{"id":22,"date":"2022-06-01T10:30:47","date_gmt":"2022-06-01T07:30:47","guid":{"rendered":"https:\/\/epicproduct.ru\/?p=22"},"modified":"2024-04-16T11:45:24","modified_gmt":"2024-04-16T08:45:24","slug":"5-prichin-po-kotorym-vasha-kompaniya-mozhet-nepravilno-ispolzovat-okr","status":"publish","type":"post","link":"https:\/\/epicproduct.ru\/en\/5-prichin-po-kotorym-vasha-kompaniya-mozhet-nepravilno-ispolzovat-okr\/","title":{"rendered":"5 Ways Your Company May Be Misusing OKRs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">UPDATE: I published a free eBook that covers OKRs (and OKR pitfalls) in much more depth:&nbsp;<a href=\"https:\/\/itamargilad.com\/ebook-okr\/\">OKRs Done Right<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since their invention at Intel in the early 1970s, Objectives and Key Results have amassed a huge following. It certainly helps that Google, Amazon, Dropbox and other tech super-companies attribute so much of their success to them. John Doerr\u2019s book Measure What Matters is further fueling this fire. Many companies are either implementing or have already implemented OKRs. It\u2019s the tool I get asked about the most.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But here\u2019s the thing \u2014 OKRs are just containers for goals. They serve bad goals just as well as they do good goals. In fact, of all the management tools, OKRs are the easiest to misuse, overuse and abuse \u2014 many companies fall into this trap. This is a major problem because bad OKRs can amplify the issues the org is troubled with rather than fix them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article I\u2019ll go over some of the most common issues I see with OKRs and ways to address them.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"1cb4\">1. Using OKRs to express a plan (Output OKRs)<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">This is&nbsp;the most fundamental and most common mistake I see&nbsp;(I\u2019m certainly guilty of doing it in the past). Our natural inclination is to use OKRs to express a plan of action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">O: Become a leader in the enterprise<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>KR: Launch v2.2 of the mobile app<\/li>\n\n\n\n<li>KR: Integrate with SalesForce<\/li>\n\n\n\n<li>KR: Switch to new onboarding flow<\/li>\n\n\n\n<li>KR: Run 10 paid campaigns<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s why this is wrong.&nbsp;Objectives and Key Results are designed to convey goals \u2014&nbsp;<em>what we\u2019re trying to achieve, by when and how we\u2019ll measure success<\/em>. Building, launching and promoting features and products are not the goals.&nbsp;The goals are the benefits we expect to gain from these actions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Goals that communicate a plan (known as Output Goals) commit this fundamental logical error:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>We want to achieve X (the real goal)<\/li>\n\n\n\n<li>The best way to achieve X is to do Y (a solution)<\/li>\n\n\n\n<li>Therefore doing Y is equivalent to achieving X<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">In tech steps 2 and 3 represent huge leaps of faith:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Doing Y will indeed accomplish X<\/li>\n\n\n\n<li>Y is the best way to achieve X<\/li>\n\n\n\n<li>Y will not have big negative side-effects<\/li>\n\n\n\n<li>Y is feasible with our current technology and resources.<\/li>\n\n\n\n<li>Y will not cost x2-x4 more than we think<\/li>\n\n\n\n<li>Etc.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Virtually every project I worked on or observed invalidated some or all of these assumptions&nbsp;\u2014 especially the first \u2014 the assumption that the project will have the expected effect. We may launch v2.2 of the mobile app and users will hate it and usage will plummet. The new onboarding flow may drive no measurable change in user behavior \u2014 that\u2019s actually the case with&nbsp;<a href=\"http:\/\/ai.stanford.edu\/~ronnyk\/ExPThinkWeek2009Public.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">most product changes<\/a>. Running 10 campaigns may help us acquire the wrong right type of users, etc.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Doing stuff isn\u2019t the point. Achieving stuff is.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">So the right sequence is: 1) Define what you wish to achieve in the form of Objectives and Key results 2) Plan what you\u2019ll do to achieve it (for more details see the&nbsp;<a href=\"http:\/\/itamargilad.com\/gist-framework\" target=\"_blank\" rel=\"noreferrer noopener\">GIST framework<\/a>)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you find that you keep creating output goals, this simple trick to get to the real outcome\/impact goal behind them: ask \u201cwhy?