Episode Transcript
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(00:01):
Welcome to Thinkydoer Shorts,where we embrace anti-perfection
and dive straight into the messymiddle of strategy, leadership,
and personal and career growth.
I'm your host, Sara Lobkovich, creatorof No-BS Objectives and Key Results,
host of the Thinkydoers podcast, and I'ma strategy coach, big-time goal nerd,
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and board-certified and wellness coachwith a focus on work-life well-being.
And in the next few minutes, we'llexplore a current topic or insight to
spark your curiosity and provide you apragmatic starting place to take action.
Hello, friends.
I said shorts were going to below fidelity, so here we go.
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I am in California right now.
I'm sitting outside a dyno shop.
It's the team's third round, it'smy second round, down at CVMA for
winter racing with the team — theCW Moto racing program that my
husband and I own and operate.
Folks who know me in my business lifemight not have seen this part of my life,
but in addition to being an OKR coach andcareer coach, I also have another life
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in professional motorcycle road racing.
Sometimes those worldshappen at the same time.
So, we are putting together a coupleof Thinkydoer Shorts episodes based on
my Goal Fridays lives from this fall.
Once a quarter or so, sometimes once everyother quarter, I do a six- or eight-week
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series of what we call Goal Fridays.
And it's an hour on Fridays that we spend.
Sometimes we do them structured,sometimes we do them unstructured, but
it's basically time to get an hour tofocus in on what's really most important.
This fall, it was a structured series.
I did them on live viaYouTube and LinkedIn.
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We have the replays, so we'rerepurposing those for Thinkydoers Shorts.
Today's episode is if there was onequestion I get asked the most often,
it might be what's the differencebetween a Key Result and a KPI.
So today's episode is some excerptsfrom the live that I did talking
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about SMART goals, KPIs, OKRs, andsome other acronyms associated with
strategic planning and goal setting.
Some parts of this episode only makesense if you can see the screen.
So we have a video version, bothof the original live unedited,
unscripted, and then we also have avideo version that we've edited based
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on that for this Thinkydoers episode.
And you can find that on our videopodcast channels, including YouTube.
Enjoy today's episode.
I hope you can bear with us on the lowfidelity for these, and Let me know
what questions this sparks for you.
The questions I am asked mostoften what's the difference
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between acronym A and acronym B?
So today, we're going to separateout the alphabet soup of goal-setting
acronyms into its individual ingredients.
Just a little tiny bit of context, becauseI'm going to use some examples today that
aren't your typical business examples.
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before we start building your decoder ringtoday, I guess I should introduce myself.
Yeah, I'm Sara Lobkovich.
And in addition to the work that youknow me for in the strategy and OKR
space, I actually wear two other hatsthat you might not know about, but
they complement each other perfectly.
I'm a board-certified health and wellnesscoach, and I use that in my work with
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people in their careers and workplaceswith a focus on career well-being
and organizing for career impact.
And this is the one that catchespeople more off guard: I am also the
team principal for a professionalmotorcycle road racing team.
So, in addition to politics, sponsorsupport, and crew duties in my
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professional motorcycle racing career,part of my role involves athlete
fitness and mental game preparation.
And naturally, I am thegoal-setting person for the team.
So this combination with healthand wellbeing coaching and my life
and professional sports has givenme some pretty deep insights into
high-performance goal-setting, whetherwe're talking about your athletic
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pursuits, or your work in the office,or your health and lifestyle metrics.
In addition to all of this, I'vetrained over 2, 000 Objectives
and Key Results coaches.
I lead Objectives and Key Results adoptionin multi-thousand-person organizations
and Fortune 100 and 500 companies.
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And I also do OKR work with smalland solo businesses as well.
So, that combo of skills, it sounds weirdwhen I try and talk about it together.
This is actually the first time I'vetried to talk about all three together,
so it's a little bit of an experiment.
People who know me in one facetdon't always know me in the
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others, but what all three havein common is they're high stakes.
There are places where we haveto get comfortable with change.
We have to be nimble.
