Two Baskets: Committed vs. Moonshot

"Two OKR Baskets Google divides its OKRs into two categories, committed goals and aspirational (or “stretch”) goals. It’s a distinction with a real difference. Committed objectives are tied to Google’s metrics: product releases, bookings, hiring, customers. Management sets them at the company level, employees at the departmental level. In general, these committed objectives—such as sales and revenue goals—are to be achieved in full (100 percent) within a set time frame. Aspirational objectives reflect bigger-picture, higher-risk, more future-tilting ideas. They originate from any tier and aim to mobilize the entire organization. By definition, they are challenging to achieve. Failures—at an average rate of 40 percent—are part of Google’s territory. The relative weighting of these two baskets is a cultural question. It will vary from one organization to the next, and from quarter to quarter. Leaders must ask themselves: What type of company do we need to be in the coming year? Agile and daring, to crack a new market—or more conservative and operational, to firm up our existing position? Are we in survival mode, or is there cash on hand to bet big for a big reward? What does our business require, right now?"

"When it came to Google’s OKRs, Bill paid closest attention to the less glamorous, “committed” objectives. (A favorite piece of coaching, served with his typical dash of salt: “You’ve got to make the f—ing trains run on time.”)"

"Stretch for Amazing At the beginning of each cycle, distinguish between goals that must be attained 100 percent (committed OKRs) and those that are stretching for a Big Hairy Audacious Goal (a BHAG, or aspirational OKR). Establish an environment where individuals are free to fail without judgment. To stimulate problem solving and spur people to greater achievement, set ambitious goals—even if it means some quarterly targets will be missed. But don’t set the bar so high that an OKR is obviously unrealistic. Morale suffers when people know they can’t succeed. To get leaps in productivity or innovation, follow Google’s “Gospel of 10x” and replace incremental OKRs with exponential ones. That’s how industries get disrupted and categories reinvented. Design stretch OKRs to fit the organization’s culture. A company’s optimal “…"