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Performance Monitoring

Learn From The Best: This System Helps Google Measure Their Success

Setting goals within a company is easy. Communicating these goals effectively and measuring the extent to which they have been attained is not nearly as easy, though. That’s why Google uses Objectives and Key Results.

GG van Rooyen

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During the (very) early days of Google, ex-Intel employee John Doerr introduced the young company to a management system called Objectives and Key Results — OKRs for short.

Rise of the OKR

“Kleiner Perkins had just invested in Google, and as a strong advocate of OKRs, I offered to introduce the OKR system to Larry, Sergey, and the leadership team,” recalls Doerr. “The entire company was standing around a Ping-Pong table and I walked them through the goals, benefits and implementation details of OKRs. Larry and Sergey saw the value immediately.

“They liked the idea of having a quarterly set of priorities for the company. It took a couple of iterations, but we figured out the right cadence and model and to this day, Larry writes his own personal OKRs and Google’s corporate OKRs every quarter. In my experience, this is a trial-and-error process and it usually takes a company one to two quarters to figure out.”

The concept wasn’t new, not even during the early days of Google. In fact, it had been around since the 1970s. Intel COO and business legend Andy Grove was looking for a way to improve focus within the organisation. How could he keep all employees accountable and focused on the same goals.

The answer was a new system called Objectives and Key Results, which had been created inside the organisation. It was a great success and many prominent business people became huge fans of it (including John Doerr), but it was really when Google started using it that it truly gained widespread appeal. Google, after all, is seen by many as the Platonic Ideal of the modern organisation.

Related: 5 Inexpensive Ways to Create a Company Culture Like Google’s

Basics of the OKR

So what are Objectives and Key Results exactly? There is nothing particularly novel or groundbreaking about the system, but it packages typical management ideas in a way that makes them accessible and measurable.

Here’s how it works. Around five objectives are selected every quarter (the timeframe is important), and each objective is given a set of ‘key results’ that are measurable and can be scored.

So it might look something like this:

Objective:

Increase traffic to the company’s website.

Key results:

  • Create a Facebook page and Twitter account that can drive traffic to the website
  • Build an audience on Facebook and Twitter through regular posting and sponsored posts
  • Write at least four blog posts per month for the website
  • Create effective Google ads promoting the website
  • Create three items of sponsored content for posting on popular new sites that will drive traffic to the company website.

From the above it should be fairly clear what ’objectives’ and ‘key results’ are, and how they are related. An objective, within the OKR context, is an outcome that is specific and highly desirable, but not particularly measurable. A result, meanwhile, is a measurable activity that will assist in the achievement of the objective. In other words, key results are a list of actionable items that will lead to the achievement of the overall goal.

Employees are scored on each key result, with the maximum score being 1, and the minimum 0. A good score would be 0,6 or 0,7 (any higher than that and you have to question whether the chosen key result was too easy.

Key results should be tough but attainable), but the process is much more important than the actual score. Also, low scores should be used to reassess what the company is spending its time and resources on. Why are scores low? How crucial are these results? Should we be focusing on different key results to get to our objectives?

Related: How To Know If You’re Focusing On The Wrong Types Of Staff Skill Enhancement

OKR in practice

how-to-achieve-objectives

Although the implementation of OKRs will differ slightly depending on the company you look at, most systems tend to have the following things in common:

OKRs are selected on a quarterly basis: To maintain momentum and ensure that everyone is always actively working towards the achievement of a goal, the timeframe of an OKR should be relatively short. Knowing that a deadline is always on the horizon keeps everyone focused and accountable. Some companies have monthly OKRs, but most tend to settle on quarterly objectives.

They have hard, non-negotiable deadlines: There’s no point in setting monthly or quarterly OKRs if employees know that deadlines can be shifted if necessary. In order to maintain focus and urgency, deadlines need to be absolute.

Everyone gets about five quarterly OKRs: Give employees too many objectives and they’ll lose focus, or become utterly overwhelmed. John Doerr recommends four to six OKRs per quarter.