We have to be creative becausewe're not in control of our sports
environment, we're not in controlof our work environment, and
our bodies are always changing.
It sounds weird from theoutside, but for me, it's just
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high-performance, high-stakes stuff.
That requires goal settingand behavior change support.
So today, we're going to use someanalogies from these other parts of
my life to build your decoder ringfor acronyms of goal setting — that
alphabet soup of goal setting — andsome of goal setting's key terms.
I only included a handful of acronyms,so if I missed any that you want to hear
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about, even if I don't know today, Ican follow up with, my thoughts on them.
Because every time I thinkI've learned the most relevant
acronyms, new ones pop up.
So here, we're going to talk aboutdefinitions of some of the key acronyms.
We'll talk about when youmight use each of them.
I'm going to show you an exampleof each, but instead of using
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business examples — which I actuallythink are sometimes really hard.
It's hard to tell the differencebetween the goal types when we use
business examples — I'm going touse health- and sport-based examples.
For me, I don't know, whenever I usethe health and body and sport-based
examples, it just makes more sense to me.
It's easier to see the distinctionsbetween the goal types.
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Whether you are fine-tuning personalperformance or leading some kind of
high-stakes team, you're going toleave here with a practical toolkit
for choosing and using the rightgoal-setting method for any situation.
So you can get better fasterwithout getting lost in the jargon.
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From here, let's look atthis universe of acronyms.
KPIs, SMART goals,Objectives and Key Results.
We're going to talk about mandatorygoals, which isn't an acronym,
but it's an Important distinction.
We can't talk about goal setting withouttalking about activities or plans.
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And we're also going to talk abouthow we work toward goal achievement.
So we're going to mention EOS,which I'm not an expert in, but it
is something that's coming up a lotin my conversations with people.
Which is the EntrepreneurOperating System.
We're also going to talk aboutrhythms of business (ROB).
the first one we'regoing to talk about is.
activity goals.
And that's because that's what mostpeople do in terms of goal setting,
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is they decide what they plan to do,and that's what their focus is on.
That's not bad.
There's nothing wrongwith activity planning.
Ultimately, if we want to achievesomething, we have to do things.
So activity goals are not bad.
— they're just incomplete on their own.
And I made this slide on purposebecause it shows part of the problem.
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I didn't count the numberof items on that checklist.
It's like 15 things.
And I don't know about you — howmany things do you have on your
to-do list at any given time?
I have so many that multiple pieces ofsoftware can't keep up with my to-do list.
So this is where most people start,and they think of these as goals, but
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I think of these as well-laid plans.
So these are the plans that we make, justlike any other plans, where if we wake
up on that day, then we might decide thatwe're not going to stick to our plan.
And so then, if this is the only kind ofgoal setting that we're doing is planning,
then there's not much to keep us on therails when we wake up and have a rough
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day and don't want to stick with our plan.
In addition to activity goals andplanning, we can build on our skills here.
And we're going to addin the idea of KPIs.
And I went to KPIs first becauseKPIs are what I get asked
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about absolutely the most.
So KPIs, or Key PerformanceIndicators, that is a term
that has no universal meaning.
Everyone who uses that term has adifferent definition of what a KPI is.
A lot of times, I seeorganizations using KPIs as goals.
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I am a words girl.
It is all about semantics with me.
That's an insult that I used to get alot, and it's actually completely true.
But the words of the word KPI — KeyPerformance Indicator, is indicator.
So when I started trying to kindof reconcile, how do OKRs fit in to
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organizations' existing practices?
KPIs was the first ones thatI looked at, and I'm like,
it's right there in the name.
They're indicators.
They're not goals.
KPIs, if we use a body-based example,they're the things that we keep an eye on
to make sure that we're staying healthy.
If our KPIs go sideways, then weknow we might need to pay attention.
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But they're not goals inand of themselves, they're
indicators of our health.
So it's things like blood pressure,or waist-hip ratio, or sleep
efficiency, or the number ofsocial plans that we make per week.
The number of social plans we keepper week, resting heart rate, bone
density, those sorts of things.
