Understanding OKR

Understanding OKR

• 1.
  © PeopleStrong.Disclosure notpermitted 1 Understanding OKR
• 2.
  © PeopleStrong. Disclosurenot permitted2© PeopleStrong. Disclosure not permitted 2 What are OKRs? • Objectives and Key Results (OKR) is a collaborative goal- setting framework • It is used by teams and individuals to set challenging, ambitious goals with measurable outcomes.
• 3.
  © PeopleStrong. Disclosurenot permitted3© PeopleStrong. Disclosure not permitted 3 Understanding Objectives • Objectives is simply what is to be achieved, no more and no less. • Objectives are significant, concrete, action-oriented, and (ideally) inspirational.
• 4.
  © PeopleStrong. Disclosurenot permitted4© PeopleStrong. Disclosure not permitted 4 Understanding Key Results • Key Result(s) defines and monitor how we will achieve the objective. • Effective Key Results are:  Measurable with specific target and start value.  Time-bound  Aggressive yet realistic.
• 5.
  © PeopleStrong. Disclosurenot permitted5© PeopleStrong. Disclosure not permitted 5 Why Companies Use OKRs?
• 6.
  © PeopleStrong. Disclosurenot permitted6© PeopleStrong. Disclosure not permitted 6 Potential Impacts Of OKRs Reduces Time to deploy execution plans & goals by 90 days Enhances Cross-functional Collaboration & accountabilities Brings Order to a chaotic environment Experience increase in Revenues without additional investments Increase Execution Velocity across teams Clear Visibility Of Execution across all levels
• 7.
  © PeopleStrong. Disclosurenot permitted7© PeopleStrong. Disclosure not permitted 7 How to implement OKR Successfully • Define the purpose of OKR implementation with leadership – be on the same page. • Discipline of creating & updating OKRs - Combine OKRs with quarterly performance reviews. • First time OKR implementers – cover team members till level 3, max 4. And then rollout to other team members. • Proper mix of individual and team OKRs - avoid cascading. • Keep it simple – avoid chasing everything, learn the art of focusing few with highest impact on growth.
• 8.
  © PeopleStrong.Disclosure notpermitted 8 OKR Examples
• 9.
  © PeopleStrong. Disclosurenot permitted9© PeopleStrong. Disclosure not permitted 9 OKR combines Outcomes & Efforts at one place Outcomes (Performance Measures) Efforts (Action Plans) OKR
• 10.
  © PeopleStrong. Disclosurenot permitted10© PeopleStrong. Disclosure not permitted 10 Examples - Outcomes & Effort Outcomes (means Business KPIs) Effort (means Action Plan) 1. Outcomes are business KPIs or metrices that you want to achieve. 2. Few of the common outcomes are: 1. Revenue, COGS, Profit numbers to be achieved. 2. Customer Satisfaction(NPS) to be achieved. 3. Hiring Numbers to achieve. 4. Employee Satisfaction(ESAT) to be achieved. 1. Effort are the action plans that needs to be executed to achieve the defined outcomes. 2. The action plans are executed by individual or by team.
• 11.
  © PeopleStrong. Disclosurenot permitted11© PeopleStrong. Disclosure not permitted 11 OKR Example - 1 OBJECTIVE Our share of revenue from New Stores to be INR. 60.7 Cr by Q4 KEY RESULTS • Total revenue share from new stores to be Rs 60.7 Cr in Q4 OUTCOM E • Prepare SOP document for new store opening EFFORT • Setup 5 stores by march-31 EFFORT • Hire 8 people in central ops team by Jan 15th EFFORT • Create new product that integrates dealer, central ops with online leads by Feb 5th EFFORT
• 12.
  © PeopleStrong. Disclosurenot permitted12© PeopleStrong. Disclosure not permitted 12 OKR Example - 2 OBJECTIVE Enhance Sales Effectiveness by Q3 KEY RESULTS • NPS of new training module >=8 OUTCOM E • Develop the sales training module by Oct, 15th EFFORT • Complete training of all filed sales executives in north zone by end of Nov,30th EFFORT • Conduct assessment of all sales executive by Dec,31st. EFFORT
• 13.
  © PeopleStrong. Disclosurenot permitted13© PeopleStrong. Disclosure not permitted 13 OKR Example - 3 13 OBJECTIVE Acquire 3000 leads (or signups) by end of Q1 KEY RESULTS • Deliver 1000 leads through direct mail campaigns by end of Q1 OUTCOME • Deliver 2000 leads through online campaigns by end of Q1 OUTCOME • Hire 3 people in the lead generation team by 25th April EFFORT • Get all the 6 campaigns copyrights team by 3th May EFFORT • Launch 6 targeted online campaigns to achieve 2000 leads by end of Q1 EFFORT • Get the content for direct mail campaigns from copyrights team by EFFORT
• 14.
  © PeopleStrong. Disclosurenot permitted14© PeopleStrong. Disclosure not permitted 14 OKR Example - 4 OBJECTIVE Improve our Employee Retention by Q2 KEY RESULTS • Reduce attrition from 15% to 13% OUTCOME • Introduce the quarterly 1-On-1 process across teams EFFORT • Conduct the Upward feedback(Managerial effectiveness Scan) EFFORT • Submit plan to conduct the managerial effectiveness training based on Upward Feedback findings EFFORT
• 15.
  © PeopleStrong.Disclosure notpermitted© PeopleStrong.Disclosure not permitted 15 WE’RE WRITING THE NEW CODE OF WORK Corporate Office A 10 Infocity, Sector 34, Gurgaon, Haryana - 122001 E: contact@peoplestrong.com M: +91 9560998686 | T: +911244782400 | F: +911244273762