23 Jun OKR Implementation – 20 red flags you should be aware of
OKR Implementation – 20 red flags you should be aware of
What things can make the implementation and execution of OKR – Objectives and Key Results – more difficult in your company? What red flags do you need to watch out for when dealing with OKRs? The OKR experts and Profit follow the unique PEEL approach: “Plan, Execute, Engage, Learn.”
OKR is not a single activity, but an entire system of activities. Imagine you are driving a vehicle with four tires. All of these 4 tires must function in a coordinated, harmonized manner so that you arrive safely at your destination.
The longer we drive, the better drivers we become. After several years of driving, you may not even notice that you are driving. Driving became a habit. This is how it works with OKR.
If there are problems on your OKR trip, we don’t really want to call them problems. We would rather call them red flags , i.e. warning signs. You should take these warning signs seriously and address them systematically. Otherwise your OKR implementation could fail in the long term.
Some of these red flags are quite general. In most cases, however, they have a central OKR aspect. As mentioned earlier, OKRs are a way to run your business, but they do not simply lift and shift your business into a whole new world.
Most companies pay a lot of attention to planning, a little less attention to execution and even less attention to engagement, virtually ignoring learning altogether. In our opinion, all areas are equally important. They should all be given the same attention. This is the only way to make your OKR program truly successful.
OKR Planning: Red Flags
Planning is the first step in creating OKRs. A journey without a plan is a journey to nowhere. And that is why many OKR practitioners and software attach great importance to planning. Many companies equate OKR planning with OKR practice – which is correct. They tend to put tons of emphasis on planning and then think they are practicing OKRs.
We believe that planning is the most mature aspect of OKRs in many OKR implementations. Nevertheless, there are many red flags that you should be aware of. This ensures that you avoid pitfalls in your OKR planning.
Too many or too few O’s and KR’s
Ideally, you have 3-4 objectives with 3-5 key results for each objective for a company or department. This is the middle way, so to speak. At one end, you may have a smaller number of objectives and/or a smaller number of key results per objective. However, you could also have a larger number of objectives and/or a larger number of key results for each objective.
- Firstly, this violates the focus principle. One of the key aspects of OKR is focus. If you have too many OKRs, then you tend to have poorer focus. That’s why you don’t have time to concentrate on the important objectives.
- Having too few OKRs is not a focus problem. They have more of a problem with finding goals.
Key Result is not prioritized
If you have an OKR with 3-5 KRs, you hope to reach your goal when you reach your KRs. Even if you use tracking software, you may find that you do not reach your target. Your KRs look fantastic, but the objective is at a standstill. In this situation, your LRs are not comprehensive or properly prioritized.
- When you create KRs, you get a list that is not prioritized and is often incomplete.
Non-aligned or incorrectly aligned OKRs
Unaligned OKRs can mean wasted effort, but not necessarily. After many strategy meetings, you have developed your company OCRs. They are carved in stone. The departments at the next level should now create their OKRs on the basis of these corporate OKRs. But as we have already explained in another article, there are OKRs that are not necessarily aligned upwards. Non-aligned OKRs are therefore not a problem in themselves. But if you only have unaligned OKRs, then you clearly have a problem.
Many unaligned OKRs signal chaos. It is important to promote a culture of clarity of purpose. Anyone looking at the two OKRs should be able to see their connection – without much explanation. Otherwise, your focus is more of a distraction.
- If people and functions are going in completely different directions, you will have problems with alignment – one of the core principles of OKRs.
Lack of buy-in from dependent KRs
Different business functions in a company are interdependent in order to achieve the common corporate goal. If your organization is larger and widely dispersed, these dependencies are more pronounced. At the same time, the need to negotiate, clarify and agree obligations appropriately is also greater.
So in order to achieve your OKRs, you need employees who will hold up their end of the bargain. You need to have conversations with them and make sure that all dependencies are clear. You should also work out an appropriate schedule for your employees to complete their OKRs.
- A very common misconception in the early days of OKRs is that once I have set my OKRs, I am sure of the commitment of other departments. That is a false assumption. Unfortunately, there are no such guarantees. So you need to go through the negotiation process and make sure you have commitment.
- If you have the commitment of the departments/teams you depend on, you need to track these OKRs regularly. This will ensure that you are informed about their progress and potential problems.
Key results too conservative
This is not about the number of OKRs, but about their type. It’s more about the goal you are trying to achieve. For example, from 40 million users last year to 100 million users this year. If I set my OKR at 60 million, that is clearly too conservative. Think big, engage in “moonshot thinking”.
- This is a clear violation of the stretching principle. The best way to overcome this problem is to stay aggressive, but be realistic. There should be a logic behind the “accessibility” of the numbers. It must not be based solely on hope and desire.
OKR version: Red Flags
Now let’s take a look at the red flags that you may encounter during the execution of your OKRs.
Lack of discipline during OKR check-ins
Number one is the lack of discipline during OKR check-ins. This may seem trivial, but this is the number one problem for many of our customers.
Your employees must take the check-ins seriously. You must check in on time and provide appropriate supporting information:
- What has been achieved?
- What was not achieved?
- What did they learn during this period?
So it’s not just about reporting a figure. The aim is to provide information on how to achieve them.
- Check-ins should become a habit. An organization must also work to ensure that this becomes a habit. The software’s check-in reminders certainly help. But if check-ins in conversations – from informal hallway chats to formal meetings – don’t become a habit, you have a problem with “engagement” at the organizational level.
- If you don’t have timely quality check-ins, then you’re not really tracking what’s happening, what should be happening, and how it’s happening. Your OKR program will not take off if you have such problems.
Insufficient resources
Resources here means all types of resources. Every type of resource must be understood and analyzed. If you have an infinite number of every resource you need, you probably don’t need OKRs. But that is not the reality. You should understand what resources you have, what your goals are and how your resources can get you there.
There will always be restrictions. As an organization, however, you must put your money where your mouth is. You can’t really say that we need 40 million new users this year, but then not support this with appropriate investment.
As already mentioned, you need to put your money where your mouth is. Otherwise, your commitment as an organization will be called into question.
Lack of innovation
Lack of innovation is a particular type of “resource” problem. Lack of innovation can be a cultural problem, an employee problem or a process problem. The bottom line, however, is that you have a serious problem if you don’t think innovatively.
Good OKRs will automatically encourage people to be more innovative. But if your people aren’t prepared, you’ll end up with an “OKRs didn’t work for us” situation. In some cases, you may be able to get by, but you won’t achieve your strechting goals.
As already mentioned, you need to put your money where your mouth is. Otherwise, your commitment as an organization will be called into question.
