John Doerr -
Measure That
Matters
(Summary)
John Doerr
Measure What Matters:
How Google, Bono, and
the Gates Foundation Rock
the World with OKRs
Summary
OKR
Examples
1 Google, Meet OKRs
My objective that day, I told the band of young Googlers,
was to build a planning model for their company,
as measured by three key results:
I would finish my presentation on time.
We’d create a sample set of
quarterly Google OKRs.
I’d gain management agreement
for a three-month OKR trial.
By way of illustration,
I sketched two OKR scenarios.
The first involved a fictional football team whose
general manager cascades a top-level objective
down through the franchise org chart.
=>[1]
The second was a real-life drama to which I’d had
a ringside seat: Operation Crush
=>[2]
2 The Father of OKRs
Demonstrate the 8080’s
superior performance as compared
to the Motorola 6800.
Deliver five benchmarks.
Develop a demo.
Develop sales training materials
for the field force.
Call on three customers
to prove the material works.
3 Operation Crush:
An Intel Story
[2]
INTEL CORPORATE OBJECTIVE
Establish the 8086 as the highest performance
16-bit microprocessor family, as measured by:
KEY RESULTS (Q2 1980)
• Develop and publish five benchmarks
showing superior 8086 family performance
(Applications)
(Applications)
• Repackage the entire 8086 family of products
(Marketing)
(Marketing)
• Get the 8MHz part into production
(Engineering, Manufacturing).
(Manufacturing)
...
~[3]
(Engineering)
...
Note:
It would be better to graphically combine both equivalent nodes (with the same [...] footnote)
here into one node, but this feature is not provided in many mindmapping tools.
Therefore, this equivalence is simply indicated here by "~" symbol at both these nodes.
• Sample the arithmetic coprocessor
no later than June 15
(Engineering).
~[3]
(Engineering)
ENGINEERING DEPARTMENT
OBJECTIVE (Q2 1980)
Deliver 500 8MHz 8086 parts
to CGW by May 30.
KEY RESULTS
• Develop final art to photo plot by April 5.
• Deliver Rev 2.3 masks to fab on April 9.
• Test tapes completed by May 15.
• Fab red tag start no later than May 1.
4 Superpower #1:
Focus and Commit to Priorities
Table 4.1:
Key Results Paired for
Quantity and Quality
Developers will write cleaner code.
Developers will write cleaner code.
Fewer than five bugs per feature in quality assurance testing
Sustained attention by sales professionals
will increase customer success and
satisfaction rates.
$50M in Q1 sales
$10M in Q1 maintenance contracts
Lead quality will improve
to meet the new order threshold requirement.
Ten sales calls
Two new orders
Table 4.2:
An OKR Quality Continuum
Win the Indy 500
Weak
Increase lap speed.
Reduce pit stop time.
Average
Increase average lap speed by 2 percent.
Reduce average pit stop time by one second.
Strong
Increase average lap speed by 2 percent.
Test at wind tunnel ten times.
Reduce average pit stop time by one second.
Reduce pit stop errors by 50 percent.
Practice pit stops one hour per day.
5 Focus: The Remind Story
OBJECTIVE
Support company hiring.
KEY RESULTS
• Hire 1 director of finance and operations (talk to at least 3 candidates).
• Source 1 product marketing manager (meet with 5 candidates this quarter).
• Source 1 product manager (meet with 5 candidates this quarter).
6 Commit: The Nuna Story
OBJECTIVE
Continue to build a world-class team.
KEY RESULTS
• Recruit 10 engineers [0.8].
• Hire commercial sales leader [1.0].
• One hundred percent of candidates feel
they had a well-organized, professional experience
even if Nuna does not extend an offer [0.5].
OBJECTIVE
Create a healthy and productive
work environment as we scale
to more than 150 employees.
KEY RESULTS
• One hundred percent of Nunas have gone through
performance review/feedback cycle [1.0].
• One hundred percent of Nunas score their individual
Q3 OKRs within the first week of Q4 [0.4].
7 Superpower #2:
Align and Connect
for Teamwork
[1]
Make $ for owner
(Obj of General Manager)
Win Super Bowl
(Obj of Head Couch;
KR of General Manager)
Passing attack amasses
300+ yards per game.
(KR of Head Couch)
Generate 300-yards-per-game
passing attack.
(Obj for Offensive Coach)
Achieve 65% pass completion rate
Cut interceptions to fewer than 1 per game
Hire new quarterbacks coach
Defense allows fewer
than 17 points per game.
(KR of Head Couch)
Give up fewer
than 17 poins a game
(Obj for Defensive Coach)
Allow fewer than 100 rushing yards per game
Increase number of sacks to 3+ per game
Develop a Pro Bowl cornerback
Special teams unit ranks in
top 3 in punt return coverage.
(KR of Head Couch)
Improve to top 3 ranking
for punt coverage team.
(Obj for Special Teams Coach)
Allow fewer than 10 yards per punt return
Block 4+ punts over the season
Fill home stands to 90%
(Obj of SVP of Marketing;
KR of General Manager)
Upgrade team branding.
