Objectives & Key Results (OKR’s): Set Goals Like Google

Objectives & Key Results (OKR’s): Set Goals Like Google


Hey, this is Daniel Audunsson here and in this
video I am going to share with you an incredibly powerful process and
a tool that I use to set goals, measure progress and align a team
around what we call objectives and key results. I’m sure you’ve all heard about setting
goals and the importance of having goals, but there is a night and day difference
between different ways of setting goals and working with goals and
objectives, key results, data, things of that nature. And goal setting can be on one side of it, essentially completely useless and it’s
sort of like a new year’s resolution that never happens. But on the other side, on the other side of the coin,
so to speak, it can be the most, the single most powerful
thing that you do. And I think the single most essential
thing that you do to drive results and obviously attain specific
goals and things that you want. So I’m going to show you now,
the, that side of the coin, like the most powerful, effective, efficient way of setting and working
with goals that I have discovered. And I did not invent this
process at all. You know, this process is actually used by companies
like Google and a lot of the most successful companies in the world. But what I’ve done is I’ve taken this
approach and I’ve adjusted and adapted it to specifically a private label business
on Amazon and this really will work really well. This approach and this tool that I’m
about to share with you here will work really well for like an
online based business. So not just a private
liberal business on Amazon, but really any online based business
because online businesses tend to be extremely data-driven and therefore
specifically the approach that I use for this is very data driven and
um, you know, very clear. So I’m going to share this all
with you here in this video. So let’s dive right in. So specifically, here’s what we’re going to cover
in this video. First of all, I’m going to recap the
executed planning process. And if you’re watching this video, you most likely have already seen the
module where we walk through our executed planning process in detail, so I’m just going to recap it here just
as a refresher and a reminder to bring everything into context because this the
objectives and key results process and tracker and I’m about to share with you
is something you can lay on top of all of that and just enhance and crystallize
and bring everything Elsa we talked about together in a
more cohesive, clearer, more effective way. Then we’re going to talk about the
three W’s of objectives and key results, which the abbreviation is okay, ours and so that’s the what the way and
the when off objectives and key results and we’re going to explain all of that. Then I’m going to walk you through. Okay, ours versus KPIs because if you’re in
this program, if you’re an apex seller, you already know KPIs and how
important they are to what we do. And you’ve seen the KPI
tracker that we use, you’re most likely already using it and
you know that it’s really a fundamental core piece of running this business
effectively and getting results. So I’ll talk about the difference
because OKR do not replace KPIs. You want stop using KPIs.
It’s not like that at all. You want to use both. Okay. RS and KPIs. And then the final thing is I’m going to
share with you the OKR tracker that be used, which is really what’s
gonna make everything come
together and everything else we were talking about before that will
make someone’s more sense when you had the old care tracker tracker. So you
know you can study all cars all day long. But what I found is that the only
thing that really makes it clear and understandable and actually practical
is having a specific tool to use to work with OKR. So that’s what I’m going to share with
you at the end and then everything is going to make total sense and you can
actually go ahead and start using OKR in your business right away, which honestly will have a dramatic
impact on your business and your results. So the first thing is the executed
planning process. Recaps or lets know, recap quickly the executed planning
process that we use to plan our business, right? So remember as
the CEO of your business, you have to have a specific cycle and a
specific process to plan your business. So to plan the actual objectives and
targets and things you want to achieve, but also the things you
want to optimize for, right? Cause you might be optimizing for
revenue at a certain point you might be optimizing for profit at another. So you have to have a really clear
process to plan these things. And then obviously plan or I should
say pave the way for execution, whether that is just you alone or
you and the team that you have. Because this is absolutely key again, for you personally being able to spend
your time effectively and efficiently on things that you know effectively drive
the business forward and have an impact and get you closer to your goals. Or if it’s you and the
team or just the team. If you’re in that position where you’re
just basically managing the team that does electrocution for you, then it is absolutely vital that you
have a clear path for them to follow and execute. You know, along so that they actually
are moving the company, the business in the direction and
towards the specific goals that you want. So this is your processes as
a CEO to plan your business. And again, this is a cycle and a
process that you repeat on a sat cycle, which we’ve already covered, right?
So let’s recap this in more detail. So remember, building a business
is kind of like claiming our motto. It’s kind of like getting to the summit
of let’s say Mount Everest, right? So to get all the way to the top. So all the way to your ultimate goals, you’re going to have smaller staffs
and smaller goals along the way. So for example, if you’re
climbing Mount Everest, you’re not just going
to go a street direct route to the top. You know you’re going to focus on
getting to camp one first of all, and then you’re going to like review
your progress, check your health, and sort of recalibrate. And only at that point when everything
is good and you know it’s fine, you know the road is clear ahead,
then you’ll move up into camp too. So then you, you’re going to
put your sights on camp two, you’re gonna understand, you know, where you need to go to get there and
the steps you need to take and what path to follow. And then you’re going to put all your
energy and focus into that and getting to camp two. And then the
same process happens again,
right? You’re going to rest, you’re going to recalibrate,
you’re gonna check your metrics, like your health before you attempt to
get even higher to camp three because you might have to rest, um, you know, and just recover a bit and just
fix some things at camp two. Maybe you have blisters on your feet or
something that needed to care of before you try to go even higher. Right? So that’s what building a business is
like as well. It’s not as a direct line, but it’s more like, you
know, these faces, these um, these steps, these things, you, you reach one at a time until you make
it all the way to the big Marley goal. The objective that you have at the end. And this is the executed
planning process. Remember? So we have our problem,
purpose and principles. That is the overriding, the overarching, you know, basically recent for
this business existing, you know, that’s really what this is a bolt. So
if it’s your physical products brand, you know, this is really what
it’s about. What is the problem? Like what are the things that
is actually here to solve? So this is not helping Daniel make money
so he can buy a new car or anything like that. This is specifically
you know, an actual problem, a service that you’re doing in this
world with your products. Mitch could be, you know, making a better solutions to certain
problems or just improving problems or products as you’d say, where
you see there’s, you know, things are lacking and people aren’t
completely satisfied or they’re not really getting what they, uh, what
they really want. Right? Something bits we’ve already
covered in detail in the program, how to figure this out. And then you
have your purpose and principles. So you know, you also have a
purpose for being in existence. It’s related to the problem. And then you’ll have some principles
like guiding principles, which could be, you know, six to 10 sort of pillars off your
business that everyone needs to adhere to. And an everything you do
needs to be aligned with
these principles and it cannot break these principles of kennels
three away from them. And if it does, then that has to stop. This person will have to leave your
company or whatever it is, right? So you have these sort of high level
things guiding you and getting everyone in a lane in it, everyone on your team. So people can actually be
independent and think for themselves, but they still have this simple clear
vision to make sure that they’re adhering to and they’re aligned with. And then you’ve set a three to
five year goal. So like a big goal, three to five years into the future. And you may even have something
even longer into the future, but it doesn’t have to be the case. It could just be something three to five
years into the future. Like a big goal. And this would be to build your business
to a certain point and then sell it, for example, something like that. And then you have your
yearly targets, right? So we have, um, targets for this year, specific things we want to
achieve, which would be, let’s say, to reach a hundred thousand per month
in revenue or something like that. And then you have the Polaris star
KPI able to talk to Baltar, Rachel, your code, these things in detail,
but you’re going to have one KPA, one of your KPIs is going to be the
Polaris star right now. So the number, the metric that really
tells you whether this, uh, this current focus within your
business is on track or not. So for example, this could be
to increase revenues, right? So then the KPI would be revenue or it
could be to improve profit margins within the business. So now this would be
profit margin, not revenue, right? So we’ve talked about
that. What, you know, it could be a bunch of different things, but you have to have one clear thing
that you’re optimizing your business for it. Because if not, you’re going to be trying to increase
revenue and profit margin at the same time. And by nature, for example, those two things are counter productive. So you might sacrifice, have to sacrifice growth and
revenue to improve profit. But if you’re trying to do that
and trying to grow revenue, so let’s say you’re trying to grow
revenue and you’re trying to improve your profitability, your profit
margin, you might have, you know, things that basically
collide with each other. So you in some cases cannot do specific
things to improve profit and margin if you’re also trying to increase
your revenues, right? So it’s, it’s counterproductive. So you have to be really careful and
that’s why it’s really important to have one Polarez KPA at any given point
in time. So you can cycle between, for example, increasing revenue
and increasing profit margin, uh, or you know, you won’t be doing
it at the same time, right? So that’s something you
have to have in place. And then you have your quarterly
deliverables and your theme. So you have specific deliverables for
this quarter and you’re going to have an overarching theme as
well for this quarter. And this theme can extend longer even. But this could be related to the Polaris
KPA, for example. So for example, it could be to just scale
revenues as an example. All right? So this is the could planning process in
a nutshell how we plan the business and it’s these timeframes and these different
dimensions that may get so powerful. And isle, when you’re
planning all of that, you always want to reverse
engineer the success, right? So you always have to
start with your problem, purpose and principles before
you can plan anything else. But this is something that
remains relatively stable
over time and consistent. But now you go back and if you look at
the problem, purpose and principles, you know what that is.
