These valuable insights are interwoven with examples from the author\u2019s rich career, which includes collaborating with titans like Google and Intel.<\/p>\n\n\n\n
If you\u2019d like to get familiar with the concept of the OKR system and find out how it can revolutionize your strategic planning, check out our Measure What Matters Most<\/em> summary<\/strong>. We\u2019ve condensed key observations from this managerial masterpiece and included some tips to help you implement the wisdom into your workplace. <\/p>\n\n\n\n But before we jump into that, if you\u2019re interested in reading more book summaries, check out (and bookmark) our curated collection of 25 Must-Read Productivity Book Summaries<\/a> in one place. You can save, edit, bookmark, and even export it for later read.<\/p>\n\n\n\n Author: <\/em><\/strong>John Doerr<\/p>\n\n\n\n Number of pages: <\/em><\/strong>320<\/p>\n\n\n\n Year of publication: <\/em><\/strong>2017<\/p>\n\n\n\n Estimated reading time: <\/em><\/strong>4 hours<\/p>\n\n\n\n Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs<\/em> is a must-read if you\u2019re interested in strategic planning. Although packed with valuable knowledge, the book is a light read.<\/p>\n\n\n\n The book was written by John Doerr, an electrical engineer and renowned venture capitalist who played a major role in the success of world-famous companies such as Amazon, Google, and Intuit. <\/p>\n\n\n\n The main concept the book explores is the OKR system\u2014Objectives and Key Results<\/strong>, which provides a simple but powerful goal-setting strategy<\/a> for aligning the company\u2019s work with its ultimate mission. The book explains how successful processes require both:<\/p>\n\n\n\n Doerr structured the book in a way that intertwines theory and practice. He provides detailed guidelines for the entire goal-setting and tracking process\u2014from goal conception and prioritization to the final wrap-up and performance improvement. He also shares tips on maintaining a strong and healthy workplace culture. To get his points across, Doerr illustrates them with OKR examples<\/a> from actual successful companies. <\/p>\n\n\n\n At the beginning of the book, he gives us a rundown of how OKRs came to be\u2014read the story below.<\/p>\n\n\n\n The concept of Objectives and Key Results was created by Andy Grove<\/strong>, a businessman and former CEO of Intel, where Doerr had worked early in his career. Doerr was a big proponent of Grove\u2019s ideas, regarding him as the greatest manager of his or any era.<\/em> In the book, Doerr shared that Grove\u2019s system was his pillar of strength throughout his professional development.<\/p>\n\n\n\n While Grove conceived OKRs, Doerr created the abbreviation and further popularized the concept, bringing it to Google in 1999.<\/p>\n\n\n\n Grove based his system on Peter Drucker\u2019s Management by Objectives (MBO). This model was cutting-edge at the time, introducing the idea that management should be trust-based and result-oriented. Before that, the traditional hierarchical management structure piloted by Henry Ford and Frederick Winslow Taylor ruled the scene. Although revolutionary, the MBO theory had its shortcomings, which OKR attempted to overcome.<\/p>\n\n\n\n Over the years, Doerr has accumulated immense knowledge about management and transformed numerous start-ups into enterprises using the OKR approach. \ud83d\udcbc<\/p>\n\n\n\n The following sections highlight some of the most noteworthy concepts he discusses in Measure What Matters<\/em>. Let\u2019s dig in!<\/p>\n\n\n\n Doerr explains that honesty<\/em>, selflessness<\/em>, and commitment <\/em>to the team and its mission are at the heart of Grove\u2019s OKR philosophy. Still, Grove\u2019s systematic engineering approach is what ultimately drove success to Intel and other companies he\u2019s managed. <\/p>\n\n\n\n These are the seven greatest lessons Doerr has learned from Grove, and they constitute the basis of the entire book:<\/p>\n\n\n\n The first step to goal-setting is to ask yourself what your key ambitions are in the upcoming three, six, or twelve months. Focus only on urgent goals that are bound to make a real difference within your company. <\/p>\n\n\n\n After determining the Whats<\/em><\/strong>, it\u2019s time to move on to the Hows<\/em><\/strong>\u2014your key results. These are the measurements that will imply the achievement of your own objectives. According to Doerr, you should have no more than five key results (KRs) per objective. He recommends combining quantitative and qualitative KR measurements to ensure comprehensive evaluation and improvement.