OKRs are public: A lot of companies — including Google — choose to make OKRs public. Google makes all employees’ OKRs (including those of the founders and other C-suite executives) available for everyone to see. They can all be found on the organisation’s internal directory. Scores are also public, which reinforces commitment and ensures accountability.

They can exist on different levels: OKRs need not only exist at the level of the employee alone. Teams, departments or even the company as a whole could be assigned quarterly OKRs. It’s important, though, not to overcomplicate things — the whole aim of OKRs, after all, is to keep things simple. Start adding layers and layers of OKRs on top of each other, and the whole system will start breaking down. The aim is to increase focus, so keep things simple and straightforward.

Related: 3 Sure Fire Ways To Improve Efficiency And Find Your Business’s Productivity Sweet Spot

The benefits of OKRs

If all of the above sounds like a lot of work, it’s worth taking a moment to consider what the advantages of OKRs are. According to John Doerr, implementing Objectives and Key Results in a company offers the following benefits:

It encourages disciplined thinking: By focusing on objectives and key results, you learn to look at your business in a very disciplined way. The unimportant things fall away and you start to notice what the major goals should be.

Assists with communication: Public OKRs give people a good idea of what the rest of the organisation is working on, which helps to keep all employees on the same page. There’s less chance of a communication breakdown if everyone knows what the responsibilities of everyone else are.

It makes things measurable: Even the most focused goals can be tough to actually track. What does success look like? When can you tick it off the list? OKRs provide measurable indicators that allow you to track the progress of employees in a meaningful way.

It encourages focus: Making OKRs public not only improves communication, but also keeps everyone in step and focused on the same goals.

By using OKRS, you allow the important objectives within your organisation to reveal themselves. This won’t necessarily happen immediately. There will be some trial and error, but by sticking with the process, you should reach a stage where you have a very good idea of what you should be focusing your time and resources on.

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Performance Monitoring

The Role Of Employers In Skills Development

Here are a few reasons why you should invest in skills development for your employees.

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Recruiting talent in today’s working environment has certainly changed for the better. With the new B-BBEE compliance and Skills Development Act regulations, it has now become possible for business owners to make an impact by employing unskilled individuals and training them up to be valuable workplace assets. In such a competitive working environment, investing in one of the many skills programmes can benefit your human capital more than any impulse hire could.

From UIF to skills development levies and more, business owners need to be up-to-date with the latest labour law requirements as they are directly responsible for the growth and progress of their staff. Employer-endorsed skills development plays an important role in the future of your business. This, unfortunately, has made many employers shy away from skills development because they fear that investing in skills may result in employees leaving. While that certainly can be a reality, the Skills Development Act encourages businesses to invest in training to help contribute to society, and to generally increase their business opportunities with international and local companies.

Skills development is a powerful motivator for new and existing employees. Be it through learnerships, internships or workplace-based training programmes, individuals who feel that their company is investing in them, personally and professionally, are more likely to be loyal to your company.

Related: Understanding Your Responsibility As An Employer

Here are a few reasons why you should invest in skills development for your employees:

Attracts and retains valuable employees

Beyond the skills shortage in South Africa, employee retention is a major challenge for employers. While the hiring process might be easy, it becomes an unnecessary expense for business owners when positions aren’t fulfilled according to plan. Knowing that you can rely on your employees is both a benefit to you and the employee themselves.

Skills development programmes do not only build loyalty, increase your BBBEE scorecard rating and create a strong workforce, but it gives your business a good reputation. A company which invests in human capital creates new opportunities within and outside the company.

Helps you create promotable employees

Taking the time to upskill employees means that you’re making an effort to support them professionally, as well as contributing to the economy at large. By implementing skills development training in your business, you’re creating a capable workforce and giving them the tools they need to excel.

