Measure What Matters

“What you measure is what you get.” This simple principle underpins "Measure What Matters," and it reveals how a clear and focused management system can transform organizations and help them achieve ambitious goals.

1. OKRs: A Simple Framework for Focused Execution

Objectives and Key Results (OKRs) are straightforward yet powerful. Objectives define what you want to accomplish, while Key Results track how you will get there. They enable organizations to focus on what matters most and measure their progress along the way.

The OKR system was introduced by Andy Grove at Intel and shared by John Doerr, the author. It helps teams and organizations define priorities and align their actions towards clearly stated results. By setting a few well-delineated goals and tracking progress with measurable outcomes, OKRs foster direction and collaboration.

Grove emphasized the importance of execution over knowledge in achieving success. Employees at Intel rallied behind OKRs like "become number one in the midrange processor market" and gauged their achievements through measurable results such as "win ten designs for the Intel 8085 microprocessor."

Examples

• Intel used OKRs to achieve 40% year-on-year growth during Grove’s tenure as CEO.
• Google adopted OKRs as a cornerstone of their culture, leading to innovations like Gmail.
• Remind, a small start-up, used OKRs to focus its efforts and scale to millions of users.

2. Fewer Goals Drive Greater Impact

Trying to achieve too many things at once can scatter focus and dilute effort. OKRs emphasize the importance of selecting only a small number of objectives at a time to maximize impact.

John Doerr recommends setting three to five objectives per quarter. This is enough to ensure that teams are ambitious without being overwhelmed. Each objective should be supported by three to five key results, measurable outcomes that indicate progress.

Brett Kopf, CEO of the education app Remind, used OKRs to prioritize efforts when his organization faced rapid growth. By focusing on a limited goal – increasing teacher engagement rather than building new features – the company maintained momentum and avoided distractions from its core mission.

Examples

• Remind shelved a user-requested feature to prioritize teacher engagement.
• Steve Jobs famously emphasized focus by saying, “Innovation means saying no to one thousand things.”
• Google co-founder Larry Page encouraged teams to “put more wood behind fewer arrows” to achieve extraordinary results.

3. Transparency Inspires Accountability and Motivation

When goals and progress are open for everyone to see, it promotes accountability and fosters commitment to shared success. Transparency is a cornerstone of the OKR process.

Transparency extends throughout the organization, from top-level company goals to individual team and personal OKRs. When everyone knows each other's objectives, alignment improves, and individuals feel motivated to contribute their best work. Publicly sharing progress boosts commitment, as people don’t want to let their peers down.

Google’s approach to transparency was a game-changer. By making OKRs accessible to all employees, the company encouraged collaboration and innovation. This also inspired projects like Gmail, developed by an engineer during their 20% personal project time, which connected to Google’s broader OKRs.

Examples

• Google’s engineers can use 20% of their time for self-initiated projects aligned to OKRs, producing projects like Gmail.
• MyFitnessPal’s leaders held quarterly meetings to ensure that department-level OKRs were aligned, enhancing collaboration across teams.
• Research indicates people are 43% more likely to achieve goals they share openly with others.

4. Regular Tracking Keeps Goals on Course

OKRs aren’t a “set it and forget it” system. Organizations must regularly monitor their progress to ensure they're on track and adjust when circumstances change.

John Doerr highlights the importance of setting quarterly OKRs and holding monthly check-ins. These sessions provide updates on progress, identify obstacles, and adapt key results or objectives if necessary. This dynamic process ensures relevance in fast-changing environments.

Google employs a color-coded system to track OKR progress: red (0.0-0.3) for no progress, yellow (0.4-0.6) for moderate progress, and green (0.7-1.0) for completed tasks. This grading clarifies where attention and effort need to be focused.

Examples

• Google holds monthly reviews where teams assess OKRs and use color-coding to evaluate progress.
• Intel once aimed to ship 500 processor samples but missed the mark slightly at 470, still earning a high 0.9 score under their OKR system.
• Remind abandoned an underperforming peer-to-peer payment feature mid-cycle, replacing it with a teacher-focused initiative that succeeded.

5. Stretch Goals Push Teams Beyond Comfort Zones

Stretch goals challenge teams to go beyond safe targets and aim for something extraordinary. They may not always be achieved, but they inspire innovation and drive higher performance.