Now you can start to, uh, actually set specific three to five year
goals that either fulfill that purpose or move you closer to it. And then
based on these three to five year goals, now you can see, all right, you know, these are some yearly targets and
especially for this year, you know, this is a good target that
I believe you can achieve. And this will move us market the
closer to the three to five year goal. And so it goes right? And then you do the same with a quarterly
deliverables for your yearly targets. So the quarterly deliverables move
you closer to the yearly targets, like 25% closer. Basically it’s time. So that’s how you reverse engineer success
one step at a time and you make sure it’s all aligned and it’s all
focused, right? That’s the key. This has to all align.
It has to make sense. It has to actually be
doable and practical. So it has to be based on reality. It has to be things that if you do
these things in this order then you will achieve your purpose. Like you will fulfill the
mission of the business. And as you remember, we use a specific
executed planning cycle as well, which is 90 days and yearly. So we do actually go to planning
basically in two timeframes. The first one is a yearly, as a
once per year we do this planning, which is the main part of this
planning and then every 90 days, so every quarter we revisit and we
plan the next quarter and we review the quarter that just passed. We learned from it to re adjust the
calibrate and plan the next quarter and until we have completed the year. And
then we review the entire year plan, next year, review the past quarter
obviously as well, plan next quarter. So that’s how it goes, right?
That’s the executed planning cycle. And essentially you want to be like a
heat seeking missile that course-correct until the target has been hit. So success is inevitable if you follow
this consistently enough with enough intensity and for long enough until you’ve
been able to do the work necessary to meet your objectives, to
reach your targets. Right? So that’s really all there is
to success in a way. You know, it’s just this continuous iterations
and continuous action feedback, learning and course correction until
you’ve done enough to reach the goal. It’s really that simple. And this is true of a scientific
method in action rates. So we have talked about the scientific
method all in Oregon in the program, and that’s really how everything
works. Like in nature, in business, all of it. It’s all following this core
equation of life, right? Which is you have your input misses. What you’re doing or
what you’re putting in, and then the process you follow to
execute and then they will give you an output. And this will then provide feedback so
you can adjust the input, you know the, the work you’re doing and
the process you’re following, which will then have an
impact and change the output. And you just repeat this cycle again
and again and again and again until you have the desired opposite, the
output that you want, right? So by just continuously
repeating the cycle, right? You will eventually optimize for your
desired output. And needless to say, you need to take action to get the
feedback to adjust until you’ve got this equation, the formula, right? And at any moment in time, you’re
going to have your Polaris KPI. That is really the main output that you’re
optimizing for within the business at this moment, right? So
this could be, for example, revenue or profit margin
or something else. And you should have already completed
the company direction sheet, misses a sheet that lays out your main
executed planning items and lists your teams functional and
process accountability. And
you can share this team, sorry, you can share this sheet with your team
to distribute accountability and at the same time keep everyone had
it in the same direction. So you should have already completed this. And this is really good grant work for
what wrestler gonna be doing with all KRS. So the OKR sheet and the process I’m about
to share with you will basically take what you’ve already done here and put it
into a framework that’s more practical and it’s better to use, you
know, day by day, week by week, and just keep everyone on the team
aligned. So it’s just, you know, it doesn’t cover everything
that this should cover us, but it does cover the main longterm and
short term planning things just in much more detail and with more thorough
data. So it’s more powerful. And so that’s, that’s the, uh, that was the recap of our
executed planning cycle. Right? So now let’s move into
the actual, uh, OK. Ours. So now I’m going to walk
you through the three Ws. So the way what and when off
objectives and key results. So, okay, ours, right? What is this?
Why do we use this and when? And really how do we use
objectives and key results? So what are okay hours? So objectives and key results is a
data-driven process to set good goals. So I want to stress this point
here. Not all goals are equal, it’s, I’m sure you’ve heard, you know,
goals can be pretty useless, right? If they’re not good goals. And you can actually use like the
right formula to set goals with like a, a date attached to it and all of that.
But it can still be a crappy goal. It could still be a goal that
doesn’t really do anything. So we’ll talk more about how to
actually set good goals here. But that’s really the key
word here is good goals, goals that really will drive the results, the output that you want.
And then most importantly, this is a process to measure, communicate
and achieve those goals, right? So it’s not just a process to set goals
because setting goals is just the first step, right? That’s just
like 5% of it, 10% of it. But really measuring these goals
and the progress being made, being able to communicate and distribute
these goals and actually [inaudible] throughout your team and then
ultimately achieving these scores. I mean, that’s really the thing
that is all important. You know, that’s the thing that makes goals
useful. If you don’t have that, then it goes can be just totally
useless, right? So that’s what most, that’s what we’re more school
setting methodologies lack. But that’s what the objectives and
key results really have, you know, in a way where it’s actually going to
bring about change and it’s going to bring about results which is achieving
the goals that you have. So this is really a fantastic tool and
a fantastic process with delegate and Elaine, a team’s execution as well.