Employees become engaged at work

Employees who don’t feel appreciated or cared for are the ones who tend to come and go. When you provide them with an opportunity to learn and grow, you’re allowing them to challenge themselves. Most unskilled employees can’t afford tertiary education, so when you give your employees the help they need, they’re more likely to become loyal, motivated and value-adding employees.

Helps you save and earn money

When your company partners with a company like Proud Afrique, according to Sector Education and Training Authority (SETA) regulations, there are many ways in which your business can save money. One of the most beneficial ways is through tax claims.

There will also no longer be a need to hire and recruit talent as often because learning programmes will give your business the chance to build up a pool of trustworthy, willing employees who could, potentially, add value to your company in the long-run. Not to mention, a trained workforce contributes to a higher productivity and output level in the office.

Related: Five Qualities Employers Look For In Job Candidates

Creates a forward-thinking mindset

Employee development is forever changing. Something that worked well this year might not work well next year. But the exciting thing is that your team will be up-to-date with the latest trends and innovations. Over time, you will be able to adjust your plan according to the employee and industry’s needs. While it might seem intimidating for employers, it means that you’ll constantly need to think ahead and try new ideas. This type of forward-thinking can also spark many valuable relationships.

Final words

Contributing to human capital development in South Africa will give your business the opportunity to grow, regardless of economic conditions. B-BBEE training offers countless advantages which will help you learn the process, the benefits and the goals of being B-BBEE compliant. Employment should be more than simply having a job or receiving a paycheque every month. A skills development training option is there to help your employees change their lives.

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Performance Monitoring

Leadership – Lead Your Team To Dizzying Heights Of Productivity And Business Success

To ensure your company’s success, you’ll need a productive, effective team. But first, you should ensure you have the right people on the bus.

Dirk Coetsee

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What is productivity?

When pondering the answer to a very important question it proves often to be a good tactic to first think on what a concept is not. Productivity is not appearing to be busy.

Productivity is not spending most of your time actually being very busy, but busy with things that propel you forward on the journey towards great achievements and making your vision a reality.

Productivity is simply to produce results. Results that leaps towards your end goals and ultimate vision. Trying is not an option, doing the right things in the right way so that they produce results is the only option, that is, if you really want to build a legendary company.

The ground-breaking difference between effectiveness and efficiency

Efficiency means to do the right thing. It is the right thing to do in business to give quality service, right? So what if doing the right thing does not produce results?

Effectiveness on the other hand is doing the right thing in the right way so that it produces results.

Quality service given in the right way so that we obtain actual referrals and the client comes back for repeat business is an example of effectiveness.

What must you be busy with?

The Pareto principle applies but in overdrive. Really hone in on the 20% of things to do that really brings home the profits, the purpose of the business, and brings joy to customers and team members.

Yes only 20% of your activity as an entrepreneur (roughly on average) brings in the true results, the other 80% of your activity is pure fluff.

Entrepreneurs often revert to what they like doing as opposed to what they actually need to do to be a success. Business growth and productivity is not a game of meandering between the options of dislikes and likes , but instead, taking action on what needs to be done to reach goals whether I personally always like it or not.

Related: 14 Of The Best Morning Routine Hacks Proven To Boost Productivity

Be busy with what works in relation to producing the desired results. If you do not know what actually does work, be busy in terms of researching what needs to be done to produce results.

BE EFFECTIVE.

Get the right people on the bus

Another critical question to answer is: Who must be busy doing the right things in the right way to produce results?

Well only the people who really want to be successful and are willing to pay the price of disciplined and purposeful action will sustainably be effective anyway.

Hire people that authentically believe in your business’ purpose. Hire people that love what they do and already are highly skilled, or alternatively will put in the required work to become very skilful. Remove toxic behaviour from your business by either coaching towards excellence or firing for misaligned behaviours.

Lead by example

Do not expect productivity in the true sense of the word, from your employees if you as an entrepreneur is not the living example of the results producing behaviour that you require from your team. Inspire your team, not only by producing excellent results, but by doing it in a creative, purposeful and joyful way.

