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Why OKRs are Displacing Traditional Product Road-Maps and Formal Innovation Process

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Brad Murphy, Founder, CEO brad.murphy@gearstream.com @BradAMurphy

Copyright Gear Stream© 2010-2017


Introduction

Brad Murphy

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Founder / CEO Gear Stream Software & Product Innovator Digital Transformation Strategist Lean-Agile Scaling Expert Serial Entrepreneur Organizational Futurist

https://www.linkedin.com/in/bradallenmurphy @BradAMurphy

Copyright Gear Stream© 2010-2017


Transforming Enterprise for Continuous Digital Innovation

Brad Murphy

SURGE

Dr. Carol Mase

September 1st, 2017, Copyright Gear StreamŠ 2010-2017


Context Matters: Large Enterprise IT and R&D


UX

Tech

Product Management & Innovation Live Here

Business


Product Innovation / Life-Cycle New Offering

New Offering

New Offering


Product Innovation / Life-Cycle New Offering

New Offering

New Offering

Market / Problem Discovery


Product Innovation / Life-Cycle New Offering

New Offering

New Offering

The Sweet Spot For OKR Innovation


At Scale, Enterprise PM Is Extraordinarily Complex


Would You Drive Global Innovation w/a Process?


Companies (and Economies) are Complex Systems The Root Cause / Behaviors of Biological Obesity are SIMPLE

The nested, complex influences That promote the behaviors Associated with Obesity are COMPLEX


Recent Digital Innovation Advances Product Discovery

Product Delivery

Deciding what to build

Building it

Agile Lean Start-Up Product RoadMaps

Goal: Ship fast Annual Releases Quarterly Releases Monthly Releases Weekly Releases Daily Releases Continuous Integration


“ A roadmap is a plan, at its very best and a dream at Its worst KARTHIC @kartvee


“

For great product teams, a compelling product vision and a good set of OKRs are better than a product roadmap MARTY @cagan


“ Roadmaps are a lie… LAURA

@lauraklein


Why The Recent Trend To Disparage Product RoadMaps?

The Human Psychology of Planning


1

RoadMaps: Sell the Future over Innovating the Present


2

RoadMaps: Discourage Pivots from Original Plan


3

RoadMaps: Encourage Premature Convergence on Solutions


4

RoadMaps: Encourage Group Think


5

RoadMaps: Discourage Experimentation


6

RoadMaps: Encourage Emphasis on Company Goals over Customer Goals


7

RoadMaps: Make Your Entire Workforce Dumb


It’s NOT just RoadMaps.. Agile and Its Resulting Cult Culture Is Also to Blame Working software

is the primary measure of progress


Enter OKRs


But First

When used effectively, OKRs are an emerging framework for influencing broad product and service innovation in large complex organizations


But First

When used effectively, OKRs are an emerging framework for influencing broad product and service innovation in large complex organizations


Vladis Krebs – Social Physics and Innovation

What you know and understand depends a lot on who you know which depends a lot on what you know which depends a lot on who you know.. If you stay within the confines of your immediate network, who you know remains fairly constant and self-selected. Your chances of learning something new or understanding something differently from the conversations you have with others (‘happy accidents’) is reduced, perhaps not zero, but not high. It’s when you venture outside the circle of your network, your knowledge, expands you ‘know’ more and ‘see’ differently through conversation with more people. This learning perpetuates a continuous and regular stream of “a-ha” insights that are the fuel of innovation.


We’ve Reinvented Silicon Valley Style OKRs For High Growth and Large Enterprise Brad Murphy

Ben Lamorte

Ben Ross

OKR Practitioner San Francisco

GM – UX & Product MYOB Australia

Felipe Castro Agile OKR Coach - Brazil

Mary Cagan Product Management Author / Consultant


OKRs: Objectives and Key Results • OKRs are an agile innovation and performance management framework Invented at Intel and adopted by Google in 1999. • Used by Intel, Oracle, LinkedIn, Twitter, Dropbox, Dow Jones, Huawei, ServiceMaster, Zalando and others… • OKRs foster the ideal balance between strategic corporate outcomes, autonomy for teams to make “local decisions”, and constraint’s that force teams to deliver “impossible” outcomes by stepping outside their current paradigm.