Right? So another, another thing, and it’s not just a great way to set
and achieve course, uh, for yourself, which you can do. You can use this for
yourself just personally as one person, but it’s also an absolutely brilliant
way to actually delegate and Elaine a team’s execution. You know, instead of
giving people spoonfeeding your team, step by step instructions, you know, and just completely
micromanaging them to death. Then this way you can actually
give them the freedom, the autonomy to thrive and you’ve sort
of talents and do the thinking and things like that to their best abilities. And at the same time make sure they’re
actually going in the right direction. They’re actually doing the right things
and they’re aligned and they’re actually helping you achieve the exact
goals that you want. So that’s, that’s a pony, an incredibly
powerful part of this, uh, process. And one thing that makes this
process absolutely outstanding. Now here’s how Google defines OKR is I
think this is really useful. So Google, you use this Oak and I just want to
share with you exactly how they defined. Okay, yours. So Google says, we use Oak hours to plan what
people are going to produce, track their progress versus the plan
and coordinate priorities and milestones between people and teams. We also use Oak ARS to help people stay
focused on the most important goals and help them avoid being distracted by
urgent but less important calls. Right. So I think there’s some up
really like the main, uh, the main way of using OKR stuff. But what it really does for you and
your team and your business now, the most effective method or goal setting
that I’ve ever come across is this, right? That’s why I’m
sharing this with you now. It’s been a fantastic evolution
to the methods I’ve used, which have evolved over the years. So I’ve been setting goals and working
in the calls for, you know, many years, more than eight to nine years now. And
at the beginning I really sucked at it. You know, I didn’t really understand what it’s
about and I didn’t know how to get in a results and the power from doing
it. But it’s evolved over the years. And you know, even five, six years ago, I sort of get kind of good at
it. But no, this year, you know, just recently I’ve adapted this
methodology and it’s really just enhanced everything that I’ve done. I was
sort of doing it this way before, but it’s just enhanced it even further
and it’s the best it’s ever been. And the beautiful thing here is that
this really Britest the execution gap, so to speak, in goal
setting beautifully, right? So usually in goal setting there’s this
gap between setting the and doing the vision and then the actual execution. And this is what a lot of entrepreneurs
fall victim to is you have your beautiful vision, you have your
goals, but the execution is missing. You don’t execute and
you don’t actually, uh, or at least you don’t execute enough or
for long enough or consistently enough. And especially if you have
a team to, you know, it, things started falling through the cracks
and you go out of balance, you know, you lose the focus and your
vision actually never comes
to life. But you know, that’s what business is all about. Writers getting your vision to actually
materialize and become real and actually happen. So this really Brits as
this gap and it’s beautiful, you know, it takes your goal setting and makes it
really practical and actually helps you or helps make sure that you and the team
does the execution necessary to make these goals a reality. And it integrates all the key components
of an effective approach as well, like data and transparency
and things we’ll talk about. So I highly recommend you adopt this
process for your business because it’s honestly something that’s a game changer. This is one of the top
three things I would say. And one of the top three tools, what I’m about to share with you that
you should have in your business. It can honestly change the game for you
in your business and just as a business person, as an entrepreneur. Now let’s talk about the
all in the OKR, right? So this is objectives.
So what our objectives, the objectives are the Watts, right? So this is what you want to achieve at
a high level and the objectives express goals and intense. So this is more all rocking as a big sort
of goal or intent that you have in the business. And objectives are
aggressive yet realistic, right? So you want this to be inspirational
and aggressive most of the time, but at the same time they
need to be rooted in reality. So they have to be realistic. You know, one thing that I’ve noticed people do
with goals is they tend to write out these absolutely illogical, unrealistic goals that are just too high. And then there are too that
don’t make any sense, right? So if you really thought about it and
what it takes to achieve this goal, let’s say even just from
a cashflow perspective or
something like this where it could be from an execution perspective,
if you really analyze that, you would say, all right, with
the current resources we have, this is not possible, right? So you don’t want to
set that type of goal. It is not going to happen and
it’s not going to motivate you. You’re going to fail and it’s going
to not feel so good and he’s going to demotivate you. And it’s definitely
going to demotivate your team. And if you want to work with smart people, it is just not going to fly because
they’re going to realize that this doesn’t make any sense and you’re delusional.
And that’s not going to inspire anyone. So you have to make sure that these
are realistic. But at the same time, you also want to be aggressive. You know, you don’t want them to be too realistic
in a way where they’re not actually inspirational and it’s too easy to achieve
them because then that’s not going to drive the best out of anyone, not
you or not anyone on your team. So you need to push yourself. You need to push people to get the best
and biggest results and objectives must be tangible, objective and unambiguous. So we have to have objectives
that are not subjective. You know, they’re not subjective
to any anyone’s opinion. You know, it has to be absolutely clear
and no argument about it, whether or not this has been achieved. And it has to just be absolutely clear
and it has to be something you can really put your finger on. It’s tangible and it should be obvious
to a rational observer whether an objective has been
achieved or not. You know, someone from the outside to be able to
look at that and say yes or no clearly and the successful achievement
of an objective must
provide clear value for your business, right? So you don’t want this to be something
then at the end of the day doesn’t provide the value. It’s not
important. It has to be something. It would be the most important thing
you can think of right now for your business in terms of value. So an example on objective is become
the bestselling brand in our category. So we don’t have to get specific with
data at this point with the objectives. That’s going to come in the
next part here. Key results. But objectives are overarching sort
of big things we want to to reach. So for example, become the best selling brand in
our category on Amazon for example, right? And then the key results are going to
provide the data to tell us whether or not that has actually happened.
So they’re KR in OKR, it’s key results. And this
is really the hole in a hole. We’re gonna make the O
the objective a reality. And the key results express measurable
milestones, which if achieved, will advance objectives in a useful
manner to their constituents, right? So it’s going to advance this
objective until it’s reached. So we’re going to have a couple of cars, a couple of key results for its
objective. So if one of them is achieved, it will advance the objective in a
useful manner. And the key results, most describe outcomes, not activities. So this is another big mistake that
people were making call setting. So in this case were four key results of
your carers include words like consult, help, analyze or participate.
They described activities, right? So that’s not something you want to do.
Like I’m gonna lose weight, you know, that is not a good enough. You
know, that’s, that’s not specific. You would have to say, I’m going to
lose this amount of weight by this date. That kind of thing, right? So instead you want to describe the
end user impact of these activities, for example, source and be generating daily sales for
two new skews on Amazon by March 15th. You know, that is a key result
that you can clearly say yes or no, this has happened and yeah, so that’s what you would
do rather than say, let’s say I’m going to launch two new
products and it’s kind of not clear what that means or how you would measure
that. Um, unless you specify, right, what that means. So this must include
evidence of completion as well. And this evidence must be available,
credible and easily discoverable. Examples of evidence include
change lists, links to documents, notes and Bestival objective metrics. So it could be a business report, myth metric from Amazon or it could
be one of your KPIs for example, but it has to be an objective metric. And then the final thing here I want to
mention before we dive deeper in on OKR is really just to give you like
an overview of what all cures are, is the data component. So we have
objectives, we have key results, and then really what ties it
together, what makes it powerful? This is data and the power of
data is really tremendous, right? So online businesses like
ours are extremely data-driven
and therefore a highly accurate data driven
approach to goal setting. Execution and results
is a good fit for us. So in particular for an online
based business like ours, for example, a private
label business on Amazon data is a big part of it, right? There’s data on almost everything
we do and that’s great. You know, that’s a powerful thing. So we really want to harness this
within our goal setting because we can, so this works really well with a
virtual rec room home team as well. So if you have a team that’s virtual
that’s not in an office together, this becomes even more important, right? Data is always important
for every company, but it becomes even more important because
it’s so clear, it’s so concise, uh, and when you use it right,
there’s no, you know, there’s no mistakes to be made
about it. It’s just what it is. Everyone speaks the same
language when it comes to data. Now we use something called
progress percentages. And you know, this is an iteration on this process
that I found to be extremely valuable and useful. And that’s why I’m sharing this with you
now here is that basically one of the incredible things about the way we use
OKR is that they remove the ambiguity in goal setting completely right?
