Objectives & Key Results

By: John Doerr and Ryan Panchadsaram

whatmatters.com 1
Our Motivations

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Objectives are the
WHAT I want to
accomplish

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Objectives are the
Significant
WHAT I want to
Concrete
accomplish
Action-Oriented
inspirational
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Key Results are
the HOW I will
accomplish it

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Key Results are
the HOW
specificI will
& time bound
aggressive yet realistic
accomplish it
measureable & verifiable

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Superpowers
Focus
OKRs force leaders and teams to make hard choices

Align
OKRs foster alignment top-down and bottoms-up

Commit
OKRs become a social contract for your organization

Track
OKRs are driven by data and are continually graded and reassessed

Stretch
OKRs motivate us to excel by doing more than we thought possible
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Focus

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 Clearly define
success.
Types of OKRs

Committed Aspirational Learning

Committed goals are the Aspirational goals are the Learning goals are OKRs
OKRs that we agree need to OKRs that push us to do that encourage us to
be achieved. the audacious. explore or experiment.

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You are the judge
of a great OKR.
Types of Key Results

Inputs Outputs Outcomes

Inputs are the things you Outputs are the result of Outcomes are what has
control. the things you do. changed.

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Alignment

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 Corporate
Key Results

Engineering Marketing People Ops Manufacturing Finance

Design & Test Product Customer Recruiting Assembly Test Ship Cost Trends

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

Your departments and

teams create OKRs
quarterly. Some of their
Os will be inherited.

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

Your departments and

teams create OKRs
quarterly. Some of their
Os will be inherited.

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2
teams create OKRs Key Result Key Result
quarterly. Some of their Key Result Key Result
Os will be inherited. Key Result Key Result

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2 Objective 3 Objective 4
teams create OKRs Key Result Key Result Key Result Key Result
quarterly. Some of their Key Result Key Result Key Result Key Result
Os will be inherited. Key Result Key Result Key Result Key Result

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2 Objective 3 Objective 4
teams create OKRs Key Result Key Result Key Result Key Result
quarterly. Some of their Key Result Key Result Key Result Key Result
Os will be inherited. Key Result Key Result Key Result Key Result

### The cascade of OKRs will match the layers of your organization ###

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2 Objective 3 Objective 4
teams create OKRs Key Result Key Result Key Result Key Result
quarterly. Some of their Key Result Key Result Key Result Key Result
Os will be inherited. Key Result Key Result Key Result Key Result

### The cascade of OKRs will match the layers of your organization ###

Individuals update their

OKRs quarterly.

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 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2 Objective 3 Objective 4
teams create OKRs Key Result Key Result Key Result Key Result
quarterly. Some of their Key Result Key Result Key Result Key Result
Os will be inherited. Key Result Key Result Key Result Key Result

### The cascade of OKRs will match the layers of your organization ###

Individuals update their

OKRs quarterly. Some Os
will be inherited.

26
 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2 Objective 3 Objective 4
teams create OKRs Key Result Key Result Key Result Key Result
quarterly. Some of their Key Result Key Result Key Result Key Result
Os will be inherited. Key Result Key Result Key Result Key Result

### The cascade of OKRs will match the layers of your organization ###

Individuals update their JANICE

Objective 1
OKRs quarterly. Some Os
will be inherited. Key Result

Key Result

Key Result 27
 ORGANIZATION
Objective 1 Objective 2 Objective 3
Create top-level OKRs Key Result Key Result Key Result
annually to guide your
Key Result Key Result Key Result
organization
Key Result Key Result Key Result

DEPARTMENT
Your departments and Objective 1 Objective 2 Objective 3 Objective 4
teams create OKRs Key Result Key Result Key Result Key Result
quarterly. Some of their Key Result Key Result Key Result Key Result
Os will be inherited. Key Result Key Result Key Result Key Result

### The cascade of OKRs will match the layers of your organization ###

Individuals update their JANICE

Objective 1 Objective 2 Personal Objective
OKRs quarterly. Some Os
will be inherited. Key Result Key Result Key Result

Key Result Key Result Key Result

Key Result Key Result Key Result 28

Cascading OKRs with Betterworks

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Commitment

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What are CFRs?

CFRs are the sibling to OKRs. They stand for:

Conversations, Feedback, and Recognition

2 0 3 0 4 0 5 0 4 0 3 0 2 0 1 0

YOUR GOALS
CFRs embody all the interactions that tie the team together in a game and
from one game to the next. They’re the videotape postmortems, the
intrasquad meetings, the replay huddles—and the goal line celebrations
for jobs well done.

