Objectives and Key Results (OKRs) are a common management framework, currently used at Google, Twitter, LinkedIn, and Uber.
If OKRs are new to you, an excellent introduction is available here. If you’re comfortable with KPIs or the Balanced Scorecard, you’ll have no trouble adapting Onebrief to your framework.
For this example, we’ll use JC Penney’s disastrous situation in 2011. Of course, we’ve simplified it for brevity. In this example, we will:
- Create OKRs for their marketing and stores teams
- Connect these objectives to the company’s strategy
- Add side effects, including harmful ones
- Decide what to do -- and not do
OKRs consist of one or more measurable key results, which contribute to a clearly defined objective. This framework closely matches Onebrief’s, but OKRs have simplifications that don’t match the real world.
Let’s assume the marketing team’s objective is to “Create a brand image as the hip place to shop.”
Here are some key results that might lead to that objective.
I’ve done the same for their stores team.
Let’s connect them to the CEO’s objectives.
But wait! There are other effects of our new brand image. Couldn’t it harm our existing customers? I’ll add some additional outcomes.
Since they affect our revenue goals, I’ll create that link as well.
Other actions -- especially our new pricing plan -- will have negative effects too. I’ll draw those links.
Decide what to do -- and not do
Onebrief is based on the principle that the best action has the most valuable effects. More specifically, it creates the most value per unit effort.
I’ll start by rating the value of outcomes and the investment required for actions. Our algorithm will propagate these values, so that an action’s value includes the effects of its effects of its effects (and so on).
We also need to consider the probability of our links.
Now we have a more complete understanding of our situation -- the good effects and the bad.
We’ll apply filters to determine which actions are important. Here’s a filtered map, illustrating the effects of our new pricing scheme.