<\/p>\n\n\n\n It\u2019s also crucial to clarify the Whys<\/em><\/strong> and be transparent with the employees. They will be more motivated if they know: <\/p>\n\n\n\n The only thing left is to determine the Whens<\/em><\/strong>. Doerr recommends no more than five committed objectives per cycle. Considering your organization\u2019s needs and ability, you should also determine the cadence. Most companies track KRs annually or quarterly or use a hybrid model. \ud83d\udcc6<\/p>\n\n\n\n OKRs should be transparent. By making them visible to all, you\u2019ll ensure everyone\u2019s on the same page and avoid redundant work. It\u2019s also essential to be open to critique\u2014everyone should be able to give and receive objective feedback for the sake of the greater good.<\/p>\n\n\n\n The OKR approach can be especially beneficial for multi-location and remote companies. It unites teams and fosters collaboration. \ud83e\udd1d<\/p>\n\n\n\n This section of the book also discusses the ineffectiveness of the traditional cascade management model. In this top-down model, the senior management sets the goals and passes them on to the lower levels in the hierarchy, whose work is determined exclusively by the executives. This model is problematic for several notable reasons:<\/p>\n\n\n\n In some urgent situations, the top-down model may be necessary, but in general, employees should contribute to about half <\/em>of the committed OKRs, guided by their manager. <\/p>\n\n\n\n An OKR cycle has three phases\u2014the initial setup<\/em>, the systematic midlife tracking<\/em>, and the final wrap-up<\/em>. <\/p>\n\n\n\n During the setup phase<\/strong>, Doerr recommends using OKR management software<\/a> for convenience. This type of tool allows you to create, edit, measure, and score aspirational OKRs<\/strong>. It can make information readily available, drive employee engagement<\/a>, and help individuals with similar interests connect. It\u2019s also time and cost-efficient, cutting out the need for unnecessary status meetings and documentation.<\/p>\n\n\n\n In the midlife tracking<\/strong> stage, the author discusses how progress motivates employees<\/strong>. According to him, percentages are the most compelling way to visualize it. Ideally, you should conduct meetings throughout the quarter to analyze your OKRs and detect any bottlenecks. Sharing the committed goals with others in the company can also increase motivation.<\/p>\n\n\n\n Wrap-up<\/strong> entails close examination after completing your OKR work. You should use objective scoring, self-assessment, and reflection to gain valuable lessons for future OKRs<\/strong>. In case you didn\u2019t fulfill your objective, try again in the next quarter with a new key results benchmark or reassess the need for it.<\/p>\n\n\n\n OKRs motivate us to test limits and stretch beyond our comfort zones. According to the book, companies should set two types of objectives:<\/p>\n\n\n\n In the same light, author Steven Levy coined the phrase the gospel of 10x<\/em> to describe bold goals that set apart exceptional companies from the rest. One such company is Google, which managed to provide 100 MB of email storage when its competitors offered only 2\u20134 MB. \ud83d\udce7<\/p>\n\n\n\n Although widespread, annual performance reviews by themselves are ineffective. Instead of pure ratings, you should focus on the process<\/em>, the strengths<\/em>, and coaching<\/em>. <\/p>\n\n\n\n The optimal approach is the continuous performance management system, implemented through CFR, which stands for:<\/p>\n\n\n\n Aspirational OKRs facilitate the continuous performance management system by showing us exactly what to converse about and celebrate.<\/p>\n\n\n\n The organization\u2019s culture can determine its efficiency and success. When a company fosters healthy values, getting everyone on board with the goals and making decisions<\/a> is easier. Such a culture also empowers independent work that needs minimal supervision. <\/p>\n\n\n\n To make this happen, the entire organization needs to have defined and common goals facilitated by higher-ups who lead by example. OKRs can also help provide coherence and harmony, uniting all operations.<\/p>\n\n\n \ud83d\udca1\ud83d\udcda\u00a0Enjoyed reading this?<\/strong><\/mark>\u00a0You’ll also love our curated collection of\u00a025 Must-Read Productivity Book Summaries<\/a>. You can save, edit, bookmark, and even export it.<\/p>\n\n\n<\/div>\n\n\n Let the following Measure What Matters<\/em> quotes guide you in your OKR journey:<\/p>\n\n\n\n While goals are important, they will lose their meaning if you don\u2019t act upon them. Setting a goal is only the first step. You need to follow it up with hard and meticulous work<\/strong> to achieve tangible success.