OKRs are an alignment framework designed to to help you execute effectively on what matters most (your strategy), while overcoming silos, politics and turf wars, the ongoing grind (aka whirlwind), and other management challenges. To face all of these challenges, OKRs provide organizational alignment and focus.
OKRs have the potential to achieve alignment and autonomy at scale (or maintain them as they scale) – but it has become the latest management framework to suffer the fate of becoming popular too quickly, to the point where in many organizations, OKRs are a theater/charade with little useful substance or benefits. I often hear from CEOs or Chiefs of Staff “OKRs are a necessary evil”. They don’t have to be.
OKR Best Practices to Consider
- OKRs should help you focus on your strategic priorities. Having a small set of strategic objectives reduces context switching and provides a rallying cry that helps cut through silos and politics. Avoid … mapping all planned initiatives to OKRs. Try … rallying around 1-2 OKRs.
- OKRs should focus on working ON the business – developing new business/product/organizational capabilities, rather than running the business. OKRs and KPIs are complementary but different.
- Work ON the business, also known as developmental work, is typically more uncertain/complex, requiring tighter feedback loops and evidence-based management. Avoid … managing work towards OKRs using static traditional project management. Try … using agility to steer towards OKRs.
- In environments of uncertainty/complexity you also benefit from focusing objectives on Outcomes rather than specific deliverables – keeping your options open and empowering the right people to figure out what outputs are best suited to achieve the outcome and how to work towards them. Avoid … activity/output OKRs. Try … Outcome OKRs connect to Impact through a Why Now statement.
- Don’t tell people how to do their work. Tell them what you really really want to see. Leverage the power of autonomy, mastery and purpose to your advantage. Avoid … strict cascading of OKRs. Try … collaborative intent-based network of OKRs.
- Executing on a cross-functional priority/strategy is often a nightmare. Don’t expect the OKRs framework to solve your dependency challenges. Use your OKRs to influence how you’re looking at work. Try … Organizing teams around OKRs
My Interest in OKRs
In recent years I’ve been using OKRs to help organizations scale. Sometimes its a practice I introduce based on the organization’s need. Some other times the organization is already using OKRs and need some help making them beneficial rather than necessary evil.
As OKRs show up more and more in my work, I spend more and more time talking and writing about them and sharing my insights and learnings. I also created Modern Leadership with OKRs and Fixing Your OKRs that are focused offerings for organizations who want to get going with OKRs the right way or adjust course.