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Typical OKR &
CFR Cycle Grade Q1 & Grade Q2 &
Develop Q2 OKRs Develop Q3 OKRs
Finalize Finalize
Q2 Q3
OKRs Monitor OKRs OKRs

Q1 Q2 Q3 Present
1:1s w. Directs Graded Q2
& New Q3
OKRs
Mid-Quarter Coaching
Present Graded Q1 &
New Q2 OKRs End-of-Quarter
Reflection 32
Tracking

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Q2 Corporate Objective A
Objective

Establish the 8086 as the highest performance 16-bit

microprocessor family as measured by:
Key Results Owner Progress Grade

Develop & Publish 5 Benchmarks showing Applications 3 done: showing 2X the 68K
superior 8086 Family Performance

Repackage the entire 86 family of Products Marketing New name: iAPX

Get the 8MHz part into production Manufacturing New target is Oct; POLY problem

Sample the Arithmetic Co-Processor Engineering 470 parts shipped

no later than June 15

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Q2 Corporate Objective A
Objective

Establish the 8086 as the highest performance 16-bit

microprocessor family as measured by:
Key Results Owner Progress Grade

Develop & Publish 5 Benchmarks showing Applications 3 done: showing 2X the 68K 1/2
superior 8086 Family Performance

Repackage the entire 86 family of Products Marketing New name: iAPX

Get the 8MHz part into production Manufacturing New target is Oct; POLY problem

Sample the Arithmetic Co-Processor Engineering 470 parts shipped

no later than June 15

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Q2 Corporate Objective A
Objective

Establish the 8086 as the highest performance 16-bit

microprocessor family as measured by:
Key Results Owner Progress Grade

Develop & Publish 5 Benchmarks showing Applications 3 done: showing 2X the 68K 1/2
superior 8086 Family Performance

Repackage the entire 86 family of Products Marketing New name: iAPX 1

Get the 8MHz part into production Manufacturing New target is Oct; POLY problem

Sample the Arithmetic Co-Processor Engineering 470 parts shipped

no later than June 15

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Q2 Corporate Objective A
Objective

Establish the 8086 as the highest performance 16-bit

microprocessor family as measured by:
Key Results Owner Progress Grade

Develop & Publish 5 Benchmarks showing Applications 3 done: showing 2X the 68K 1/2
superior 8086 Family Performance

Repackage the entire 86 family of Products Marketing New name: iAPX 1

Get the 8MHz part into production Manufacturing New target is Oct; POLY problem 0

Sample the Arithmetic Co-Processor Engineering 470 parts shipped

no later than June 15

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Q2 Corporate Objective A
Objective

Establish the 8086 as the highest performance 16-bit

microprocessor family as measured by:
Key Results Owner Progress Grade

Develop & Publish 5 Benchmarks showing Applications 3 done: showing 2X the 68K 1/2
superior 8086 Family Performance

Repackage the entire 86 family of Products Marketing New name: iAPX 1

Get the 8MHz part into production Manufacturing New target is Oct; POLY problem 0

Sample the Arithmetic Co-Processor Engineering 470 parts shipped 1

no later than June 15

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Q2 Corporate Objective A
Objective

Establish the 8086 as the highest performance 16-bit

microprocessor family as measured by:
Key Results Owner Progress Grade

Develop & Publish 5 Benchmarks showing Applications 3 done: showing 2X the 68K 1/2
superior 8086 Family Performance

Repackage the entire 86 family of Products Marketing New name: iAPX 1

Get the 8MHz part into production Manufacturing New target is Oct; POLY problem 0

Sample the Arithmetic Co-Processor Engineering 470 parts shipped 1

no later than June 15

2.5 / 4 = 62.5% 39
Reflection
Did I accomplish all of my objectives?
If so, what contributed to my success?
If not, what obstacles did I encounter?
If I were to rewrite a goal achieved in full,
what would I change?
What have I learned that might alter my
approach to the next cycle’s OKRs?
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Self-Assessment
Key Result

Bring in 10 new customers

Customers Grade Self-Assessment Note

Due to a slump in the market, the OKR was significantly

7/10 0.7 0.9 tougher to achieve than I’d thought. Our 7 new customers
represented an exceptionally good effort and outcome.

When I reached the objective only 8 weeks into the quarter, I

10/10 1 0.7 realized I’d set the OKR too low.

Though I managed to land 9 new customers, I discovered

9/10 0.9 0.5 that 7 would bring in little revenue.

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Stretch

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Lead with OKRs.
Manage with KPIs.

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 REMEMBER!
not used for bonuses, used for
collective commitment

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whatmatters.com 48
JOHN DOERR
CHAIRMAN, KLEINER PERKINS
jdoerr@kleinerperkins.com