Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs

Annual performance reviews are a traditional method of evaluating employee performance on a yearly basis. Measure What Matters discusses the limitations of this approach and advocates for more continuous and dynamic methods, such as the use of OKRs, to ensure ongoing feedback and improvement.

With the bottom-up approach, in the context of the book, ideas, feedback, or initiatives originate from the lower levels of the organizational hierarchy and move upward. This approach—in contrast to cascading, which is a top-down approach—tends to foster innovation and engagement among employees. Doerr presents bottom-up goal setting as one way to use OKRs.

Doerr presents cascading, another method of utilizing OKRs, in contrast to bottom-up approach. In cascading, the top level of the organization defines OKRs, and then those OKRs “cascade” down the lower levels. Doerr provides an example of a fictional football team to illustrate this approach. In this example, the team owner sets the OKRs. Those key results become the objectives for the head coach. The head coach’s key results, in turn, become the objectives for the assistant coaches, and so on. Cascading can align individual, team, and departmental objectives with the overall organizational goals. It can ensure that the objectives at every level support and contribute to the success of higher-level objectives, creating a cohesive and integrated approach to goal setting. However, this approach can be overly hierarchical, rigid, and slow, leading to less engagement from lower-level employees.

CFR refers to a framework for continuous performance management, emphasizing ongoing conversations, feedback, and recognition as essential components of employee development. The book discusses CFR as a more dynamic alternative to traditional annual performance reviews.

Company culture, according to Doerr, refers to the shared values, beliefs, and behaviors within an organization. Measure What Matters highlights the importance of cultivating a culture that supports the effective implementation of OKRs, transparency, and a commitment to continuous improvement.

Continuous performance management, as advocated in the book, is a modern approach to managing employee performance that involves regular feedback, goal setting, and recognition. It contrasts with the traditional annual performance review model, promoting a more agile and adaptive process.

The Intel Trinity refers to three key leaders at Intel: Robert Noyce, Gordon Moore, and Andy Grove. They are referred to as the Intel Trinity due to their significant contributions to the growth and success of Intel as a company. Doerr focuses on Grove in the book, as Grove introduced OKRs and played a crucial role in implementing them at Intel.

Key results are specific, measurable outcomes that indicate progress toward achieving an objective. In the context of OKRs, they serve as the quantifiable benchmarks that determine the success of the set objectives: Key results “benchmark and monitor HOW we get to the objective” (7). The book emphasizes the importance of well-defined and ambitious key results: “Effective KRs are specific and time-bound, aggressive yet realistic. Most of all, they are measurable and verifiable” (7).

MBO, or management by objectives, is a management philosophy where organizational goals are collaboratively set and periodically reviewed. In discussing MBO in the historical context of goal-setting practices, Doerr contrasts it with the more dynamic and flexible OKR framework.

Objectives, in the context of OKRs, are the significant goals that an organization or individual aims to achieve: An objective “is simply WHAT is to be achieved, no more and no less” (7). They should provide a clear direction and purpose, guiding the efforts of teams and individuals toward desired outcomes. The book emphasizes that objectives must be challenging yet achievable: “By definition, objectives are significant, concrete, action oriented, and (ideally) inspirational” (7).

OKRs, or objectives and key results, comprise the goal-setting framework introduced in the book. Objectives are overarching goals, and key results are specific, measurable outcomes that indicate progress toward those objectives. OKRs are designed to align teams and individuals with organizational goals and drive performance. Doerr credits Andy Grove with coming up with the OKR framework while at Intel.

Operation Crush is a historical reference in the book, highlighting the implementation of the OKR system at Intel during a critical period. It showcases the effectiveness of the OKR methodology in aligning efforts, driving focus, and achieving significant results. Operation Crush was a campaign within Intel to crush the competition (Motorola) and dominate the market.

A stretch goal, as discussed in Measure What Matters, refers to an ambitious and challenging objective that goes beyond what is initially perceived as achievable. The concept encourages individuals and teams to strive for exceptional performance and innovation, pushing boundaries to reach new levels of success.