There’s no ambiguity here. Um, it’s just what it is. It’s clear
and we get a direct measurement. So in our case, percentages
on progress and execution. So instead of having your goals
written out and you’re like, yup, we did this or we didn’t
do this and that’s it, you actually have
percentages that are moving. They’re evolving and showing
not only you know, yes or no, have you completed this or achieve this, but also how much or how much of this
have you actually completed and homeless progress are you making? So now this allows you to see whether
or not you’re on track to hit the goal within the specific timeframe, right?
So in this case, the objectives, you know, you can see specifically if you’re on
track to reach the objective that you’ve set. So you have a direct
measurement on progress and
execution and this is fantastic for you as a CEO or if it’s just you doing
everything in the business right now. But it’s also brilliant when you have
a team because everyone can see where you’re headed. And if you’re a fallen behind in a
certain area with an objective or a key result, then the team can align
to make progress on that. No, you know, to make sure everything is moving in
the right direction and you should, you know, make as much progress if not complete
the objectives within the timeframe that you want. So this really means
total transparency, right? So let’s say you have someone on your
team that is responsible for a key result. There’s, there’s no arguing about it. If that is a 10% and most other things
are like 50 60% then something is wrong. You know, something is not
working there and either it’s, it’s the execution on this item
or there’s a problem or something, but at least you can address it. You can be really clear and everyone on
your team can be really clear on that. They know exactly what’s going on and
there’s tremendous accountability as well on that person or on those, on their
team, within your business, for example, to deliver because everyone can see
that this person or this team is falling behind, for example. Or on the flip
side, they’re doing a great job, right? They’re making more progress
than other people or other teams. So that’s great for rewarding
people and things like that. So basically this gives us total
transparency on our goal setting and our progress towards reaching those goals
and with the execution, you know, what is the progress on in terms of
execution towards the schools and then reverse engineering. So
as you’ll see in a moment, progress meet on key results eventually
leads to the completion of the objective, right? So remember we just talked about
reverse engineering your calls. So in this case, progress
made on key results. Eventually lead to the completion of the
objective because for each objective we are going to have a couple
of key results, right? That when they’re all completed, then
the objective should also be completed. So now you’re able to plan
things logically and don’t
worry if this is a little bit unclear or confusing. At this point, I’m going to show you exactly how this
works with the tracker. Like I mentioned, that’s gonna bring total clarity on this
process for you having this tracker but doesn’t understand that you should plan
things so that when the key results are completed, then inevitably your objective
is also done and reached, right? And in the same way, when progress, you know, in the same way
progress made on quarterly, okay? Ours eventually leads to the completion
of your yearly or chaos, right? So you have your yearly all chaos
and then you’re set, you know, four times in a year you set quarterly
OKR, and when they’re all done, then your yearly OKR pseudo be done too. And this is the key here. You know, this is what bridges the gap between
your goal setting and the execution. Because you’ve brought your goals from
the point of being sort of in the sky, right? Visionary to being specifically measurable
and you know the exact execution. And you can track and measure the
exact progress as well in terms of the execution. So you know exactly what has to happen
practically in the business to achieve your vision. You know these goals
in the sky. So this is the key. This is where we Brits the cap. And
instead of just having a vision, you have practical execution
that you can focus on doing. You know, because the vision only does
so much. If you just focus on the vision, the vision, you’re not going to be doing the right
things if you aren’t clear on what needs to happen. But when you’re
clear on what needs to happen, then you can focus all your
time and energy and efforts
and that of your team on actually doing the work. Because that’s where that is going to
lead to the outcome, the objective, the goals that you want.
So this is the key. So this is reverse engineering and we
reverse engineer execution to inevitably lead to the results we want to achieve. So this means we have realistic goals, even if they’re aggressive and
ambitious. So we call macro to micro, we know the macro, the high level, and then we reverse
engineer back to the micro. So we know every single step that needs
to happen to make the big objectors happen. And this is also a scientific
process because of the data. So because everything is objective
and measured with clear data, it provides very specific focused
direction and accurate feedback as well. It’s as key so we can learn
and course correct and, and really use the
scientific method. You know, if you don’t have accurate feedback,
if you don’t have clear data, um, then you know, it’s noise. We don’t know if the
feedback is accurate or not. So we have to have accurate data, clear data so we can have clear
and accurate feedback as well. And we can make good decisions
to adjust and, um, you know, use the scientific method to iterate
towards the disowned opposite. And so this, having this in place creates transparency
for us and our team so everyone can see exactly what’s going on. And again, there’s a Nabeel’s you to delegate and
run the team in a way where people are autonomous, they have freedom,
you don’t have to micromanage, but they’re also aligned. They’re also working towards the same
common objectives and key results. This is absolutely beautiful and it
really makes a working with a team so much easier if you have done the
other things we’ve talked about, I’ve taught you here in the program
in terms of culture and alignment and things. I’m a Syrian Matthew, you
know later on this week as well. So no, you can enter it accurately and we can
see clearly and seeing clearly as key in terms of being able to make progress
actually dwell and get results. Now this is the all care cycle. So
this fall executed planning cycle, it goes hand in hand. So every year, once a year we do a OKR planning
and then also every 90 days. And you’ll see how this
works in just a moment. And one final thing I want to mention
here is quality matters, right? So remember there’s something
called bad calls or just you know, essentially useless goals, but there’s
also a way to create good goals. And that’s what I mean when I say quality. So the quality of your goals and sort
of the objectives and the key results, the quality matters a lot. So you have to put a lot of thought and
effort into this and take the time to really do this well, it looks
simple, it looks short, which it is, but the quality of each item you have
on there is critical to the results and the effectiveness of this approach. Now the next thing I want
to cover, because I’m sure
you’re wondering, you know, Hey, we are using KPIs. So why
do we need all KRS? You know, what is the point of having both? So right now I’m going to explain exactly
what the difference between all Yoris and KPS are. So all kiosk versus KPIs,
you know, what is the difference? Why do we want to use both
of these? And just, you know, instead of just one of them. So you’ve already received the KPI
tracker here in the program and air pack seller and this is a really powerful
cheat to lay out and track the most important key performance
indicators in your business. Now this is absolutely key fundamental
to be enabled to run a steady, uh, and streamlined operation
and really know what’s going on, know what you’re doing and really being
able to scale, you know, being uh, at the CEO level, being able to grow a larger and larger
team and a larger and larger operation while still maintaining oversight and
clarity on the business and what’s going on and making sure you’re driving things
in the right direction and things are progressing. It’s key to being able to spot problems
and issues quickly and things like that. Misery already discussed in detail. So you already have this set up and
working for you, which is great, right? This one I’m about to share with you
does not replace this in any way. So as you know, key performance
indicators, KPIs, these are metrics, these metrics act as a
scorecard, quote unquote, on the performance of your business. So this is like the scoreboard for your
business and KPIs are not things you want to achieve or accomplish,
right? These are not goals, these are just metrics. They’re just giving you
feedback on the business. They’re telling you how the
business is performing day by day, week by week, right? So it’s not things
you want to achieve or accomplish, but rather a pulse on your
business for good or worse. So it’s like keeping a finger on
the, on the pulse of the business, and you can see if things are good or bad. And we can set KPI targets, right? So
this is the Polaris star. So we can say, all right, we want this KPI mitzvahs. Let’s say if it’s
revenue 70,000 per month, right now we want this KPI to
be a hundred thousand per month. So you can set these targets and this
will help help you align execution behind certain KPIs to improve performance in
specific areas. So this could also be, you know, average review
rating or something like that. And that could go bad, right?
