What happens after OKRs are set?
What happens after OKRs are set?
What happens after OKRs are set?
Mark Smith
Apr 11, 2024
Rhythms
Setting OKRs (Objectives and Key Results) is a crucial step towards achieving your goals, but it's just the beginning of the journey. Many organizations struggle with the question, "What should we do now?" after setting their OKRs. The answer lies in a powerful framework called Results Science.
The Methodology of Top-Performing Teams
After studying over 50 high-performing teams who consistently crush their OKRs cycle after cycle, a common thread was discovered - they all utilize a deliberate framework for achieving their goals. These top-performing teams don't just set OKRs and then hope hard work alone gets them there. Nor do they operate completely ad-hoc without any real plan of attack. Instead, elite teams follow a structured methodology called Results Science.
The Foundations of Results Science
Results Science draws inspiration from sources across business and beyond. It applies the rigor of the scientific method - the framework that has powered humanity's greatest achievements like developing life-saving vaccines, building architectural marvels, and sending rockets into space. It also incorporates modern product development practices like Agile, Scrum, and Shape Up that fuel today's most innovative companies. And it pulls in continuous improvement philosophies like The Toyota Way and Total Quality Control.
The Core Principle - Changing How Work Gets Done
The core principle behind Results Science is that achieving breakthrough results requires more than just effort - it requires a fundamental change in how work gets done. Working harder or putting in more hours provides diminishing returns. To truly level up, teams need to attack their OKRs in a smarter, more deliberate fashion.
The Results Achievement Cycle
The centerpiece of Results Science is the Results Achievement Cycle (RAC), an iterative 3-step process:
Analysis, Hypothesis Formation, and Action Planning
Execution
Monitoring and Reflection
An Example in Action
Let's explore these steps using a hypothetical example of a B2B software company looking to improve its sales performance.
The first step is to set OKRs, which should align with the organization's mission, strategy, and milestones. In this case, the company sets an objective for the VP of Sales to "Improve MRR sales per AE" and a key result targeting an increase in the average new MRR booked from contracts signed per account executive (AE) from $10,000 to $12,000.
Once the OKR is set, the RAC begins. The second step involves a thorough analysis of the problem by breaking down the desired result into a KPI tree. This process helps identify the drivers and upstream metrics that contribute to the overall result. In our example, the KPI tree reveals that the number of deals closed and the price per deal for each AE are significant factors.
After analyzing the KPI tree, the team selects the most promising areas for improvement. In this case, they focus on two issues: low conversion rates between proposals sent and deals signed for middle-market AEs, and steeper-than-average discounts given by midwest-based SMB AEs.
The next step is to form a working hypothesis and develop an action plan. The VP of Sales hypothesizes that providing negotiation training to AEs and improving the lead qualification process performed by the sales development team will help achieve the OKR.
The action plan consists of a series of changes to current processes that are believed to improve results. In this example, the VP of Sales plans to shadow AEs during pricing negotiations, develop a negotiation training session, and collaborate with marketing to review the sales development process.
With the action plan in place, the execution and monitoring phases begin. The VP of Sales implements the plan and tracks the key results to assess progress. If the desired results are achieved, the changes are incorporated into the AEs' standard processes. If not, the VP of Sales reflects on the reasons and may need to revise the action plan or working hypothesis.
Unlocking OKR Success
Setting ambitious OKRs is critical for teams aiming high. But having great OKRs alone isn't enough - you need an actual game plan for achieving them. That's where the Results Science framework shines. By combining rigorous analysis, iterative execution, and continuous improvement philosophies, Results Science provides the strategic operating system for elite teams to consistently crush their most audacious goals.
Inspired from book "OKRs, From Mission to Metrics"
Setting OKRs (Objectives and Key Results) is a crucial step towards achieving your goals, but it's just the beginning of the journey. Many organizations struggle with the question, "What should we do now?" after setting their OKRs. The answer lies in a powerful framework called Results Science.
The Methodology of Top-Performing Teams
After studying over 50 high-performing teams who consistently crush their OKRs cycle after cycle, a common thread was discovered - they all utilize a deliberate framework for achieving their goals. These top-performing teams don't just set OKRs and then hope hard work alone gets them there. Nor do they operate completely ad-hoc without any real plan of attack. Instead, elite teams follow a structured methodology called Results Science.
The Foundations of Results Science
Results Science draws inspiration from sources across business and beyond. It applies the rigor of the scientific method - the framework that has powered humanity's greatest achievements like developing life-saving vaccines, building architectural marvels, and sending rockets into space. It also incorporates modern product development practices like Agile, Scrum, and Shape Up that fuel today's most innovative companies. And it pulls in continuous improvement philosophies like The Toyota Way and Total Quality Control.
The Core Principle - Changing How Work Gets Done
The core principle behind Results Science is that achieving breakthrough results requires more than just effort - it requires a fundamental change in how work gets done. Working harder or putting in more hours provides diminishing returns. To truly level up, teams need to attack their OKRs in a smarter, more deliberate fashion.
The Results Achievement Cycle
The centerpiece of Results Science is the Results Achievement Cycle (RAC), an iterative 3-step process:
Analysis, Hypothesis Formation, and Action Planning
Execution
Monitoring and Reflection
An Example in Action
Let's explore these steps using a hypothetical example of a B2B software company looking to improve its sales performance.
The first step is to set OKRs, which should align with the organization's mission, strategy, and milestones. In this case, the company sets an objective for the VP of Sales to "Improve MRR sales per AE" and a key result targeting an increase in the average new MRR booked from contracts signed per account executive (AE) from $10,000 to $12,000.
Once the OKR is set, the RAC begins. The second step involves a thorough analysis of the problem by breaking down the desired result into a KPI tree. This process helps identify the drivers and upstream metrics that contribute to the overall result. In our example, the KPI tree reveals that the number of deals closed and the price per deal for each AE are significant factors.
After analyzing the KPI tree, the team selects the most promising areas for improvement. In this case, they focus on two issues: low conversion rates between proposals sent and deals signed for middle-market AEs, and steeper-than-average discounts given by midwest-based SMB AEs.
The next step is to form a working hypothesis and develop an action plan. The VP of Sales hypothesizes that providing negotiation training to AEs and improving the lead qualification process performed by the sales development team will help achieve the OKR.
The action plan consists of a series of changes to current processes that are believed to improve results. In this example, the VP of Sales plans to shadow AEs during pricing negotiations, develop a negotiation training session, and collaborate with marketing to review the sales development process.
With the action plan in place, the execution and monitoring phases begin. The VP of Sales implements the plan and tracks the key results to assess progress. If the desired results are achieved, the changes are incorporated into the AEs' standard processes. If not, the VP of Sales reflects on the reasons and may need to revise the action plan or working hypothesis.
Unlocking OKR Success
Setting ambitious OKRs is critical for teams aiming high. But having great OKRs alone isn't enough - you need an actual game plan for achieving them. That's where the Results Science framework shines. By combining rigorous analysis, iterative execution, and continuous improvement philosophies, Results Science provides the strategic operating system for elite teams to consistently crush their most audacious goals.
Inspired from book "OKRs, From Mission to Metrics"