How to use OKRs to bridge the strategic gap
At the Joseph Rowntree Foundation, we are using Objectives and Key Results (OKRs)[1] as the basis of our evaluation framework, which we see as being compatible with our transformation into a social change organisation focussed on outcomes. OKRs can be effective at every level of an organisation, from the mission and vision through high-level strategies down to delivery plans and the quarterly and weekly rhythms of day-to-day working. That’s not to say that they are identical at these different levels — they perform different functions when thinking about strategic goals compared with delivery goals.
Strategy level OKRs
At strategy level, OKRs are more about describing the kind of society, or economy or place in a market, that an organisation wants to contribute towards achieving. For JRF, because our ultimate objective[2] is to achieve a prosperous UK free from poverty by inspiring action and change, that isn’t something we can do by ourselves; and it’s subject to a whole load of other influences outside of JRF’s (or anyone’s) direct control. That doesn’t mean we shouldn’t have an inspiring and ambitious mission — it’s one big reason why people want to work for and are committed to the organisation. It also makes it clear to everyone what JRF stands for and what it’s trying to do.
Outcomes over outputs
But if an organisation is using OKRs in the first place, then it will already have decided to focus on “outcomes over outputs” and trying to change the behaviours of customers, stakeholders or service users; if not the world. Conceiving of the metrics to go with the vision puts flesh on the bones of what the real, quantitative changes ought to be if that vision were achieved[3]. This process itself helps to test and strengthen the organisational theory of change by forcing the vision to be made explicit. It also starts to break that big picture down into (slightly) more manageable chunks, which begin the journey to answering the question “how on earth are we going to achieve [insert vision here]?”.
Delivery level OKRs
In contrast, at the delivery end of what an organisation does, OKRs should be much more within the locus of control of the team that is doing the work. They should avoid being mere measures of outputs or tasks though — they still need to be at least a little over the line into affecting the behaviours and actions of people outside the organisation. In the case of JRF, these target ‘users’ are very often people with the power to change policy and practice to improve the lives of people in poverty — politicians, employers, landlords, the media and, in turn, the wider public (who can help create the context for political change)[4]. At delivery level, OKRs work best on a tighter time frame, with quarterly targets and fortnightly check-ins. At strategic level, that frame is much longer, with organisational visions looking decades ahead or even further into the future.
Gotta have faith…
Setting OKRs at each level of an organisation helps to tie in and nest delivery of projects and initiatives within the strategic aims. This is a loose nesting, however. There will always be a ‘strategic gap’ between the vision and the actions that are taken day to day. This gap is inevitable, and it can be disconcerting; but ultimately an organisation must have faith in — and rigorously test — its theories of change. Every OKR is like one miniature theory of change that is being trialled, either rapidly (in the case of delivery OKRs) or the longer-term (in the case of strategic OKRs). This process is valuable because it embeds learning into an organisation’s DNA and if done well, enables a change of direction when those theories of change turn out to need a tweak; or a push of extra resources if they seem to be working.
Ultimately, using OKRs up and down an organisation is likely to be one of the most effective ways for it to learn, and to live up to its own stated reason for existence.
[1] If you want to know what OKRs are all about, see here.
[2] The ‘ultimate objective’ for an organisation = “achieving the [vision] by doing the [mission]”.
[3] E.g. the key results for our ultimate objective are real-world reductions in poverty levels.
[4] A lot of our delivery level OKRs are therefore about increasing engagement with those groups and indications that they are interested in, talking about and taking action on poverty.