(Obj of Marketing Director;
KR of SVP of Marketing)
Target two colorful players for
new marketing campaign.
Create a more compelling
team slogan.
Improve media coverage.
(Obj of Publicist;
KR of SVP of Marketing)
Arrange for players to attend two
charity events per season.
Invite 20 sports reporters
to meet and greet.
Share photos of events on
social media.
Revitalize in-stadium
promotion program.
(Obj of Merchandise Manager;
KR of SVP of Marketing)
Allow fewer than 10 yards
per punt return.
Block 4+ punts over
the season.
8 Align:
The MyFitnessPal Story
OBJECTIVE
Help more people around the world.
KEY RESULTS
• Add 27M new users in 2014.
• Reach 80M total registered users.
9 Connect:
The Intuit Story
OBJECTIVE
Modernize, rationalize, and secure the
technology used to run the business of Intuit.
KEY RESULTS
• Complete migration of Oracle eBusiness
Suite to R12 and retire 11.5.9 this quarter.
• Deliver wholesale billing as a
platform capability by end FY16.
• Complete onboarding of agents in
small business unit to Salesforce.
• Create a retirement plan
for all legacy technology.
• Draft and get alignment on new
Workforce Technology strategies,
road maps, and principles.
OBJECTIVE
Enable every Intuit worker to make
decisions based on “live” data.
KEY RESULTS
• Deliver functional data marts
for HR and Sales.
• Complete migration to new
Enterprise Data Warehouse
built for real-time access.
• Create single team operating all
data visualization tools across Intuit
to drive a unified strategy.
• Create teaching module to help
people in other teams use data
visualization tools.
OBJECTIVE
Deliver awesome end-to-end workforce
technology solutions and strategies.
KEY RESULTS
• Implement Box pilot for first
100 users by mid-quarter.
• Complete BlueJeans rollout to
final users by end of the quarter.
• Transfer first 50 individual account
Google users to enterprise account
by end of the quarter.
• Finalize Slack contract by end of
month 1 and complete rollout play
by end of the quarter.
11 Track:
The Gates Foundation Story
OBJECTIVE
Global eradication of
malaria by 2040.
KEY RESULTS
• Prove to the world that a radical cure-based
approach can lead to regional elimination.
• Prepare for scale-up by creating the necessary
tools—SERCAP (Single Exposure Radical Cure
and Prophylaxis) Diagnostic
• Sustain current global progress to ensure the
environment is conducive to eradication push.
14 Stretch:
The YouTube Story
OBJECTIVE
Reach 1 billion hours of
watch time per day [by 2016],
with growth driven by:
KEY RESULTS
• Search team + Main App (+XX%),
Living Room (+XX%).
• Grow kids’ engagement and gaming
watch time (X watch hours per day).
• Launch YouTube VR experience and
grow VR catalog from X to Y videos.
17
Baking Better Every Day:
The Zume Pizza Story
OBJECTIVE
Complete the Truck Delivery Fleet
for 250 Polaris (Mountain View HQ).
KEY RESULTS
• Deliver 126 fully certified ovens by 11/30.
• Deliver 11 fully certified racks by 11/30.
• Deliver 2 fully certified full-format delivery
vehicles by 11/30.
OBJECTIVE
Delight customers.
DETAIL
Feeding people is a sacred trust. To maintain that
trust, we have to deliver the very best customer
service and the very best food quality. To succeed
as a business, we must ensure that our customers
are so happy with our service and product that
they have no choice but to order more pizza and
to rave about the experience with their friends.
KEY RESULTS
• Net Promoter Score of 42 or better.
• Order Rating of 4.6/5.0 or better.
• 75% of customers prefer Zume to
competitor in blind taste test.
18 Culture
OBJECTIVE
Extend Coursera’s reach
to new students.
KEY RESULTS
• Perform A/B tests, learn, and iterate
on ways to acquire new students and
engage existing students.
• Increase mobile monthly active
users (MAU) to 150k.
• Create internal tools to track key
growth metrics.
• Launch features to enable instructors
to create more engaging videos.
19 Culture Change:
The Lumeris Story
OBJECTIVE
Institute a culture that attracts
and retains A players.
KEY RESULTS
• Focus on hiring A player managers/leaders.
• Optimize recruitment function to attract A player talent.
• Scrub all job descriptions.
• Retrain everyone engaged in the interviewing process.
• Ensure ongoing mentoring/coaching opportunities.
• Create a culture of learning for development of new
and existing employees.
20 Culture Change:
Bono’s ONE Campaign Story
OBJECTIVE
Proactively integrate a broad range of
African perspectives into ONE’s work,
align more closely with African priorities,
and share and leverage ONE’s political
capital to achieve specific policy
changes in and toward Africa.
KEY RESULTS
• Three African-based hires complete and onboard by April,
and two African board members approved by July.
• African Advisory Board in place by July and convened twice by December.
