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Introduction
Why companies struggle with OKR implementation.
I’ve been hearing around the web that some companies are having problems implementing OKRs, sometimes scaling back their deployment or abandoning OKRs altogether.
But how is that possible when books like “Measure what Matters” (Doerr) and “Objectives and Key Results” (Niven and LaMorte) score many cases of game-changing OKR success stories. It’s also confounding because so many influential companies like Google, Microsoft, and Apple have embraced it as an essential strategic goal-planning framework.
We’ve heard most of the common problems with OKR implementation:
- Objectives are not aligned
- KRs become a list of tasks
- Lack of Discipline and Cadence
- OKRs are just another top-down directive
- Teams and Individuals sandbag or low-ball OKRs
- It’s too cumbersome for a large organization
But these problems concern the mechanics of how OKRs work, which can be remedied with proper training and coaching. The real issues are failure to lay down a good OKR foundation before you start implementation.
New to OKRs? See – “What is OKR?”
11 Things to Know Before Implementation
1. Expect a learning curve with OKRs
Unlike KPIs, which are easy to understand and implement, OKR is a transformational management framework, which is a significant shift in how companies approach strategy, planning and execution – and that doesn’t happen overnight. OKRs require training, practice and coaching.
Most literature says you need 6 months to a year to get the hang of OKR. But it’s not uncommon for companies to work with an OKR consultant for 2 years.
2. Understand why you are implementing OKRs.
Managers will have a harder time buying into OKR when the reasons are unclear. You must identify the problems or needs of an organization and describe how OKRs will remedy them.
It’s easier to get manager buy-in when you can clearly connect OKR with challenges in their daily work – it makes it personal.
3. The CEO needs to be all-in.
In Ben LaMorte’s book “The OKRs Field Book” he states:
“As with any change management program, an OKRs program will have almost no chance of success without executive support.”
In most cases, that executive support will be the CEO, especially if you want to deploy OKRs across several departments. All departments need to drum to the same OKR beat – and only the CEO can ensure this happens.
OKRs are about alignment – Everything starts at the top and disperses throughout an organization. This includes OKR inspiration from the leaders.
CEOs! Don’t let off the gas until you have traction.
CEOs need to be on top of OKRs until they gain sufficient traction. This could be up to 2 years of consistent leading, monitoring, and nurturing of OKRs – but once OKR takes root, you’ve established an OKR culture, and it’s auto-pilot from there.
See here for “OKR builds company culture”
4. You need clear Mission and Vision Statements
You can’t align your staff and projects if you don’t have a starting point. With a goal-oriented strategy, it all starts with your Mission and Vision Statements, and everything else cascades from there. It’s essential for direction, alignment and perspective – that’s why it’s called the North Star.
In “Objectives and Key Results” (Niven & Lamorte), it states,
“OKRs should never be created in a vacuum, but must be a reflection of the company’s purpose, its desired long-term goals, and its plan to successfully defend market space. In other words, they should translate your mission, vision, and strategy into action.”
Also See – “OKR Alignment – Direction, Teamwork and Momentum”
5. Understand the importance of an external OKR Coach.
Becoming proficient at OKR requires reading the essential books, getting certified and then making it through the school of hard knocks – and that means to experience all the peculiar scenarios and people challenges from several OKR implementations.
An external OKR coach has been through this, maybe many times over. You can take advantage of this experience and allow an External OKR Coach to help you fast track OKR deployment, avoiding most of the growing pains of learning OKRs the hard way.
6. Assign an Internal OKR Master
From day 1, companies should assign their own internal OKR Master, to deploy OKR to other teams and ensure proper OKR execution after the External Coach departs. This person will need to read the essential books and receive rigorous training and coaching from the external coach.
For Agile Scrum management in software development, there is a similar position called the Scrum Master, a crucial position for Scrum implementation.
7. Let OKRs adapt to you, not the other way around.
Companies will spend too much time agonizing over how their unique circumstances will work with OKRs. OKR is a framework, not a set of rigid rules and regulations.
It’s OK to tweak OKRs to fit your organization and that’s reiterated often in OKR literature – OKR is bendable. And once you know this, it makes implementation much easier.
However, no matter how you adjust OKRs, you need to stay on track with the F.A.C.T.S. – Focus, Alignment, Commitment, Trackability, and Stretch.
If you keep those basic tenets of OKR in mind, positive outcomes are almost certain.
Find out about OKR F.A.C.T.S. here (What are OKR Superpowers – the F.A.C.T.S.)
8. Don’t mandate company-wide OKRs – grow it.
Companies may follow Google’s lead in implementing OKRs throughout the organization but may start running into problems. When you mandate all-hands OKRs, there is an aura of top-down company directives, which can feel more like a burden than a solution. OKRs should be inspirational and aspirational.
Also, you don’t need to squeeze OKRs into every aspect of your operations. In my experience, OKRs are best implemented team by team, first taking advantage of Managers who are open to OKRs. The OKR coach works with the team to demonstrate the power of OKR through achievement – this is the best way to encourage other managers to catch onto OKRs. This grows OKR culture organically with the least resistance.
