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CONTENTS

Foreword...............................................................................................3
Note to Reader.....................................................................................4
Introduction..........................................................................................5
1. Start Comparing Yourself to Google..........................................6
2. Use Metrics in Your OKRs to Measure Success......................7
3. Create Buy-In and Commitment.................................................8
4. Align all of Your Players with Team-wide Goals......................9
5. Develop a Natural Rhythm.........................................................10
6. Meet and Review Progress OFTEN...........................................11
7. Make OKRs Transparent to Drive Accountability..................12
8. Make OKRs a bit Uncomfortable...............................................13
9. Don’t Obsess over Scores and Grades....................................14
10. Start “As Soon as Possible”.....................................................15
Conclusion..........................................................................................16
About Atiim.........................................................................................17

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FOREWORD

OKRs stand for Objectives and Key Results. The OKR system is a powerful
approach for setting, managing, tracking, and aligning company goals. Google
has used OKRs for over a decade to get results and achieve aggressive goals, and
they continue to use them today to push further and align every employee’s tasks
with top-level priorities.

For executives, OKRs save time because they allow you to oversee teams and
progress without having to monitor every task being completed at the individual
level. This system is what led Google to expand from a small startup into
a $514 billion company.

With the ten strategies compiled here, any company can use OKRs like Google. They
began using this practice as a startup, and today Google execs continue to use the
OKR method even for teams as small as one. These ten best practices are applicable
to any organization – large or small, established or start-up, and with teams
of any size.

OKRs can help you achieve results, but like any system, you need to implement OKRs
in your company using the proper techniques. The tips in this guide will help you
and your company set and execute OKRs like Google through improved alignment,
enhanced focus and performance, and most critically, absolute clarity.

3
NOTE TO the READER

Throughout this eBook, the word “goals” is used interchangeably with “objectives.”
While the exact definition of goals refers to a priority that can be achieved
within a period of one year or longer, we use both “goals” and “objectives” to
refer to the same concept for simplicity’s sake, and as is accepted in colloquial
business communications.

4
INTRODUCTION

What makes OKRs so effective that a company as powerful as Google credits them
for their success? The answer is that they provide data. Take a look how it works.

Objectives: The “O” in OKRs, Objectives, refer to the thing that must be accomplished.
In order to know whether an OKR can be achieved, you need to make it measurable
(and thus, based on data).

In some instances, “complete” or “incomplete” will suffice for terms of measurement.


This is especially true for operational, or easily achievable objectives. For others,
which are more aspirational and encourage employees to push farther, you should
assign a number. For instance, “Launch a new marketing event,” is not a strong
objective. “Hold a marketing event on April 15 and get at least 15 qualified leads,” is
a strong objective.

When drafting your objectives, you should use the S.M.A.R.T. approach: make them
Specific, Measurable, Aligned, Relevant, Time-based). Objectives inform the “where”
in the question: “Where do we want to end up?”

Key Results: Also known as “KRs,” Key Results are measures of Objectives. They
encompass the steps needed to achieve the Objective. Key Results, like Objectives,
should also follow S.M.A.R.T. criteria, and they should be quantifiable. They inform
the “what” in the question: “What do we have to do to achieve our Objectives?”

This serves as the basic framework of OKRs, and you’ll learn more about how to use
them to get the best results as we go along.

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1.START COMPARING
YOURSELF TO GOOGLE
In a recent YouTube video on how Google uses OKRs, Google executive Rick
Klau discussed how most executives would never try to compare their
companies to Google. This, however, is a big mistake, and comparing your
company to Google is actually the first step in following their lead in using OKRs
effectively.

The mentality, Klau says, is that if Google did it, no one else can do it the
same way. That’s entirely untrue. Think about it: Google was once a startup, too.
The very method that transformed them from being a startup into becoming the
third-most valuable company in the world is OKRs. It worked so well, in fact, that
they continue to use OKRs even today.

Most importantly, it could work for ANY company – your company is neither
too small nor too new. In fact, Klau says that the earlier you can begin using OKRs in
your company, the better your results will be. So, start thinking about how your
company can do what Google does and use that method to drive your own
success.