Those are example KPIs,and KPIs are important.
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We'll talk about our dashboardat the very end, but KPIs are
important because they're themetrics that we're going to watch.
They're the ones we'regoing to keep an eye on.
If we need to maintaina metric, we use a KPI.
If we need to watch a metric becausewe're concerned about it, or there might
be, some cause for concern, that's a KPI.
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And so our KPIs aren't allof the metrics under the sun.
Our KPIs are the ones that we'regoing to watch to make sure
that we're staying healthy.
And I'm not going to say every timethis applies to your business too, but
the body- and health- and sport-basedexamples, I think if you internalize
those, then it's really easy to seehow this applies in the workplace.
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All right.
So that's KPIs, KeyPerformance Indicators.
That's our KPIs.
All right.
So our next one is SMART goals.
And I put SMART goal s secondbecause SMART goals is what I run
into second as frequently as KPIs.
The first questions about KPIs, andthen we go, "What about SMART goals?"
because those two have beenimplemented in a lot of organizations.
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And SMART is one of my personal nemesis.
Because, again, it'sall semantics with me.
And I worked in environments thatuse SMART goal setting before I
started doing this for a living.
And every organization that usedSMART, for one, had different meanings.
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The words meant different,the " specific" and "measurable"
— those are always the same.
Some places use "achievable", someplaces use "attainable" for A.
Some places use "relevant", andsome places use "realistic" for R.
I worked somewhere where they used"attainable" for A, and R for "realistic,"
and I was like, " What is the difference?"
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And no one could explain it to me.
And then T is "time-bound".
So SMART goals came back into my worldwhen I was doing my training as a
health and wellness coach and studyingfor my exams because SMART goals are
used a lot in health and wellness.
And an example of a SMART goal,they're specific, measurable,
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achievable or attainable, relevantor realistic, and time-bound.
So an example of a SMART goal inthe body-based examples might be
engage in cardiovascular exercisefor 30 minutes, four times a week,
for the next three months, trackingprogress with a fitness app.
So it's specific, very specific.
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It's measurable in terms of you canquantify the activity and say, "Am I
doing the things that I said I plan to?"
That might be achievable.
For some people it might notbe achievable, for some people
it might be attainable, forsome people it might not be.
It's relevant if this is your domainof concern, if improving cardiovascular
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health is important to you.
Might be realistic, again,achievable, attainable, realistic.
Lots of confusion there.
And it's time-bound, so we'regonna do that 30 minutes, 4 times
a week for the next 3 months.
So SMART goal s can be really helpful.
Notice that goal is probably morehelpful at getting you off the
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couch than a vague plan or activitygoal to work out more often.
So SMART goals are helpfulbecause they are specific.
They do give us something to aim for.
The challenge with SMART goals, andwe're going to talk about mandatories
in just a minute, is with SMART goals,It's a little too easy to set that
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goal and then have our all-or-nothingthinking take over with our behavior.
So if we don't make a workout, then it'sa little too easy to kind of fall off the
SMART goal wagon and think, "Well, youknow, I'm going to miss this one, and then
I'm, going to take another day off," andthen it's hard to get back on the wagon.
So SMART goals work.
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They're good for some things.
And it's basically, if you'refamiliar with my work, this
is quantifying activity.
They use the term "measurable," and that'sa reason I've moved away from using the
term measurable alone when we talk aboutKey Results, but they're measurable
in terms of "Did you do the thing?"
"Have you done the thing?"
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There are ways to write SMART goalsthat are actually Key Results.
Like, you could write a SMART goalthat would be a Key Result per a
technical definition of a Key Result.
But because the definition is sobroad, it's pretty rare that I actually
see metrics -based SMART goals.
(15:22):
A lot of times they'relike quantifying activity.
And quantifying activity is great.
It gives you that clarity whenwhat's important is that you do
something a certain number of times.
But doing something a certainnumber of times won't necessarily
yield the outcome you need.
So we need to think about, "Iswhat's most important that we do the
thing a certain number of times?"