And you might have a problem. So you might have to align
of your resources and part
of your team behind that and to improve proving that, right? Cause that is a key performance
indicator that’s gone bad, right? So it’s also like that
it’s not just, you know, it’s not just let’s do more,
let’s, you know, get more of this. It can also be to improve or fix
things. So good or bad, right? It’s like a pulse on your business.
And you do still have, for example, the Polaris star KPI to align and
optimize at any point in time, a specific performance indicator in the
business was basically a specific area off the business because
that’s gonna be more effective. That’s going to make
sure you’re optimizing, you’re doing the work to get that to
where you want it to be as quickly as possible versus trying to optimize
too many things at once and it’s counterproductive and it’s just not
focused and it doesn’t lead to the best possible results. No objectives
and key results. Okay. Ours are different, right?
This is not the same thing. This is a framework to
tie goal setting and data. So metrics together, right? So this ties goal setting aspirations, vision in with the data, with the metrics so that both work
in tandem and provide meaningful, measurable and objective opposite and Oak
yards provide direction and the try of execution, right? So that’s how
they’re really different from KPIs. It’s not like a scoreboard
really. It’s more like, um, it’s more like direction. Right? And,
and, and the, and it drives like the, it creates the path for execution. The
KPIs, they don’t do that, you know, they just show you like overall
what’s going on. The OKR set the tone, you know, they motivate people that
drive them in a certain direction. So KPIs and OKR says what we want to
be. Don’t choose one or the other. There’s no competition here
between all chaos and KPIs. There’s no better or worse,
both compliment each other. And the most beneficial setup for an
organization is to use both KPIs and [inaudible] ours. Right? That’s,
that’s the magic when you have both. So that’s what you want to do.
And there’s a relationship here, right? There’s a clear connection
between KPIs and all KRS for example. Since KPIs are key business metrics, they often make excellent key results
as part of your [inaudible] and for example, you’re a Polaris star. KPI should always be a key result and
this is how we tied that Polaris star KPI with [inaudible], right? So within the OKR framework and the tool
that I’m about to share with you here in just a moment, you want to make sure you’re tying
the KPIs into that and especially your Polaris star that KPA should definitely
be in one of your key results because that’s one of the main things
that you’re looking to do, right? That’s your true North. So we’re going to highlight
that and really make that a, an integral part of both
your KPIs and your all cars. It’s like the main thing you’re optimizing
for it right now with the business. So no, let me show you the OKR tracker. So this is the actual tool we used to
bring what we just talked about together and make it practical. So I’ve given you a sort of a crass
course in [inaudible] and you know, trust me, it took a long time to really
learn this and put this to practice and, and really sort of hone this approach.
So I’m just giving you a crash course, which would be enough of a base for you
to understand how this actually works. So you can all come in and apply the
OKR tracker and actually we put into practice in your business and
started using it right now. It’s all very exciting. And again, this is one of the top three tools I would
say you should use in any business to really get results, you
know, to, to really, um, have an awesome business and build a
great business and get results again. So I have adopted and adjusted the use
of Oak yours into a process that works really well for small to
midsize online business. And so there’s, you know, there’s different ways of using OKR is
there’s no one right or wrong way, uh, that fits all. But for our type of business or
small to midsize online business, I found this to be just the right
sort of mix or the right approach. And for an online business, uh,
especially, you know, I think this, this adjustment, this adaptation
of all chaos is really, uh, just incredibly powerful. So I’m
excited to share this with you now. And I have actually, we’ve
tied this process together with a tool I call the OKR tracker.
It’s, I’m going to share and explain to, you know, so no, as we dive
in on this OKR tracker, everything we just talked about is going
to make total sense and you’re going to be able to play this in your
business. So let’s dive in. So here’s the old care tracker and this
is a sheet to lay out and track the objectives and key
results in your business. And this is going to be in the resources
section below this video or you know, this available below this video. So you can open up this document and
access this tracker and start to use it in your business. So you
might be downloading a PDF. And if so there’s going
to be a link to click. So you can actually open up a the
[inaudible] tracker here in Google docs, which is what we use for
documents cause it’s in the cloud, it’s effective and you can give access
easily to team members and things like that. So what you want to do when you
come in here is you want to start by just clicking file and mega copy and
save a copy to your Google drive. Because if you don’t do this, you
can’t edit this document. There’s, you’re in right now, it’s just read
only for you. So you have to come in, click file, make a copy, save it on your drive and then you can
edit that copy and you can use that copy. Right? So and also laid out the steps for you
here to actually get started source. That one is the, what’s
the video instruction? So that’s what we’re
doing right now. Right? And then step two is to add
the tracker to your drive. So that’s what I just explained. So you’ve done step one and two where
you’re doing step one and you should have, you know, if you haven’t
done this already, go and make sure you save a copy
of this document in your drive. So then you don’t understand two and
then step three is to set up your OKR tracker. So no, I’m going to
show you how to do this step. So as you can see, we basically have um, a tab for yearly OKR. So every
year you just set one of these up and then you’re going to set
up one for Q one quarter one, another one for Q two and then
another one, one Q three and Q four. And do you want Seth is all over. Once
you know, if you’re starting the year, let’s, it’s the end of 2019 right now
and you’re going to be planning 2020. Then you want to start
by planning 220 yearly. So this is the yearly cycle. Once per year you will do this
sheet and then you will also do Q1 and you want to Q two Q
three and Q four. Now. So you will use Q1 OKR
for January, February, March by Q one 2020 and then at the
end of Q one 2020 you would look at the progress bar to show
you how this all works. And based on that you
would then plan to Q2. So it was important that we have
this feedback mechanism in place. So you don’t try to plant all of it right
away because what’s going to happen is that when you execute Q1,
somethings will get completed. Some things you want, you
will have some problems. Maybe you’ll have some things
you learn and you will adjust, right? You will use the scientific method. And what do you thought at the start of
the year would be the best path to reach your yearly or chaos? My chainsaw bet. So what do you think right now
at the beginning of the year, it’s going to be the best thing
to do in Q two and Q three and Q4. That might change after
Q1. So you have to plan, obviously Q1 now because you have to
do something right and you have to get going. So you’ll do your planning for
Q1 the best you can right now with the information you have, the status
for your business, all of it, right? And then after you’ve
executed relentlessly in this Q quarter, you know, the
F, the, uh, the first quarter, the first three months, once you’ve executed and your team has
executed relentlessly on these things and you’ve done your best to make
progress and complete all of it, that’s when you review it, look back, you take a step back and you can plan
Q2 and it will be as accurate and as powerful as possible. So it’s the
scientific method. You’re iterating, it’s time. And then each year it saved
me repeat this process. You’re iterating. So it is the scientific method in
action and it’s incredibly powerful. And it same. You plan
a quarter and a year, you’ll get better and better
and better at this process. [inaudible] and then also have finally
a sheets that are called team does. So you can have on all of you after
your team here, if you have a team, you can have everyone on the
team, uh, in here. And, uh, you can have, you know, just a good
overview of the team and, uh, it’s person. And the thing is that I, I like
to share this with an entire team. So you should share this tracker with
the entire team so everyone can see these things. It’s really critical. And if that’s the only way to have a
team that can align around the same objectives, right at the same key
results and doing the same things. And so it’s good for the team as well
to have the information if you have a virtual team to reach every
person on the team like this. So it’s just good to have as a resource.
