 it do the confidence of achieving that 3/4 28. How to interpret key result scores?: Now How to interpret key results Score Let's say if you have a score from 0 to 0.3 will say it's in the red zone. If it's from 0.42 point six, it's probably in the yellow zone and 60.7 to 1. It's in the green Zone now. What each of those owns mean it's basically red zone signifies that there could be a few possibilities there. One either. Your key result was really too stretched. So I'm in the target that you had set out for yourself and 40. They were really ambitious. So maybe what you can do is ask yourself this question was a stretch a lot in this key result. If that was not the case, then look into the execution failures that happened. Because if if the stretch was not high enough and then even though that you're not able to achieve it and have a score off more than 0.3, that means there were some execution failures. Maybe you did not plan. Your resource is, well, maybe the teams that you're dependent on, they're not doing their part of the world or something else happened with your team, which resulted in a lower level of execution for this particular key result. So these other kinds of questions that you can ask towards the end off you're OK review period in order to make sure that the mistakes that you made either in the form off well, we're stretching or in the form of execution failures do not happen in the next quarter. Now Yellowstone is actually fair performance area. So if you have a key reserve score from 0.42 point six, that means that you made some progress but force far from being completely satisfactory. So that's why here it's also important to find some reasons why this execution failed the weight it because if you have ah kee result in yellow Zone and if you want to move into Green Zone, there might be some things that you could have done better. So it's important that at the end of the period, maybe you come up with those ideas like what could have been done better for a yellow zone key result to move it to green and try to implicate those learnings in your process for the next? Okay, are you quarter now? Result may look like a happy area for everyone and all the time. But probably not true, because if you have all the key results that are in the Green Zone, it might mean that you're not stretching yourself enough. So it's what asking yourself that if you're before your kids are sliding the green brings all our be stretching ourselves enough? Or do we need toe? Have more ambitious here? That's in the next quarter as a rule. Is tongue your average Q desert score across on? Okay, Jesus should lie somewhere around 0.62 point eight. If it's really low than what's happening is, maybe you're not doing the fusion will or you're not or you're over stretching your users. And if it's very high, it's 80.9 and one like the average score across all your pieces. That means probably you're not stretching enough, so maybe you you're not ambitious enough when you're trying to set, you are or cares 29. How to score Key results at the Start/ Mid and End of quarter?: Let's see how to score. Hears us at the Big Nick off the corporate mid of the quarter and end of the quarter, So we'll take the same example. Let's say our key result WAAS improved MP in spite many person in Q two off 2090. Now, as as we mentioned before in the scoring introduction, that whenever you want to score York user, you're always answering the same question. So it's not different the way you score your key results in the beginning or the end of the quarter. Just that the answer to that question differs, and you'll see how it differs. So our question. If you remember WAAS, how much impact or progress will you be able to achieve by end of quarter? And what's the confidence off reaching that progress level? Right, So in the beginning, off the quarter, because you're just starting out, you don't know anything because you have not really discovered or started booking on your on your key reserve. You would start with a score of 0.5 y 0.5 because in Okay, ours there is, like a guideline, just not mandatory. But generally people follow it that when you start your quarter or your period for that, okay, Are basically your key result should have a 50% chance off achieve achievement. So if you work hard, you have a 50% chance of achieving the entire key result or 100 persons off progress. That's why if you go by the formula here, you have actually a 50% chance of achieving 20% MPs improvement in the beginning off the quarter. That's why you're human reply one, which is 100% anticipated progress by the end of the quarter by the confidence which is 1000.5 or 50%. So that's why you have an initial score off 500.5 in the beating off the quarter now in the middle of the quarter. What happens is that you have discovered some things. You have made progress on some features that we want to implement for improving MPs. But many person let's say so. Imagine you had like, 30 features or small, but speech is everything included. Let's around 30 features that you wanted to implement so that you can increase MPs by 20%. But now, in the middle of the quarter, you have seen the progress that you and your team has made. And you realize that it might not be possible to achieve all the features here because the speed at which we're implementing is not enough to achieve our implement. All the things that we need in orderto improve MPs by 20%. So let's say you like you have an idea that maybe we'll be able to achieve 90% off what we set out of you on may be able to get 18 buses of MPs improvement by the end of the border and not 20% because we realized that it's brought probably not possible. And now let's say you have a 70% confidence of achieving that 18% MPC fruit. So in the middle of the quarter, the answer to the same question is basically I'm 70 person confident off achieving eating percent MPs improvement. So now the score will be 18 by 20 multiplied by 0.7. Why 18 by 20 because now 80% is your anticipated progress by the end of end of the period, in comparison to credit, which was the initial target. So that's why 18 by 20 multiplied by 200.7 because you are 70% confident of achieving this 18% So your score would be 0.63 now, at the end of the quarter. What happens is that because the quarter has ended, there is no more uncertainty that there is no time remaining so that you can make guesses for that time because at the end of the quarter, you have probably achieved 15% of MPs improved. So you came down from your mid quarter estimate of 80% and you achieved 15%. But at the end of the quarter, you have 100% confidence in that 15% because you have actually achieved it because at the end of the quarter, you're not making guesses as to how much I will achieve by the end of the quarter. You have only whatever you have achieved is actually going to be your score. So if you have achieved 15% off MPs improvement and if you compare it to the initial target off 20% then you're progresses basically 15 by 20 on the confidence level. If you follow the same formula is one because it's the end of the quarter, there's no more uncertainty. So 15 by money, which is 150.75 Is your score at the end of the quarter for this party? Look here isn't. 30. How to score binary Key results?: as we discussed briefly before that it's possible to have finally cares. It's not idea, but many times it becomes really difficult to get rid of. Pine Tree cares not the difference between a binding care and mobile care progress based here is that in in a normal care, you can say that I completed that years old by 50% or by 60%. But for a binding care, either it happened or it did not happen. Some examples off Medicare are open a new market or open up a new warehouse for your operations. Now these things, it's very difficult to mark a problems level there. It's very difficult to say that I opened up the warehouse, but only by 80%. That doesn't make a lot of sense for business folks. So that's why for Bonnie care, generally the score is either a zero or a one. So if let's say you did not open the barrels by the end of the quarter, even though you put in a lot of effort, it puts City zero. Now. The zero score is not really representative off. What kind of effort might have gone into opening up this new warehouse. So it's recommended that for binary cares, we should define milestones. Let's take another example. Let's say if your kid is that WAAS rule out washing to off for android application on the APP store. This is again a good example of a primary care. You either ruled out the under an application to actual are you did not. So, for instance, if your team put in a lot of effort, they worked on the application they tested, it wrote automated tests and everything. Everything was perfect. Just the last step off approval on the absolutely not happen by the end of the quarter. Then you basically feared this, Keyser, because you did not rule it out at the end of the war. Now, if you put a score of zero in such a cute isn't it might de motivate your team a little bit . Or yourself, for that matter, because if you put in so much effort and if you just miss that lasts midget off effort, it would still be scored a zero. Now, in order to make sure that your efforts are counted with and the score is more representative off what actually happened in reality it's suggested that you should set up my source now for this example. Some of the milestones could be that if you have 50% off the APP features development Destiny, you would say that the progress ever this pine tree, you have time to get 30 positive. Look if 100% off each is our destiny. An automated tests. Sheridan, you would say your problems this 1000.7 or 70% of the progress has been made. And if, after you got the approval to release up on the APP store, then you have achieved this scare by 100% or your score should be one. So you can set up these milestones in the beginning off the quarter itself, for Bannon cares, and it's really important that you do so because then towards the end of the quarter, when you want to score your primary care, it's again a very objective thing, and you do not have to rely on people's opinions Here. You can refer to the milestones that you set out, and then you can choose a score from there and put put for your okay. Are 31. How to score Objectives?: Well, some things also like to great objectives and not just key results. But I'm personally not a big fan off trading objectives as well, because scoring on the key reserve level is the right granularity. If you want to assign and score on objective evidence, well, it would be a derived school and not really a score, that you can come up with us as easy as you could come up for cookie desserts. Because, let's see this example large. Launch a successful MPP for our mobile