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SMART goal "Is what's important thatwe achieve some sort of outcome?"
That's where OKRs are helpful.
All right.
And so before we get into OKRs though,let's talk about mandatory goals.
One of the biggest issues I see inorganizations is that they don't
distinguish between mandatory goalsor "must-achieves" and stretch
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goals, where we are going intounknown territory and we can't really
forecast because it's the unknown.
And we still want to have a target,trying to forecast in speculative,
unknown stretch territories, justsets us up for disappointment.
So instead of treating our stretchgoals as mandatory, or treating our
mandatories as stretch, a lot oforganizations, they just conflate the
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two and then no one ever knows whethersomething's mandatory or stretch.
And so we just presume everythingis mandatory because that's
the only safe thing to do.
That can lead to underperformance.
So examples of things that might bemandatory goals in the health space: Get
at least six hours of sleep per night.
Drink eight glasses — that'sprobably a bridge too far.
(16:50):
I should have said,"Drink water every day."
I know the recommendation iseight glasses, but let's just
go for drinking water every day.
Mandatory.
Take your prescribedmedications as directed.
Our mandatories are thethings that we have to do.
They're the things that if wedon't do this, we're going to
experience negative consequences.
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There might be poor outcomes.
And so in our business, we'reWe've got mandatory goals.
You have to pay your credit card bill.
You have to make payroll.
There are things where they're justmust-achieves, they're mandatories.
I used to call these "commits," butthat language became a challenge.
It's less precise than sayingmandatory or must-achieve.
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So I use mandatory, and then I'vehad one of my clients adopted "must
achieve," so I just include thatfor consistency since there might
be folks from there on here today.
Okay, so that's mandatory goals.
We want to use mandatory goal settingwhen something has to be achieved.
And then, when we set a mandatorygoal, our target for that
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is 100 percent achievement.
We're going to aim to get thatdone 100 percent of the time
because it's that important.
But then, that takes us into ourspeculative and unknown territory.
So we can set mandatory goalsaround the parts of our worker
life that are predictable or known.
Then we get into growth, and innovation,and change, and parts that are unknown.
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And that's where OKRsbecome really important.
Objectives and Key Results help usidentify the targets we're aiming for
when it's too uncertain to forecast.
But we want to give ourselves a targetto aim for that is, what might be
possible if everything went right.
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So, if everything were to go amazinglywell, what might be possible?
The formula for an Objective that I useis: what's important, why does it matter?
And so an example Objective, along withour health and body-based examples,
might be (18:57):
"become the healthiest version
of myself with age and age with grace."
So, what's important?
Being the healthiest version of myself.
Why does it matter?
I want to age with grace.
That's my purpose.
That's how I want to feel about aging.
So, that's the Objective.
Our Objective gives us our ideaof what direction we're heading
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in, what's important, like what'sthe territory that we're focused
on, and why does it matter to us?
Because if we only ask the firstquestion, "what's important," then
it's kind of like those activity planswe started with at the beginning.
It's just another thing on the checklist.
But when we add the "why," thenit makes our Objective something
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that means something to us.
It gives us an idea of its purpose.
And so, that helps us staymotivated when we're challenged.
It reminds us of why this goal,this Objective, and the Key Results
that support it are importantwhen we start to get discouraged
or when we need a pick-me-up.
It's like a tiny love letterfrom the "you" that you are
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when you're setting your goals.
You are your, like, NewYear's resolution -best you.
You are the most optimistic, "Ican do it", idealistic version of
yourself when you're goal setting.
And what matters is the "you" you are in45 days when everything's gone sideways,
and you still have to keep at it.
So, the Objective is like a tiny loveletter from your idealistic "you"
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to your future "you" that's goingto get frustrated and challenged.
Keeps you focused and inspiredto keep working when things
get hard, and get creative andtroubleshoot when things get hard.
Then, our Key Resultltsalign to our Objectives.
And so our Key Results are our measures,but I'm going to say, not just measures.
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Not just quantifiable,there are empirical, data
-based metrics or measures.