<\/p>\n\n\n\n Let\u2019s try to illustrate this notion. We\u2019ll use chefs as an example. In case of ingredient shortage, a bad chef will give up, a good one will manage to produce an edible dish, whereas a great chef will use this as an opportunity to create something extraordinary and stand out<\/strong>. \ud83e\uddd1\u200d\ud83c\udf73<\/p>\n\n\n\n Goals should be challenging and push the boundaries of possibility\u2014but not impossible<\/strong>. More importantly, you should frame stretch goals in a way that makes them seem feasible and sparks motivation. Otherwise, they\u2019ll be counter-productive\u2014the pressure will be too high and lead to anxiety. Set priorities carefully<\/a> and have the courage to discard some of them<\/strong>.<\/p>\n\n\n\n Meritocracy is the system in which success and rewards are distributed based on achievements and efforts. This type of system can work for companies only if it\u2019s transparent<\/strong>. Everyone should be on board for the goal-setting and tracking<\/a> OKR process and allowed to critique it.<\/p>\n\n\n\n If we think of the OKR system as a blueprint for a building, a project management tool<\/a> such as ClickUp<\/a> would be the construction site. The blueprint guides the construction work, whereas the site provides the tools and space needed to complete it successfully. Together, they help bring the architect\u2019s vision to life. \ud83c\udfdb\ufe0f<\/p>\n\n\n\n ClickUp is an intuitive productivity platform packed with features to streamline your planning, progress tracking, team collaboration<\/a>, and other key business operations. <\/p>\n\n\n\n Beginnings are always the hardest, so ClickUp has prepared over 1,000 templates<\/a> for your convenience, including goal-setting<\/a> and OKR templates<\/a>.<\/p>\n\n\n\n In the following sections, you\u2019ll learn how to use ClickUp to implement Doerr\u2019s OKR system within your organization:<\/p>\n\n\n\n Think about the ambitious goal set you want to achieve most in the next period and jot them down with ClickUp Goals<\/a>. As they accumulate over time, you can organize them in folders based on cycles, or however you see fit.<\/p>\n\n\n\n Doerr\u2019s recommendation is to track sales and revenue goals quarterly or annually, but feel free to do so more frequently and set monthly or weekly goals<\/a> if that works better for your team or company. \ud83e\udd45<\/p>\n\n\n\n The next step is to determine the key results, which you can do using targets within ClickUp. The platform measures targets automatically based on the criteria you choose:<\/p>\n\n\n\n You can also add descriptions to ensure your employees understand the reasoning behind the OKRs. If you need to go into details, consider using ClickUp Docs<\/a>, a rich text editor with AI capabilities<\/a>.<\/p>\n\n\n\n To concretize your plans, use ClickUp Tasks<\/a>. You can:<\/p>\n\n\n\n![\"25](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/01\/2x-Book-Summary-ClickUp-CTA-final.gif\")
\n
\n
\n
\n
\n
Measure What Matters <\/em>Book Summary at a Glance<\/h2>\n\n\n\n
![\"Measure](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/03\/Measure-What-Matters-book-cover.jpg\")
\n\n
The history of OKRs<\/h3>\n\n\n\n
Key Takeaways from Measure What Matters<\/em> by John Doerr<\/h2>\n\n\n\n
1. Dr. Grove\u2019s basic OKR hygiene<\/h3>\n\n\n\n
\n
2. OKR superpower #1: Focus and commit to priorities<\/h3>\n\n\n\n
\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/11\/ClickUp-3.0-Calendar-view-simplified.png\")
\n3. OKR superpower #2: Align and connect for teamwork<\/h3>\n\n\n\n
\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/03\/ClickUp-Chat-View-1400x934.png\")
\n4. OKR superpower #3: Track for accountability<\/h3>\n\n\n\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/03\/ClickUp-Docs-1400x934.png\")
\n5. OKR superpower #4: Stretch for amazing<\/h3>\n\n\n\n
\n
6. Continuous performance management: OKRs and CFRs<\/h3>\n\n\n\n
\n
7. Fostering healthy values<\/h3>\n\n\n\n
![\"\"](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/01\/Book-Summary-CTA-v4-1400x284.png\")
<\/a><\/figure>\n\n\n\nImpactful Measure What Matters<\/em> Quotes<\/h2>\n\n\n\n
Ideas are easy. Execution is everything.<\/em><\/h3>\n\n\n\n
\u2018Bad companies\u2019, Andy wrote, \u2018are destroyed by crisis. Good companies survive them. Great companies are improved by them.\u2019<\/em><\/h3>\n\n\n\n
Stretch goals can be crushing if people don\u2019t believe they\u2019re achievable.<\/em><\/h3>\n\n\n\n
Meritocracy flourishes in sunlight.<\/em><\/h3>\n\n\n\n
Apply Measure What Matters<\/em> Learnings with ClickUp<\/h2>\n\n\n\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/03\/ClickUp-Home-View.png\")
\nStep 1: Focus and commit to priorities<\/h3>\n\n\n\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/03\/ClickUp-Goals-1400x934.png\")
\n\n
\n