“Measure What Matters” by John Doerr

Introduction

“Measure What Matters” by John Doerr introduces the concept of Objectives and Key Results (OKRs), a goal-setting framework that has transformed many leading organizations by improving alignment, focus, and accountability. The book draws on Doerr’s extensive experience as a venture capitalist and advisor to illustrate how OKRs can drive exceptional performance and growth.

The OKR Framework

OKRs consist of two components:

  1. Objectives: These are what you want to achieve. Objectives should be significant, concrete, action-oriented, and inspirational. They answer the question: “Where do we want to go?”
  2. Key Results: These are the specific and measurable steps that will lead to the achievement of the objective. They answer the question: “How do we know if we are getting there?”

For example, Google’s early objective was to “organize the world’s information and make it universally accessible and useful.” Key results included measures like “achieve 10 million searches per day” and “index 100 million web pages.”

The Power of OKRs

Doerr illustrates the power of OKRs through several case studies:

  1. Google: When Doerr introduced OKRs to Google in 1999, the company was a small startup with a big mission. By setting clear objectives and key results, Google was able to maintain focus and alignment as it scaled. One key objective was to “develop the best search engine.” Key results included achieving high relevance in search results and improving user experience.
  2. Intel: At Intel, OKRs helped the company transition from memory chips to microprocessors. The clear, measurable goals provided a framework for the company to innovate and stay ahead of competitors. For instance, an objective to “lead the market in microprocessor performance” was supported by key results like “achieve a 50% performance increase in the next generation chip.”
  3. The Gates Foundation: OKRs have also been used outside of the tech industry. The Gates Foundation applied OKRs to tackle global health challenges. For example, their objective to “eradicate malaria” included key results like “reduce malaria-related deaths by 50% in the next decade” and “develop and distribute a malaria vaccine.”

The Benefits of OKRs

Doerr outlines several benefits of using OKRs:

  1. Focus and Commitment: OKRs force organizations to prioritize and concentrate on what truly matters. By limiting the number of objectives, teams can direct their efforts towards the most critical goals. For example, when Bono’s ONE Campaign adopted OKRs, they focused on eradicating extreme poverty and preventable disease, leading to targeted and effective advocacy efforts.
  2. Alignment and Connection: OKRs ensure that all levels of the organization are aligned towards common goals. This alignment fosters collaboration and synergy. At LinkedIn, CEO Jeff Weiner used OKRs to align the company’s vision of “creating economic opportunity for every member of the global workforce” with specific departmental goals.
  3. Tracking and Accountability: Regularly reviewing OKRs keeps teams accountable and allows for course correction. Transparent tracking ensures that progress is visible and measurable. Adobe’s shift to a continuous performance management system with OKRs resulted in more frequent feedback and better employee engagement.
  4. Stretch Goals: OKRs encourage ambitious goal-setting. Stretch goals push organizations to achieve more than they thought possible. At Google, ambitious OKRs led to the development of groundbreaking projects like Google Chrome and Android.

Implementing OKRs

Doerr provides practical advice for implementing OKRs:

  1. Start Small: Begin with a pilot program in one department or team to test and refine the process. When Zynga first implemented OKRs, they started with a small team before scaling across the company.
  2. Ensure Leadership Buy-In: Leadership commitment is crucial for successful OKR adoption. Leaders must champion the process and model the behavior. When Bill Gates adopted OKRs at the Gates Foundation, his involvement signaled their importance to the entire organization.
  3. Set and Track Regularly: Establish a regular cadence for setting, reviewing, and adjusting OKRs. This could be quarterly or annually. Intuit’s practice of quarterly OKR reviews helps them stay agile and responsive to changes in the market.
  4. Be Transparent: Make OKRs visible to the entire organization. Transparency fosters trust and encourages collaboration. At Google, all employees can see each other’s OKRs, which helps in aligning efforts and recognizing contributions.
  5. Encourage Feedback and Learning: Use OKRs as a tool for continuous improvement. Regular feedback and reflection help teams learn from successes and failures. At Intuit, post-mortem reviews of OKRs have led to valuable insights and better goal-setting practices.

Concrete Examples

  1. Google Chrome: One of Google’s ambitious OKRs was to create a fast, secure, and versatile web browser. The objective was to “create the best web browser in the world.” Key results included “achieve a market share of 20% within five years” and “load web pages 50% faster than competitors.” This led to the development of Google Chrome, which has become the dominant web browser globally.
  2. YouTube: Google’s acquisition of YouTube came with the objective to “become the leading video platform.” Key results included “increase daily views to 1 billion” and “achieve 100 hours of video uploaded per minute.” These clear metrics guided YouTube’s growth strategy and contributed to its massive success.
  3. Intel’s Transition: Intel’s shift from memory chips to microprocessors was guided by OKRs. An objective was to “become the leader in microprocessors.” Key results included “develop the 386 chip within the next two years” and “achieve 80% market share in the PC segment.” This strategic focus allowed Intel to dominate the microprocessor market.

Conclusion

“Measure What Matters” underscores the transformative power of OKRs in driving focus, alignment, and performance. By setting clear objectives and measurable key results, organizations can achieve ambitious goals and maintain agility in a rapidly changing environment. Through concrete examples from industry leaders like Google, Intel, and the Gates Foundation, John Doerr demonstrates how OKRs can unlock potential and drive exceptional results.

This summary captures the essence of “Measure What Matters” and illustrates its practical application with numerous real-world examples, making it an invaluable guide for leaders and teams aiming to achieve extraordinary performance.