That’s why I include this. You know, you can’t skip this if you want, but I
find this to be really useful in here. So let’s start with the yearly old
chaos. Let me show you how to do this. So you’re welcome to actually, uh, Switz our local here at,
into profits with your logo. So you can put your logo or just type
in the name of your business up here and then you set the timeframe. So right now I have 2020 in here
cause we were about to plan 2020 and sort of that makes sense. And then you should add the mission
statement of your company here. So this is like the high level
division, the purpose off the company, what you’re ultimately looking to achieve. So you want to remind yourself and
the team why you exist. You know, what is the big thing that you’re here
for and you’re looking to ultimately accomplish by doing all
this work here, right? So the big vision is up here
and then we have our objectives, right? So in the blue lines
here, we have objectives. And an example of this, put an example here for you as a yearly
objective could be to become the best selling brand in our category this year,
right? So that could be an objective. And you know, this is cool. I mean this
is great. You have to have an objective, you have to have a vision, right? You have to have something to motivate
and rally yourself and everyone else around. So this would be exciting. This
would be motivating. This would be, you know, a big visionary thing, but then you need to have some
more practical stuff, right? Cause it’s not enough just to have
a nice sounding exciting objective. You have to have a practical, actual way of achieving this
objective and making it complete, making it a reality. So that’s
why we have key results. So the key resource, remember our specific things we can
measure and we have our timeframe on, right? So this is 2020. So by default, the timeframe is by the end of
2020. Everything should be complete. If you wanted to complete something sooner
or you could just say, you know, by, uh, by June 30th or something,
then right? So you can do that. But by default, if you don’t mention it, this means it should be
completed by the end of the year. And I have two examples in here. So first one is grow monthly
revenue from 50 K to 150 K he was D. so that could be a big, uh,
big key result that, you know, will contribute to this
objective becoming true. So maybe you have a good insight
into, all right, you know, you probably can three times three
X or sales here in this category. And I think if you do that
then this would make us, or this would be one of the things that
will make us the best selling brand or a category, you know, based on the
volume of the things we’re seeing. If you’re talking about
Amazon now in this example, you know this would be a big key result
that I know that if we complete this, we’re going to be at least a big part
of the way to achieving this objective, right? So that’s how it works.
And you want to have, you know, at least one you could just have
one. Sometimes that’s enough, but I recommend about three. You can
have five and if you want to expand this, you know it’s easy. You can just
click, insert row below. And you know, do you want to format this correctly?
But you can just have, you know, another key result in here.
And you want to make sure, I’ll show you in a moment
that this covers all fields, which it should if you do it like this,
if you insert a field in the middle, so now you could have poor Q results,
but do not have more than five. I don’t recommend having more
than five. The less the better. As long as it covers every key result you
can think of really that will make the objective come true. If you feel like there’s more key
results you need than just one or three, then you should have up to five cause
you want to make sure that all the key results, all the key things that need to actually
happen to make the objective a reality are actually in here. So I’m sure this makes sense. So another example would be that
the yearly revenue this year, 2020 is more than a million USD. You
know, that could be another big, um, thing, a key result that really contributes
towards this big objective that you have. And then the way this works is there’ll
be track this with percentages, right? So this must be absolutely objective. So I prefer to have something
that’s as objective as this, right? You can just measure it. It’s
just math. That’s the best thing. Sometimes it won’t be
that clear, you know? So don’t say it would be to complete,
you know, five things out of, um, you know, five specific things
that you list out or something. Uh, but you have to have a number,
you have to have data, right? So you have to be able to say that we’ve
done this. No one can argue with it. It’s totally, uh, black
and white. It’s clear. And then you can just do the math and you
know what percentage it is in terms of progress. So give you an example. So let’s say we want our monthly
revenue to grow from 50 care to 150 K. so if we have no reach
60 K for the past month, then we have basically achieved 10%
off the target because the target is essentially to grow revenue
by 100,000. You esteem. So we have grown the revenue. If you’re at 60 [inaudible] by 10,000
USD, and you can just do the math, just Watson here, if he doesn’t
look, do the math right in here. So we can just say, uh, this equals 10,000 divided by our goal of increasing
revenue by a hundred thousand per month. So this will give us 10% right? So we’ve gone 10% of the way there and the same here. So let’s say our yearly revenue target
is equal or greater than 1 million USD. So let’s say by now this year we’ve
sold a 200,000 USD in revenue. It’s no, the math would just be 200,000 divided by 2 million. Right? And this would give us 20 oops. Yeah. Is, it’d
be by 1 million, right? So 200,000 we have sold in revenue this
year out of our objective of 1 million. So now we’ve gone 20% off
the way to the target. And this is how it works.
And if you notice up here, this will change because
this will basically average
all the progress we’ve made on the key results to give us how far
we’ve made it to the objective by now. And remember, if you do this
right, and this is the key, if all of these are not 100% then this
will also be at 100% and if you have achieved all the key results, they’re all 100% then the objective is
also at 100% and the objective should be complete by default, right? So you should plan it in a way where
when you do achieve these things, this is inevitable. You know, if all of this is 100% then this is
also at 100% and and completing this objective is inevitable.
That’s how you do it. So I hope this makes sense and so I’m going to focus on the objective
and key results part of it right now. So you can see you going to have another
objective and more key results where this objective and you can have just one
objective and key results for the year. But most likely you’re going to
need two or three sections or more. So you can also add in,
you know, just at, uh, at Ross and you can just
copy paste the section, you know, to create another one.