app. We have three key results associated with $5000 by the end of the quarter. Monthly active users at 35% on up, getting featured in a top tech journal by October. Now, in order to come for the score for objective, you would have to do a lot off like blanket level average aggregations in your mind for each of these key results, which are all drinking towards different kinds of efforts, and then you have to come up with a score. But maybe if you still want toe great objective or have a score on objective. If if you're deemed really wants, that and your stakeholders are also up for it then. One approach that might make more sense is that at the beginning, off the quarter, when you're coming up with the objectives and key results, you also assign vintage to each of those fuses. So, for example, for launching a successful M V p or for mobile app, which years old has a higher rate ege. So in this instance, it says that having the downloads and the monthly active users have equal weighted off 40% each on up. Getting featured in a top tech journal is it carries a village of 20%. So this kind of a rough rated for each user might help you in coming up with a score for that objective towards the end of the quarter. So essentially what you do is that you still keep on scoring the key results. But whenever you want to have an aggregate objective, there will score. You just do a weighted average off the scores off key reasons on their respective bates. So in this case, for instance, score was 0.7, so this is une easier example. So all the three key results have the same score a 30.7 and they have made age of 40% 40% 20%. So if you do, a weighted average used to get 200.7. So this weighted average approach is maybe a more reasonable approach to derive a score for an objective. 32. Example - Scoring OKRs: Let's take an example of scoring. Okay, Ours. Let's say you have an objective that you want to improve your call center customer experience in Q 2 2020 And let's say you have three key years olds within this objective. 1st 1 is 100% off. Critical issues should be resolved within 30 minutes. Second average turnaround time on all these issues should be less than 24 hours. Turnaround time is basically the average time it takes to resolve even. All this was not just critical all kinds of issues it should not exceed 24 hours and third is that NPS score color. NPS score should be greater than 90. So the people who are calling to your call center they should have a feeling or a satisfaction level, which is measured by the NPS. Score off greater than 90 now at the start of the quarter, because you have included section stretching all of your key results. Assuming you have done that, then you would have a 50% chance off achieving all the key results by the end of the quarter. So going by the formula for score score WAAS problems multiplied by the confidence of achieving that progress. So when we say we have a 50% chance of achieving all key results, what they're saying is that we have a 50% chance of having 100% progress. So that's why Feet put that notion in the formula. You will have a score equal 200% of progress multiplied by 50% of confidence off achieving that 100 person progress, which equals to one, which is the progress level, 100% multiplied by 1000.5, which is 50% conference operability of achieving it. So that's why at the beginning, your score. It's 500.5 for all three keys. It's now come to the middle of the quarter for the same key results. Now let's say you have made some progress on on those key results. Now, given the progress when you're asked the same question that how much progress can you achieve by the end of the quarter and what's the confidence of achieving it? It changes for all the treat years old. So for the first key result, there's an 80% chance of achieving less than 30 minutes resolution time for critical but wonderful 70% of critical. So what this means is now your problem is 70% of vehicles will have this threshold off 30 minutes or less instead, off all 100 person critical issue like me initially talk about so your problems would be 70% of progress because you are only solving this for 70% of critical issues, not all 100%. So 70% progress multiplied by 80% confidence of achieving that 70%. That means 17 multiplied by point it which is 170.0.56 So this is the score for the first heat isn't in the second he deserves. Let's say there's a 50% chance of achieving less than 24 hours resolution time for 90% of issues. So our initial kids that said that you should have resolution time off, less than way for us for all the issues. But instead of that, given our properties, we thought that it might makes sense that be talking 90% of issues to have this dysentery for our critic a resolution time, and we have a 50% chance of completing it by the end of the quarter. So now your school will be 90 by 100 because we're doing it only for 90% of issues and not all all the shoes. So 9500 progress level multiplied by the confidence off achieving this progress seven, which is 70.5. So your score is 0.45 for the last years of which was collar and P s is greater than 90. What we expect right now with our progress and by talking to marketing and different customers, is that are expected MPs by the end of the quarter will be 70 and not 90. But we're fairly sure we're almost 100% confident we will hit that 70 so again, translating it to the formula. Your progress is 70 instead of 90. So 70 by 90 multiplied by almost a certainty which is 100% confidence of achieving 70. So it becomes 700.78 which is 70 by 19 multiplied by one. So that's your score for the turkey is up 33. Case study - OKR scoring: Let's do a small case study. Just imagine that you are in a team that is working in a mobile APP company and you've decided with your team and you guys came up with the first draft off. You're OK. Ours for Q two off 2019. Now let's say your main objective is to launch a successful M V P M V P means minimum viable products like the bare minimum product off our mobile app. So this is, let's say, the objective that your team came up with for for this particular quarter. And then there are some key results that the team came up. It first. Here is that act is available on both IOS and Android, so we need to make sure that this happens then 5000 downloads by the end of the quarter. Monthly active users are at 35% and our up gets feature in a top tech journal by October. So this is one of the examples that I also took in the previous lecture from this case study, so you can see like you have to force structure. You have one objective and four related key results to it. Now, let's see. How would you approach this set of Okay, arse. And how would you move forward in terms of scoring? Because that was your first trap. What you would do is that you would want to go through your draft and see if there are any changes that you could make. So the text in red is, let's say your notes after you're going through Euroclear. So you saw, like there There are four years old, but the first few result actually feels more like a task. It doesn't feel like a key result itself. So it's like a task which is kind of like a means to an end. So you need to make sure that the APP gets available in both IOS and Android and the place source there, because without that, you will not have the downloads by the end of the quarter. So the second okay, are the secretary the second accuser or 5000 downloads by end of the quarter For that, actually, there's a key prerequisite, which is the first test. So I think you can strike off the first key reserve like that would be one of the things that you can do when you see such kind of care, which is kind of like a prerequisite to the other care. Now. The Second care, which is 5000 downloads by the end of end of the quarter and monthly active users that at 35% these were more KP I based Okay, ours for years. Olds. Basically, on these two, you can measure problems. So even if you do not have 5000 downloads, you might have 3000 or 4000. That would be a percentage of progress against your kid, is it? And similarly, for monthly active users you might have. That's a 20 person monthly active users instead of 35. That were again me. Some progress against the original key result coming down to the last one hour APP gets feature in the top tech journal by October. This is a finally care because either this will happen or this will not happen. It will never happen that a 10 general will print only 20% off the article for our up. They never do that. So this kind of care it will either be a one or a zero situation. Now, if you remember We said that for binary cares when it's a one or a zero situation, it makes a ton off sense to define the milestones. So that's what we'll do with this primary care. So our care waas that are up gets feature in adopting journal by October. Now they could be different levels of effort that you put in on the scare. So, first of all, maybe your public relations team it gets in touch with Tech Journal editors. So they generate a lot of leads, and then they go toe and actually conduct meetings with a lot off these editors and tried to convince them toe feature your up on their black phone. So let's say we define the progress level for this particular years old. So appoint three Promise early would mean that you have first meeting done with at least 10 journal editors, right 100.7 progress level, or 70% achievement would be article drafts are sent out to at least 10 tech journals on a complete achievement of this. Okay, I would mean that feature story published in at least one tech channel. So let's say if you're a public relations team, work on the scare a lot, and towards the end they are not able to get the article out. But they have still gotten in the pipeline with tech journals like around tech Tech journals. Then they would be ableto record their progress in the form off the key results score. That's what it's really whiten to define these milestones. So at the start of the quarter, you have these three cares and you have the objective. So they start. If you remember, we mentioned the generally started the 30.5 school, and the reason for that is because when we tried once, the question that how much progress can be made by the end of the quarter and what's the continents of making that progress? The answer that we get towards the start of the quarter is that you have 50% confident off achieving 100% of the care. So that's why I hear the score becomes one in 2.5. And that's why it's 0.5 for all two years because it's the start of the quarter now, middle off the quarter. What happens is that you might have a different level of discovery for each of the key results. So let's see what happened. Each of these cares for the first key result because off the one defeated and the new things