The book Measure What Matters by John Doerr describes a goal-setting system called Objectives and Key Results (OKRs).
Before introducing some notes from the book, here you have three recommendations by notable people:
- ‘I’d recommend John’s book for anyone interested in becoming a better manager’, Bill Gates
- ‘Measure What Matters shows how any organization or team can aim high, move fast, and excel’ , Sheryl Sandberg, Facebook COO
- ‘Measure What Matters takes you behind the scenes for the creation of Intel’s powerful OKR system – one of Andy Grove’s finest legacies’ – Gordon Moore, cofounder and former chairman of Intel
There are many summaries out there so I’ll get to the point:
- Goals are aspirational
- You should have between 3 and 5 goals
- Each goal is measured by 3-5 key results.
- You should have goals which must be accomplished and others that stretch you to do something 10 times better.
- Try to have an achievement of 70%. If you aim for 100%, you’re not setting challenging enough goals / key results.
- Besides company goals and department goals, every person, including the CEO, should have personal goals and key results.
- All goals can be seen and commented by anyone in the company.
- It’s better not to tie salaries/bonuses to OKRS. Otherwise, people won’t choose really challenging objectives.