They are things that can beempirically measured and quantified.
And in that, I include datathat we get from our systems.
But I also include things that wecan reliably observe or notice.
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If you don't have a bunch ofinstrumentation in your business,
there are things that happen thatare important that you can count.
And that sounds like quantifyingactivity, but quantifying activity
is quantifying your own activity.
When I say, "we can write a KR aboutwhat you observe in your business or
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what you notice in your business," that'stalking about other people's activity.
I can't think of a body-based oneright off the bat, but one of the
examples that I used early on in mybusiness, I had a Key Result around
hearing clients say the word "ease" intheir feedback about working with me.
So that's not aninstrumented business metric.
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That's something that, when we get ourfeedback surveys, we do a search for
the term "ease" and we see how manypeople mentioned "ease" or "easy."
At the end of a teaching day, I'd lookat the chat window, and I'd look at
the transcript, and we'd say, "didwe see the word 'ease' or 'easy?'"
And how many people were there?
That Key Result wasn't a business metric.
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It wasn't instrumented, but itwas something I could observe.
It was really important for mebecause when that number went up,
it meant my materials were gettingbetter for my target and more useful.
When I say Key Result, don'tstop listening just because you
might not have business metrics.
If you write one Key Result likethat one of "I want to increase
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the number of times I hear the word'ease' in client feedback," you will
be shocked at what a difference asingle Key Result like that can make
for how you work and in your results.
But back to our body-based examples.
So we have our Objective:
become the healthiest version (22:53):
undefined
of myself, to age with grace.
Now we've got our KeyResults that we layer in.
And Key Results sometimesare KPIs turned into goals.
So that's what we have here.
Reduce my blood pressure from140 over 70 to 130 over 80.
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Reduce my A1c, which is adiabetes marker, from 5.
8 to 5.
6.
Increase VO2 max, it's cardiovascularefficiency metric, from 35 to 40.
I actually didn't fact-checkif that is a right number, so
don't quote me on that one.
But increase our VO2 max from ourstart value to our finish value.
(23:34):
I usually write them as, "increase,""decrease," or "improve" a metric by a
percent change from A to B, but I keptthese a little simpler for this one.
So that's our OKRs.
Our OKRs are, we're going to set stretchgoals for our uncertain territory,
we're going to recognize that theytake us into uncertain territory.
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We're going to be really curiousabout how we do on those.
We're not going to beatourselves up about it.
We're going to get curious and see whatwe learn because our OKRs are about
experimentation and continuous learning.
All right, we're in the home stretch.
BSC is Balanced Scorecard.
And I haven't.
learn the fine points of BalanceScorecard, but I've worked with
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clients who use Balance Scorecard.
And so Balance Scorecard is whenwe have that holistic dashboard.
That's where we decide what are theKPIs that we need to see every day?
What are our Key Results thatwe need status on every day?
What are our most important thingswe need to have on that dashboard?
And so here, in our example, that mightbe something that includes our most
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important physical health metrics,mental health metrics, social well-being
measures, and socioeconomic resourcemeasures, because socioeconomics play
a huge part in health and well-being.
And so that's our dashboard,is our Balance Scorecard.
But it doesn't have everything onit, it has what's important on it.
And then our R.
O.
B., our Rhythm of Business , or asJurriaan Kamer says, Rhythm of Progress,
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is all of the things that make up theculture of performance in your work.
So people think of Rhythm of Business,if they've heard that term before,
as these are the meetings thatwe're going to do on a cadence.
What are the meetings we're going to doweekly, monthly, quarterly, annually?
But I think bigger about your Rhythmof Business because your Rhythm of
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Business is really your culture.
It's your meetings, yes, it's also yourcommunication norms, your asynchronous
communication norms, your habits.
Your rhythms for learning andfeedback, your ways of recognizing
each other and what cadence that's on.
So I think much more broadly about Rhythmof Business, but every business has one.
(25:47):
And so, you might think you don't,but even if you don't think you do.
There are elements of a Rhythmof Business in how you work.