beyond cover, we realize now that we won't be able to achieve $5000. But we're 70% contrary off achieving 4000 downloads for end of quarter. So that would translate into 4000 divided by 5000. Because this is the progress proportion that were supposed to make by the end of the quarter and 50000.7, just the confidence level of making this progress. So $4000 by 5002.7 gives us 0.562 point 56 would be the score for the first key result. For the second key result, we are 80% confident off achieving 25% monthly active users. So instead of achieving 35% which we initially believe we could, we would be achieving 25% and with a confidence level off 80%. So now do the same translation and tried oh converted into the formula and try to come up with a score. So we are achieving 25% instead of 35% That's where 25 35 multiplied by the confidence off achieving the straight my person, which is point it So you get 350.0.57 as the score for the second care Now for the turkey users, let's say we are 70% confident of sending out article drafts to at least 10 tech journals. If you remember our milestones to send Article Street 10 take journals. That was supposed to be 100.7 level of progress. So that's why here in the score is 0.7 into the continents of achieving this progress, which is again 0.7. So it becomes point for night. So the care score for your last care is point for name now what's the end of the quarter? Because it's the end. We are 100% confident off our progress because there is nothing left to guess. Now it's already end of the quarter. You're not guessing what would be be be able to do in the remaining time because there is no room any time left. It's the end. And then what people do is that our actual progress made on those key results would become our scores because our second factor, if you can see in all the three phone last for the scores for key results are second factor is always one. Why? Because we are 100% confident off achieving the particular problems that we already have, because we have already achieved it. So that's why, for the first key result were 100% confident off achieving 3500 downloads because we have achieved $3500 out of the 5000 that we initially set out to do. That's why our score is 3500 by 5000 into one. That s 10.7 for the second key result. We are 100% confident of achieving 25% monthly active users. So that would translate to 25 year old by 35 into one that is spying 71 The 3rd 1 were 100% confident off sending our article drafts to at least 10 take journals. Sending out article graph student take journals was our 100.7 level off progress. That's where 0.7 into one gives you 10.7. So all the three key results here have a score of 30.7. Now, 0.7 is a very if you remember, It's the Green Zone. If the zone which shows that you have done really well on the key results, that means that after we get such a result towards the end of the quarter, we should contemplate with our team. Did we really stretch ourselves enough with these key results? Maybe we should be aiming for higher number of downloads. Or maybe we should be aiming for more PR explosion and not just article in one of the take journals. So maybe this This is one of the learnings you can take in the next quarter when you try to set up. OK, As for your team. Now let's say you're management team are directors in your company. They're interested in doing the answer to the question. How successful was the M V P or for mobile applications? So they're actually interested in that one score. That one number that would define the success off M V P. Open mobile or the success off our objective. They're not really interested in the details off the key results, like how much did you score or how much did your team in each of those key results, So in order to answer such a question, which is really high level, and it's like a very aggregated score for your entire objective. You could do that by grading the objectives itself. So if you remember from our one of our previous lectures in orderto great objective, we need to derive a score on that objective and we derive the school using, the key result scores. So first step that we need to do is to define the weight ege off. The key results will in that objective. So what is the relative importance off each key result for that objective. So let's say here you define 40% 40% and 20% as the real village for the first years of the second key result and the third key result. So basically, you're downloads and the monthly active users have the same level off relevance, and they are rated at 40% each on app. Getting featured in take journal is important, but it's not as important as the downloads and monthly active users, and you have made it as 20%. Not this is again a very ball back ball about mathematics, and this is something that you to put your estimates on. So once you have the windage, you can use it on the scores for each years old to give you like a direct weighted average score, which would be the score for the objective. So here made an average of all key results with these weights and these courses 0.7. So it's an easier one because all the scores are same 10.7. That's why you get get a weighted average of points. And that would be your score for the objective. Just launch a successful MPP off her mobile application. Now here I'm defining the way to just works the end If you see that towards the end of the case day which is not the right practice. In order to do this properly, you should define the weight, Ege, together with your okay, ours and together with your milestones. So this should be towards the pygmy off the quarter. The reason for that is that if you leave defining your wages towards the end of the quarter , then you are somehow leaving a loophole that you can use to buy us yourself in order to move the score. Oh, at your objective never hire because let's say if you achieved a lot on one off these key results, then you'll be biased and you would be, like, kind of tempted toe add Ah, high redish to that years old and these kinds off subjectivity is should not come back. You're trying to come up with the score. That's why defined the weight, Ege. Why you're defining the okay, ours And while you're defining the milestones 34. OKR template: What did you share attempted that I think might be useful if you want to get started with. Okay. Ours. I have also provided a down with a link to this excel sheet after this lecture. Also, like, there are a bunch of free and pay tools on the Internet that you can use to manage your okay, ours or your objectives. He results and scores Sophie V to use anything that you want. But I want to give a resource to you guys so that if you just want to get started without doing a bunch off research one, what tools to use this step, that might be useful. So let's go through it. What does it exactly say? So you have a column for objectives. You have a column for objectives, description. Then you have the number off. Like the serial number of Objective. You have a serial number four key reserves and also hears us as a column. Then there is a calling for weight egx, then the garden for school and then the status. So essentially, what we're trying to do here is that this template will help you score both objectives and key results because you can see we have this great edge thing. So where did is only useful when you want to also score objectives and not just the results . So if you see the score at objective level, it's basically a weighted average off the windage and the scores off kids are so this multiplied by this plus this multiplied by this plus this multiplied. But this divided by the sum off debates. So that's what the form that hair signifies status is straight away, the right from our lecture. If you remember that fort soon that your baby had fallen toe, so I won't soon does your kids that's called falling toe. If if its 0.7. So if it's 0.7, we know that it's screen. If it's from 0 to 0.3, I think four straight and similar you have arranged for yellow. So this is where you have the status. So if let's say you are using this template, status is a good way to quickly look to your okay, ours and find out which key results are in red, orange, yellow status and try to take corrective actions for them. The reason we have put serial numbers because, like, it's easier to reference it like one of the reasons that you might want to reference York user than objective is the My Stones. So that's the second time. Uh, yeah. Other than that, I think it's already standard way off creating and managing. Okay, are so you have a column for objectives I have used. Also objective description collar. It's option. You don't have to put all the descriptions, but I like to keep one such column in in my attempted because many times your objectives might not be safe explained during because maybe you're using some jargon or something, which is not commonly known then might make sense to add some description for those kinds of things in its description collar, because you need to make sure that anyone who goes through the stamp it he knows exactly what you're trying to achieve. What worry objectives were already drank will do this particular quarter. And what are your keys? And so how are you going to measure your success against those objectives? So, yeah, this is one of a template. You feel free to use it. You get kind of not used. Waited following. If you do not intend to score objectives as well. If you're only scoring on a key result level, which I personally recommend, I personally like that approach. I don't like to score on objective unless my management really wants one number instead of going through the years ALS. So if if you I want to have that approach off the scoring, the key evidence, then you can get rid off made it school because village problem, because that's not really needed. If if you do not want to score objectives, let's go to the second gap between reef you mention so milestones. So one If you see here, it basically shows for which key result serial number are are redefining the milestones. So basically, right now we're defining for the key result one c So once he is the fuses that since our app gets feature in a top take journal backdoor, This feels like a very binary tears that we have also included this exact example in one of our previous lectures. So you might remember that this is a binding key result because it feels more like a zero or one situation. You will never have a 20% featuring off your in a general for either happened or it will not happen. So if you remember, whenever we come across such finally key results, it's highly recommended that you have my strengths. And that's the reason we put in my stones with which defines the different progress levels for the ski dessert, and you have the different milestones. So I also