• Relationships fully developed with a minimum of ten to fifteen
leading African thinkers who actively and regularly challenge and
guide ONE’s policy positions and external work.
• Undertake four participatory trips to Africa over the course of 2010.
Book
Recommendations
RESOURCE 5 For Further Reading
Andy Grove
and Intel
Andrew Grove
High Output Management
Andy Grove’s quantum leap was to apply manufacturing production
principles to the “soft professions,” the administrative, professional,
and managerial ranks. He sought to “create an environment that
values and emphasizes output” and to avoid what Drucker termed
the “activity trap”: “[S]tressing output is the key to increasing
productivity, while looking to increase activity can result in just the
opposite.”
Scientific management, Taylor wrote, consists of “knowing exactly
what you want men to do and then see that they do it in the best
and cheapest way.” The results, as Grove noted, were “crisp and
hierarchical: there were those who gave orders and those who took
orders and executed them without question.”
Just as values cannot be transmitted by memo,* [As observed by
Andy Grove in High Output Management.] structured goal setting
won’t take root by fiat.
For the feedback to be effective, it must be received very soon
after the activity it is measuring occurs. Accordingly, an [OKR]
system should set objectives for a relatively short period. For
example, if we plan on a yearly basis, the corresponding [OKR]
time should be at least as often as quarterly or perhaps even
monthly.
To safeguard quality while pushing for quantitative deliverables,
one solution is to pair key results—to measure “both effect and
counter-effect,” as Grove wrote in High Output Management.
When key results focus on output, Grove noted:
[T]heir paired counterparts should stress the quality of [the] work.
Thus, in accounts payable, the number of vouchers processed
should be paired with the number of errors found either by
auditing or by our suppliers. For another example, the number of
square feet cleaned by a custodial group should be paired with a
. . . rating of the quality of work as assessed by a senior manager
with an office in that building.
At Intel, Grove took a dim view of “managerial meddling”:
“[T]he subordinate will begin to take a much more restricted view of
what is expected of him, showing less initiative in solving his own
problems and referring them instead to his [or her] supervisor. . . .
[T]he output of the organization will consequently be reduced. . . .”
Grove was fascinated to find that some people, with no prompting,
were consistently driven to “try to test the outer limits of their
abilities” and achieve their “personal best.” These employees were
a manager’s dream; they were never self-satisfied. But Grove also
understood that not everyone was a natural-born achiever. For the rest,
“stretched” goals could elicit maximum output: “Such goal-setting is
extremely important if you want peak performance from yourself and
your subordinates.”
Andy Grove estimated that ninety minutes of a manager’s time
“can enhance the quality of your subordinate’s work for two weeks.”
“Put simply,” he wrote in High Output Management, culture is
“a set of values and beliefs, as well as familiarity with the way
things are done and should be done in a company. The point is
that a strong and positive corporate culture is absolutely
essential.”
Richard Tedlow
Andy Grove: The Life and
Times of an American
Michael Malone
The Intel Trinity: How
Robert Noyce, Gordon
Moore, and Andy Grove
Built the World's Most
Important Company
By pedigree, Grove was the least likely member of the Intel
Trinity that ran the company for three decades. Gordon Moore
was the shy and revered deep thinker, author of the eponymous
law that underpins the exponential scaling of technology:
Computer processing power doubles every two years. Robert
Noyce, co-inventor of the integrated circuit (aka the microchip),
was the charismatic Mr. Outside, the industry’s ambassador,
equally at home at a congressional hearing or buying a round
of drinks at the Wagon Wheel.
Culture
Dov Seidman
How: Why How We Do
Anything Means Everything
Dov started from the premise that culture guides people’s behaviors,
or how things really happen in an organization. In our open-sourced,
hyperconnected world, behavior defines a company more
meaningfully than product lines or market share.
Dov’s big idea is that companies that “out-behave” their competition
will also outperform them. He identified a value-driven model, the
“self-governing organization,” a place where long-term legacy trumps
the next quarter’s ROI. These organizations don’t merely engage their
workers. They inspire them. They replace rules with shared principles;
carrots and sticks are supplanted by a common sense of purpose.
They are built around trust, which enables risk taking, which spurs
innovation, which drives performance and productivity.
But as Dov has acknowledged, it’s one thing to proclaim values like
courage or compassion or creativity. It’s another to scale them.
Scaling requires a system, with metrics.
Where Andy Grove added qualitative goals to balance quantitative
ones, Dov has found a way to quantify seemingly abstract values like
trust. His “trust index” measures specific behaviors—the direct
“hows” of transparency, for example.
As Dov observes, “Collaboration itself - our ability to connect - is an
engine of growth and innovation.”
Sheryl Sandberg
Lean In: Women, Work,
and the Will to Lead
“Feedback is an opinion, grounded in observations and experiences,
which allows us to know what impression we make on others.” To reap
the full benefits of OKRs, feedback must be integral to the process. If
you don’t know how well you’re performing, how can you possibly get
better?
