OKRs in a Scaled

Environment

Agile Boston

Don Blair

Date – 8/12/20

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Contents• Introduction to OKRs • OKRs in a Scaled Environment

o Overall Guidanceo OKRs in Spotify Modelo OKRs in SAFe Model

• Top 5 Coaching Tips• Q&A – 10 mins

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What is an OKR?OKR - Objective and Key Results

Objective - What is to be Achieved

Key Result - Benchmark to monitor how we get to the objective

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What is an OKR?Objective = What is to be Achieved

A good objective is

üSignificantüConcreteüAction Oriented üInspirational

Good Objectives are Outcomes not Outputs

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Key Result = benchmark to monitor how we get to the objective

A good key result is:

üSpecificüTime-bound üAggressive yet realisticüMeasurable and verifiable

Good Key Results are Outcomes not Outputs

Answers the question “How do we know what we did was successful?”

What is an OKR?

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Outcomes and Outputs

Outputs – things we do Example:

• Build a banking app for mobile phones

Outcomes – the benefits we hope the outputs will lead to.Examples:

• Increase customer satisfaction• Attract customers in areas far from a local branch

OKRs emphasize Outcomes to the extent possible

OKRs and Agile both focus on Value

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OKRPotential Benefits

• Better outcomes / larger impact

• High motivation, pursuit of greatness

• Focus

• Alignment

• Autonomy

• Fast Learning Cycles

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The Power of Public Goals

• OKRs are specific, measurable• OKRs are public• OKRs are often a stretch

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OKR CultureHealthy OKR culture consists of• Ruthless intellectual honesty• Disregard for self-interest• Deep allegiance to the team.

Warning: “Goals may cause systematic problems in organizations due to narrowed focus, unethical behavior, increased risk taking, decreased cooperation, and decreased motivation.” HBS paper “Goals gone Wild” – 2009

Antidote:• Make it about Learning• De-stigmatize failure• Make it about the Team

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We all know how to create outputs

It takes courage to sign up for outcomes you don’t fully have control over

It needs to be okay to fail

Too often, companies have focused on outputs while taking a huge risk – what are the intended outcomes? Will we achieve it?

Better to distribute this question throughout the organization

Courage

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OKRs in a Scaled Environment

OKRs can work with any Agile Scaling Framework

ü Spotify Model

ü Scaled Agile Framework (SAFe)

ü Scrum@Scale

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OKRs in a Scaled Environment –

Overall GuidanceRegardless of the scaling model, you need to think about the following at each level: ØOKR InputsØDrafting the OKRsØReviewing, Aligning, Finalizing the OKRsØTracking OKR ProgressØFinal Readout

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OKR InputsWhat will help to inform what objectives we should pick?Ø Mission & VisionØ StrategyØ OKRs from Higher & Lower LevelsØ Customer FeedbackØ Customer DataØ Stakeholder FeedbackØ Quality DataØ DependenciesØ Chapters, COEs

Provide everyone in the organization a default order to apply these

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Drafting the OKRs2 approaches:

Product Owner ApproachØ PO’s write the OKRsØ PO’s generally learn quicklyØ Efficient use of everyone’s time

Whole-Team ApproachØ Promotes whole-team ownershipØ Builds engagement

Tips

ü Be sure to get whole-team Feedbackü Emphasize Whole-Team Buy-inü Be transparent about ratio of customer

value / technical requirements. 80-20 is a good starting point.

ü Plan drafting workshops far in advanceü Be transparent about ratio of customer

value / technical requirements.ü Decide ahead of time if PO is the final

decision maker

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Reviewing, Aligning and Finalizing the OKRs

Once drafted, allow time to review and align OKRs upward / downwardCreate a public deadline to finalize all OKRsDon’t let them drag on

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OKR Monthly Checkin

Ø Track OKR Progress Monthly Ø Make OKRs part of every sprint planningØ Connect the dots between completed work and OKRs in every sprint

reviewØ Conduct OKR checkins at least once per month (every other sprint

review for 2w sprints works well) Ø Super helpful for leaders to show up

o Celebrate winso Share in disappointment over shortfalls

Ø Super helpful for stakeholders and customers to show up.

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OKR ReadoutØ Final OKR Readout at End of the QuarterØ Make sure leaders show up

o Celebrate winso Focus on learnings o Share in disappointment over shortfalls

Ø Super helpful for stakeholders and customers to show up.