like to keep milestones together with okay attempted in a separate tab. Or if you're using any tools. I think there are samples that allow you to list my experience. So it's really useful because just this template without the milestones for by angry users is not complete information. So if you pass around this template toe, Adam, my superiors or your peers are your management, they will know exactly what do you mean when you say this here is a discord as find 72 so they wouldn't know that. OK, points that means that we have sent out article drafts, but we have not really featured a story. Yes, so this is, I think, a quick overview off off the template and the milestone page on. Yeah, feel free to use it, Linkous down the level, and I hope you have fun. Fill it 35. How OKRs work in an organization?: different companies and organisations might have different structure, but let's take one of the typical structures that might be easy to see in a lot of different companies. So you generally have, like the overall broad organization level or the company level, then within that you might have different departments. You might have different business. Unit has. Some companies might call it You might have a department for i t. You might have a department for operations for marketing, and so within those departments or business units, you might have groups off. Individuals that work towards a certain purpose on those groups might be called TB's, and each team consists off. A lot of different individuals are in this diagram, a speed represented by I D. So it's not that on the companies will follow the same structure, but this is a great infrastructure that it's not that difficult to imagine eight. And it's not that difficult to see in a lot of different companies around us. Now let's see what could be the different forms of implementation off. Okay, ours within an organization. The most common form of implementation that I have seen is up to the depth off teams. So? So the company's these kinds of companies that did not manage individuals with okay, ours. But they've managed the agenda and the alignment off teams departments and the overall organization using Okay, ours. So what will happen in such an implementation is that you would have Okay, are set by our executive team for the whole company that is on the organization level. Then the department's different department heads and different different apartment leads. They would consume that organization level, okay, ours, and try to come up with their own department level. Okay, Ours then department level oak, Aspen further be consumed by the different teams within those departments, and they would come up with their own team. Okay, ours. So the Okay, ours will be used to go on the agenda off the whole company, those departments within the companies and the different teams within those departments. And okay, Yes, but also be used for alignment within within the country, like across different departments and across different types, there could be another possibility, often interpretation, which I would like to call a complete roll out. What it means is that you take a foot a step further So basically, you also use okay us to manage expectations on to manage the agenda off individual swollen keeps. So in such a case, what happens is that you have okay as defined at the company level by executed, Then the department defines it. Then the team's define it, and then also the individuals defined their own Okay, our skin away that they can contribute to the O care off their team and eventually off the department and the organization and the individuals defined there Okay, as along with their managers. So both of them are. Some are collaborating in coming up with the cares for different individuals. So this could also be one of the examples are one of the modern set organizations. Follow where? Okay. Ours are used to manage the agenda off everyone right from the company to each and every individual working in the company. 36. Loose coupling of OKRs across org levels: How are the focus at different levels in the organisation relate to each other? How are those guys at the company level? It related to your girls on the department level. How are they? Okay. Is that the department level linked to the orcas at the team level and further to the individual events. So there is a relation which I would like to call new stumbling. So Okay, As at anybody, Levin are loosely coupled to the levels about and below it. Let's see what does loose coupling me. Take an example that you're formulating. Okay, Ask at the team level. Let's say you are the team lead. So the steps that you will follow are as follows. First of all, you will refer to the okay ours off Syria level, which is the department level. Our business unit level. You look at their old cars, internalize those. OK, a strike to see work your department wants to achieve. And what are the measures? Are the key results that it be going after in order to measure success against those objectives. Then once you have internalize it, you have to come up with their own. Okay? Ours with an intent to influence your higher level or the department level. Okay? Ours. This is the key word intent. So when you come up with Euro cares, you're not just a merely copying your department, okay? Ours what? You'll come coming up in is your own objectives that he deserves. But they have an intention off influencing your higher level objective sent years. Olds. You also do not have to influence all the high level Oh, cares. It's not important that you cover all your department level, okay? Ours in your team and tried to force fit your own. No Castro influence everything that your department is going after. You can also have some. Okay? Ours which are not influencing your department. Lego cares. So one example could be that your team is, for instance, managing a product which has a lot of tech did. It always gets like a lot of bugs. There are a lot off system glitches to it. Your department might not include this problem in there, Okay, because the department is big enough that it does not form to include all the small problems off every team and every products within it, so it might not include that And you, as your team has to be, include such problems because it's causing a lot of pain to your customers and also to your team. So you might want to include some of which are maybe not influencing the department. Okay, And that's totally fine. Once you have the list off, you're OK. Ours, which is a combination off Boquillas that are influencing your department locus Ondo cares that belong just to you and your team and not are not really interesting territory that apartment locators. Once you have this list, you should align and communicate this to your pia's on to your junior members. So by peers, I mean other teams so that they can get the different dependencies that might arise from it onto the junior members. I mean, the team individuals itself because the individuals now have to do the same. Step off looking at your team. Oh, chaos. Internalizing them and then coming up with their own. Okay, ours. So as you can see each 11 the okay, ours here flow from top level to bottom lemon in the form off a loose coupling, but the top level Okay, ours are internalized by the bottom level, and then they come up with their own. Okay, ours with an intent to influence stop level Oka and also come up with their own individual . Okay, ours and then pass on their okay, upset so the level below them so that they can follow the same process. Let's take an example of this loose coupling concept. Let's assume in your you're working for the Customer loyalty team, which is under the marketing department, which is under the broad umbrella off the whole company. So let's see your marketing department came up with a couple off objectives. First objective is to increase customer attention, and second objective is to acquire new customers within increased customer retention. There are a couple of key results that your department wants to follow. First key result. This reduced customer churn from 50% to 30%. Another one is repeat. Customers increased from 25% to 35% and similarly, they also have a key result for the other objective, which is acquiring new customers require at least two million. New question was in 2020. This is the key result for the second objective. Now, when you're coming up with your team spoke ers, Customer loyalty teams. Okay, Ours. You can see that you're coming up. It's a more gas which can influence some. Okay, ours off the marketing department. So in this particular example, what you're doing is you're coming up with your objectives and key results where one off your objective is actually directly influencing the higher level object if it is the marketing department objective, which is increased customer retention. So you came up with an objective increased loyalty programs subscription base, which is definitely impacting increased customer retention objective and is directly impacting the key results off that objective. And then you also have another object if you just stabilize Laurenti program application, which is not impacting any marketing department or cat charity. So it's not directly linked to any marketing department. Okay, are. But this is really important because if you do not reduce the critical box, it will be a nightmare room. Maintain your application. That's why you included this object that even though it's not directly impacting one off your high level in the market or the marketing department level, okay, ours. This is how loose coupling words. So just to summarize this particular example. You essentially have a marketing department, oh, care level where you have two objectives. And then you have a team within the department called Customer Loyalty, which has again two objectives. And only one of those objectives is influencing the marketing is interesting. One of the marketing department objective by the other one off, other objective off that he is individual to that team is specified toe that thing. But it's also an important objective. So in loose coupling, basically what happens is that you try to influence as much as you can your high level objectives. But given the resources, let's say if you have enough resources, you can also put in some object. Is that are off your so loose coupling off? Okay, as across levels actually give a huge opportunity for different entities, like maybe the team or the department or unusual to be really innovative and think outside the box to figure out how can they make the most impact with their effort to the higher level objective? And here's ALS, And but by doing this way, what happens is that it's a more bottom up approach and people are more engaged because they look at the overall goal and then they try to come up with their own objectives as to how can they influence that overall call or that product purpose? 