Today’s workers “want to be ‘empowered’ and ‘inspired,’ not told what
to do. They want to provide feedback to their managers, not wait for a
year to receive feedback from their managers. They want to discuss
their goals on a regular basis, share them with others, and track
progress from peers.”
New node
Jim Collins
Jim Collins
Good to Great: Why Some
Companies Make the Leap
and Others Don't
We borrowed from Jim Collins: “What can you be the best at in
the world?”
“Big Hairy Audacious Goals” - Jim Collins’s memorable phrase
in Good to Great - spark leaps to new levels:
A BHAG is a huge and daunting goal—like a big mountain to
climb. It is clear, compelling, and people “get it” right away.
A BHAG serves as a unifying focal point of effort, galvanizing
people and creating team spirit as people strive toward a
finish line.
As Jim Collins observes in Good to Great, first you need to get
“the right people on the bus, the wrong people off the bus, and
the right people in the right seats.” Only then do you turn the
wheel and step on the gas.
Jim Collins, Morten Hansen
Great by Choice:
Uncertainty, Chaos, and
Luck - Why Some Thrive
Despite Them All
Bill Campbell
and Coaching
Eric Schmidt,
Jonathan Rosenberg,
Alan Eagle
Trillion Dollar Coach:
The Leadership Playbook
of Silicon Valley's Bill
Campbell
Randy Komisar,
Jantoon Reigersman
Straight Talk for Startups:
100 Insider Rules for
Beating the Odds
Google
Eric Schmidt,
Jonathan Rosenberg
How Google Works
OKRs became the “simple tool that institutionalized the founders’
‘think big’ ethos.”
Many companies have a “rule of seven,” limiting managers to a
maximum of seven direct reports. In some cases, Google has
flipped the rule to a minimum of seven. (When Jonathan Rosenberg
headed Google’s product team, he had as many as twenty.)
Most people, Larry Page observes, “tend to assume that things are
impossible, rather than starting from real-world physics and figuring
out what’s actually possible.”
“Bill Campbell has been very helpful in coaching all of us. In
hindsight, his role was needed from the beginning. I should
have encouraged this structure sooner, ideally the moment
I started at Google.”
Steven Levy
In The Plex: How Google
Thinks, Works, and Shapes
Our Lives
As Steven Levy wrote in In the Plex, “Doerr had Google at
metrics.”
(As prize pupil Marissa Mayer would say, “It’s not a key result
unless it has a number.”)
As Eric told author Steven Levy, “Google’s objective is to be
the systematic innovator of scale. Innovator means new stuff.
And scale means big, systematic ways of looking at things
done in a way that’s reproducible.”
In 2008, a company-wide OKR rallied all hands around the
Code Yellow battle against latency—Google’s bête noire,
the lag in retrieving data from the cloud.
In the world of objectives and key results, the company is
synonymous with exponentially aggressive goals, or what
author Steven Levy calls “the gospel of 10x.”
(Sometimes a stretch goal is not as wildly aspirational as it
may seem. As Lars later told Steven Levy in In the Plex,
“We sort of underestimated what we could do.”)
Laszlo Bock
Work Rules!: Insights from
Inside Google That Will
Transform How You Live
and Lead
Having goals improves performance. Spending hours
cascading goals up and down the company, however,
does not. . . . We have a market-based approach, where
over time our goals all converge because the top OKRs
are known and everyone else’s OKRs are visible. Teams
that are grossly out of alignment stand out, and the few
major initiatives that touch everyone are easy enough
to manage directly.
“People across the whole organization can see what’s
going on. Suddenly you have people who are designing
a handset reaching out to another team doing software,
because they saw an interesting thing you could do
with the user interface.”
“You can see immediately if somebody’s hitting the ball
out of the park—you investigate. If somebody’s missing
all the time, you investigate. Transparency creates very
clear signals for everyone. You kick off virtuous cycles
that reinforce your ability to actually get your work
done. And the management tax is zero—it’s amazing.”
“If you want your car to get fifty miles per gallon, fine.
You can retool your car a little bit. But if I tell you it has
to run on a gallon of gas for five hundred miles, you
have to start over.”
At Google, according to Laszlo Bock, OKRs amount to a
third or less of performance ratings. They take a
backseat to feedback from cross-functional teams, and
most of all to context.
“It’s always possible—even with a goal-setting system—to
get the goals wrong,” Laszlo says. “Maybe the market does
something crazy, or a client leaves their job and suddenly
you have to rebuild from scratch. You try to keep all of that
in consideration.”
OKRs
Christina Wodtke
Radical Focus: Achieving
Your Most Important Goals
with Objectives and Key
Results
Mary Parker Follet
The Giving of Orders
* A more progressive model, mostly ignored at the time, was
advanced by a Massachusetts social worker named Mary Parker
Follett.In her essay “The Giving of Orders” (1926), Follett
proposed that power sharing and collaborative decision making
between managers and employees led to better business
solutions. Where Taylor and Ford saw hierarchy, Follett saw
networks.
