Lecture Notes on Key Results (KRs) in OKRs

Introduction to Key Results

• Key results are integral to OKRs (Objectives and Key Results).
• Objectives must have associated key results, which are tied to the objective.
• Key Results (KRs) benchmark and monitor progress towards an objective.
• They validate whether the objective has been achieved.

Characteristics of Key Results

• Key results must be measurable.
• They should leave no room for argument about the level of accomplishment.
• Examples from Andy Grove, creator of OKRs:
  • Objective: Dominate the mid-range microcomputer component business.
  • Key Result: Win 10 new designs for the 8085. Acts as a measurable milestone.

Crafting Effective Key Results

• Ask, what are the 3-5 critical outcomes needed to achieve the objective?
• A great objective should be:
  • Significant, Concrete, Action-oriented, Inspirational.
• A great set of Key Results should be:
  • Specific, Time-bound, Aggressive yet Realistic, Measurable, Verifiable.

Example: Mountaineering Objective

• Objective: Safely summit the mountain.
• Ineffective Measures: Training, booking guides, buying supplies.
• Effective Key Results:
  • Complete climb in six days or fewer.
  • Reach base camp before sundown each day.
  • Summit with at least 50% food and water remaining.
  • No major injuries.

Real-World Example: Healthcare.gov Fix

• Objective: Fix the website for the vast majority of people.
• Key Results:
  • 70% of people able to get through.
  • One-second response time.
  • 1% error rate.
  • 99% uptime.
• Impact: Helped prioritize actions and improve resource allocation.

Common Mistakes in Crafting Key Results

• Mistake: Conflating to-dos and deliverables with key results.
  • To-do lists are actions, not results.
  • Key results should capture the impact, not the actions.

Importance of Key Results

• Encourage accountability and transparency.
• Shift focus from activities to outcomes.
• Enable teams to align around what's important and measure impact.
• Improve team performance by setting precise key results.

Conclusion

• OKRs, and specifically key results, help teams focus, align, and measure their success.
• They transform team dynamics by fostering clear goal setting and accountability.