37. How OKRs vary with levels: now how the gap the sticks off, okay, are varies at different levels. The audience at the organization level are actually more for inspiration there. So, Heilemann that the main purpose off those okay ask is to basically motivate the different entities within it to motivate the department leads the team leads and on the individuals working in the position So they're purposes more towards inspiration and giving, like, a broad purpose to the whole group. As you move down the level, it becomes more often execution related. Okay, are. So if you come down to teams and individuals, your okay? Okay. Ours are very specific that we need to achieve this kind of key results. We need to move here precisely exactly like this. That's how it works. So basically, you move from an inspiration level, okay? Our storm or execution? Every locus as we come down to live in an organization also the opportunity or the likeliness off. Okay. As changing it increases as you move down. So the okay has had the most levin. They do not have a high chance off changing as time moves on because they are at such a high level. That did not end in all the details or on the specifics. That's why it might not be easy for those. Okay, Astra change unless there is a big period that the company does or there's a big strategy change that the company makes. Those okay should not really change that much as you move down again, the chances that you're okay as might change increases. That's why if you remember in our cadence lecture you mentioned about the duel cages. So we mentioned that the that there are some companies and I know there are some really successful companies that they actually run on a door. Gators, where what they do is that they set their organization level. Okay, ours only once a year. But they set their department or team or individual. So all the execution there were no cars more than once a year. So they said them maybe once 1/4. So what they do is they basically have their purpose define, which is done by the organisation level. Okay, ours not that often, because the world ability in those old gas is very low. But as they move down because of all dignity increases the do it more often, they define it more often and review those okay, it's more often 38. What's the process of creating OKRs in an org?: Let's try to formalize the mental model for okay. Creation process When the first building block is to internalize the okay, ours off Prada organization, our apartment as we mentioned in the previous lecture and the example that if you're in a team, then you should look at the okay, ours off a level about you, which is the department. If you're in a department, look at the old cars off off the overall company. If you're an individual, look at the old cars off your team and you should also look at the old cars off most of levels about you and try to figure out what's the broad purpose that you're trying to run towards once you have internalized the purpose. Once you know exactly what are the objectives and key results off the levels above you. And if what about those objectives and kills us that you have to influence once that has been done, then comes the next spending block. Next building blocks is that you should identify the levers that you can move within your domain to influence the okay artists that are abroad early. So one of those things that I can do it my level two insurance that higher level okay, are on the Halloran objectives and the results. So once you have identified these levers, then the next step would be to also identify some objectives and key results that are not not necessarily influencing the higher level. Okay, ours. But they are needed for your own level. So in the previous example, we saw the objective off creating stability in the application. That was not something that just impacting directly one of the marketing or one of the broader level. Okay, asked. But it was needed for the team because it was one of the important objectives that had a huge business impact. So once you get objectives through these two pockets, then the next step would be to prioritize your objectives and key results to make sure that you do not have more than 2 to 5 objectives onto five key results for objective. This is very important in order to get the focus and in order to drive your selected objectives to fruition, also, to make sure that you are successfully and efficiently executing this process off. Okay, our creation. There are a few analytics related questions that you should always have an answer to First question. Is that within my domain, within my product within my team space? What are my key performance indicators? What are those things that I should track on a daily basis? So, for example, the customer loyalty team in our in our case, in one of the previous lectures they could track different kinds of KP is they could track the subscription re. They could track the retention rate number of particles per 1,000,000 users and what not? So you should identify your own performance indicators, and then second question is that you should make sure that you can drag those performance indicators quickly and cheaply when I say cheaply. What I mean is that you should be able to pull up numbers for these performance indicators within the matter of minutes and not our soul days then the last part of the Nazis, which is really important, is to make sure that you understand the correlations and causation between your performance indicators on the performance indicators off the levels above you. So how can I change my performance indicator number two that it will influence this company objective? Are this company KPFA so those correlations are also important to be aware off and these kinds off questions. These kinds of analytical questions are not that easy. You cannot answer them while you're coming up with no cares. So that's why all the companies that aspire to be really efficient with the their framework . They also have a prerequisite off being really data driven. Did it ruin in the sense that they have answers to these questions at any point in the year , they should not just rely on the okay review cycle to come up with these answers. The teams that have seen that I worked really well the doctors are the ones that have these kinds of answers. They they're always really curious about finding correlations between their data points. They would office have answers like if I change this particular filled great value in my product, this is how the revenues would get impacted on. This is how the profit might get impacted. They're taking that extra step and digging up the data to find out exactly what do you move were on that water to make what kind of change in the overall arc 39. Alignment of OKRs in an organization: Let's learn a bit about aligning. Okay? Ours? Well, under what circumstances should you even consider lining? Focus. Ah, general rule of time would be that if you are working in an organization that you are not the only one to use Okay, ours, then that would be a place where maybe you can go to an enlightment process. So if you have your management team that is working with okay, ours or if you have your peers off if you have other different teams that depend on your if you depend on them and they also work with oh cares, these would be the circumstances where you you can use okay to bring in some alignment across the board and the right timing to do this would be after you have come up with your first draft off, okay for the next quarter and before the Big Ning off the next quarter. So that's the period. Very should go through the line and process. So I didn't, you know, like, what are probably the things that you want to go after and then you go through a landing process. You talk about the specifics of landed process in the next few lectures. But once you go through a landing process, then you are sure that its euro cares are now covering all the different objectives that are needed to make not just your dean, but also that our organization successful. And once this process system, then you can move on to your portrait with the final set of Okay, ours. Another question is, why should you? Human Elena cares, as we discussed before that okay, are brings in focus and drive steams to a common objective. Now, if okay, it's are not aligned for different teams in an organization that everyone will be focused. But they would be focused, probably in different directions. And that might not make a lot of sense, because if you have pieces off the positive, all moving to its different direction, you do not have that synergy to get overall focus fault for the organization and move towards the common organizational goal. So that's why, okay, ours are really useful in order to make sure that everyone's objectives fall in line and make sure that eventually we have that we achieved that broader common objective. Another important reason is that it helps establish in line off site. What line of sight actually meets? Is that any employee walking in an organization at any level? So, for example, if you're working on the shop floor in the manufacturing company, or if you're working as a software engineer in a technology organization, everyone should be able to see how their work is contributing to the global, such as are the broader sexist off the whole company? So any software engineer working in a company off, let's say 10,000 software engineers with help off. Okay, our alignment. He would be able to see exactly how his school in that particular quarter is impacting the broader goal off this huge, humongous company. And once you have this lineup site, it's a very powerful to for motivation off people because everyone who works and puts an effort wants to see that there is a broader purpose to his effort. And if people are able to see this through OK, ours that their motivation level would definitely elevate, and it would rice about normal lives last but one of the most important benefits off aligning okay, are is to take care of dependencies. You will see how involved and if Alignment actually takes care of dependencies in subsequent lectures. But this, in my opinion, has been one of the most practical benefits off. Okay, ours because if different teams are working with the US, if you if they go through the land and process, they understand the objectives of other teams and vice versa, and then they try to obtain their own objectives in a way that they are not a hurdle in someone else's such as, and the other teams will want to take your same. So it makes sure that all the teams they work in alignment and make sure that they're not blocking anyone else and