Frederich Winslow Taylor
The Principles of Scientific
Management
The early-twentieth-century forefathers of management theory,
notably Frederick Winslow Taylor and Henry Ford, were the first
to measure output systematically and analyze how to get more
of it. They held that the most efficient and profitable
organization was authoritarian.
Scientific management, Taylor wrote, consists of “knowing
exactly what you want men to do and then see that they do it in
the best and cheapest way.” The results, as Grove noted, were
“crisp and hierarchical: there were those who gave orders and
those who took orders and executed them without question.”
Peter Drucker
The Practice of Management
He conceived a new management ideal, results-driven yet
humanistic. A corporation, he wrote, should be a community
“built on trust and respect for the workers - not just a profit
machine.” Further, he urged that subordinates be consulted on
company goals. Instead of traditional crisis management, he
proposed a balance of long- and short-range planning,
informed by data and enriched by regular conversations among
colleagues.
Andy Grove’s quantum leap was to apply manufacturing production
principles to the “soft professions,” the administrative, professional,
and managerial ranks. He sought to “create an environment that
values and emphasizes output” and to avoid what Drucker termed
the “activity trap”: “[S]tressing output is the key to increasing
productivity, while looking to increase activity can result in just the
opposite.”
Drucker aimed to map out “a principle of management that will
give full scope to individual strength and responsibility and at the
same time give common direction of vision and effort, establish
team work and harmonize the goals of the individual with the
common weal.” He discerned a basic truth of human nature:
When people help choose a course of action, they are more likely
to see it through.
Drucker codified this principle as “management by objectives
and self-control.” It became Andy Grove’s foundation and the
genesis of what we now call the OKR.
To make reliable progress, as Peter Drucker noted, a manager
“must be able to measure . . . performance and results against
the goal.”
The “professional employee,” Peter Drucker wrote, “needs
rigorous performance standards and high goals. . . . But how he
does his work should always be his responsibility and his
decision.”
Peter Drucker was one of the first to stress the value of regular
one-on-one meetings between managers and their direct reports.
Tim Jackson
Inside Intel: Andrew Grove
and the Rise of the World's
Most Powerful Chip
Company
Andy was a problem solver at heart. As one Intel historian observed,
he “seemed to know exactly what he wanted and how he was going
to achieve it.”
Andrew Grove
Only the Paranoid Survive:
How to Exploit the Crisis
Points That Challenge Every
Company
As Andy Grove observed, “People in the trenches are usually in
touch with impending changes early. Salespeople understand
shifting customer demands before management does; financial
analysts are the earliest to know when the fundamentals of a
business change.”
Daniel Pink
Drive: The Surprising Truth
About What Motivates Us
Daniel Pink, the author of Drive, agrees: “The single greatest
motivator is ‘making progress in one’s work.’ The days that
people make progress are the days they feel most motivated
and engaged.”
Peter Drucker
The Effective Executive:
The Definitive Guide to
Getting the Right Things
Done
As Peter Drucker observed, “Without an action plan, the
executive becomes a prisoner of events. And without check-ins
to reexamine the plan as events unfold, the executive has no
way of knowing which events really matter and which are only
noise.”
Stephen Covey
The 7 Habits of Highly
Effective People: Powerful
Lessons in Personal Change
As Stephen Covey noted, “If the ladder is not leaning against
the right wall, every step we take just gets us to the wrong
place faster.”
He used a metaphor called the Big Rocks Theory, which was
popularized by Stephen Covey.
John Dewey
How We Think
The philosopher and educator John Dewey went a step further:
“We do not learn from experience . . . we learn from reflecting
on experience.”
Abraham Maslow
A Theory of Human
Motivation
Andy Grove was a fan of Abraham Maslow, the
mid-twentieth-century psychologist best known for his
“hierarchy of needs.”
Teresa Amabile,
Steven Kramer
The Progress Principle:
Using Small Wins to Ignite
Joy, Engagement, and
Creativity at Work
Goal setting isn’t bulletproof: “When people have conflicting
priorities or unclear, meaningless, or arbitrarily shifting goals,
they become frustrated, cynical, and demotivated.”
Research suggests that making measured headway can be more
incentivizing than public recognition, monetary inducements, or
even achieving the goal itself.
High-motivation cultures, they concluded, rely on a mix of two
elements. Catalysts, defined as “actions that support work,”
sound much like OKRs: “They include setting clear goals,
allowing autonomy, providing sufficient resources and time,
helping with the work, openly learning from problems and
successes, and allowing a free exchange of ideas.”
Nourishers - “acts of interpersonal support” - bear a striking
resemblance to CFRs: “respect and recognition, encouragement,
emotional comfort, and opportunities for affiliation.”
Robert S. Kaplan,
David P. Norton
The Strategy-Focused Organization:
How Balanced Scorecard
Companies Thrive in the New
Business Environment
Studies suggest that only 7 percent of employees “fully understand their
company’s business strategies and what’s expected of them in order to
help achieve the common goals.”