So you could have up to five. I don’t recommend having
more than five of these, so I don’t recommend having more than
five objective and key result sections. You know, that that’s if
you’re more than five, it’s starting to get confusing and
complicated and then that’s counter productive. So you’re better
off keeping it simple. So you have to be able to crystallize
everything that you really want to achieve into this, you know, one to five
objective and key result sections. So basically, you know, was
he one to five objectives? So you just want to define for the year
one to five objectives and that’s it. So that’s why you need to think about it. You need to be really
cognizant of how you plan this, what objectives you lay out, because this is really all you’re
going to be focusing on this year. Uh, and it’s important. So you have to think of this aisle
really well to make sure you have good objectives. And if you can create
two or three fantastic objectives, that’s best. You know, I would try to
make it as simple as possible for sure. Two or three great one might be, it
might be a little bit too little, especially for a year, but two to three is great and
four or five is okay as well, but don’t have more than that.
So that’s all this works. And you can see this progress bar up
here is going to then tell you how far you’ve come towards your,
um, all your objectives. So this is your overall
progress for the year. So now you can just see
black and white data, exactly how well you’re doing this year
in terms of reaching your goals or does it say objectives for the year? So this is the beauty of this process
and using this specific tool here, cause it makes this all completely
transparent and data-driven and objective. So let’s say, you know, we have
made like 50% progress here. You can see this moves to 50% because we
only have one thing in here right now. And then the progress for the year has
moved from five to 22% in total because we made a lot of progress
here. So that’s how this works. So you would just plan your objectives
and key results just like this. And then you will continue to monitor
and update the progress meet objectively just ideally by running the
numbers or it has to be like that. You just run the numbers to get the
progress percentage and no one can argue with it. It is completely
objective and it is what it is. And yeah, you can see black and
white what’s going on in the business and the team can as well.
Right? So there’s only one, well there’s one thing here I want to
mention so you can see I’ve colored this one, like we call her the Polara
SAR KPI in the KPI tracker, right? So this is the Polaris KPI.
In our case, in this example, this would be the Polaris KPI.
So it’s in here as a key result. So this is what a recommended doing. Just color-coded this color here
to know exactly what is the, you know, what key result
is the Polaris star KPI. So this connects the KPI, um,
process to the OKR directly. So it’s a great thing to do. And then the final thing I want to
show you is the initiatives, right? So you don’t have to do this, but I
find this really useful. So basically, you know, these are results,
right? These are not activities, but obviously to reach the
results you are doing projects, you’re doing activities as well. So in addition, and I find this
to really enhance this process, in addition to just
object this and Q results, you can list specific initiatives, right? So if you want to become the best selling
brand in our category and you’re going to grow unwanted revenue from 50
care to 150 K per month, right? Monthly revenue, and you’re going to have yearly revenue
that’s equal to or greater than 1 million USD, then you’re going to have
to do some things to get there, right? It’s not enough just to say these are
the results. And then leave it at that. You have to know exactly, all right,
what’s going to actually take us here? You know, what do we need to do to get here as all
these would be the initiatives, right? So it could be, for example, we’re going to release and
successfully launch tenure skews. So it’d be one thing or you know,
another one could be a Tuft, full-scale Amazon PPC systems
for all 15 of our skews. So assuming you have five skews already
and then what do you want is that these initiatives, if you complete all of them, they will lead to you receiving
100% at all the key results. So that’s how you want to think about it. So you’re going down from macro to micro
and if you achieve this initiatives, then all of these key
results would be complete. And thus the objective should
also be at 100% and complete. So that’s how this works.
And you know, in this case, I put it at 10% here. So if you’re
going to figure out the percentage, now you know this is not
a number like revenue, but this is actually releasing
products. But we have a number, right? So 10 year skews. So let’s say if you released them
successfully launched one skew, that’s one out of 10 so it’s 10% and
that’s how it works. And same here. If you want to adopt full-scale
arms when PPC systems are like, we have an impact seller for all 15
of your skewers. Let’s say you’ve, um, you’ve done it for, um, let’s
say you’ve done it for one. So it’s one out of 15. So that’s 7% so you’ve done
it for one, you’ve set it up, it’s been run for one skew out of
the 15 that you want to do this here. So now you’re at 7% so
this is how it works. So I hope this makes sense. You know, this is how you plan your year and you
tie your goal setting progress in with data and execution. And it’s
an incredibly powerful process. And I hope you can see that by now. And it’s really this tracker
that makes it so powerful. No, let me show you one of the
quarterly OKR seats as well. So we have obviously four of
these. They’re all the same. So I’m just gonna show you one and everything is the same. So I don’t have
to re-explain basically everything. But now this is just for Q1,
right? So this is quarterly. So you want to have an objective
for the quarter. So for example, you could have have two
bestselling products in our
category and now what I like to do, so you could have again, one
to five quarterly objectives too. I prefer two to three if possible. But keep in mind that these objectives
should then contribute significantly towards these objectives,
right? The yearly objectives. So what I’d like to do is I’d like to
specifically make sure that each quarterly objective is aligned to a specific here, the OKR. So this, um, you know, this ensures that you’re doing the macro
to micro like we talked about and that all the quarterly, okay. Ours are
contributing towards the yearly or chaos. Because remember, you want, if you complete all your core
quarterly objectives here, you want that to inevitably lead to all
your yearly objectives being completed as a result, right? So in this case, having two bestselling products
in our category is a too, and contributing to our yearly OKR of
becoming the best selling brand in our category. Right? So this one, so you know, if you make progress on this this quarter, it’s going to move this yearly objective
and key results forward and it’s gonna make progress on a yearly, um,
yeah, on a yearly objectives, right? So that’s how it works. And again, you might have, uh, a key result
in here quarterly to that is, uh, the Polaris star KPI at the
moment. So that’s perfect. And then the only, this other
distinction here with, uh, between the quarterly or chaos
and the yearly, uh, Oak, yours, is that part of the quarterly? Okay. Ours, I like to categorize them into
either aspirational or committed. And this is something I learned from
Google because Google does this too. So aspirational objectives
are sort of loftier goals. You know, this is more like scaling
up, right? Growing revenues. So you want to make sure you put
your key results and this objective, you know, a bit aggressive.
So it’s pushing you. And actually in reality, you should
not hit the a hundred percent here, all the time within the timeframe
specified. So for Q1 for example, if you hit 100% at all, you know, for all of your objectives this quarter, then you know that you’d probably not
being aggressive enough and you should be more aggressive, more ambitious
in the next, uh, next quarter. So this process, because
you’re iterating, it’s time, you’re repeating the cycle, it’s going to teach you to be just
right in terms of aspiration and aggress aggression in your goal setting, right? So if you have something that
is a stretch that the people, the people in your team and you, you have to really fight
and work hard to achieve, that’s perfect. You know,
you want it to motivate you, wanted to push you forward,
you wanted to drive, uh, the best out of everyone on your
team to strive to achieve, right? And that only happens if it’s a stretch. So it’s actually realistic.