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2.USE METRICS IN YOUR
OKRS TO MEASURE SUCCESS
In the introduction, we discussed good versus bad examples of Objectives. The most
critical component that separates a successful Objective from an inadequate one
is using specific metrics. When you assign a number to an Objective, you instantly
clarify your expectations. Your employees know exactly what’s expected of them.
As such, they can collaborate with you to come up with KRs that will get them
there. (Remember, however, that for operational Objectives, it’s permissible to not
assign a number. Just be sure to balance the easy, operational objectives with some
challenging aspirational ones – we’ll discuss that in greater detail shortly).

Likewise, KRs must also have metrics. Not only does it give your team a clear direction
on exactly how they can accomplish goals, it will also provide useful data after the
quarter ends. For instance, if only a portion of the KR is achieved, you can review to
see where things went wrong. Again, this is one of the biggest reasons why Google
loves OKRs: it provides concrete data that can be used to inform future decisions,
avoid repeating past mistakes, and ultimately, drive better performance and results.

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3.create buy-in and
commitment
One of the primary benefits of OKRs is that it allows top-level goals to cascade
down for alignment at all levels. But to balance that cascading alignment and create
buy-in and commitment for employees at the junior level, you need to give them a
collaborative role in setting OKRs.

To do this, have roughly 70% of the KRs come from the bottom up. This strategic
approach drives execution of company goals, but in a way that’s tailored to best
capitalize on teams’ and individuals’ strengths. Employees will have clarity on exactly
what needs to get done, but they also get the independence and responsibility
of determining the tasks and tactics that will support the KRs required to
complete each Objective.

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4.align all of your
players with team-wide
goals
Google execs liken the OKR process to a football team: the PR team will have different
objectives than the defensive coordinator, much like how the wide receiver will have
different tactics and tasks than the head coach. But ultimately, every individual
associated with the team is aligning his or her efforts with the overarching goal of
winning games and selling tickets.

The same goes for Google (and for your company, too): there should be one
over-arching priority that’s driving the organization forward. Not every player on
the team/employee will have OKRs that are top-level priorities, but all efforts
contribute to those priorities.

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5.develop a natural
rhythm
OKRs don’t take more of your time away; they actually save time. At first, executives
will have to work with their teams to get into a natural rhythm. But like Google’s Rick
Klau says, OKRs make it easy to fall into a natural rhythm.

For best results, use OKRs on a quarterly timeframe. As your team develops a natural
rhythm, you can allow for a 2-3 week grace period to ease into the process. Then, for
each remaining week of the quarter, individuals should be executing 10% of their OKRs.

While it’s possible to use OKRs monthly, any timeframe shorter than that might be
too much of a push, and won’t allow enough time for each step of the OKR to be
completed. Also, if you’re considering a timeframe longer than a quarter, then you are
more likely considering a goal instead of an objective. Adhering to a quarterly schedule
is also the easiest way to monitor progress, which brings us to our next point.

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weekly

This step is of significant importance; it encompasses the indispensable “must-do” of


OKRs. Without exception, all managers must meet with their employees once per week
to review progress on OKRs.

A lot happens in a week, and when you are pushing to execute ambitious goals, it’s
of utmost importance to make sure that all efforts are aligned and on track towards
completing those goals by the end of the quarter. Checking in weekly during the 3-week
grace period gives you the opportunity to course correct before too much time passes,
and checking in once that period is over is also critical, because you need to ensure
that 10% of each OKR is being completed each week.

You can also consider this from a financial standpoint: the average U.S. employee
earns $62,780 annually (source: U.S. Bureau of Labor Statistics), or roughly $1,200
per week. For that kind of investment, don’t you think it’s worth checking in for just ten
minutes per person to make sure that everyone is aligned and working to complete the
objectives that support your company goals?

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7.MAKE OKRS transparent
to drive accountability
When an employee is behind on his OKRs, Google execs make it public to drive
accountability and let other employees know who’s slacking. While you don’t
necessarily have to follow this exact practice, you can still use transparency to your
advantage in your own company. If everyone knows what everyone else is working
on, it not only enhances alignment, but it also makes each individual accountable
for accomplishing his or her responsibilities. If employees’ efforts slacken, that
transparency will make them feel as if they are dragging the team down.

You can further achieve accountability by designating a directly responsible individual


(DRI) for OKRs. As it states in the name, this person is directly responsible, and thus,
accountable, not only for ensuring that efforts are being made to complete OKRs, but
also for scoring OKRs. (We will discuss scoring in greater detail shortly.)

For now, keep in mind that transparency drives responsibility, which creates
accountability. Without accountability, there would be no guarantee that OKRs will be
completed. Someone must be held accountable for what’s being done to complete
OKRs, and there needs to be transparency so that everyone knows how each person
and team’s efforts are contributing to company goals.

