— What helped Google grow into an international corporation?
— How to set goals more effectively - from management to employees or vice versa?
Is it necessary to fulfil each goal at 100% or even 80% percent?
Measure the most important. How Google, Intel, and Other Companies Achieve Growth with OKR
Insight 1. Understand the goals and key results (this is true for any business, not just business)
Imagine the 1999th year. Google is located in a small two-story building, consists of 30 people and is already 18th in the ranking of search engines. One day John Dorr comes to them - a man who two months ago agreed to invest several tens of billions of dollars in a barely emerging company. Dorr adheres to one of the most effective management techniques that he borrowed during his years at Intel ..
The Google team - on the advice of the investor - is adopting the methodology. And then gradually it comes to what we can see now: the number of employees exceeds the figure of 85,000, according to versions of popular databases, the company is recognized as the most powerful brand in the world and the most expensive back in 2011.
The talent of the leaders and founders of Google Larry Page and Sergey Brin is undeniable. But Larry Page himself said: "John Dorr brought an amazing gift to Google. OKR has increased our growth tenfold, and more than once. Thanks to them, our crazy goal - "to organize all the information available in the world" - has become achievable. "So what kind of beast is this, OKR technique?
Literally from English, OKR is translated as "Goals and Key Results" and is a methodology for setting goals and concrete steps towards achievement.
It's simple: your goal is a direction, what you want to achieve. This is your "What." Key results - metrics, indicators were characterizing the achievement of the goal. This is your How. They are easily measurable. "Have I reached them?" Well no? What percentage? "Everything is simple.
OKR is not a magic lotion; it does not negate the need for teamwork and corporate culture as a whole. But if the leader and team build the OKR system, it can lead them to the mountain top.
Speaking to a small Google team in 1999, John Dorr said:
"Now I will clearly demonstrate to you what I want to talk about."
Goals are what needs to be achieved (our "What"). They are concrete, doable, and energize you to act.
My goal is to offer a planning model for your company.
Key outcomes are how we achieve our goal (our "How"). They are tied to deadlines; they can be measured and verified. Usually there are no more than five, so as not to spray. When all the key results have been achieved, we can assume that we have achieved the goal.
So, we will evaluate the fulfillment of my goal by three key results:
"I will finish the presentation on time."
- We will record a trial version of quarterly OKR for Google.
- The company's board will agree to three trial months of OKR.
With a couple more examples, Dorr hit exactly 90 minutes. How successfully implemented OKR, you can understand by today's success of Google.
But how not to get away from these goals and important results, making planning systemic and versatile? It is important to use the superpowers of OKR.
Insight 2. Use four OKR superpowers
Superpower 1: Priorities and Commitments.
Without a referral you will not come anywhere. The development vector is determined not only by leadership, but also by the team, that is, goals are offered both from top to bottom and from bottom to top.
Employee initiative is important. So it was in the case of Rick Claw, who was engaged in the homepage of the YouTube site. His team developed OKR to optimize the site's productivity, and Rick presented the YouTube CEO's plan to Salaru KamangAru. He, in turn, introduced OKR CEO Google to Larry Page, who, adjusting the deadlines, made OKR Rick a top priority for the whole company. Thus, an employee, team or department dealing with private issues can influence the development of the entire company. Cool!
Carefully select key results with clear language.
And remember that this is not a work plan or a "what to do" list, but the metrics that need to be achieved.
Set specific deadlines. They enhance focus and responsibility. If the goal is one year ahead, then the deadlines for key results are best done quarterly or monthly.
Super Power 2: Synchronization and transparency.
The study found that public goals are more successful than hidden ones. Encourage employees to share their OKR. When they see not only what their colleagues are working on, but also your personal OKR, OKR of the whole company, the interaction and understanding by each employee of their value in the common business will improve. Ideally, monthly or quarterly meetings are needed to jointly discuss successes and adjust indicators, if necessary.
The OKR cascade helps to increase the synchronization of goals in the company. For example, when the Key result of a company becomes the Purpose of a specific department, and its Key results - the goal of a specific employee.
Super Strength 3: Performance Monitoring.
Watch out for deadlines. Come up with an OKR achievement score system. Or take an example from Google, introducing the principle of traffic lights. Calculate the average shares or percentages of achieving the goal:
- from 0.7 to 1.0 = green (the goal is realized);
- from 0.4 to 0.6 = yellow (there is progress, but the work is not completed);
- from 0.0 to 0.3 = red (no progress).
And then answer the questions for yourself: did everything succeed in fulfilling what was planned? What helped and what prevented?
Superpower 4: Striving for outstanding results.
Google divides its OKR into two categories: priority goals and ambitious goals. In 2008, one of the Google employees Sundar Pichai got the idea: in 3 years to create the best web browser. From year to year, his priority goals were:
active marketing campaign and market expansion;
They were required to be 100% complete.
The ambitious goals were the numbers. In the first year, he set himself the bar of 20 million browser users and reached 10 million. At first glance, it was a failure. But ambitious goals can undergo up to 40% failures, because they are usually set broadly and boldly. They are born when they answer the question: "What would my world be like if nothing held me back?"
And already in the third year, setting the bar at 100 million users, Sundar received 111 million. And if you use the Google Chrome browser, then you are among them))
If your ambitious goal is achieved by 111% or even 80%, this indicates the right approach to planning and fulfilling all priority goals. You are well done! But also this means that the goal has ceased to be ambitious and it is necessary to raise the bar.
OKR, like other systems, is a tool, not a "cure for all diseases". The system is effective with flexible management in modern companies striving for more. But to use OKR, you must initially build a strong corporate culture and nurture thinking leaders.