You can achieve it, but it’s still a bit of a stress. So
that’s the aspirational side of it. And so if you hit, you know, 70 to 100%, that’s actually, you know, that’s actually a sign that you
could be more aggressive if you hit, you know, let’s say like 50 to 70%,
that’s probably a really good, you know, I would say, you know, 60 to 80%
that would, that’s good. You know, if you hit that rent then is probably
the right balance of pushing your team, uh, being aggressive with
the objective and having a, a spirit, a truly aspirational objective and
actually having something that’s also realistic and you have made really
substantial progress towards, you know, you may have gone, um, close to achieving it and sometimes you
will achieve it and that’s great. Right? But if you’re like achieving like
10% or 20% or even, you know, I would say less than 50% off the
objective, then it’s too aggressive. You know, it’s too far out and you and the people
on your team are likely to feel a little bit de-motivated because it’s, it’s, it’s two months of a stretch and people
don’t actually think they can do it, right? So that’s where you want to try to
strike this balance where you’re setting aspirational with this. Remember,
one kind of objective, um, you’re setting those
objectives to be a stretch, but still only you can
make major progress on. So 70 80% is ideal and sometimes
100% and then that’s great. Of course you celebrate
a, that’s not a bad thing, but overall on average you would be
achieving 70 to 80% of their aspirational objectives if you’re
setting them right? Right? So that’s what you can use as your
check and balance to basically make sure you’re, uh, you’re putting the right amount of
aspiration into your objectives. Now the other kind of objective
is what we call committed. So the committed objective is
something that’s really non-negotiable. So that’s something you
want to achieve 100% off. So this is more, you know,
things that have to happen. Like you have to deliver on. And it’s good to have a mixture of
both because usually in business, you know you have some
things you have to do, you know you have to deliver certain
things on time and that kind of thing. And you ha you want to
have that in here too. So these are things that you
just must reach 100% right? That’s what should happen. If it’s less than a hundred
percent then that’s off, you know, and you need to basically troubleshoot
and figure out what happened. And if it’s like at 50% or 25%
that’s really bad, you know, then you probably have a problem in the
business because this is something that had to happen and you
might need, you know, better people or more people or something
is really getting in the way that you need to fix. So it’s great to have this mixture of
aspirational and committed objectives. We know you can see
both sides of the coin, so to speak with that. So
you can see the committed, the things that have to happen and also
the things that you want to have happen, like the aspirations and it’s only
most motivational. So it’s quarter. If you only had committed objectors, it would be kind of kind of um, linear or static. It wouldn’t be
very exciting and motivational. It’s hard to motivate people months
on, on those types of objectives, which you still need to have. But if all
you had were aspirational objectives, then you might, you know, you might drop the ball on certain things
and you might have problems start to occur because you’re not actually making
sure that somethings that have to get in done, like more supportive things in
the business are actually getting done. So you want to have a mixture. And me only do this for the quarterly
because the yearly or chaos, the objectives, they tend to
all be aspirational. You know, it’s all growth and scale. You’re welcome to have a committed
objective as part of the yearly, but there tend to be more, you know,
at least somewhat aspirational, which is fine, but quarter by quarter there’s gotta
be some things that got to get done. Usually that’s always
going to be the case, especially for a more
established business. You know, you might have something you
need to deliver on time, uh, that’s been promised or
uh, you have to, you know, make sure this is fixed or improved
or optimized or whatever it is. So that’s it. You know, that’s really the all care tracker I’ve
shown you every single nook and cranny. Um, LeBron Pooley on this thing and this is
an incredibly powerful tool as I’m sure you can see and I highly encourage you
to incorporate this into a business and started to use it. And I recommend updating and
reviewing progress on quarterly, OKR weekly. And like you already know, you do this for both OKR and KPIs then
because you do this weekly for KPIs. And I recommend doing
the same thing with OKR. So you do it at the same time
and you show it to your team, you review it as part of
the weekly meeting pulse, which I’ll talk about later
in the module. But um, but yes, so every week you will review and progress
and you will update the quarterly, all chaos and you will see, you know, the progress you’ve made this week and
you’ll be able to monitor and evaluate if it’s um, if it’s happening fast enough and
if everything is on track, right. And then every year, sorry,
at the end of every quarter, you will update the yearly OKR seat
as well to see the progress made this quarter really in a, as
part of the big picture. So at the end of each quarter, you will see the progress that you
made this quarter towards your yearly targets, your yearly goals, right, your yearly objectives and
this put things in, uh, puts things into perspective
for you. So you can see ARD, we had a great quarter and we made a
lot of progress or it didn’t really move the needle months on or, uh,
on the year here for us. Right. So it’s really powerful. Now there’s one final piece I want to
suggest you do and that’s to actually go and read this book. It’s
fantastic by John Doerr who is, you know, a brilliant
entrepreneur and an investor. And I’m aware a very wealthy person and
he actually introduced co KRS to Google. So I think he is the right guy to really
teach you in depth about OKR and just bring them to life for you. So
one thing I like about this book, and it tells a lot of stories
and it shows you, you know, some companies that are actually
using this in the real world and, and what it does for them and things
like that and even hear from Bano and how he uses OKR. And it’s really, it’s a nice
book. It’s really um, interesting and, and, and a fun read. So you would
have to obviously read this, but I suggested you could listen
to it through audible as well. But basically if you want to get a deeper
insight and learn a bit more on bottle cars and just make it
come to life for you, even more than you can read this book, but you’re still ready to go and
start using it. So don’t wait, just go right in. You still care tracker I just shared
with you and a play or chaos to your business right now. Do that
first because it’s so powerful. And finally, here’s your action item. So there’s only one and it’s to Saturday
or all care tracker and to start using it. So you want to define your
yearly and current quarter. Okay. Ours right now and started using the
OKR tracker weekly to track progress to keep everyone aligned on your
team. So it could be only, you can also be you and the
team. And if you have a team, it should definitely be you and the team
and continually make progress towards your objectives. So if you
use this sheet, this tracker, like I just mentioned every single week
and he will look at it maybe even daily, then this will keep you on track. You
know, you should bring your team into it. You should review it with them every week
and talk about it all the time because this will really align everyone and make
sure you’re continually making progress on the right things and that everyone is
focused and you want to continue to use this tool and apply this process
every single week. And if you do, you will make incredible
progress in your business. I can promise you that and it can
be a complete game changer for you. So what you want to do is you
want to bookmark the sheet, uh, the all care tracker that you have in
Google tray Nile and you want a book market and have it easily
accessible, uh, in your browser. And you want to visit this frequently
to keep yourself and your team on track. And most importantly
focused on the right things, the right objectives and key
results and actually, you know, achieving your goals. So keep it simple.
Google does this process for a reason. You don’t need to overcomplicate
things with, you know, all these other things that are
out there too for goal setting. Just to use this, it really gives you the power of the
benefits of goal setting in the most effective, efficient
way that I’ve ever seen. And the [inaudible] tracker should really
be at top three tool in your business from here on on. So I hope this has been incredibly
valuable, helpful, insightful, and you’re as excited as I am
about using OKR in business. So that’s it. Talk to you soon.

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