Goal Diggers: OKR, KPIs, strategy, and people management. Your business is a machine: how to design, build, and run it successfully
Nov 30, 2023
Richard Russell, an OKR and leadership coach known for guiding scale-ups, discusses his insightful analogy of a business as a machine. He breaks down the crucial activities of designing, building, and running a successful business. Richard emphasizes the importance of OKRs and KPIs, the roles of people in these processes, and the need for a weekly business review to track metrics effectively. He advocates for a pragmatic approach to strategy, reminding leaders to engage teams and adapt frameworks for their specific business needs.
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Business As A Machine
- A business is a machine that takes customers in, transforms them, and outputs satisfied customers and profit.
- Framing your company as a machine clarifies the model and the activities needed to deliver value.
Design, Build, Run Framework
- All work in a business maps to three activities: design, build, and run the machine.
- OKRs fit build (change) while KPIs fit run (consistency and measurement).
Startup Progression From Tests To Machine
- Early startups start in design mode, testing ideas and building experiments rather than full machines.
- As a model proves out, teams progressively build processes and tools until they begin running the machine.