Measure What Matters is John Doerr’s new book outline the theory and practice of using OKRs to drive success and 10x growth.
Objectives and Key Results are a goal setting method that can be used to bring to bear four superpowers:
- Focus and Commit to priorities
- Align and Connect for teamwork
- Track for accountability
- Stretch for amazing
The basic premise is simple, on a regular cadence, set Objectives that can be measured by a set of Key Results.
Each OKR is made public, they are transparent and shareable. Every person in the company can link their personal OKRs in to the company wide objectives, as an example one of your personal Objectives may tie directly to a Key Result of your team or department’s OKRs, and so on up the chain.
Key Results must truly be measurable, they should be specific, set with a real date and the metric should be unambiguous. ‘Increase active users’ is bad ‘Increase daily active users by 25% by 1st May’ is far better. They don’t cover the how, but are used to define the direction and measure of success.
We must also check in on OKRs regularly, the value is not just that they exist, but that we measure how we are getting to the goal. Looking at the successes and understanding the failures is a fundamental method to ensuring they add the true value they can provide.
John reminds you that OKRs should not be tied back to personal performance reviews. One of the superpowers is the ability to stretch, and OKRs should be set so they are difficult or uncomfortable to achieve. A stretch OKR may only be hit 60% of the time, but if it’s tied to personal compensation, you can be sure it’ll be hit more often. The stretch is so important because hitting 80% of a massive goal is much more rewarding and transformative than reliably hitting 100% of a simple goal
The book is an easy read, with a history of OKRs, how they came to Google and illustrations of their use at a number of other companies. It’s an inspirational guide on how a simple tool can have such significant power. The resources at the end of the book are extremely valuable, especially if you are attempting to set up your own OKR system, so it pays to spend to the time studying these as well as the case studies covering specific areas.
Overall, a great introduction to the OKR mindset, definitely worth picking up, and returning to as you go on your own OKR journey to success.