12
le

Your employees want to be challenged, and you want to complete ambitious goals.
That seems like an ideal combination, and good reason to push your team to strive
for stretch goals. The issue, however, is that not all goals can be stretch goals.

Google execs use stretch goals to push their employees further. They encourage
employees to aim for a 70% completion rate on their OKRs, arguing that this drives
people out of their comfort zones. The belief is that as long as they are trying their
hardest to execute BHAGs (“Big Hairy Audacious Goals”), then that’s still preferable to
always achieving 100% on easier goals. Rick Klau says that if you’re always scoring
100%, it’s too easy.

That’s certainly true; if your team is always executing 100% of their goals all the time,
then they aren’t being challenged enough, and as a result, they aren’t enhancing their
strengths. But on the other hand, should anyone really be satisfied with a 70% (or “C”
average) all the time either? Probably not.

To that end, balancing aspirational objectives with operational ones that are easy to
achieve is the most effective way to get results while keeping your employees engaged.
In order to stay focused and driven, employees must feel valued and appreciated
while also being challenged. When your team completes their operational OKRs, you
can give them praise, and when they push to accomplish aspirational OKRs, you can
coach and encourage them with course-correcting, future-focused guidance.

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9.Don’t obsess over
scores and grades
Scoring OKRs is important, but it should not be regarded as the only measurement
that determines an employee’s success. Instead, you can use grades as data that will
help everyone learn and make improvements for the future.

You can score OKRs by having the DRI determine grades. The DRI grades each KR
on a scale of 1-10. To determine the grade for the objective, have the DRI calculate
the average of the KR grades.

For operational OKRs that have been executed in entirety, the score can be a 1. For
other, aspirational OKRs, it’s fine to aim for a 0.7 to 0.8.

Again, employee evaluations should not be based solely on OKRs. You can use
KR metrics (not the OKR grades themselves), which indicate how much effort an
employee has been putting in to executing objectives, to frame your evaluations.
However, OKR grades should be used only to provide data that can be used to inform
future decisions.

Sometimes, an individual or team may miss an objective, even if all KRs are met.
Circumstances may simply be beyond your control at times. That’s why the data
from OKRs is so useful – you can see where the problem lies so that if you need to
rethink resource allocation, overcome a specific obstacle, or take an entirely different
approach for the next quarter, the data will help you do so.

Google execs insist that a missed OKR is not a bad thing – it still provides valuable
data. Use that data to your advantage, and simply reassess and revamp your strategy
for next quarter.

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10.start “As Soon as
Possible”
When asked about when an executive should start using OKRs, Google’s Rick Klau
responded, “as soon as possible.” The earlier you begin using OKRs, the sooner
you’ll start driving performance and seeing results.

You can begin preparing for the next quarter right now. Even if you’re a small team,
the earlier you adopt OKRs, the easier it will be for you to develop a rhythm and
make it an effortless process.

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CONCLUSION

OKRs are not difficult to use, and the benefits of implementing them are far-reaching.
You will develop clarity on company priorities so that everyone knows exactly what
needs to be done. As a byproduct, employee engagement will strengthen, and you’ll
begin to see improved results. Better communication, continuous alignment, and
more efficient performance are all results of using OKRs.

When you begin using OKRs, you’ll quickly see how simple and effective the process
is. Once you develop a rhythm, you’ll begin to notice not only how much more
efficient and aligned your teams become, but also how much time everyone saves.
OKRs are the single most effective goal management system available today, and
using them is what can drive your company to continually execute aggressive goals
and achieve exceptional results. After all, it worked for Google. It can work
for you, too.

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AbOUT ATIIM

Atiim is building an innovative yet easy-to-use OKR Goals Management SaaS


product which enables fast-growing small and midsize companies to maximize
business results. Imagine all employees getting a clear direction, understanding
what they are trying to achieve, and everyone is aligned to top corporate priorities
and is focused and working on what drives business results. That’s Atiim.

Atiim’s mission is to help companies and their people work better and win as a
team. We do this by helping maximize each company’s business results through
more effective execution of goals in a way that is more clear, focused, engaging
and meaningful. We enable and empower people to perform well at work, making
themselves and their organizations more successful, as a team.

Made by Atiim Inc. in Boston, MA. © Copyright 2018


www.atiim.com

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