everyone moves towards successful brought a gold. 40. What is vertical alignment of OKRs?: first form off alignment is water girl alignment. So the purpose off vertical alignment is that all the levels off the organization, they should be working towards the broader company purpose. So once you're once your executive level sets the purpose for the company political alignment big sure that that purpose, that broader vision, the mission, whatever that broader picture off success that percolates down two different levels off the organization. And this is what is taken care of by will the political alignment. What deal alignment is done by loosely coupling. Okay, ours off one level to another. And this is something we'll see with an example. What deal? Alignment start starts from the dock where the broad company off Jacobs are set. So in the organization level, executive team or board of directors, they come up with the okay, our sport for that period for the whole country. And they referred to the market conditions, business situation, their own strategy to come up with that company level or organization living. Okay, ours. So this is the first level of article, and then what happens is that the next lemons, which is maybe the department of the team, lives they look at their level above them and they're OK, ours, and then they try to influence them in some way on. They do not write influence, although cares. But some of the August as much as they can give on their resource situation and this process off moving the purpose right from the top two. The bottom like up to the level of individual if you're setting or gas also individual level. This is called particular that. So if you see it's actually a mixture of top down and bottom. In my opinion, it's more bottom up. So even though it feels like organization level is coming, the bogey ours are coming down. But essentially, that's not what's happening. What happens is that only the purpose is coming down through different okay, as but the actual okay are the actual object. It's a key exults at each level added the mind by that level itself, so they just tried toe internalize top level and then they try to come up with their own object of strong influence. Those one of the examples that you already took and I want to reiterate here is on this example where you have let's say a marketing department on then they have come for their own set of four cares and then did in the marketing department. You have, let's say, a customer loyalty. So when you're sitting or gas for this customer loyalty team, you're actually trying to influence some off the marketing department. Okay, ours. You also have some of the others a stable, stable supplies loyalty program application, which is your own. OK, it's not really, really marketing department. Oh cares. But you should have it so you can see that you are coming up with your own objective. Thank users, but you are somehow aligning it vertically to 11 above you and 11 below. You will align into you yourself so they try to make sure that the influence your okay, ours so you can see, like each level is trying to align itself to the level about it. And then that's how the purposes get aligned. And as you mentioned before, as well, this process off loosely aligning okay as to the level above you and making sure that the level below yours does the same is called regular. I would like to emphasize on this concept off line of sight that you mention briefly before . So imagine you're a person working in the similarity. Now, if you are working on this first objective off increased loyalty programs, subscription base, you somehow I know that I am working on this particular objective and the cuse us associated to it because it is somehow influencing is a customer retention, which is one of the cars off marketing department, which is 11 above me. And then, if you are also made available or cars off the company within the marketing department exes , you would see how marketing department so care which I am trying to influence with my hair . How is it influencing the company? Okay, so you see this this channel, which makes it very clear to you that whatever effort you are putting in in your keys that it might be a smaller he is that as well. But it shows you that why this key result is important. And for needle, is it moving for the whole company and this kind of connectivity that you can see to see the purpose off your work and to see how your efforts are resulting in tow achievement for the whole organization for something which is much bigger than you. That is a huge moderator on multiple. So is across different universities. Time and again have shown that if you if your employees or if a person working on something has has a good picture off the broader purpose, their motivation level, their productivity increases many fold. 41. What is horizontal alignment of OKRs?: the horizontal alignment is to take care of execution risk. What would be some of the major execution interests? One of the risk could be that there is a dependency that it's not taken care off. So you are working on something, but you depend on a piece from some other team or some other in the individual who would not be walking on that piece now. What would happen in this case is that you would work on your part, but you will not get that missing part from the other team, and this would result in overall failure for the organization and for yourself. So this kind of situation is something where your dependency is not taken care off, and horizontal alignment is a brilliant opportunity to take care off those pants off dependencies. So how to achieve horizontal alignment? There could be a couple off ways you do that. So one that you make sure that your object, even key years old, is actually included in the list of objectives and key result for the other thing that you depend on and vice oversight. That's the case, or but you can negotiate like I'm working on this particular objective and kills it. And I depend on your team for this. So please include something that will influence my sexist. So this kind of negotiation are sharing. Okay? Ours across multiple deeps is something which comprise, like, it's something which is vital in horizontal alignment. And this is really needed toe introduce execution risk by taking care of what? The dependencies that we have. Take the same example that we were discussing before. Let's say now, customer loyalty team came up there. Oh, chaos. 1st 1 is actually influencing marketing department. Okay, are like we discussed. And then you also have one another object which is stabilize loyalty program application. Right. So this one, you can see that the team has mom, that we have a dependency on the database administrators. This is maybe another team, a team called DP 80 and now in under DV 80 you can either have the same O care Stabilized loyalty program application, and then you can ask them to into this, okay, in there set of focus so that they are taking care off it. Or you can just explain them the problem and ask them to come up with their own objective for for this particular problem. So both ways are OK. It doesn't matter which one you juice. It depends a lot on the case, so if there are some cases where you wander that you think about the problem more than it makes more sense, toe let them come up with their own object because then basically they think about it and they will have the right set off easels for for this dependency. But otherwise, it's also common to share the same objective and key reserve across different teams, and that makes sure that you have that alignment across across the board and there are no missed dependencies. 42. How to sanity check OKRs after alignment?: now, after you have well created your draft off for Karen after you have done your alignment. I think this is a good gentlest to go through with your okay analysts to make sure that there is a sense of sanity in the objectives and accusers that you came up it. So the first thing which is maybe more driven by the expletive teams, would be Is there sufficient coverage off all company objectives and departments and deeps . So maybe after the diamond processes done optic on the executives, they can see maybe major department Okay, ours. And they can see whether their broader company or objectives and key results are covered in those department objects. Because, as we mentioned that, it's very it's a very bottom up approach where each layer off organization department, they're coming up with their own objectives and key results. And there it's not managing for them toe link on a 1 to 1 basis to the higher level objective accusers. So it's quite possible that there might be some company level objectives orc users that are missed out so that would be a good scientist checked, do after every team has, like, formalize their focus. And then I received There is something missing them trying to make sure that you get that in in the respective team next thought would be Are the okay as would you mind? So for all the teams like department leads, team leads Also, the individuals, in some case, they should see that their objectives is other work. Airline Do they have a line off site like how their objectives are making an impact on the broader organization poppers. So this is something it could be like a quick Santa check to make sure that you're not going up to some objectives which are not really creating any any value for for the broader company, the 3rd 1 is basically are all dependent, okay, as addressed with horizontal alignment. So, as we discussed in the previous lecture after you know what you're going after, it makes sense to mark dependencies for them and then go to those dependency. You lead a team and then try to have your objectives and accusers and go to that negotiation process to see whether it makes sense toe share the same object of our kids that are, if they can come up with something on their own. And then a very general guideline is that you should also, before moving to the border, revisit whether there is enough stretch in your key results. There's they should not be any overstretching or under stretching. And also we should see better, although gas have some value for the company. So this is a very generous check that might be very useful to you. And also last, but not the least in any sense, is to check whether we have a lot of folk ers. If after alignment, we came up with a bunch off orgasm, if our team or girls are more than eight or 10 then it might make sense to that hard privatization to come up with those top top 2 to 50 cares because as we mentioned that focus is really important when you're walking on one of the benefits off. Okay, our framework is toe. Get that focus, and then, if you're not ableto compliant with this requirement