Measure What Matters: How Google, Bono, and The Gates Foundation Rock the World With OKRs is a best-selling book by John Doerr, an American venture capitalist (VC) known for his expertise in the technology investment sector. Originally published in 2017, this book offers insights and strategies for utilizing objectives and key results (OKRs), a goal-setting framework, to enhance organizational performance and achieve success. As an accomplished VC investor with a track record of supporting technology giants like Google, Doerr draws on his extensive experience to guide readers through the principles and applications of OKRs. Falling within the genre of business and management literature, this book explores the core topics of goal setting, performance management, and the evolving landscape of corporate growth. Throughout the text, Doerr explores themes such as Alignment Versus Autonomy in Organizational Management; The Importance of Transparency in Organizations; and The Continuous Nature of Effective Goal Setting.

This guide refers to the 2018 edition published by Penguin Publishing Group.

Summary

Measure What Matters is divided into two parts. Part 1 explores the strengths of OKRs, and Part 2 discusses how OKRs fit within the changing landscape of performance management. Throughout both parts, Doerr provides case studies, including passages written by executives, to illustrate how various companies have successfully implemented OKRs.

In the opening three chapters, Doerr introduces OKRs, which comprise a flexible goal-setting framework that fosters transparency within organizations. OKR stands for objectives and key results. Objectives are what an organization wants to achieve, and key results are the measurable outcomes that contribute to the achievement of objectives. Doerr learned about this system through his time at Intel, where executive Andy Grove used the framework to drive exceptional performance and results. Later in his career, Doerr began introducing the system to other companies, including startups in which he invested, such as Google.

In Chapter 4, Doerr emphasizes the importance of focus, urging companies to commit to only a few OKRs at a time. The cautionary tale of the Ford Pinto, a car known for its faulty gas tank design, serves as a reminder of the dangers of spreading focus too thin and not prioritizing effectively. To avoid such outcomes, Doerr recommends pairing key results that balance each other out; balance can prevent, for example, a focus on speed or profit at the expense of safety. Chapter 5 provides a counterexample to this warning, describing how a company called Remind, whose cofounder emphasizes concentrating on only the most important objectives, illustrates the power of focus in achieving success.

Chapter 6 shifts attention to the critical role of commitment in OKR implementation, outlining how a company called Nuna learned that commitment from top executives is essential for successful alignment and engagement across the organization. In turn, alignment and transparency take center stage in Chapter 7, which presents two different methods to achieve alignment: the cascading and bottom-up approaches to goal setting. In a cascading approach, goals are set at the top level and then cascade down to individual teams or employees. In a bottom-up approach, lower-level employees set their own goals and then align their goals with the overall objectives of the organization. Chapters 8 and 9 then demonstrate the importance of alignment and transparency, respectively. The case study of MyFitnessPal in Chapter 8 illustrates how OKRs can foster vertical, horizontal, and diagonal connections, breaking down silos and ensuring alignment. The case study of Intuit in Chapter 9 underscores the importance of transparency in fostering a quality-driven culture.

In Chapter 10, Doerr outlines the three phases of the OKR lifecycle: setup, tracking, and wrap-up. During the setup phase, Doerr recommends adopting specialized OKR software and appointing a dedicated employee to champion and manage the OKR process. In the tracking phase, regular check-ins and progress updates are essential. Lastly, at the end of every cycle, which is the wrap-up phase, teams should assess their performance, reflect, and celebrate their achievements and learnings before setting new objectives for the next cycle.

The final chapters of Part 1 make a case for the power of setting and tracking goals. Chapter 11 highlights the Gates Foundation in arguing for the power of tracking goals and measuring progress to address global challenges; OKRs, according to Doerr, provide a valuable framework for that process, especially within organizations that have hugely ambitious, global missions. Chapter 12 introduces the concept of stretch goals, or ambitious objectives that push individuals and organizations beyond their comfort zones. Doerr argues that such goals are crucial for driving innovation and achieving high performance, presenting Google as an example. Chapter 13 examines Google Chrome specifically in this light: while Google initially fell short of its target, the pursuit of a lofty goal led to continuous improvement and eventual success. Chapter 14 examines YouTube similarly: YouTube’s stretch goal of reaching a billion daily watch hours seemed monumental, but OKRs provided a framework for prioritization, focus, and collaboration, leading to success.

Part 2 shifts the focus to continuous performance management, company growth, and company culture. Accordingly, Chapters 15 and 16 introduce the CFR framework (conversation, feedback, and recognition) as an alternative to traditional annual performance reviews. In Chapter 15, Doerr advocates for one-on-one meetings, constructive feedback, and recognition of employees as essential components of performance management. Chapter 16 showcases Adobe’s transition from traditional performance reviews to a more continuous and feedback-oriented approach that contributed to a significant drop in attrition rates. Chapter 17, featuring the company Zume Pizza, then illustrates how OKRs can provide a framework for goal setting and alignment in a growing organization; the case underscores the adaptability of OKRs to diverse business contexts.

Chapters 18, 19, and 20 address the importance of company culture, which operates in conjunction with OKRs and CFRs. In Chapter 18, Doerr argues that a strong culture, defined by shared values and beliefs, is essential for fostering accountability, transparency, and engagement. The following case study of Lumeris in Chapter 19 confirms that companies may need to shift their cultures to pave the way for the OKR system. Namely, Lumeris had to address internal clashes and transform its human resources (HR) department to create a culture conducive to transparency and openness. Chapter 20 similarly examines the ONE Campaign, led by musician Bono, albeit with an emphasis on how OKRs can facilitate cultural change via a nonprofit organization. With Doerr’s help, ONE shifted its company culture from one that viewed Africa as a recipient of aid to one that focused on empowering African communities through partnership and collaboration.

The final chapter, Chapter 21, highlights Doerr’s belief that OKRs have the potential to be applied universally, extending beyond business to schools, governments, and healthcare systems. Doerr concludes that the flexibility of OKRs makes them adaptable to different industries and time frames. In summary, Measure What Matters offers a comprehensive exploration of the OKR framework, providing practical insights through real-world case studies. Doerr’s emphasis on focus, commitment, alignment, and transparency positions OKRs as powerful tools for driving success in an ever-evolving business landscape.