William H. Davidow
Marketing High Technology
Early on, the numbers badly trailed the target, until the task force
began to think about relaxing the design win criterion. But that summer,
full-color Tahiti brochures mysteriously found their way into every
salesperson’s home mailbox. By the third quarter, peer pressure on the
laggards was enormous.
Dambisa Moyo,
Niall Ferguson
Dead Aid: Why Aid Is Not
Working and How There
Is a Better Way for Africa
“Shove your aid. We don’t need it. It’s doing more damage than
good. We’re trying to rebrand the continent as a positive place to
invest and live and work. You’re hurting that.”
Web Resources
Recommendations
whatmatters.com
Paul Zack
Measurement Myopia
web.archive.org/web/*/
www.druckerinstitute.com/2013/07/measurement-myopia
A manager’s “first role,” Drucker said, “is the personal one. It’s
the relationship with people, the development of mutual
confidence . . . the creation of a community.”
Steven Levy
Big Ideas: Google's Larry Page
and the gospel of 10x
wired.co.uk/article/a-healthy-
disregard-for-the-impossible
In the world of objectives and key results, the company is
synonymous with exponentially aggressive goals, or what
author Steven Levy calls “the gospel of 10x.”
The way Page sees it, a ten per cent improvement means
that you're doing the same thing as everybody else. You
probably won't fail spectacularly, but you are guaranteed
not to succeed wildly.
That's why Page expects his employees to create products
and services that are ten times better than the competition.
That means he isn't satisfied with discovering a couple of
hidden efficiencies or tweaking code to achieve modest
gains. Thousand-per-cent improvement requires rethinking
problems, exploring what's technically possible and having
fun in the process.
https://en.wikipedia.org/wiki/
Edwin_Locke
#The_Goal_Setting_Theory
First, said Edwin Locke, “hard goals” drive performance more
effectively than easy goals. Second, specific hard goals
“produce a higher level of output” than vaguely worded ones.
In the intervening half century, more than a thousand studies
have confirmed Locke’s discovery as “one of the most tested,
and proven, ideas in the whole of management theory.”
The arenas ranged widely, but the results were “unequivocal,”
Locke wrote. “[T]he harder the goal the higher the level of
performance. . . . Although subjects with very hard goals
reached their goals far less often than subjects with very easy
goals, the former consistently performed at a higher level than
the latter.”
The studies found that “stretched” workers were not only more
productive, but more motivated and engaged: “Setting specific
challenging goals is also a means of enhancing task interest
and of helping people to discover the pleasurable aspects of
an activity.”
Employee Engagement on the Rise in the U.S.
By Jim Harter
https://news.gallup.com/poll/241649/
employee-engagement-rise.aspx
Year after year, Gallup surveys attest to a “worldwide employee engagement crisis.”
Less than a third of U.S. workers are “involved in, enthusiastic about and committed
to their work and workplace.”
Goals Gone Wild:
The Systematic Side Effects of Over-Prescribing Goal Setting
by Lisa D. Ordóñez, Maurice E. Schweitzer,
Adam D. Galinsky and Max H. Bazerman
https://hbswk.hbs.edu/item/goals-gone-wild-the-systematic-
side-effects-of-over-prescribing-goal-setting
In 2009, the Harvard Business School published a paper titled “Goals Gone Wild.”
It led with a catalog of examples of “destructive goal pursuit”: exploding Ford Pinto fuel tanks,
wholesale gouging by Sears auto repair centers, Enron’s recklessly inflated sales targets, the
1996 Mount Everest disaster that left eight climbers dead. Goals, the authors cautioned, were
“a prescription-strength medication that requires careful dosing . . . and close supervision.”
They even posted a warning label: “Goals may cause systematic problems in organizations
due to narrowed focus, unethical behavior, increased risk taking, decreased cooperation, and
decreased motivation.” The dark side of goal setting could swamp any benefits, or so their
argument went.
As even the “Goals Gone Wild” crowd conceded, goals “can inspire employees and improve
performance.” That, in a nutshell, was my message for Larry and Sergey and company.
Should Managers Focus on Performance or Engagement?
By Annamarie Mann and Ryan Darby
https://news.gallup.com/businessjournal/174197/
managers-focus-performance-engagement.aspx
In business, alienation isn’t an abstract, philosophical problem; it saps the bottom line.
More highly engaged work groups generate more profit and less attrition.
* According to Gallup, more frequent one-on-ones increase employee engagement by a factor of three.
Becoming irresistible: A new model for employee engagement
Deloitte Review Issue 16
By Josh Bersin
https://www2.deloitte.com/us/en/insights/deloitte-review/
issue-16/employee-engagement-strategies.html
According to Deloitte, the management and leadership consulting firm, issues of
“retention and engagement have risen to No. 2 in the minds of business leaders,
second only to the challenge of building global leadership.”
But exactly how do you build engagement? A two-year Deloitte study found that no
single factor has more impact than “clearly defined goals that are written down and
shared freely.... Goals create alignment, clarity, and job satisfaction.”