of having with the 2 to 5 brokers and maybe you are missing out on this benefit 43. Understanding information flow in an OKR driven org: in an organization that has implemented oh chaos throughout. How does the information flow? Let's see. This is a very interesting view off looking in the implementation. So as you know that if you have an organization that has focused right from the broad company level to the individual 11 what happens is that is that it moves from top to bottom in terms off the sequencing off. When no casket said so your your executive team sets the broader but was forced department consumes that purpose comes up with its own locus team level comes up after consuming department level oh cares and so forth up to individuals. So here what happens is that it's a mix off. The pope was throwing from top to down, but bottom up, off each level, coming up with their own. OK, so it's a great mix off, aligning the bubbles from top to water but giving the freedom and the autonomy to each level to come up with their own or cares. So be innovative, think outside the box and look at how can they influence that broader purpose that they have consumed. So the purpose flows from top to bottom, but there is a feedback loop that also needs to go from bottom to top. So what happens is that all the okay, our score review cycles and different check ins and meetings that people have? What happens is that at each level, what has happened to their okay are and we're happy field and there have succeeded. And what were the reasons for those successes and failures? These kinds of information pieces flow up to the top, and it's important that this feedback loop exists. So your executives should know that why this department level okay are straight. And what was the reason for it? Like, Was there a lot of stretch in the organization of locals that led to the department's okay , our failure, or was there some execution problems there? So these kinds of constraints that people didn't mind at each level the execution of constraints, constraints those should flow to the top. So individuals to let their team team leads? No. Why? OK, ours are feeling similarly. Team leads should let department level needs, know what is happening, what's wrong and what's right. And it should go up to the executed level, because if this other feedback loop does not exist that all the time whatever purpose in in every quarter, whatever. Okay, As that execution executive level comes up, it will not be very realistic. It will not reflect for is achievable or how should know girls look like in reality for that company. So that's why there is a two way loop that exists inherently in an old character of an organization. Focus pulling from top to bottom and feedback constraints flowing from bottom to talk, and each level being autonomous enough to come up with their own or gas after they have consumed the broader Bubbas. 44. Process steps - before the OKR period: in this section. Let's look at the process off working with Okay, ours. So they have divided the process into two parts forces before the period and second is during the period. What? I mean that before the period is that Assume you Do you review your okay on staff record? So what activities and what process steps should you take before that quarter begins in order to work with okay, are sufficiently on during the period would be what steps you need today during the period that you need to That will maximize your productivity with okay, as in that period. So let's cover before the period process steps in this lecture. The first step, as we previously discussed, is that you should internalize your purpose and broad calls. So if you're working in an organization where you have Boquillas every 11 right from executive to the individuals, then whatever level your practice said, Okay, as for you need to look at the levels of power it and try to internalize those and try to understand the goals andare key results off the levels above you. Once you have internalize that come up in o chaos with an intent to influence some of those broader objectives or some off those goals. As we discuss you do not need to influence everything in the Protopapas. You should not force fit yourself to influence every single thing that your senior levels are trying to. You should also come up with your own gas. So I guess that maybe not listed in the higher purpose but are important for you, your team. So these how maney off these organs, you should come up and depend a lot on what is The remaining resource is after the okay as that that you have set up to interest brother golds. And once you have this list off your own special, okay, ours and the gas that are needed to influence broader objectives and broader key results, then what you can do is highlight dependencies. Only on these. Okay, ours because it's important that most of these are charity. Set yourself up for success. It doesn't make sense to go after a key visit where there is a dependency on some other people. But the other team is not doing anything about it this quarter. So it's important that you set yourself for success and That's why list dependencies against each object of and keep. Is it? Once you have done that, then you have to align your okay, Ours what TV and horizontal. Both the reason you're lying. What is to make sure that you have a line of sight. So you know exactly that if I work on these objective sank uses, this is, however back the broader bulbous. What'll a lineman gives you that line off site and make sure that everyone in the organization is working towards that common goal that is set by the IT security horizontal alignment is to take care of dependencies to make sure you're not set up for failure. So if you to make sure you're not going after key results where there's a missing piece that never been done. So once you have a line put authority and what he then update your okay, ours because during the alignment process, they might be some changes that come up. Then you need to update the focus based on those change departments, and once it has been updated, publish your OK through the whole organization. This is needed so that we make it transparent across the organization and try to leverage maximum power of chaos. 45. Process steps - during the OKR period: Let's look at what are some of the process steps that you can follow during the period. So by during the beard, what we meant for that If you're creating okay, our sport, let's say Q two, then during Q two. What are some of the steps that you need to take? But most of these steps are in the form off meetings and check ins that you cannot nice, because at the start of the quarter you already have two objectives and kills us that we want to go after. So during the period you'll basically be a plating them. And making changes to your initiatives are tasks that you want to go after and trying to achieve as much off those jokers as possible. So first, set off chicken that might be really useful is to have a victory or a bite. If you check into the working group by working group. What I mean is a set of all those individuals that are actively working on those objectives and key reserves on not just being a spectator. So the working group exactly knows what has been duh what is yet to be done. And what are the risks and the blockers that the face. So the purpose of this meeting is to actually update your okay, our score. So what is the score for each of tiki results at any given point in time? Highlight the wrists. One of the risks that we see with any of the accusers. Is there some dependency that we messed up? Is there something that probably will impact the achievement off that kid is a by the end of the court and also to figure out if the pasts that we are doing is actually impacting the key deserves because this kind of doing is really needed. Many a times people come up to the brilliance, a list of brilliant ideas that they think might impact there here's of. But probably it's not impacting that. And this is the right forum where you can come up with this question whether the things that we're doing our is actually moving the needle on the key results. If it's not, it might be the right time to change course on do a course correction and go after the things that will actually made some impact. So these meetings have a lot of benefits one of it is that it brings brings in focus. So it's very easy to get distracted in your literary life in our organization. If you have such kind of meeting, you have a group that's constantly looking after the objective set me to go after and what's the measure of success on those objectives? So this is like a really nice place where you really I trade what you need to do in in the body of water, and it brings in your focus and remove the distractions. If you do it like a regular kids off weekly and piety, it also helps you do course correction as we discuss if you're doing some tasks or some initiatives that are not impacting the key reserves, this is the right forum to do course correction and also risk identification. As we already mentioned, the second meeting is a mid quarter chicken or the end of quarter chicken. This is more about broadcast update meeting, so here you do not change any scores. I would not make any changes their but whatever has been updated in the ET or by BT meetings in the form of okay, our scores, the highlighted wrists highlighted dependencies. Those things should be shared with a product group. So your stakeholders and everyone who is interested in your okay ours should be about of spend in this meeting. And this meeting is the right forum for them to raise concerns on your score or on your progress, or on the risks that you highlighted and give their feedback on basically how that risk might impact something. And if there's a need for a re privatization, so mid quarter and end of quarter chicken is to broadcast how things are going, and if there are any measure, it flats. The last one is the retrospective. This, in my opinion, is one of the most important meetings. So you do a retrospective in order to make sure that you can learn from your mistakes in the current quarter. So retrospective, the right time to do it is after the end of quarter. Who can't review are checking and before you have set up, OK, as for the next water. So let's say if I'm in Q one and I want to do a retrospective towards the end of the off Cuban, I will do my retrospective. After all, my chickens and my reviews sessions have contributed, concluded and then before, um, I'm about to say Okay, as for Q two. So that's the time, because that Nokia retrospective is a meeting where you can learn a lot from the mistakes that happen and the feedback that you've got during those recorder and end of quarter checking you can incorporate that is learning as well. And then once you have these learnings, you can make sure that you have some action items that you are taking care off. But before you start, are drafting. Okay, ask for the next quarter. And in the retrospective, it's generally recommended that you have the working group or the group that will actually come off, though cares as participants. 