⚙️ Ops Playbook #53

Hi Operators ⚙️

Q3's finish line is on the horizon, and if you're like me, you're drowning in a sea of goal-setting spreadsheets and "urgent" Slack messages.

But before you copy-paste last quarter's targets and call it a day, let's talk about a goal-setting framework that reliably moves the needle for all sizes of companies: OKRs.

Grab your favorite caffeinated beverage and buckle up.

Here's what we've got going on:

• A Brief History of OKRs → Let’s take a trip down memory lane…

• When OKRs Might Not Be A Good Fit → Don’t buy-in just for the hype!

• How to Implement OKRs → The A-Z of getting started.

Ready? Let’s dive in 👇

P.S. Building a business can be lonely. Let’s connect on Linkedin

I had extra free time so I made 11 templates to help you scale your business.

They include:

• Workspace Template

• Company Messaging Template

• Operating Principles Template

• Eisenhower Matrix

• OKRs Template

• Agenda Template

• Employee Value Proposition Template

• Process Mapping Document

• SOP Starter Kit

• Business Plan Template

• SOP Template

Interested in getting these? You can get all of these for as low as $10.

Check them out for here.  

Operator’s Library

• OKRs are essential for startups – not just Google and Amazon (Matt Munson) 

• What not to do when creating OKRs (FounderJar)

• This OKR plan promises to work for 93% of startups (Sten)

• Try this ops OKR for improving contract management (plus 11 more examples) (People Managing People)

• The top reason to use OKRs is to streamline operational efficiency (Aragon Research)

I. A Brief History of OKRs

Insight from People Logic

Alright, history buffs, gather 'round 🏕️

Before we dive into the deep end, let's take a quick trip down memory lane.

Our story begins in 1954 with Peter Drucker, the OG of modern management. Drucker looked at the suits running companies and thought, "These folks need a system." 

He noticed managers getting caught in what he called the "activity trap" - busy being busy, but not actually moving the needle (sound familiar? 😬)

Enter MBO: Management by Objectives. 

Revolutionary for its time, MBO was all about setting clear goals and getting everyone on the same page. Groundbreaking stuff in the 50s, even if it sounds like Management 101 today.

But MBO had some growing pains. Turns out, when you tell people to hit targets without considering the ‘how’, you get a lot of miscommunication and corner-cutting. Not exactly a recipe for quality work or happy employees.

Fast forward to the 1970s. Andy Grove, Intel's CEO, took Drucker's MBO and gave it a Silicon Valley ✨ glow-up ✨

He added "Key Results" to the mix, and voila - OKRs were born. 

The big idea? Measure progress, not just outcomes.

Now, OKRs might not have gained the notoriety they have today if not for John Doerr, a very prolific VC at Kleiner Perkins. In 1999, Doerr introduced OKRs to a little startup called Google (maybe you've heard of them?).

Google took OKRs and ran with them, crediting the framework for their "10x growth, many times over." They even tweaked the system, shortening planning cycles to quarters to keep up with the breakneck pace of innovation.

Post-Google, OKRs spread faster than a viral TikTok dance. 

Airbnb, LinkedIn, Spotify, Netflix - the cool kids of tech all jumped on the OKR bandwagon, and each put their own spin on it (Spotify, for instance, ditched individual OKRs faster than you can say "Wrapped").

Learn more: 10 proven tips for creating more effective OKRs

II. When OKRs Might Not Be A Good Fit

Insight from SVPG

Now, before you rush off to implement OKRs, remember: the framework itself isn't a magic wand. 

It’s a tool, and like any tool, it’s only useful if you wield it correctly.

OKRs might not fit well with your company & culture if:

1. Your Teams Are Feature-Focused: If your org chart looks like a bunch of silos dedicated to churning out features, OKRs might feel like trying to fit a square peg in a round hole. OKRs thrive in environments where teams are empowered to solve problems, not just build features.
   

2. You've Got a Hierarchy of Objectives: Is each manager in your cross-functional team handing down their own set of objectives? OKRs work best when the whole team is rallying around shared goals.
   

3. Your Leadership Style is Hands-Off: If your leadership thinks OKRs mean they can set it and forget it, you're in for a bumpy ride. Effective OKRs need engaged leaders who provide direction without micromanaging.

The sexy success stories didn’t blow up because of OKRs – they use OKRs because they already have empowered product teams and engaged leadership in their DNA.

Before you jump on the OKR bandwagon, take a good, hard look at your own company's DNA. 

You might need to do some remodeling first 🛠️

Learn more: Examples of cascading OKRs

III. How to Implement OKRs

Insight from Frankli

Alright, let’s say your culture and company are good fits, and you've decided to take the plunge.

Let's break down how to implement:

Step 1: Set the Stage

Appoint an OKR Champion. Educate your leadership team on OKRs (no, watching a TED talk doesn't count), and kick things off with a comprehensive review of your company strategy – it's your North Star for this journey.

Step 2: Craft Your OKRs

Start at the top. Work with leadership to nail down 1-3 company-wide objectives that align with your mission. Break these into quarterly goals – because a year in startup time is like a decade in the real world.

From there, let the cascade begin. Departments create OKRs supporting company goals, teams align with departments, and individuals contribute to team goals. 

It's a Russian nesting doll of productivity 🪆

Step 3: Make It Stick

Choose your OKR software wisely – it's the digital home for your goals, not just another app to ignore. Set your cadence: annual for company, quarterly for teams and individuals. Establish weekly check-ins because what gets measured, gets managed.

Step 4: Monitor and Evolve

Track progress like a hawk. Hold quarterly reviews that people don't dread. Gather feedback like it's going out of style. Find out what's working and what's making people want to pull their hair out. Then, refine your process.

The Secret Sauce 👇

1. Keep it simple: Focus on clear, concise objectives that everyone can understand and rally behind.

2. Quality over quantity: Two great OKRs beat five mediocre ones any day.

3. Make them ambitious but achievable: There's a fine line between stretching and snapping.

4. Align, align, align: Your OKRs should fit together like a well-oiled machine, not a jumble of spare parts.

5. Transparency is key: Make OKRs visible across the organization to foster accountability and collaboration.

6. Celebrate progress: Hit a key result? Time for a victory lap (or at least a gif in the Slack channel 🎉).

Implementing OKRs is an iterative process. Expect to refine your approach over time as you learn what works best for your organization. 

Remember, the goal is continuous improvement, not perfection from day one 👍

Learn more: Another comprehensive guide to OKRs

How am I doing? 👋

I take all feedback I receive to heart. Keep it coming! Just hit reply and let me know – I'd love to hear from you!

Cheers,

Rameel from The Bottleneck

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