At Google, OKRs are divided into two types: committed objectives and stretch goals. Committed objectives reflect essential tasks, while stretch goals test the limits of what’s possible. Teams are encouraged to aim high, knowing they might not hit 100%.

A vivid example is Chrome's ambitious stretch goal of 20 million weekly users by the end of 2008. The team fell short but reached the milestone a few months later. They pushed themselves further with successive stretch goals, ultimately making Chrome the dominant browser worldwide.

Examples

• Chrome’s team grew monthly users from zero to over a billion by persisting through stretch goals.
• NASA’s moon landing was a classic stretch goal that unified and energized the organization.
• Studies show that stretch goals enhance motivation and performance in employees.

6. Continuous Conversations Replace Annual Reviews

Annual performance reviews are time-consuming and often ineffective. Instead, continuous feedback and recognition help employees perform better and align with organizational goals.

John Doerr advocates for CFRs: Conversations, Feedback, and Recognition. Regular sessions between managers and employees foster real-time discussion about progress, obstacles, and adjustments. Moving away from static one-way reviews, CFRs create healthier and more productive workplaces.

Adobe replaced its traditional reviews with “check-ins” that promote open dialogue all year round. This change not only saved time but reduced unwanted resignations and boosted employee engagement.

Examples

• Adobe eliminated annual reviews in favor of regular check-ins, improving retention rates.
• Time-consuming reviews were shown to waste management resources, with Adobe's former process averaging 7.5 hours per employee.
• CFRs allow managers to align team goals quickly with evolving company priorities.

7. Alignment Combines Efforts Across Teams

Without alignment, even the best efforts can result in inefficiencies. OKRs ensure that individual and department goals connect to the organization’s top-level objectives.

An aligned workplace means that departments and individuals know who to collaborate with to achieve their goals. This cross-functional planning is vital in today’s interconnected environments. Alignment also respects autonomy by balancing top-down vision with bottom-up input.

At MyFitnessPal, quarterly OKR presentations at leadership meetings bridged the gaps between silos. Teams identified dependencies, ensuring that everyone pulled in the same direction.

Examples

• MyFitnessPal leaders held cross-departmental workshops to integrate OKRs.
• Google allows bottom-up contributions through its 20% time while ensuring alignment with corporate OKRs.
• Aligned OKRs at Intel guided employees to focus on core priorities like advancing new microprocessor designs.

8. OKRs Can Drive Innovation and Experimentation

The OKR system isn’t only for managing current priorities; it also creates space for new ideas to flourish. By focusing on ambitious outcomes, organizations can foster environments where creativity thrives.

The 20% time concept at Google encouraged employees to take ownership of innovative ideas. Similarly, stretch goals often lead to breakthroughs, as they demand fresh thinking and bold risk-taking.

Gmail, born out of Google’s experimental culture, is one example. Chrome’s sleek initial design, targeting effortless browsing, and subsequent stretch goals reflect this innovative spirit as well.

Examples

• Gmail emerged from a Google engineer’s 20% project exploring better email options.
• Stretch goal experiments at Chrome improved browsing speed and interface design.
• Intel’s OKR encouraging co-processors turned experimentation into a competitive edge.

9. OKRs Build Resilient Workplaces

By promoting focus, accountability, and transparency, OKRs help create workplaces where employees feel engaged and empowered. A healthy culture supports long-term organizational success.

OKRs encourage a shared sense of purpose and improve communication at all levels, promoting trust and collaboration. Employees become partners in success, not subordinates working in isolation.

Adobe’s adoption of CFRs, coupled with Google’s transparency principles, demonstrates how OKRs and open communication strengthen workplace culture and lead to better outcomes.

Examples

• Google’s workplace culture encourages shared accountability through transparent OKRs.
• Adobe’s check-in system fosters motivation and collaboration among its teams.
• MyFitnessPal used OKRs to coordinate its growth while maintaining cultural cohesion.

Takeaways

1. Limit your objectives to a maximum of five per quarter to ensure clear focus and achievable progress.
2. Hold regular progress check-ins to discuss OKRs, identify obstacles, and make real-time adjustments.
3. Use transparency to align teams and empower employees, fostering a culture of collaboration and motivation.