Continuous recognition is a powerful driver of engagement: “As soft as it seems,
saying ‘thank you’ is an extraordinary tool to building an engaged team....
‘[H]igh-recognition’ companies have 31 percent lower voluntary turnover than
companies with poor recognition cultures.”
Management by objectives - Idea - The Economist
https://www.economist.com/news/2009/10/21/management-by-objectives
By the 1990s, the system was falling from vogue. Even Drucker soured on it. MBOs,
he said, were “just another tool” and “not the great cure for management inefficiency.”
Andrew S. Grove Dies at 79; Intel Chief Spurred
Semiconductor Revolution
By Jonathan Kandell
https://www.nytimes.com/2016/03/22/technology/andrew-
grove-intel-obituary.html
The New York Times called him “one of the most acclaimed and influential
personalities of the computer and Internet era.”
New node
The Effect of Teacher-Family Communication on Student Engagement:
Evidence from a Randomized Field Experiment
By Matthew Kraft
https://scholar.harvard.edu/mkraft/publications/effect-teacher-family-
communication-student-engagement-evidence-randomized-field
When summer school teachers made daily phone calls and sent texts or written messages home,
their sixth-graders completed 42 percent more homework. Class participation rose by nearly half.
Medicaid’s Data Gets an Internet-Era Makeover
By Steve Lohr
https://www.nytimes.com/2017/01/09/technology/
medicaids-data-gets-an-internet-era-makeover.html
Andrew M. Slavitt, acting director of the Centers for Medicare & Medicaid Services,
described Nuna’s cloud database as “near historic,” a leap from state-level computing
silos to the first “systemwide view across the program.”
How Employee Alignment Boosts the Bottom Line - BetterWorks
https://hbr.org/sponsored/2016/06/how-employee-
alignment-boosts-the-boosts-the-bottom-line
According to the Harvard Business Review, companies with highly aligned employees
are more than twice as likely to be top performers.
Donald Sull
Closing the Gap Between Strategy and Execution
MIT Sloan Management Review
http://www.donsull.com/wp-content/uploads/2013/07/
closing-the-gap-FINAL-pdf-JUL-07.pdf
A lack of alignment, according to a poll of global CEOs,
is the number-one obstacle between strategy and execution.
Intuit Sheds Its PC Roots and Rises as a Cloud
Software Company
By Vindu Goel
https://www.nytimes.com/2016/04/11/technology/intuit-sheds-
its-pc-roots-and-rises-as-a-cloud-software-company.html
“Whenever Intuit makes a wrong turn,” UBS analyst Brent Thill told The New York Times,
“they quickly get off the gravel and back onto the blacktop. That’s why the company has
done so well for such a long time.”
Study focuses on strategies for achieving goals, resolutions -
Dominican University of California
https://www.dominican.edu/dominicannews/study-highlights-
strategies-for-achieving-goals
In one California study, people who recorded their goals and sent weekly
progress reports to a friend attained 43 percent more of their objectives
than those who merely thought about goals without sharing them.
Don’t be modest - Decrypting Google - The Economist
https://www.economist.com/books-and-arts/2014/09/27/dont-be-modest
Late-in-game surprises are less likely when you track your OKRs for continuous feedback.
Good news or bad, reality intrudes. In the process, “people can learn from failure and
move on, perhaps turning some aspect of the setback into the seedling of a new success.”
Learning By Thinking: How Reflection Improves Performance
by Giada Di Stefano, Francesca Gino, Gary Pisano and
Bradley Staats
https://hbswk.hbs.edu/item/learning-by-thinking-how-
reflection-improves-performance
Learning “from direct experience,” a Harvard Business School study found, “can be more
effective if coupled with reflection—that is, the intentional attempt to synthesize, abstract, and
articulate the key lessons taught by experience.”
Stretch Goals: The Dark Side of Asking for Miracles
By Strat Sherman, Steve Kerr
https://money.cnn.com/magazines/fortune/
fortune_archive/1995/11/13/207680/index.htm
For companies seeking to live long and prosper, stretching to new heights is compulsory.
Lessons From Bill Campbell, Silicon Valley’s Secret
Executive Coach
Randy Komisar
https://techcrunch.com/2016/01/12/lessons-from-bill-
campbell-silicon-valleys-secret-executive-coach/
https://soundcloud.com/venturedpodcast/bill_campbell
For companies seeking to live long and prosper, stretching to new heights is compulsory.
As Bill Campbell liked to say: If companies “don’t continue to innovate, they’re going to die -
and I didn’t say iterate, I said innovate.” Conservative goal setting stymies innovation.
And innovation is like oxygen: You cannot win without it.
A few months before he died, in a podcast with my Kleiner partner Randy Komisar,
the Coach explained that he “always wanted to be part of the solution.... People
are the most important thing that we do. We have to try to make them better.”
Locke and Latham
Building a Practically Useful Theory of Goal Setting
and Task Motivation.
http://www-2.rotman.utoronto.ca/facbios/file/
09 - Locke & Latham 2002 AP.pdf
In pursuing high-effort, high-risk goals, employee commitment is essential.