See example of how this works: “Making a case for individual OKRs”
9. Understand OKR vs. Project Management.
OKR is described as a company-wide management framework, but it only applies to goal-setting – OKRs only point the way. The actual execution of tasks to achieve those goals are in the realm of Project Management, which is about executing tasks such as marketing campaigns, quality testing, software programming.
The association of OKR to Project Management is unclear in OKR literature. It’s even more vague as to how you connect the two, and yet it’s vital to understand the relationship.
OKRs are linked to Project Management by what we call “Initiatives”. And OKR software can be integrated with software used for Project Management. This way Project Execution can seamlessly be monitored on OKR software.
5. Understand the importance of an external OKR Coach.
Becoming proficient at OKR requires reading the essential books, getting certified and then making it through the school of hard knocks – and that means to experience all the peculiar scenarios and people challenges from several OKR implementations.
An external OKR coach has been through this, maybe many times over. You can take advantage of this experience and allow an External OKR Coach to help you fast track OKR deployment, avoiding most of the growing pains of learning OKRs the hard way.
6. Assign an Internal OKR Master
From day 1, companies should assign their own internal OKR Master, to deploy OKR to other teams and ensure proper OKR execution after the External Coach departs. This person will need to read the essential books and receive rigorous training and coaching from the external coach.
For Agile Scrum management in software development, there is a similar position called the Scrum Master, a crucial position for Scrum implementation.
7. Let OKRs adapt to you, not the other way around.
Companies will spend too much time agonizing over how their unique circumstances will work with OKRs. OKR is a framework, not a set of rigid rules and regulations.
It’s OK to tweak OKRs to fit your organization and that’s reiterated often in OKR literature – OKR is bendable. And once you know this, it makes implementation much easier.
However, no matter how you adjust OKRs, you need to stay on track with the F.A.C.T.S. – Focus, Alignment, Commitment, Trackability, and Stretch.
If you keep those basic tenets of OKR in mind, positive outcomes are almost certain.
Find out about OKR F.A.C.T.S. here (https://c2believe.net/what-are-okr-superpowers/)
8. Don’t mandate company-wide OKRs – grow it.
Companies may follow Google’s lead in implementing OKRs throughout the organization but may start running into problems. When you mandate all-hands OKRs, there is an aura of top-down company directives, which can feel more like a burden than a solution. OKRs should be inspirational and aspirational.
Also, you don’t need to squeeze OKRs into every aspect of your operations. In my experience, OKRs are best implemented team by team, first taking advantage of Managers who are open to OKRs. The OKR coach works with the team to demonstrate the power of OKR through achievement – this is the best way to encourage other managers to catch onto OKRs. This grows OKR culture organically with the least resistance.
See example of how this works: “Making a case for individual OKRs”
9. Understand OKR vs. Project Management.
OKR is described as a company-wide management framework, but it only applies to goal-setting – OKRs only point the way. The actual execution of tasks to achieve those goals are in the realm of Project Management, which is about executing tasks such as marketing campaigns, quality testing, software programming.
The association of OKR to Project Management is unclear in OKR literature. It’s even more vague as to how you connect the two, and yet it’s vital to understand the relationship.
OKRs are linked to Project Management by what we call “Initiatives”. And OKR software can be integrated with software used for Project Management. This way Project Execution can seamlessly be monitored on OKR software.
You can find out more about it here “What is OKR in Project Management?“
10. Don’t expect OKRs to go right the first time.
OKR is a framework not a rigid set of methodologies. That said, you’ll probably spend some time adapting and adjusting, which will result in a few fails before the wins. But, that’s why OKRs are designed to be “iterative”, a perpetual cycle of plan, execute, reflect, improve, and try all over again.
With OKRs, it’s not so much where you are, as long as you are improving and making progress all the time – and that’s the idea behind “Iteration”
Conclusion: Setting a foundation with clear expectations is the key to OKR implementation.
OKR implementation is much like starting an exercise program. It’s a good idea at first but it’s easy to let off the gas. That said, it’s important to set realistic expectations and prepare up front.
You should know that OKR is a transformational strategy with a learning curve, and a company needs time for acclimation. And it’s important for the CEO to be committed and hands-on during the early stages to ensure adaptation and traction.
Also, remember that OKR is a “framework” that’s bendable – it means you are allowed to tweak OKR for your needs, as long as you stick to the F.A.C.T.S.
OKR implementation works best starting with 1-2 pilot teams. They will demonstrate the advantages of OKR and encourage other managers to follow suit.
Training, practice and coaching is Paramount. An experienced external OKR coach will fast-track your implementation, and your own internal OKR Master will perpetuate OKR after the external coach, and make sure those mechanical OKR problems gradually iron out over time with cycles of iterative change.
References:
Objectives and Key Results – Driving Focus, Alignmetn and Engagement with OKRs – Niven and Lamorte (2016)
The OKRs Field Book – A step by step guide for Objectives and Key Results – Ben Lamorte (Copyright 2022)
Measure What Matters – How Google, Bono and the Gates Foundation Rock the World with OKRs – John Doerr (2018)
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