I have a toolkit for this.
I don't have the link with me, butI'll share it in social media because
I have a Rhythm of Business toolkitthat can help with identifying, and
then, improving your goal attainmentfocus in your Rhythm of Business.
(26:09):
So I'll share that out too.
So in our health routines, our Rhythmof Business might be that daily morning
stretch and evening walk, and then ourweekly meal prep on Sundays, and then
our monthly check-in on our "What's ourblood pressure trend been for the month?"
Cause blood pressure varies a lot by day.
So we look at trends.
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We don't look at individual measures.
And then do I have my quarterly checkwith my rheumatologist and do I have my
annual check with my primary care doctor?
So those are our rhythms of business.
Or rhythms of physical health.
And then EOS is EntrepreneurOperating System.
Jessica Lee is someone who's comeinto my life fairly recently.
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She's amazing.
She's an EOS consultant, which wasjust perfect timing because EOS is
something I get asked about a lot.
It's not a framework that I've becomeexpert in because I got my hands full
with OKRs, but EOS is a frameworkthat helps small and mid-sized
organizations organize around like abig picture system of vision and people
(27:10):
and data and issues and process andhow to get traction and achievement.
So I'm not an EOS expert, but I wantedto mention it because that's one of
the acronyms that comes up a lot.
And in the kind of trying to make ananalogy with health, I feel like EOS
is like our family health system.
So what are the families R&Rs for health?
(27:32):
Who plans meals, who organizes dailyactive time, who makes sure we get out
to the park when the weather's nice,who schedules the doctor's appointments
and what's the quarterly family rhythm.
What's the annual family rhythm.
Do we have an annual kind of vacationor getaway that we can spend to take
a little time to check in on ourhealth and well being as a family.
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But that would also includeyour healthcare providers.
It's like, what's the system?
So that's different.
Then Rhythm of Business, because Rhythmof Business is more about the mechanics,
and EOS is broader and includes the rolesand responsibilities and more to it.
All right.
Homestretch, team.
So that's it.
That's all the acronymsI'm going to throw at you.
(28:16):
It's a lot, but I hope that helps breakthem down so you can see when you might
use which ones in your business or work.
if you have any questions,I would love to hear them.
Like, there might be somethingwhere you're wrestling with
which goal type you might use oryou might have another acronym.
(28:36):
Jeffrey shared, "FAST,frequently discussed, ambitious,
specific, and transparent."
Oh, that's a good one.
I like that.
That could be like OKRs and FAST,like, people try and put OKRs and
SMART goals together, but OKRs actuallyalign really, really nicely to that
FAST acronym, Frequently Discussed,Ambitious, Specific, and Transparent.
(28:59):
Because when we're doing OKRswell, that's what they are.
that's a great one, I'lladd that into my toolkit.
But that's our alphabet soupof goal setting for today.
And then if anything I've saidtoday is helpful to you or you
want to learn more, join theprelaunch list for my print books.
I have the No BS OKR workbook is alreadyavailable for download in PDF form for
(29:23):
$19 on my website, saralobkovich.comThe print version of the workbook
and my full length business book.
You Are A Strategist (29:31):
Use No
BS OKRs To Get Big Things Done.
So you can join the pre launchlist at youareastrategist.com.
Find out everything by joining mymailing list at findrc.co/newsletter.
All right, friends, That's it for today.
Stay in the loop with everythinggoing on around here by
(29:52):
visiting findrc.co/newsletterand joining my mailing list.
Got questions?
My email addresses are too hard tospell, so visit findrc.co/contact
and shoot me a note that way.
You'll also find me at@saralobkovich on most of your
favorite social media platforms.
(30:13):
For today's show notes,visit findrc.co/thinkydoers.
If there's someone you'd like featuredon this podcast, drop me a note.
And if you know other Thinkydoers who'dbenefit from this episode, please share.
Your referrals, your word of mouth,and your reviews are much appreciated.
I'm looking forward to the questionsthis episode sparks for you, and I
(30:36):
look forward to seeing you next time.