As Mahatma Gandhi said: “Be the change that you want to see in this world.” Do not simply demand it, be it first.

“Slay the holy cows”

Most businesses have ‘holy cows’. That means things that do not necessarily produce any results, or even produce very negative results, but the team keeps on doing those things because:

‘That’s how we do things here’

‘That’s how we have always have done things here’

‘We love doing things in that way, here’

Related: How To Optimise Your Productivity After Quitting Your Job

A troublesome example is the ‘meeting holy cow’. Some people just love the sound of their own voices and will carry on speaking for hours upon hours within meetings, which usually then leads to little or no action. A meeting is usually just talking whilst only action can really produce results.

‘Slaying the meeting holy cow’ does not mean we stop having meetings. We simply change the way we do them so that they become effective. By having shorter, very concise meetings, that are actionable, measurable, and results driven we have ‘slayed the meeting holy cow’.

Next steps

Productivity is producing results that continuously move you forward on the journey towards attaining your vision. Be busy with the 20% of activity that produces the real and tangible results that you want for your business. Be willing to ‘slay the holy cows’ that take up time unnecessarily and that do not produce the desired results.

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Performance Monitoring

8 Lessons Rugby Can Teach Us On Achieving Peak Performance In Business And Life

Business is the ultimate test of wills, focus, determination and pushing through the pain when things get tough. In fact, if you can take lessons off the rugby field and into the boardroom, you’ll be a better entrepreneur.

Simon Hurry

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Building your own business from scratch is tough. It really is not for people who enjoy predictability, low risk and comfort. There are often times of doubt, discouragement and outright confusion, accompanied by frequent unpredictable moments that can challenge your sense of humour and test your resolve.

So why do it then? Because you can. Because there is something in it that just makes the effort worthwhile.

I’ve been on my own entrepreneurial journey for the last ten years. I’ve always been interested in how human behaviour affects performance and so I’ve been drawn to work in competitive environments. These have included both the corporate world and sports, and I’ve learnt that there are a lot of overlaps between the two.

As an ex-rugby coach and someone who is currently still involved with international and provincial rugby, there are a lot of rugby lessons that are extremely valuable in the business world.

If you want to achieve peak performance in life and business, here are eight key lessons that you can learn from rugby.

1. It’s all about overcoming resistance

What gave you the belief that just because you had an idea that you knew would change lives and make money, the universe would lay down a red carpet for you and invite you to dine at the table of greatness?

In this scenario, setbacks come as a surprise, competition is seen as unfair and you discover alarmingly that the economy and your bank manager, strangely enough, are geared towards debt and failure rather than success.

You are the only one who believes. Remember that. This is your desire. If you don’t like being tackled you shouldn’t play. The same with your business. If you don’t like the hard hits, pick employment.

Related: 5 Things Businesses Can Learn From Rugby

It’s up to you to get it to work and that means you are about to learn to push through: Three steps forward, five steps back, ten steps forward, two steps back, four steps sideways, one step forward…

Remember This: If you don’t believe that your destiny lies in your idea, you will give up. Guaranteed.

2. Passion does not last

Getting psyched before a game is all good and well. Yes, it makes you feel invincible, indestructible and as close to superhero status as humanly possible. But in the end, passion is just an emotion, and emotions can change. Very quickly in fact, especially after your first hit.

Don’t get me wrong. Passion is a fantastic emotion, but to base the success of your endeavours on an emotion is naïve and even reckless.

There is nothing glorious about the hard graft, no matter how you paint it. It’s sweaty, bloody and thankless. This is why desire is so important. Desire is deep seated and rooted in purpose, not emotion. It fuels the hard graft.

Remember This: People only care about what you do with the ball, not what you did to win the ball.

3. Control the ‘controllables’

A rugby ball is peculiar in that it has an unpredictable bounce. Life is like a rugby ball. One day it can stay in the field of play and you win the game. The next day it bounces out and you lose the game. Same ball. Same circumstance. If you don’t understand this, it can mess with your head.