46. Case study - Steve's personal OKRs: Let's look at a quick cased in very learn about Steve, who's an individual, and he wants to use okay. As for his own personal goals in 2020 as a part off this case, we will look into the first quarter's okay, ours for Steve and see how he actually came about it. And what was the broad process that he followed? Steve has a mission statement for himself with says, Always strive to be your best in both professional and personal life while continuing to have a healthy lifestyle. So he has a very clear vision or mission that he wants to follow for his life, that he wants to be good at professional life, both the life and he wants to maintain his healthy lifestyle. So if you look at this mission statement and try to dress it for what might be the broad call areas that Steve would have, it would be quite easy to figure out. First, he wants to have some professional codes. He wants some goals that will help him excel in his professional life. Second, he wants to have some private or personal goats because he also wants to maintain our excellence posted life, and then he might have some fitness goals because he wanted to maintain a healthy lifestyle . If you look at the mission statement so once these broad buckets off goals are identified, then what Steve could do is that for the coming quarter, which is first quarter of 2020 what are the top priority? Objectives are codes within each of these buckets that he needs to consider. Let's say he did this, this mental exercise, and he came up that these proper objectives. So under possible gold, he has a couple of codes. One he wants to bootstrap a course publishing business, and then also he wants to leverage book reading toe white in his presence under the private goats. He wants to increase happiness, question off his person, life under the fitness goals. He wants to improve his fitness. So these are really simple high level goats that Steve came up with for each of these buckets, looking at his own mission statement. Now, once that has been done, it's very difficult, as you can see right now with these goats to specifically come to a conclusion as to work. But Steve be going after in its first quarter because these are just objectives which are high level, qualitative and inspirational. But they do not really have yet that specificity in the form of key hazards, and that would be the next step. So once these broad goals are with us, Steve would actually work toe come up with key results for each of these goals or objectives. Let's end of the first objective. It is food strapped course publishing business. Steve came up in two years, us so the 1st 2 years that says publish at least five forces in Q one of 2020 with a total of at least 15 hours, and the second years old says increased number off paid students to more than 500. So you can see the first years old. It's actually quite smart because it's very quantitative, so he knows exactly that they he should be publishing at least five courses. And if you want 2020 and also the has included a tradeoff, because it could happen that he publishes five forces that just one hour each. So maybe it's not as effective as five courses with at least 15 hours off total total our total time. So this total are 15 is quite important because that shows what should be the minimum threshold off quality or quantity in terms off those five forces that he'll be coming up in Q one of 2020 and next year's of. It's also kind of smart in the sense that it also gives a number which is 500 students, minimum 500 students and also say, is that increase number off paid students to 500 all at least 500. So here the keyword pain is also quite apart because it brings in a level of specificity and gives the requirement that you cannot just get any five minutes right. You cannot just go and just distribute your course for free, and then you might have 10,000 swings. You need to have at least 500 paid students. That's why these are quite powerful kills us that Steve came up fit for its first objective off bootstrapping a course publishing business for himself, and the score he decided at the beginning of the quarter is 0.5 because he thinks that for both these he results there is a 50% chance off achieving them by the end of the quarter, Moving on to the next objective. Increase happiness. Question off personal life not This looks like a very broad term. So that's why if you look at the key deserts, it gives a more specific view off. What what it means. So Steve came up with three major key results. One is to call this parents at least once a week. Second, send greetings and gives to his loved ones on special occasions and third at 100% responsiveness, off to calls and messages from close friends and family. So these, even though they feel very person because these are those nickels for him, they are very specific. So he wants to make sure that he calls his parents at least once a week on. He sends gifts for all the special occasions on. Also, he has 100% responsiveness, so these are very measurable. And that's why these a really useful because when Steve tryingto gauges performance against these key results, it would be easier to for him to do that because he can look back and see that what was my result on each of these kids and said I actually called my parents at least once a week or not. Next objective is to leverage for creating toe widened my horizons. No, Under this, there are again a couple of years olds that Steve can carpet. One is to read at least five books a month on average in the quarter, and to be able to write your off summaries off 90% of the books that he read. So this is again a very smart indeed. Off later cares us Why? Because if he reads five books a month on, if he just skims through them not really understanding what's going on, then he would not be able to fulfill the second key reserve, which is to be able to write your off summaries for 90% of the books that you read. This practice off. Putting down your key results is really smart in the way that if you have a key resolve that we want to achieve, for example, beating five bucks a month, you should You should ask yourself a question that if I do perform the skis up, but not at the right level of quality for is the metric that I can use toe, make sure catch that can for college. So here the metric that he chose was to be able to write her off summaries off 90% off the books. So he wants to make sure that even if he is treating five books, you know he's reading five books. He's not just reading them, and he's able to actually understand and write some Reese for them. So that's what these two users really complement each other and will make sure that Steve interest towards this direction off leveraging book reading onto widened his horizons because he would actually understand those books. The last one, The last objective, is to improve his fitness. And here again there are two really quantifiable tears. US forces to perform cardio exercises for an average of four hours per week, and second is to reduce sitting time to maximum average of five hours body. So these two are also quite conservative and easy to measure. One thing to note here is that, you know, little be able to track some of these key results. There are some activities that Steve might have to do. For example, when he goes to the gym, he might have to carry a terrier notebook toe no down. The number of our city put down on Cardio Machine are also right on the journal. That sort of captures What was he doing broadly doing today? And then he's able to calculate these metrics now, once you have your goals and teasers, this is the question that you should ask whether I'll be able to measure my tears us if not what we need to do to measure it. So, for example, for Steve, it was keeping a diary. Whenever he goes to the chamber, keep a journal off his articles on a broad level off his office are sustained ers. Who and what did he actually do in those ours? So it's important to make sure you do those tests so that you're able to measure your against your key results. Otherwise, it doesn't make sense. Some people also into keeps us for doing those tests. So, for example, Steve might even include accuse that saying Track 90% off your walking arse in a notebook. But it depends on people to people I wasn't do not like to keep the key results for those staffs, which I kind of like a prerequisite to measure the key results unless those tests are really big, like you need to really do something about about it. So keeping a notebook is not not a huge team. So I will not before the included in my keys us because then continue the effectiveness off other key results. But it's up to you if you want to include such here, since it's OK. Another wouldn't think that Steve can do after he has set up these. Okay, ask for himself. Is that to find a friend who's close enough and then socialize thes okay us his personal gas with with that friend and then make sure that you I constantly check Check in with that friend, maybe on a wiki or a priority basis. So you have that inherent sense of accountability. Let's say Steve has a friend Dave on Dhere socialized These okay? Ours with Dave and he meets him and he meets him after every two weeks. And if Steve is not moving on any of these, okay, ours. They were good questions, Steve, as to what happened in last week's why did you not really move there? So it's Not that Damon Steve are in a professional relationship. But if you get into this set up where you are talking to someone else about your goals and the progress there, then you have this inherent need off moving on the schools. Because then you have this sense of accountability because you don't want to turn up every second weekend. Tell your friend that nothing has moved. So if you try to step back and laid on the process that Steve followed to come up with this , okay, ours, Step one also define the mission or our vision for himself. Step two wants to internalize that mission vision and to come up with broad objectives that he can have step three or surprise those objectives correctly, only to keep top three or four objectives that he wants to go after step for us to actually come up with Measurable. It's the key term. Measurable key results for those objectives and Step five was to involve someone else in his life as far as these OPR circumstance. So he has that inherent sense off accountability. Many top. So those people