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OKRs & Spotify Model

LevelsEnterpriseTribeSquad

At each level, we need: Ø OKR Inputs

Ø Drafting the OKRs

Ø Reviewing, Aligning, Finalizing the OKRs

Ø OKR Monthly Checkin

Ø OKR Readout

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OKRs & Spotify Model

Ø Sample OKR cycle for end of the quarter

Level Week 8 Week 9 Week 10 Week 11 Week 12 Week 13

Enterprise Collect OKR Inputs

Draft, Review, Align OKRs

OKR Readout Qn-1

OKR Plan Qn

Tribe Collect OKR Inputs

Draft, Review, Align OKRs

OKR Readout Qn-1

OKR Plan Qn

Squad Collect OKR Inputs

Draft, Review, Align OKRs

OKR Readout Qn-1

OKR Plan Qn

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OKRs & Spotify Model

1 2 3 4 5 6 7 8 9 10 11 12 13Ent checkin checkin readout

Tribe checkin checkin readout

Squad checkin checkin readout

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OKRs & Spotify Model

At the tribe level, you want to make the most important work of the tribe visible in the tribe OKRs.

How interrelated is the work of the squads within the tribe?

Highly Interrelated:• Work tends to flow down• Need to plan dependencies &

integration points up front• Easier to make most important

work visible at the tribe level

Mostly Independent:• Takes more work to figure out

how to make the most important work of the tribe visible.

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OKRs & Spotify Model

Although not mandatory, it’s desirable for the most important work of all squads to be visible n the tribe OKRs.

When squads are Mostly Independent:

Approach 1: Elevate most important squad OKRs to tribe level

Approach 2: use KRs to span squadsTribe Objective: A thriving tribe where squads are more successful, happy and healthy

KR1: Milk Duds to move from Shu to Ha

KR2: Kit Kats to increase Celebration from 5 to 6 on the team health survey

KR3: Jolly Ranchers to consolidate squad in one timezone

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OKRs and SAFe

LevelsPortolio

Solution TrainAgile Release Train (ART)

Squad

At each level, we need: Ø OKR Inputs

Ø Drafting the OKRs

Ø Reviewing, Aligning, Finalizing the OKRs

Ø OKR Monthly Checkin

Ø OKR Readout

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OKRs and SAFe

OKRs were added at the Theme Level in SAFe 5.0Beyond that, OKRs are not part of the SAFe framework (yet!) The following diagram shows how you can add SAFe at the Solution Train, ART and squad level.

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OKRs and SAFePortfolio Mission & Vision

Strategy

Solution Train

Release Train

Squad

PI Plan / Program Board

Squad OKRs

Portfolio Strategic Goals

Solution Train OKRs

Release Train OKRs

Squad Backlog

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OKRs and SAFe

If y

ou h

ave

an In

nova

tion

& P

lann

ing

(IP)

Iter

atio

n: Solution

Train OKRs Readout Qn-1

Drafting Qn

ART OKRsReadout Qn-1

Drafting Qn

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OKRs and SAFe

Squad OKRsReadout Qn-1

Drafting Qn

Finalize OKRs for Solution Train, ART,

Squads

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Top 5 Coaching Tips

#5 - Get feedback on OKRs• Better outcomes / larger impact• High motivation, pursuit of greatness• Focus• Alignment • Autonomy• Fast Learning Cycles

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Top 5 Coaching Tips

#4 - What if people complain about “Too much process”?“To run a business, we need the following on at least a quarterly basis:1. Goal setting so that we know where we are investing our time and money.2. Alignment within and across squads and tribes.3. Alignment with stakeholders.4. Focus on outcomes over outputs as much as possible to make sure we are providing value, not just doing stuff.5. Visibility and Accountability for results.6. Some level of consistency across T&D What are your ideas for how to meet these outcomes?”

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Top 5 Coaching Tips

#3 - OKR Drafting Tips• Use outside OKR mentors• Timebox 45 minutes per OKR• Don’t overdo outcomes versus outputs

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Top 5 Coaching Tips

#2 - Cross-team review

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Top 5 Coaching Tips

#1 - Leadership buy-in• Leaders need to be vested in the process• Leaders need to show up for the monthly checkins and readouts.• Share in enthusiasm on the wins• Share in a bit of hand wringing on the misses• Make it safe to fail.

Thank You

Don BlairLinkedInhttp://www.linkedin.com/in/donblair10

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References

Best 2 resources I have found on OKRs:• Measure what Matters – John Doerr• OKRs at the Center – Hellesoe & Mewes

John Doerr

“OKRs are a management methodology that helps to ensure that the company focuses efforts on the same important issues throughout the organization”