If you try and control what is impossible to control, you will simply blow your mind, and your mind is your greatest weapon. Don’t give it an impossible task.

You can control what you do every second of the day.

You can control how you respond.

You can even control how you play the game.

You cannot control people.

You cannot control the economy.

You cannot control what is going to happen tomorrow.

In fact, your real genius will lie in how you handle the unknown and the unpredictable.

Remember This: Do what you can to control the bounce but don’t take it personally when it does not go your way. Just respond.

Related: Servant Leadership – Will You Serve?

4. Hit or be hit

If you’re passive in the tackle, hesitant or just put your head down you can get yourself into serious trouble, even break your neck.

Don’t avoid problems, tackle them. The key here is to ensure that they don’t build up momentum. The faster they are going, the bigger they seem to be. Hit them early.

Move towards them, get yourself into position and hit them hard, making sure you take them to ground, otherwise they can keep going.

Remember This: Fear is a killer when it comes to the hits. The problem is only as big as you make it out to be.

5. Play your game

rugby-rules

Rugby is unforgiving to the team that tries to play a game plan that is borrowed from another team. The best teams in the world build a plan around who they are. They don’t force a game plan on the team, they take an individualised, tactical approach.

Your individuality is your greatest competitive advantage. Build everything around who you are, but keep an eye on why you are there. This is not an ego trip. You are there to get the job done better than anyone else.

Remember This: Use your uniqueness to craft an approach that is close to impossible to replicate by your competition.

6. Rugby has rules

In rugby, every time you break the rules you lose possession of the ball. Do it continuously and you can lose a player. Do something really bad and you never see the player again.

Innovation and invention are key change drivers. It’s what allows entrepreneurs to disrupt a market and attract new customers. But, contrary to the myths out there, disruption is not about breaking the rules; it’s about exploiting the rules.

The team that usually wins knows how to use the rules to their advantage. The same in business. So, if you really want to disrupt, change the rules. Ignore or break them, and you may find yourself with very little left and a whole lot of angry fans.

Remember This: The rules define the game. They make the game possible. Take the time to understand them. Then exploit them to your advantage.

Related: 4 Ways To Continuously Develop When Running Your Start-up

7. Play into space

A crowded space on the field is busy, dirty and messy. It’s where you stand the greatest chance of losing the ball. The key in rugby therefore, is to create space. It is space that allows you to gain ground and set up a chance to score. Yes, the busy space is inevitable but to make it ‘normal’ is foolish and unnecessary.

You want minimal contact and maximum space. It’s the same in your business.

De-clutter and simplify. Keep things tidy. Do everything you can to avoid complex, messy situations that can bog you down and cost you unnecessary energy. But this will only be possible if you have a clear, tactical vision that keeps you moving into clear space that is easy to dominate. It has to be part of your thinking and planning. If you just ‘wing it’ you might be alarmed to find yourself in an expensive version of U9 rugby.

Remember This: Always look to create fresh space. Just make sure you are running in the right direction.

8. Know who you want in your team

Rugby is played by 15 players who are on the field to each play very distinct roles. Each role is an important piece of the larger puzzle and demands a very specific skill set, physical attributes and mental approach. You cannot simply just change position. Yes, some roles do allow for more flexibility and a fullback can play flyhalf. But a lock will never be a hooker or a prop. The best in the world play one position. Only.

Do you know who you need in your business or are you relying on ‘jack-of-all trades’? This may be great for a Sunday pickup game but if you’re aiming for the big leagues, plan properly. Don’t think for a moment that your generalist will suddenly become a specialist either. That is the quickest way to destroy talent. Ask any player who has been labeled a ‘utility back’.

Remember This: Specialisation is not an evolution. Be prepared. Start with great people who know exactly what they’re doing and put them exactly where you need them.

Pulling it all together

Above all else, never forget why you’re playing the game. Prepare to win. Practice to win. Play to win. Stay humble. And never forget that personalities make the game.

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