Welcome, everyone! This session is part of the learning sessions leading up to the Business Agility Conference, which will take place from March 22nd to 25th. The conference will run across all time zones simultaneously, and all proceeds will go to Médecins Sans Frontières (Doctors Without Borders). It’s a non-profit conference supporting a very noble cause.
Today, we will talk about outcome-based thinking and OKRs. Let’s introduce ourselves. I’m Q, a Scrum Trainer and Scrum@Scale Trainer. I’ve been working with Scrum for about 15 years, and OKRs have become very near and dear to my heart. They are a great alignment tool and very useful for Scrum teams. Nizar, please introduce yourself.
Nizar: Thank you! Hi, my name is Nizar. I’ve been working in startups and have spent the last 20 years focusing on outcome-based approaches. OKRs are one of the frameworks that really help us drive outcomes. Elise, you’re next.
Denise: Excellent, thank you, Nizar. I’m Denise Canfield, a Business Agility and Leadership Coach. I’ve worked with several companies helping them implement OKRs so they can focus on achieving the outcomes their organizations need. I really enjoy working with senior leadership teams and any team, helping them build and achieve their OKRs. My approach is not about telling teams what to do but helping them understand how this framework can help them succeed. Back to you, Q.
Session Overview
Q: Thanks, Denise! We will run this session for 90 minutes, divided into several segments. First, we’ll explain what OKRs are, which should take about 20 minutes. Then, we’ll have our first exercise, followed by more discussions on OKRs and a second exercise. At the end, we’ll leave some time for Q&A. So, let’s dive into the subject.
Why OKRs?
Why do we need OKRs? Why are they important? A little historical perspective—OKRs originated in 1975 when Intel was still in its infancy. They were created by Andy Grove, Intel’s CEO at the time, with a simple premise: results should be measurable in black and white. You either did it, or you didn’t—no interpretations, no subjectivity.
OKRs are great because once implemented, everyone in the organization knows what others are working on. This visibility enhances collaboration and ultimately leads to better performance. Highly aligned companies, where people understand objectives and strategy, generate more revenue and are more profitable than those where employees lack clarity about strategy and goals.
Think of OKRs as a lightweight framework for strategy and alignment, ensuring common goals, commitments, and clear accountability. Many companies have been very successful with OKRs—Intel started it, but it became famous at Google. Other companies such as LinkedIn, Netflix, Spotify, Adobe, and Intuit have also adopted OKRs with great success.
Fundamentals of OKRs
Before moving to our first exercise, let’s go over some fundamentals:
- OKRs should be simple. They may be per sprint (for Scrum teams), quarterly, or both, depending on the organization.
- OKRs must be transparent. Like Scrum, OKRs thrive on transparency, encouraging collaboration through shared understanding of goals.
- OKRs focus on outcomes, not just outputs. Outputs are tasks, but outcomes are what truly matter—happy customers, increased revenue, and user retention.
Defining Objectives
Objectives describe what we want to accomplish. They should be:
- Short and easy to remember—typically three to five per level.
- Easy to understand—avoid jargon or corporate lingo.
- Ambitious—aim higher than what feels comfortable.
When creating objectives, ask yourself:
- Does this objective align with the organization's vision?
- Why does this objective matter?
- Is it inspiring? Will it motivate the team?
- Is it actionable?
Defining Key Results
Key results measure whether an objective has been achieved. They should be:
- Measurable—you must be able to verify completion objectively.
- Quantifiable—use numbers, not vague statements.
- Challenging—set stretch goals beyond what feels safe.
For example, let’s say our objective is to "make the 8086 the fastest 16-bit processor." Key results could include:
- Publish five benchmarks proving the processor’s superiority.
- Get the 8 MHz version into production.
- Ship at least 500 units by mid-June.
Scoring OKRs
Google uses a 0-1 scale to track progress:
- 0.0 - 0.3: We failed to achieve this.
- 0.3 - 0.7: We made progress but fell short.
- 0.7 - 1.0: We achieved or exceeded expectations.
Common Pitfalls in OKRs
Here are some common mistakes to avoid:
- Business-as-usual OKRs—OKRs should drive change, not maintain the status quo.
- Vague objectives—If an objective is too broad, teams won’t know what success looks like.
- Too many OKRs—Limit objectives and key results to maintain focus.
- Not reviewing OKRs regularly—OKRs should be checked at least weekly.
Shared OKRs and Alignment
Alignment is crucial for OKRs to be effective. This happens in two ways:
- Vertical alignment—Objectives at the company level cascade down to departments and teams.
- Horizontal alignment—Cross-functional teams collaborate to achieve shared key results.
For example, a company-wide OKR to "Improve Customer Satisfaction" might include:
- Marketing team: Increase customer engagement through campaigns.
- Sales team: Improve lead conversion rates.
- Development team: Reduce product load time to under two seconds.
Final Thoughts
OKRs are a powerful tool for alignment and strategy execution, but they require careful planning and regular check-ins. As we wrap up, remember:
- Think beyond outputs—focus on outcomes.
- Set ambitious goals—push beyond your comfort zone.
- Align teams vertically and horizontally.
- Regularly track progress and adjust as needed.
Thank you for joining us today! If you have any questions, feel free to reach out. We’d love to hear from you and continue the conversation.