Objective and Key Results (OKR) as a bridge builder in agile transformation

Interview with Arndt Schmidtmayer, Top100 Trainer & Coach for OKR and Agile Transformation, and Thomas Walter, OKR Partner in many projects "OKRs (Objectives & Key Results) have helped us achieve 10x growth, and not just once. They have helped make our incredibly bold mission, 'to organize all the world's information,' achievable." SpeakersExcellence: That sounds very ambitious, almost exaggerated, doesn't it...? Thomas Walter: However, this is confirmed by Larry Page, co-founder of Google, who is currently in their 85th OKR quarter. They started with the agile operating system for modern organizations with just two people over 20 years ago, and even now, with over 135,000 employees, they continue to successfully use OKRs. And Larry adds: "They effectively kept me and the rest of the company on course when it was most important." Arndt Schmidtmayer: Interestingly, one of my participants in an international OKR project recently confirmed this to me, as he had just spoken with two Google employees, one in the headquarters in Ireland and one in Switzerland. SpeakersExcellence: What misunderstandings and prejudices exist about OKR? Arndt Schmidtmayer: Oh dear, where should we start...? (smiles) For me, a very important principle: OKR is not - and I emphasize it again: not - a completely cascading control tool of executives, but the opportunity for teams to set the right priorities for themselves on a quarterly basis, which will move them forward together - of course within the boundaries of the company's vision or mission and the strategic (annual) goals... Thomas Walter: ...and these so-called "Moals" - which stands for mid-term goals - ensure that executives do not have to cascade OKRs down from the top, but rather the teams row in the right direction within a set framework, unleashing high intrinsic motivation and self-efficacy. SpeakersExcellence: In your articles, webinars, and training videos, Arndt, you often mention that OKR helps with agile transformation in companies - do you have a specific example? Arndt Schmidtmayer: Yes, I actually have a very recent example from the ongoing quarter in practice: one of my OKR teams set the following mid-term Moal or annual goal for their agile transformation: "We empower our teams and are a 'Learning Organization'." They then translated this strategic guideline into a suitable 3-month goal or Objective: "We live an open feedback culture: 'Everyone tells everyone everything'". And because this needs to be broken down even further for concrete implementation, there are the corresponding measurable Key Results, such as: "All team members participated in the Learning Session 'Giving & Receiving Feedback'” and “First speed-dating feedback meeting with at least 15 participants held with a satisfaction rate of 90%”. Thomas Walter: Here we can see very nicely how OKRs serve as a concrete bridge between the somewhat distant goal of agile transformation into an empowered and learning organization and the operationalized activities of the teams - something that is often not done (winks). I also find the so-called "Stretch" Mindset very nicely implemented: not just half of the team - mind you, in the three months of the OKR cycle - participated in the learning sessions, but 'all'. Or we set the bar high with fifteen participants and ninety percent satisfaction, and it's okay if we don't quite reach that in the end... Arndt Schmidtmayer: ...which of course signifies a shift from the old mindset of "goals must be achieved 100%". I once had the opportunity as a coach to attend a review meeting where a team member, after achieving the third Key Result in full, said on their own initiative: "Hopefully, this won't continue, because then we haven't set the OKRs ambitiously enough." Thomas Walter: Which is quite commendable when the realization comes from within the team! Due to the focus on "100%, only then is the goal achieved" as Arndt mentioned, the effectiveness of the goals is often lost sight of (gives a thumbs up). SpeakersExcellence: What best practices regarding OKR can you share? Thomas Walter: There are quite a few: for example, the OKR Drafting or Discovery Week at a large corporation, where Arndt and I have successfully worked together. All OKRs of the 25 HR teams were shared in their 'initial version' or Draft in a large Excel sheet among all 250 employees and managers in the department, and over 5 days, comments and important notes could be added; important points were added such as "there is already a project team for this" or "I can organize interview partners for you". This way, the final OKRs could be fine-tuned much more transparently, aligned, and therefore successful. For me, this is one of the key aspects of successful OKR work: by increasing transparency and looking beyond one's own silo into the entire area, unwanted duplicate work can be avoided and activities can be meaningfully synchronized. Only then is alignment on relevant, common goals possible. Arndt Schmidtmayer: Yes, exactly! Such a Discovery Week can make a lot of sense in very large teams within a department, and in small startups, mutual coordination can also take place in a joint meeting live for 60 to 90 minutes. Another best practice for me is the commendable support of executives in the implementation of OKR: as customers repeatedly reflect to us: "If I had known how much agile culture like empowerment or trial and error and learning OKR demands and promotes, we probably wouldn't have dared to implement OKRs at the beginning, but now we are very glad we did." If OKR is to bring the benefits - such as more motivated teams and more creative solution ideas to pressing issues - then all team members must truly be able to contribute their own views and define goals or initiatives without too much interference from the leader. The leader can ask questions and challenge, but should not dictate the Os and KRs. I once even witnessed a team leader consciously stepping back during the OKR Planning Meeting - and not because he had supposedly more important things to do. He only rejoined during the equal voting and finalization of Objectives for the upcoming quarter. And that is the lived empowerment of a really good leader. SpeakersExcellence: Are there any worst practices in all your years of experience? Thomas Walter: Yes, unfortunately, there are: I once witnessed at a company where a management consultancy - and the word already says it - introduced OKR as a top-down control tool for managers. And as Arndt just said: this does not really foster the desired identification and motivation of team members to achieve OKRs. It's not self-determined and autonomously planned OKRs when the leader dictates the Objectives to the teams, they then plan their Key Results accordingly, and then have to present them again to the person in a leadership role for selection and approval. Arndt Schmidtmayer: Yes, exactly, Thomas: not only is it possibly being taught, understood, and/or implemented incorrectly, it is most effective as a self-management tool for teams and not as a control tool for managers. Furthermore, we often see OKR being misunderstood as a new Management by Objectives, or MBO 2.0, and out of habit, the usual Key Performance Indicators (KPIs) such as revenue and profit are mistakenly converted into Key Results. Thomas Walter: ...and then divided by 4 at the beginning of the year to go from annual goals to 90-day goals (rolls his eyes). SpeakersExcellence: How can such problems be prevented? Thomas Walter: It starts with the OKR responsible consulting experienced OKR advisors, trainers, masters, and coaches, meaning that such OKR professionals have ideally accompanied several hundred OKR team quarters and know exactly how to master the change dynamics that arise from OKR implementation. This goes far beyond the question of "how do I formulate an effective Objective or measurable Key Result?" Arndt Schmidtmayer: Yes, indeed, OKR is not a simple method or just a funky new tool, but rather a complete agile framework that includes and requires culture, leadership, organization, processes, vision, and mission. Therefore, many adjustments need to be recognized and properly implemented. SpeakersExcellence: How do you both feel about individual OKRs for individual employees? Thomas Walter: There are certainly diverse opinions on this. Personally, I have not had good experiences with it. OKR is a framework that also derives its effectiveness from emergence. Complex questions, which are more relevant than ever in the business world, are solved through creativity. And people are most creative when working together in a community and exchanging ideas. Personal OKRs turn it back into a silo, and the focus is primarily on achieving individual goals, significantly reducing colleague support. Arndt Schmidtmayer: Yes, that aligns with my experiences as well. Moreover, working with individual OKRs often