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Intel needed a ‘structural solution’ to make the company able to run

hashtag

risk

. Andy Grove answer was to build a management system where you to detach goals from compensation. That’s the main driver for innovation: the smartest people will shoot for exceptional outcomes and this is why all tech companies in the Valley adopt OKR: because they want to push people to be more ambitious in goal-setting.

Large organizations like Google adopt both models. MBO for sales department, where each additional sale has a direct impact on the bottom line at the end of the year. Can we do something similar for product people, tying a product owner compensation to “how many user stories he added to the product backlog per week”? Is there a metric you can create that really reflect his contribution to the company bottom line or is there a danger that the metric could be misleading and you will promote a bad product owner, and the good one will leave your organization?

This is the real essence of OKR: a management model that allow a company to run risk, pushing people to create exceptional outcome by making them feel safe about performance reward.

Thanks again to

Deli Matsuo

(and to

Endeavor

,

Endeavor Italy

and

Giacomo Lazzarini

for setting this up).