\u201d<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>KR: Launch v2.2 of the mobile app \u2192 why? \u2192 Grow Mobile WAUs >= 300K<\/li>\n\n\n\n<li>KR: Integrate with SalesForce \u2192 why? \u2192 Reduce churn to < 2.5%\/month<\/li>\n\n\n\n<li>KR: Switch to new onboarding flow \u2192 why? \u2192 Reduce avg. onboarding time < 2hrs<\/li>\n\n\n\n<li>KR: Run 10 paid campaigns \u2192 why? \u2192 Acquire 2500 leads per month<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"0f27\">Upcoming Workshops<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Want to learn more about OKRs and other product tools? Check out my&nbsp;<a href=\"https:\/\/ti.to\/itamar-gilad-events\/\">public<\/a>&nbsp;and private workshops<\/strong>:&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/itamargilad.com\/workshops\" target=\"_blank\">itamargilad.com\/workshops<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"c245\">2. Using Non-SMART OKRs<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Management guru Peter Drucker defined&nbsp;SMART goals&nbsp;in the 1950s, but it\u2019s still a very valid guideline today. Goals should be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Specific \u2014 paint a clear picture of the desired end result; not ambiguous.<\/li>\n\n\n\n<li>Measurable \u2014 all key results should have clear metrics.<\/li>\n\n\n\n<li>Ambitious \u2014 pushing the team somewhat out of their comfort zone (Google founder Larry Page calls this feeling \u201cuncomfortably excited\u201d, and you do experience this feeling quite a bit in Google)<\/li>\n\n\n\n<li>Realistic \u2014 Achievable, Not pure fantasy.<\/li>\n\n\n\n<li>Time-bound \u2014 each OKR should have a clear ETA \u2014 typically end of quarter or end of year.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The main anti-patterns I see:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High level and vague key results \u2014&nbsp;MBA-speak&nbsp;simply doesn\u2019t work here: \u201cdeliver engaging experiences\u201d or \u201cdrive customer satisfaction\u201d are neither specific nor measurable.<\/li>\n\n\n\n<li>Non-realistic key results \u2014 some managers believe that their job is to ask for pies in the sky as a way to drive people to deliver more. This tactic always backfires \u2014 people will seemingly commit, but quietly reject a goal they perceive to be non-feasible. It\u2019s much better to have the people doing the work help you find what\u2019s ambitious-but-realistic.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">OKRs are not a zero-sum game \u2014 they\u2019re meant to drive collaboration, not hard negotiation.<\/p>\n<\/blockquote>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"69b7\">3. Too Many OKRs<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">I see this a lot \u2014 companies and teams get excited about OKRs and put every conceivable thing they may wish to work on into them. Teams of 4 people try to commit to&nbsp;6 OKR clusters each with 4\u20135 key results. Managers expect to see every possible metric captured in the OKRs, and request weekly progress check-ins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Naturally this falls under that non-realistic goals category, but it\u2019s even worse:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No focus \u2014 Having too many goals robs teams of focus. When everything is important it\u2019s very hard to know what to work on and there\u2019s less progress.<\/li>\n\n\n\n<li>Low completion rate \u2014 even if the team did very well, at the end of the cycle only a small % of the goals were completed. This may lead to disappointment, mistrust in the process, treating OKRs as wish lists or rejecting OKRs outright.<\/li>\n\n\n\n<li>Too much process \u2014&nbsp;OKRs are a tool to capture and communicate goal.&nbsp;They\u2019re not meant to serve as dashboards and weekly tracking is too frequent. There are better tools for this (and even there being picky about the metrics is important).<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">When it comes to goals less is truly more.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">One way to get out of this hole is to score the OKRs at the end of the cycle and see what % we completed. This will help calibrate us if we trying to do too much or too little. You can calculate completion rate for each of the key-results (should be easy, because they\u2019re measurable, right?) and then average across all OKRs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What\u2019s a good completion rate?&nbsp;At Google 70% is considered normal&nbsp;\u2014 indicating the right ratio of ambition and realism. For many companies that\u2019s too forgiving \u2014 they set the target higher. However 100% completion rate is just as bad as 50% \u2014 it means that people are not being ambitious enough, only going for safe goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another tip I give first-time OKR teams is to start small and try hard to only include the most important things.