OKR & KPI
Crash Course
Guidance for team/ project leaders to goal-setting methods.
I'm
Asmarandhany!
Certified Career Coach,
Leadership trainer, and Speaker
for young professionals
I've worked with..
and many more..
My background..
Jebolan MNC & Startup ternama dari mulai:
Astra, GroupM, ZALORA, Shopee, dan
Hypefast. Total orang yang pernah
dipimpin 60+ lebih
Posisi terakhir adalah VP untuk Channel
Management
Certified Career Coach dan sudah meng-
coaching berbagai background profesi dari
perusahaan seperti Shopee, Bukalapak,
GroupM, Jenius, Traveloka, Deloitte, etc.
My journey..
Saya tidak datang dari privileged background
Saya meniti karir dari 0 sampai menjadi VP di
perusahaan startup ternama dalam 12+ tahun
Mendapatkan 6x promosi di 10 tahun
pertama bekerja
Pernah mengalami work bullying di 2x kantor
yang berbeda, but I bounced HARDER
Introduction to OKR & KPI
Agenda Writing & setting OKR
OKCC
Writing & setting KPI
Implementation & best practices
Stage 1 : Introduction to OKR & KPI
Benefits of OKR & KPI
You are here
OKR vs. KPI
KPI definition
OKR definition
Goals = great communication tool to highlight
what is important
My first experience with goal setting..
Waterfall goals were given to me as a manager, with no clear WHY
Managers just had to mobilize the team to go after the goals
Managers had weekly meeting to report the status of tens of goals -
with similar level of urgency (everything seemed important!)
Reporting updates on so many BAU metrics that provided very little
insights to how we would move the needle in the organization
My first experience with goal setting..
Little visibility to what other teams are working towards, resulting in
conflict of interests between teams
Managers are the ones who hold responsibility (instead of
accountability) if goals are not met. Resulting in survival reaction from
everyone
Difficult to move with collective commitment
Before you set a goal, you need to know the WHY.
What is the purpose?
Understanding the objective is ESSENTIAL to set goals.
OKR definition
Back in 1999...
John Doerr
Sergey Brin
Larry Page
“OKRs have helped lead us to 10x growth, many times over.
They've helped make our crazily bold mission of
"organizing the world's information"
perhaps even achievable.
They've kept me and the rest of the company on time and on
track when it mattered the most."
Larry Page, CEO of Alphabet and co-founder of Google.
Companies that have adopted OKR...
Each of the companies adopts the methodology for their needs.
Big mission (WHY) is frustrating to
people, if they can’t see
WHAT and HOW.
Hence OKR is a tool to provide clarity
on WHAT and HOW.
What is OKR?
It is a management method which help to
ensure that your company focuses efforts on the
same important issues throughout the
organization.
What makes it special?
It has a "soul", not only metrics
Transparent from across organization (top to bottom)
To set direction & priorities
Strecthing the organization to move & iterate fast
Only focus on what really matters
Meet John Doerr
Ex- Intel. He learned OKR from Andy Grove (Ex-CEO of
Intel), and introduced OKR to Google.
A venture capitalist who backed founders of Google,
Amazon, etc
Doerr's OKR formula
We will (Objective)
as measured by (this set of Key Results)
Anatomy of OKR
highest priorities quantifiable activities
The future state your Define how you will
team/ organization achieve your Objective. Activities that you plan
want to achieve. KRs are linked & work as to achieve the KRs.
a set.
OKRs prioritize the few things
that matter most to your team’s
success.
it is not a to-do list!
Waterfall
goal-
setting
(in contrast)
Google used it and works for them
A lot of great companies use it
Why use
OKR? Creates transparency of strategy & priorities
Clear measurement for the success of the
strategy
Stretching goals & iterative
Aspirational: stretched and ambitious
Transparent: anyone can see OKR
OKR
strengths Collaborative: top down & bottom up
Hyper-focus: measured weekly
Good Objectives are...
Significant: meaningful improvement from where you are today
Concrete: Not vague what needs to be done. People can see how
they can contribute. Specific enough to inspire actions.
Action-oriented: Using verbs - verbs are powerful
Inspirational: memorable & move you to act
Good Key Results are...
Specific & time bound
Aggressive yet realistic : significant, but still in the realm of possibilities
Measurable & verifiable: if it doesn't have a number, it's not Key Result
KPI definition
Before KPI & OKR, what most teams do:
1. Creating an action plan
2. Executing the action plan
However, this process often left
teams blindsided where a lot of effort
Teams focused on the end goal, went is invested but without the desired
about executing their tasks, result -
and finally the big end of the quarter
by the time the leaders became
meetings was when the leaders
aware of the situation,
discovered if they managed to hit the
numbers..
it was already too late to course correct.
Then in the early 90s..
Peter Drucker came up with the concept of
performance indicators
which would give organizations a better
way to understand the progress teams
make on key business goals on a regular
basis.
instead of learning it right at the end.
What is KPI?
Key Performance Indicators, are used in the workplace to measure
how well individuals or teams are performing against their goals.
The status of KPIs shape the decisions you need to make. .
It gives you context how well your business is performing against targets
KPI typically helpful to measure the health of the organization
(related to Business As Usual)
Business As Usual:
The day to day activities that keeps
organization running & healthy.
Components of KPI:
Metric Anything your organization measures. KPIs are the "key"
important ones.
Current Value The value of specific metrics presently
Target Value The minimum or maximum value that you want that metric to
achieve
Title Consist of the metric and the target value
Components of KPI:
Example 1 Increase 25% Website Traffic Title
Target Value Metrics
Example 2 Close 1 Bn worth of New Accounts Revenue Title
Target Value Metrics
Examples of KPI:
Sales Marketing Customer Service
# New Sales (IDR) # Impressions # Tickets solved
# Total Sales (IDR) # Unique visitors # Response time
# Closed deals % Add to cart NPS score
# B2B pipeline % CR
# orders
Why use KPI?
Enables us to make business decisions:
For example, say your customer support
KPIs show that it takes more time to
close tickets than you’d like, perhaps it is
the cue for you to add one more person
to the CS team.
KPIs vs. Metrics: What is the difference?
How do we decide the KPI to use?
Identify the function's Determine the key Set targets.
primary objectives. drivers.
Eg. Sales team primary # IDR sales Make sure your target
objective: # Avg. Sales Price reflect the growth from
# Customers acquired your current value.
increase revenue.
Historical data.
This can help you establish a baseline for the KPI.
How do we
decide Industry benchmarks.
This can help you establish a baseline for the KPI and
set realistic targets for improvement.
the baseline &
target metrics? Business objectives.
This can help you establish a baseline for the KPI that is
aligned with your organization's goals.
OKR vs. KPI
Ask yourself:
OKR KPI
Are we changing/ doing Is this already an
anything differently? established process?
Will we continue what we
Are we building/
are already doing?
improving/ innovating?
Benefit of
OKR vs. KPI
Ultimately we use OKR & KPI
to materialize our strategy.
What is a strategy?
A plan of action designed to achieve a specific
goal or set of goals by considering:
Resources
Capabilities
Constraints
External factors
Benefits of OKR & KPI
OKR KPI
Focus.
Prioritize what matters to the overall strategy. Make better decisions.
Can easily identify trends, strengths, weaknesses,
Align. and opportunities
Encourage alignments to happen often. Gives contexts.
when things are not going as planned/ not
Commit.
going well.
It's not just top down, but also bottom up
commitment. Cue for further actions.
when we see something out of the ordinary/
Track. unhealthy - we can plan actions
Easily tracked & visible to all.
Stretch.
Not maintenance, but improvement.
