OKR season doesn't have to suck. End your OKR debates with these 6 maxims. First, don't blame the tool. OKRs don't cause problems, they merely highlight them. If everyone has a clear understanding of the business and their role, OKRs should write themselves. If not...focus on the root cause. Use these six precepts to bottom out OKR debates: 1. ๐ง๐ต๐ฒ ๐ต๐ฌ/๐ญ๐ฌ ๐ฟ๐๐น๐ฒ - Assume 90% of your results will come from 10% of the stuff you try, and focus on the 10% that can be huge. Literally, calculate, "If it works, how big can this be?" At PayPal, Peter Thiel gave each person one project and refused to discuss anything else with them. 2. ๐๐ฅ๐ ๐๐ฟ๐ฎ๐ฐ๐ธ ๐ผ๐๐๐ฐ๐ผ๐บ๐ฒ๐ - Key Results are ๐ณ๐ฆ๐ด๐ถ๐ญ๐ต๐ด (e.g. # of qualified leads), not work units (e.g. # of meetings booked). Hold your team accountable for the results they achieve, and give them the freedom to figure out the best way to get there. As Steve Jobs said, โWe don't hire smart people and tell them what to do. We hire smart people so they can tell us what to do.โ 3. ๐๐ฒ๐ฟ๐ฑ๐ถ๐ป๐ด ๐๐ฎ๐๐ - If teams are pulling in different directions, ask them each to connect their main KRs to your North Star metric (e.g. monthly active users). When everyone's solving for the same ultimate outcome, it's easier to prioritise work across different teams. 4. ๐ ๐ฎ๐ป๐ฎ๐ด๐ถ๐ป๐ด ๐๐ต๐ฒ ๐๐๐๐ - Founders have ADHD and startups pivot, thatโs a feature not a bug. But teams canโt execute without a bit of sustained focus. When new ideas come, donโt abandon your strategy, but test them. Identify the risky assumptions, write hypotheses and run experiments. Don't change directions when you get a new idea, change directions when you validate it. 5. ๐๐๐๐ ๐ผ๐ฟ ๐๐๐ง๐จ? For some projects, like growth experiments, speed is more important than quality, so JFDI "just f****ng do it." But other projects, like security and availability, are mission critical, or DFTU ("don't f*** this up.") Those are mutually exclusive, so make sure everyone is on the same page from the start. 6. ๐ฆ๐ต๐ฎ๐ฟ๐ฝ๐ฒ๐ป ๐๐ต๐ฒ ๐๐ฎ๐ - Ask each team member to take one personal growth goal. This doesn't have to mean fixing a weakness. Instead encourage strong performers to build on their strengths or learn a new skill or domain. ๐ฆ๐ถ๐บ๐ฝ๐น๐ฒ ๐ก๐ฒ๐ ๐ ๐ฆ๐๐ฒ๐ฝ When intelligent people disagree theyโre usually working from different assumptions. So use these precepts to get to the root cause. I hope they help you turn your OKRs from a source of endless debate into a valuable tool. And don't worry, the gym should clear out by Feb 1st. My weekly two-minute newsletter has over 10K subscribers, a mix of entrepreneurs and leaders, CMOs and even academics from places like Harvard, MIT, Google, Amazon, Uber, Apple, Zendesk, Typeform, Stanford, Twilio and Mixpanel. #okrs #startuplessons
Your email had immaculate timing today, as if you knew we started our morning with an OKR meeting. The email provided valuable food for thought, just like always. I especially felt the part where Peter Thiel demanded laser focus. We need that.
That tweet is hilarious! Great sharpeners for sure Matt I love OKRs ... love the structure, the vision and simplicity they can bring, love to champion them. Personally I think the issue is often more about the people in a business and whether a critical mass of them have already used OKRs before. If you don't have this it's like pushing water up-hill as there is a tipping point with confidence and speed. It's especially tricky if some of your key influencers in the company also haven't learnt good goal/objective setting practise in the first place (which is very common) and lets say the founder thinks the pain doesn't out weigh the benefit or they tried and it failed before. Whilst it takes a little longer, I find that giving a broad group of influential people a quarter to explicitly trial and learn, then rolling out to everyone else is best in these situations
This one has been stuck in my head all day since I read your mail "At PayPal, Peter Thiel gave each person one project and refused to discuss anything else with them."
I think the tweet is so true - if you're a small team that knows what they're doing then OKRs just get in the way. Until you *need* them, avoid them!
Love points 4 and 5
DFTU ๐
Very good set of rules to jump through. Thanks for sharing!
Great post, thanks
Wise points as always Matt Lerner!
Startup growth strategist, Ex PayPal, 500 Startups VC, Founder @ SYSTM
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