Leaders must convey two things: the importance of the outcome, and the
belief that it’s attainable
Meet YouTube’s View Master
By Belinda Luscombe
https://time.com/4012832/meet-youtubes-view-master/
Susan Wojcicki, according to Time magazine, is “the most powerful woman on the internet.”
Performance management
The secret ingredient
By Akio Tsuchida and Nathan Sloan
https://trendsapp.deloitte.com/reports/2015/global-human-
capital-trends/performance-management.html
Yet only 12 percent of HR leaders deem the process “highly effective” in driving business value.
Global Human Capital Trends 2014
Engaging the 21st Century Workforce
Bersin by Deloitte
https://www2.deloitte.com/us/en/insights/focus/human-
capital-trends/2014.html
Only 6 percent think it’s worth the time it takes.
Measurement Myopia
By Paul Zak
http://web.archive.org/web/20140717050516/
http://www.druckerinstitute.com/2013/07/measurement-myopia
Even Peter Drucker, the champion of well-measured goals, understood the limits of calibration.
A manager’s “first role,” Drucker said, “is the personal one. It’s the relationship with people,
the development of mutual confidence... the creation of a community.”
How Goals are Driving a New Approach to Performance
Management
Aligning Employees in the New Work Environment
https://docuri.com/download/goals-and-performance-
management_59c1e650f581710b286be8b4_pdf
Annual Performance Management Versus Continuous Performance Management
Feedback Is The Killer App: A New Market and Management
Model Emerges
By Josh Bersin
https://www.forbes.com/sites/joshbersin/2015/08/26/
employee-feedback-is-the-killer-app-a-new-market-emerges/
Today’s workers “want to be ‘empowered’ and ‘inspired,’ not told what to do. They want to provide
feedback to their managers, not wait for a year to receive feedback from their managers. They want
to discuss their goals on a regular basis, share them with others, and track progress from peers.”
A New Market is Born: Employee Engagement, Feedback,
and Culture Apps
https://joshbersin.com/2015/09/a-new-market-is-
born-employee-engagement-feedback-and-culture-apps/
Today, progressive companies have replaced the box with always-on, anonymous feedback tools,
from quick-hitting employee surveys to anonymous social networks and even rating apps for meetings
and meeting organizers.
Adobe Systems set to scrap annual appraisals, to rely on
regular feedback to reward staff
By Devina Sengupta
https://economictimes.indiatimes.com/news/company/
corporate-trends/adobe-systems-set-to-scrap-annual-
appraisals-to-rely-on-regular-feedback-to-reward-staff/
articleshow/12420033.cms
In 2012, during a business trip to India, an Adobe executive named Donna Morris vented
her frustrations over traditional performance management. Her guard lowered by jet lag,
she told a reporter that the company planned to abolish annual reviews and stack rankings
in favor of more frequent, forward-facing feedback.
The five keys to a successful Google team
By Julia Rozovsky
https://rework.withgoogle.com/blog/five-keys-to-a-
successful-google-team
In Project Aristotle, an internal Google study of 180 teams, standout performance correlated to
affirmative responses to these five questions:
1. Structure and clarity: Are goals, roles, and execution plans on our team clear?
2. Psychological safety: Can we take risks on this team without feeling insecure or embarrassed?
3. Meaning of work: Are we working on something that is personally important for each of us?
4. Dependability: Can we count on each other to do high-quality work on time?
5. Impact of work: Do we fundamentally believe that the work we’re doing matters?
The Power of Small Wins
By Teresa Amabile and Steven J. Kramer
https://hbr.org/2011/05/the-power-of-small-wins
High-motivation cultures, they concluded, rely on a mix of two elements. Catalysts, defined as
“actions that support work,” sound much like OKRs: “They include setting clear goals, allowing
autonomy, providing sufficient resources and time, helping with the work, openly learning from
problems and successes, and allowing a free exchange of ideas.” Nourishers—“acts of
interpersonal support”—bear a striking resemblance to CFRs: “respect and recognition,
encouragement, emotional comfort, and opportunities for affiliation.”
Postscript: Bill Campbell, 1940-2016
By Ken Auletta
https://www.newyorker.com/business/currency/postscript-
bill-campbell-1940-2016
As Ken Auletta wrote in The New Yorker, “In the world capital of engineering, where
per-capita income can seem inversely related to social skills, Campbell was the man
who taught founders to look up from their computer screens.... His obituary was not
featured on the front of most newspapers, or at the top of most technology news sites,
but it should have been.”
Bill Campbell, 'Coach' To Silicon Valley Luminaries Like Jobs,
Page, Has Died
By Miguel Helft
https://www.forbes.com/sites/miguelhelft/2016/04/18/bill-campbell-
coach-to-silicon-valley-luminaries-like-jobs-page-has-died/
He “kept Steve Jobs going,” as Eric Schmidt told Forbes. Bill was Steve’s “mentor, his friend.
He was the protector, the inspiration. Steve trusted him more than he trusted anybody else.”