December 17, 2024

Escaping the OKR Theatre...

... and other OKR traps

Product Delivery

Summary

In this session, Afonso outlines the four primary problems with OKRs: awareness, misunderstanding, adoption, and theater. He emphasizes the importance of outcomes over outputs, explaining that OKRs are only effective when they focus on measurable changes that drive business results. Adoption fails when companies focus on the framework without addressing cultural readiness or strategy.

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To overcome these challenges, teams must regularly inspect and adapt, starting small and building habits that prioritize outcome-driven goals. Avoiding the theater problem requires ongoing engagement with OKRs, aligning them to real company and product strategies, and ensuring they are revisited bi-weekly.
Afonso shares practical tools, like the "so what?" test, to reverse-engineer tasks into outcomes and advocates for experimentation and learning when implementing OKRs.

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Key Takeaways

  1. Four OKR Problems:
    • Awareness: Organizations use task-based "laundry lists" instead of focusing on outcome-driven goals.
    • Misunderstanding: Key results are often mistaken for outputs (tasks) instead of outcomes (behavioral changes).
    • Adoption: Lack of strategy, cultural alignment, and rushed implementation causes failure.
    • Theater: OKRs are created for reporting but not revisited, leading to artificial alignment without impact.
  2. Focus on Outcomes: Measure changes in human behavior that drive business results, not tasks. Apply the "So what?" test to clarify goals.
  3. Adopting OKRs Effectively: Start small, align OKRs with strategy, and involve teams to ensure adoption fits organizational culture.
  4. Regular Check-ins: Review progress bi-weekly to adapt goals and avoid OKR theater.
  5. Flexible Cycles: Adjust OKR duration based on complexity and outcomes, rather than adhering to rigid timeframes.
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