Beware of OKRs (a new cargo cult).
90% of companies are doing it wrong.
9 proven ways to fix it: 🧵
#productmanagement #okr #agile #strategy
90% of companies are doing it wrong.
9 proven ways to fix it: 🧵
#productmanagement #okr #agile #strategy
1. Select only one OKR
It's essential to realize that OKRs are not a list of tasks. Their goal is to create focus on what's not urgent yet critical for the long-term growth of the business (strategy).
It's essential to realize that OKRs are not a list of tasks. Their goal is to create focus on what's not urgent yet critical for the long-term growth of the business (strategy).
Every department may define its own child OKR that contributes to the organization's single Objective.
As a rule of thumb, you can have more OKRs in the case of multiple business models; for example, it might be silly to have a single OKR for Tesla EVs and solar panels.
As a rule of thumb, you can have more OKRs in the case of multiple business models; for example, it might be silly to have a single OKR for Tesla EVs and solar panels.
2. Plan every quarter
Agile frameworks teach us that having a cadence is critical. It creates good habits and positive behaviors.
I believe periods of focused work and reflection are the best approach to learning new things and growing as professionals.
Agile frameworks teach us that having a cadence is critical. It creates good habits and positive behaviors.
I believe periods of focused work and reflection are the best approach to learning new things and growing as professionals.
3. Sequence your OKRs
Some initiatives may take many quarters to complete. In that case, think about the sequence of "Milestone OKRs."
How can you break a larger objective into chunks? How would you know you are going in the right direction? Which OKR should you target first?
Some initiatives may take many quarters to complete. In that case, think about the sequence of "Milestone OKRs."
How can you break a larger objective into chunks? How would you know you are going in the right direction? Which OKR should you target first?
4. Combine top-down and bottom-up planning
Even the best CEO is not able to know everything that is happening in the company. It may be a good idea to start with a survey to get insights and suggestions from different departments.
Even the best CEO is not able to know everything that is happening in the company. It may be a good idea to start with a survey to get insights and suggestions from different departments.
5. Lead with vision
The Objective must be inspirational; it should speak to people's hearts.
What's our mission for the next three months? Why is it important? What value will it create for the customers and the business? How will it make people part of something bigger?
The Objective must be inspirational; it should speak to people's hearts.
What's our mission for the next three months? Why is it important? What value will it create for the customers and the business? How will it make people part of something bigger?
6. Do not incentivize OKRs
You need numbers to measure and track your progress, but incentivizing employees for OKRs is a terrible idea.
People need to be paid fair, but what really motivates them is:
You need numbers to measure and track your progress, but incentivizing employees for OKRs is a terrible idea.
People need to be paid fair, but what really motivates them is:
- Psychological safety (and stable income)
- Doing something meaningful
- Growing as professional
For more information, see @AdamMGrant work:
amzn.to
- Doing something meaningful
- Growing as professional
For more information, see @AdamMGrant work:
amzn.to
7. Use health metrics
Having an OKR doesn't mean you must stop doing other important things. Here come health metrics, which are a balancing practice for OKRs.
If one of the monitored metrics becomes "red," you need to stop and fix this problem and then continue work on OKR.
Having an OKR doesn't mean you must stop doing other important things. Here come health metrics, which are a balancing practice for OKRs.
If one of the monitored metrics becomes "red," you need to stop and fix this problem and then continue work on OKR.
8. Do not force everyone to use OKRs
Some departments like Legal or Customer Service may not need department-specific OKRs. They may continue doing "business as usual."
Make sure they know the most important thing for the organization to prioritize it when needed.
Some departments like Legal or Customer Service may not need department-specific OKRs. They may continue doing "business as usual."
Make sure they know the most important thing for the organization to prioritize it when needed.
9. Ask people to define Key Results
As a leader, you lead with vision. At the same time, from my experience, asking others to help you define Key Results will help you build stronger commitment and will result in better decisions.
As a leader, you lead with vision. At the same time, from my experience, asking others to help you define Key Results will help you build stronger commitment and will result in better decisions.
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