The Executive Study Group (ESG) online seminar named “Team Execution
Power 2.0 – How Google Uses OKRs to “Focus” and Boost Team Performances” was
held by the ESG, Asia Pacific Institute for Strategy Limited (APIFS) on 26th
Feb 2021. In the beginning, Dr. Mark
Lee briefed the background, history and goal of Asia Pacific Institute for
Strategy Limited (APIFS).
Then he introduced different entrepreneur partners during Covid-19
period and published different research report for sharing. Starting the talk, Dr. Mark Lee briefed the
content included Google’s Dilemma, Objectives and Key Results (OKRs), OKRs vs
KPIs (Key Performance Indicators) and 7 Way to Focus and Commit to Priorities.
Firstly, Dr. Mark Lee briefed the problem Google met in 2001 when they were
growth upto 400 employees. The founders would like to remove the middle management
layer that was very risky. They believed engineers could self-organize. But
employee feedback that they would like to be managed.
Then Dr. Lee asked us "Would Google's no management layer
experiment succeed?" There is normal distribution (bell shape).
And then Dr. Lee told us that John Doerr (VC) was one of board director
in Google who suggested to use OKRs.
John Doerr shared his experience who learnt from Andrew Grove (Former
CEO, Intel) that “Priority is key for the change” and he believed that “management
by objective” was useful for startup.
Then Google adopted OKRs and made it highly transparency. Every staff understood the company OKRs,
teams OKRs and personal OKRs. “Top
management mainly gave directions and other members set their own OKRs” said by
Dr. Lee.
After that Dr. Mark Lee compared KPIs and OKRs under stable environment
and unstable markets respectively. The
last item is critical that depends on company risk averse or aggressive &
aspirational!
Dr. Lee asked a poll that “To what extent are your compensations linked
to your KPIs performance?” Most of us replied “Relevant”.
Finally, Dr. Lee briefed
the 7 way to focus and commit to priorities and they were:
1. Start with your Purpose
2. Listen to the Frontlines
3. Publish Your Own Goals
4. Communicate Priorities with Rationale
5. Set
Challenging and Measurable Results
6. Shorten Review Period
7. Pair Quantity and Quality
He also briefed the dual direction approach for implementing OKRs.
After that poll 3 asked us “How receptive is your company to frontline
staff’s ideas?” Most of audience voted “Receptive”.
Dr. Lee also quoted Bill Campbell about CEO / founder should say that “This
is what we’re doing”, and then CEO/founder have to model it.
Then poll 4 asked “How transparent can you see your supervisor’s
personal goals and results?” The highest rating was “Ambiguous”, indicating
that most of management without shared their own KPI.
And then poll 5 was “How challenges are your performance goals?” It is
not surprised that most selected difficult and very difficult goals.
Lastly, Dr. Lee introduced “Pair Quantity and Quality” in OKRs. He said usually each objective had three key
results. One of key results could be set
related to quality.
At the end, the last poll was “Which strategy is the most inspiring to
you?” It was quite even distributed and
the highest vote was “Communicate Priorities with Rationale”.
The next seminar in Mar related to Netflix.
Reference:
Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org
ESG facebook - https://www.facebook.com/groups/esg08
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