Virtual Work During Lockdown
It is truly remarkable and admirable how people – at least many I know and work with – are flexibly working from home due to the lockdown and successfully using a multitude of new virtual tools (such as Zoom, Miro, Mural, Google Hangouts, or Jamboards), even though it is quite challenging and exhausting.
The Importance of OKRs in the Current Time
What also remains important for employees and companies – or is even becoming more important – are the shorter-term, collaboratively developed goals or Objectives & Key Results (OKRs), as used by Axel Springer, Roche, Vision11, and many others (including my clients). With 3-month cycles (instead of 12-month annual goals), everyone can respond much more agilely and effectively to situations like the global coronavirus pandemic, while also gaining a sense of certainty and planning stability during these challenging times with significant disruptions…
OKRs – A Proven System for the VUCA World
Although invented and successfully implemented many decades ago by Intel’s CEO Andy Grove, this method is increasingly in demand in the dynamic VUCA world and especially in extraordinary times like these.
The Benefits of OKRs in Times of Crisis
What is the outstanding benefit of the OKR methodology in times like these:
- A certain degree of orientation, stability, and security for the next 90 days
- A focus and prioritization developed jointly by the team
- A wide range of adaptability options, including midterm reviews
- Structured transparency for everyone so all are on the same page
- Stronger collaboration across hierarchies and silos
- The ability to exchange ideas virtually via the web about the OKR sets (I had the chance to facilitate many successful online OKR sessions in recent weeks)
- Increased future viability of the team, department, or organization
Limits and Requirements for Effective OKRs
Of course, the OKR framework is not a magic wand and cannot simply eliminate existing organizational, procedural, financial, personnel-related, or cultural issues.
On the contrary: OKRs require (just like other agile frameworks) a team-oriented, learning, and agile (non-bureaucratic) mindset and, at the same time, adherence to certain standards and elements such as a retrospective similar to the Scrum process – without being overly complicated.
Ideally, OKR processes are integrated into existing team meetings such as weekly team check-ins or quarterly strategy sessions.
As one team leader confessed to me: “Since we started using the OKR set in our weekly team meetings, they’ve become much more effective and efficient.”
The OKR Cycle: Four Key Steps
The following four key steps should be considered in the OKR cycle:
- Planning new objectives & key results before the start of the new quarter
- Quick updates in (existing) team meetings every 1–2 weeks
- Midterm check including possible re-prioritization at the halfway point (around week 6)
- Review & retrospective at the end of the quarter to continuously incorporate learnings
The OKR Canvas as a Practical Tool
The OKR canvas (or OKR board) helps not only to systematically place the objective post-its (live or virtually) but also illustrates the cycle and important criteria for the high-quality formulation of OKRs (“quality criteria”), such as:
- The objectives align with the vision and mission and describe an inspiring impact.
- The key results are classically SMART (Specific, Measurable, Ambitious, Realistic, and Time-bound).
- The lead initiatives & lag results in the key results are defined as “stretch goals,” meaning 75% achievement is already “good” (challenging when tied to a bonus).
- The key results follow McKinsey’s MECE principle: they should be “mutually exclusive” (no overlaps) and “collectively exhaustive” (all KRs of an objective should be able to fulfill it together).
OKR Canvas – Including Description of the OKR Cycle and Quality Criteria
Success Factors for Implementing OKRs
This indeed means that it is not trivial to lead an organization to truly successful implementation of the OKR framework, as it represents more than just a method.
As with any (agile) transformation, the following are especially helpful:
- Commitment from top leadership to serve as role models and inspire the team with this new OKR system
- A phased approach (not rolling it out to all departments at once, especially for companies with more than 100 employees), to avoid overwhelming the organization
- Engaging, pragmatic OKR onboarding workshops with input and exercises for all participants to ensure a shared, correct understanding
- Sustainable support through OKR champions at the team and departmental level, who guide the proper implementation and learn from each other
Best of luck in using OKRs – and especially the OKR canvas!
