As we can already learn from Alice in Wonderland: "If you don't know where you want to go, any road will take you there." Google, LinkedIn, as well as Edeka, autoscout24, Burda, and Vision11 are using Objectives & Key Results (OKR) to replace the classic static individual lag measure annual goals. No, OKR is not a new Silicon Valley methodology currently being pushed by so many German companies, but rather a proven system that has been in use for decades, invented and successfully implemented by Intel's co-founder and CEO Andy Grove in the 1970s as a defense measure against Motorola's attack (Operation "Crush"). Google has been using OKRs for 78 quarters or 20 years (!) with some adjustments made by various CEOs. OKRs are currently very popular among startups, medium-sized companies, and DAX corporations. What makes the currently highly regarded benefit of the OKR system:
- greater dynamic adaptability in the volatile VUCA world
- more transparent exchange and cross-hierarchical and silo-cross collaboration (60% bottom-up)
- clearer prioritization and focus on core topics for each quarter
- better motivation and therefore
- increased goal achievement
- plus many other advantages
However, OKR is not a panacea or a magic wand - not a 'silver bullet' as John Doerr clarifies, OKR evangelist and author of the OKR bestseller 'Measure what matters'. Few companies like Spotify, for example, are also abandoning OKRs or converting OKRs from employee level to team level. The most common justifications are "doesn't (currently) fit us" or "no time." My personal experience is that participants at the end of a workshop also consider and try out the OKR methodology for project teams or especially in turbulent times. And the issue of time, in my opinion, only means a lack of prioritization or understanding of the benefits of OKR... In addition to some should-haves of the system (e.g. 3-4 month planning periods), there are also some possible levers such as the optional linking to employee bonuses - these should be handled according to the motto: "As close to the methodology as possible, as adapted to the company specifics as necessary." Optimization of company-specific OKR usage typically takes 2-3 quarters/cycles until the full benefits come into play. At the end of each quarter, as with Scrum sprints, a content review and a qualitative retrospective should be conducted, which will inform the learnings for the next quarter. Since, as mentioned, it is a rather complex topic (the devil is in the detail), at the beginning all stakeholders including top management should be enabled and trained. Furthermore, sustainable commitment from the highest level is needed, even if initial resistance arises. I will describe in more detail how OKR functions as an agile goal system in a later post - otherwise, feel free to contact me. Or have you already had experience with OKRs? Then I look forward to your honest, reflective feedback...