&nbsp;On a team level start with 3\u00d73 (3 Objectives each with maximum three key results) and over time try see if you can reduce to 2\u00d72. At org-level you should try to stay within 6\u00d75 OKRs. Smaller companies can often do with fewer top-level OKRs.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"d90b\">4. Top-Down OKRs<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some other anti-patterns I commonly encounter:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Managers create the OKRs for the employees<\/li>\n\n\n\n<li>Product managers create the OKRs for the team<\/li>\n\n\n\n<li>The finance team defines the expected results for everyone<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The problem is this \u2014 goals that are created by \u201cplanners\u201d and handed down to \u201cimplementers\u201d are usually bad goals. They\u2019re lacking the perspective, knowledge and insight of the person doing the work. These folks can contribute not just to their goals, but also to their higher-ups\u2019 \u2014 missing goals, unrealistic or over-cautious goals, better ways to measure, etc.&nbsp;Top-down goals are also less likely to get buy-in. If we didn\u2019t hit the targets it\u2019ll always be the fault of the plan.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">The best people to help you define the goals are the ones that will make them happen.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">You want to have people take part in defining their own goals (at least). In a development team, the leads \u2014 PM, dev, UX, should create the draft and then share with the team for review. Similarly managers should create skeleton OKRs and ask their reports to start filling-in the gaps and propose missing objectives and key results. The process should be as much bottom-up as it is top down.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"0ddc\">5. Using OKRs for performance evaluation<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Some managers think that OKRs are a way to get people to commit more, work harder and be more accountable. A smart way to increase performance, productivity and output. Some even try to tie performance evaluation, compensation and promotion to OKRs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is absolutely the wrong way to think about OKRs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s true that good goals can help people and teams stretch themselves and achieve more, but it\u2019s never because there\u2019s a carrot or a stick attached. The improvement comes from the clarity, focus, consistency and sense of impact that the goal brings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tying performance evaluation to OKRs is a major no-no. It motivates people to game the system&nbsp;\u2014 push for non-ambitious goals, low-ball outcomes, blow-up effort estimations. You\u2019ll definitely never get anyone to be ambitious with their goals anymore.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">OKRs are not contracts between managers and employees.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">If anything, OKRs are a tool to get managers to perform better \u2014 communicate clearly and transparently what they wish to achieve and how they would like to measure success; Be more collaborative in defining goals and more conscious of what\u2019s possible; stay consistent and not pivot on a dime. Once we invite everyone to take part in OKR creation, these benefits extend to the rank-and-file as well. We can all become better managers of ourselves, our teams and our organizations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPDATE: I published a free eBook that covers OKRs (and OKR pitfalls) in much more depth:&nbsp;OKRs Done Right. Since their invention at Intel in the early 1970s, Objectives and Key Results have amassed a huge following. It certainly helps that Google, Amazon, Dropbox and other tech super-companies attribute so much of their success to them.<a href=\"https:\/\/epicproduct.ru\/en\/5-prichin-po-kotorym-vasha-kompaniya-mozhet-nepravilno-ispolzovat-okr\/\" class=\"more-link\"><span class=\"screen-reader-text\">5 Ways Your Company May Be Misusing OKRs<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":["post-22","post","type-post","status-publish","format-standard","hentry","category-goal-setting","category-product-management"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/posts\/22","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/comments?post=22"}],"version-history":[{"count":7,"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/posts\/22\/revisions"}],"predecessor-version":[{"id":111,"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/posts\/22\/revisions\/111"}],"wp:attachment":[{"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/media?parent=22"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/categories?post=22"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/epicproduct.ru\/en\/wp-json\/wp\/v2\/tags?post=22"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}