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This is a great article. I've consulted with many startups that are really scared of OKRs and KPIs and have some PTSD around them, but they need not be scary!
by neom 3y ago
This is a great article. I've consulted with many startups that are really scared of OKRs and KPIs and have some PTSD around them, but they need not be scary!
Here is a scenario:
It's January and Sales is getting feedback from customers that if the business has a managed k8s offering, they would not only buy it but expand their use of the platform generally. Sales passes this information to product and product does some research, finding that indeed there would be a market for a managed k8s offering. They pull together a report and start to shop it around to get feedback and buy in from around the company, consulting with different orgs. After a while, a business case is flushed out and the management green light an MVP k8s offering that will generate revenue by the end of the year. An objective and key result for the business becomes: this year launch a managed k8s offering so a small number of customers with an eye for $50,000 MRR.
Every org should then have some performance indicators that indicate that the business is tracking towards the release of this product this year, it doesn't not need to be complex just as the OKR should not and does not need to be complex, it's simply an indicator that we're on track (and it's ok if you're not, maybe the OKR was unrealistic, that's ok!)
Eng: KPI: stand up k8s - KPI: make k8s stable - KPI: make k8s more stable - KPI: tie k8s into the rest of the stack - etc
Product: KPI: Research how k8s should be be exposed - KPI: Research how k8s service should be billed - KPI: MVP product design and test internally - etc
Support: KPI: understand staff to support a new offering - KPI: Training and hiring for new staff to support the offering - etc
Marketing: KPI: understand the message to the market - KPI: understand how competitors are marketing their k8s offering - KPI: understand how to advertise new offering - etc
Etc - etc.
OKRs and KPIs do not have to be a whole song and dance, they are simply a way to keep a company of organizations aligned and moving in the same direction regarding agreed upon objectives for the business, folks get super hung up on granularity. Doing this well helps tie together some of the most important aspects of a healthy and successful go to market: Vision, Mission and Purpose. I understand the vision of the business, the things we will make true in the future. I understand the mission of my team and organization on how we will realize this vision. I understand my purpose within the vision and mission and why I am an important component.
I firmly believe it's only with this as part of your foundation can achieve employee satisfaction, have directionally forward teams, and become a "high performing business".
- candiddevmike 3y agoI think I've quit a few companies you consulted for. Your KPI examples are terribly vague.
- neom 3y agoWell, I was just giving an example off the top of my head, I agree it's imperfect. However, I think the article is about company wide KPIs for orgs, they don't need to be particularly granular. Team level KPIs might be more granular - for example k8s stability might have some uptime associated with it, but even then, being dogmatic with granular KPIs is exactly what I agree with: it will without fail destroy businesses.
- zabzonk 3y agoi still don't understand what KPIs are, and now i have no clue what OKRs are. thanks a lot. why do so many people think that acronyms used in their bubble will be understood more widely. take IC for instance.
- indymike 3y ago> Marketing: KPI: understand the message to the market - KPI: understand how competitors are marketing their k8s offering - KPI: understand how to advertise new offering - etc These are objectives, not performance indicators. Please do not redefine KPI to roughly have the same precision as "cloud" or "engagement".
- neom 3y agoThis is a perfectly reasonable performance indicator for a marketing manager that ties up to a company wide OKR. If you can understand the message to the market in a prescribed time you're tracking towards an OKR. Please don't redefine KPIs to trend with your experience at small business that will never scale to public ones. Your comment is exactly why business fail.
- indymike 3y ago> Please don't redefine KPIs to trend with your experience at small business that will never scale to public ones. Your comment is exactly why business fail. Here are some marketing KPIs: - New customer acquisition - Customer acquisition cost (CAC) - Average deal size You'll notice that "did some event" is not a KPI nor is "learned about the competition" - at least at most companies I've worked for, started or been employed by. You've been a part of very good teams, and held some important positions. So have a lot of people on HN,and it really undermines what you are trying to communicate when you throw around "you don't scale" or "you are small business". You should assume you are among peers here, and argue on the merits, not by throwing shade.