OKR: Taxonomy Goals – Reflecting Company Strategy • Leadership Translates Strategy into small number of Concrete, Ambitions Company Goals - Typically 1 year horizon Objectives - Defined by Teams at all levels of Organization • Mapped Directly to Company Goals • Aspirational, Memorable, Qualitative Key Results - Outcomes - “the Magic” • 2-5 Key Resutls per Objective, Per Team • Quantitative, Empirical and Measurable


OKR: Example Strategy: Be the Dominant Provider of Mobile Logistics Solutions to the Global Automotive Industry Goal:

Grow Market Share from 32% to 40%

Objective:

Improve Customer Delight

Key Result : Moon Shot Example • Increase Net Promoter from 5.2 to 9 • Reduce new revenue account churn from 10% to 1% • Increase engagement (users that complete a full profile) From 60% to 99%.


What is unique about OKRs? • Promote Execution Agility By avoiding a focus on features (or deliverables) every level and team of the organization is challenged to find the most creative and effective ways to achieve the Key Result commitment.

• Foster Autonomy with Strategic Accountability Teams have both the freedom to define both their own Key Results and the accountability to find the very best way to achieve the Key Result. • Amplifies Creativity, Inclusion and Diversity The entire company is innovating, yet free to explore infinite possibilities for how best to influence the Key Result.


What is unique about OKRs from Traditional Goal Setting and Alignment? • We Cascade Strategic Intent and Waypoint Objectives, NOT Features

OKRs uses a market-based approach to both innovation and alignment that simultaneously bottom-up and top-down, creating horizontal alignment between teams and rooting out friction between horizontal silo’s 60% of the OKRs are set bottom-up, defined by the teams and aligned with the company goals.


What is unique about OKRs? • Teams are Taught to Define Key Results in Three Flavour's: 1.0 = Seemingly Impossible – “Moon Shot” 0.7 = Very Difficult – “Grand Slam” 0.3 = A Solid Result, but not a Game Changer


How OKRs Foster an Innovation and Performance Culture


1 Focuses entire company on crafting and prioritizing product and service attributes that maximize impact on company goals and strategy


2 OKRs amplify focus and cooperation on over achievement against priorities that matter most to the company


2 OKRs amplify focus and cooperation Moon Shot Key Results aren’t given visibility or support onlevel over achievement against unless they are accompanied with priorities that matter most to the pre-negotiated horizontal organizational commitments company Example:


Remember our Complex Product Ecosystem?


Ecosystem Begins Linking Vertically & Horizontally


3 Shift Company Value System and Culture from Deliverables to Outcomes


4 OKRs amplify creativity, autonomy, diversity and inclusion


“ “OKRs help Reframe the situation from output (features on roadmaps) to outcome (business results).” Marty Cagan, Silicon Valley Product Group


“If a teams feature idea doesn’t speak directly to one of the top Key Results of the company, it’s generally off the list.”

Marty Cagan, Silicon Valley Product Group


Customer Value Pyramid

WTF is Value? The presence and effectiveness of these Value Elements in a product or service is how our Customers experience Innovation.


Customer Value Pyramid

300% NPS Company Advantage - 4 or More Value Elements* - - NPS for Individual Elements

400% Company $$ Growth Advantage - 4 or More Value Elements

Digital 1st Mover Myth - Share goes to goes to hyper Value Bundlers, not 1st movers - - 8+ Value Elements orMore


Q&A Why OKRs are Displacing Traditional Product Road-Maps and Formal Innovation Process Copyright Gear StreamŠ 2010-2017

Brad murphy why okrs are displacing traditional product road maps and formal innovation process  
Brad murphy why okrs are displacing traditional product road maps and formal innovation process  
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