STELLAFAI EXPERT SERIES
Top 5 challenges organisations face when adopting OKRs
Here at Stellafai, we’re not just about helping you all smash your objectives. We’re also about democratising access to the expertise that can help you get there! So, in the spirit of this mission, we’ve launched our ‘Expert Series’. Twelve of the brightest minds we know have shared their thoughts and ideas with us, so we can share them with you. As we are big believers in OKRs at Stellafai HQ, we are kicking off by asking our experts what they thought were the top 5 speed bumps on the highway to adopting OKRs are. Ready for a knowledge supernova? 🌟
🤫 Psst — If you’re in a rush and want a speedy summary of our expert’s wisdom, skip to the end to hear what Stellafai’s AI-powered Digital Assistant key takeaways were!
1. Strong (and aligned) management support;
2. Effective communication;
3. Aligning to strategy, vision and mission;
4. Embedding OKRs into business routines;
5. Ensuring quality OKRs
1. Most leaders still seem to struggle with data-driven decision making, see https://scottambler.com/data-driven-decision-makers/
2. Organizations new to measurement tend to look for a “top 10 list” of measures, not realizing that they need to tailor their measurement strategy to their context
3. Are they willing to do the work required to make OKRs successful? I’m not sure that organizations are going in eyes wide open
4. Organizations often don’t realize that OKRs are a long-term program, not a short-term project, that requires a coherent change management effort to adopt.
5. Many organizations will inflict the same measures on teams, often to make reporting easier for leadership, rather than the same objectives. i.e. “Measure X rather than improve Y”.
1. There isn’t a clear company strategy
2. Struggling with the concept of moon shots and aspirational goals v fixed deadlines and milestones
3.Creating OKRs — Finding it hard to actually write objectives and define measurable Key Results
4. Monitoring progress — Having an easy way to keeping track of progress and taking action when something isn’t going to plan
5. OKR fatigue — many failed attempts at try, leading to cynicism
1. Superficial Adoption or “Faking the Change”: This happens when organizations adopt the OKR vocabulary without making any fundamental changes to their behaviors, processes, and culture. This superficial adoption can result in OKRs being perceived as a bureaucratic exercise, limiting their potential impact.
2. Misalignment between OKRs and Daily Work: If the OKRs aren’t properly aligned with daily tasks, there can be confusion and a lack of focus on what truly matters. This misalignment can lead to inefficiencies and frustration among team members.
3. Setting Unrealistic Objectives: Sometimes, organizations might set overly ambitious objectives in an attempt to drive performance. However, this can backfire, causing stress and demotivation when teams consistently fail to meet these unrealistic objectives.
4. Lack of Senior Leadership Buy-in: The adoption of OKRs often requires a culture shift that needs to be driven by senior leadership. If there isn’t sufficient buy-in at this level, it can be challenging to embed OKRs effectively across the organization.
5. Poorly Defined Key Results: Key results need to be specific, measurable, and time-bound. If they are vague or not directly tied to an objective, and to what the team is working on, it can be difficult to gauge progress and success.
1. Openness for Transparency
2. Limit the hierarchical power
3. Measure team performance not individual
4. Discipline to the OKR cycle (Workshops, weekly check-in)
5. Switching from task to result focus
1. Too many mental models about what OKRs are for.
2. Many (potentially most) teams in my org use OKRs as a substitute for work planning and not as outcome/impact targets, i.e. key results.
1. Weak vision/ strategy
2. Not enough management attention
3. Weak OKR quality
4. Conflicting goal systems in parallel
5. Over-complicated OKR process
1. Culture isn’t ready.
2. Junior Leadership
3. Lack of operational model
4. Missing Product mindset
5. Missing Scientific Thinking skills / competence
1. There is no silver bullet, and no one best approach.
2. You need to invest in teaching people the basics, you cannot expect everyone to go out and do self-guided learning.
3. People losing faith before you’ve really had a chance to try it out. It will be hard at first.
4. Final one, but maybe biggest. Writing good objectives and key results takes lots of practice.
1. OKR = glorified KPIs
2. Not changing OKRs when new information emerges
3. Vanity metrics
4. Measuring the wrong thing (see Demings quote)
“People with targets and jobs dependent upon meeting them will probably meet the targets — even if they have to destroy the enterprise to do it”
W. Edwards Deming
1. Overcomplicating them — don’t copy Google!
2. No need for okrs everywhere
3. No need for OKR software
4. No point having objectively perfect okrs that don’t help you in practice
5. Setting and forgetting — the point is not setting or even using okrs, but doing the work
1. Ideological resistance to the framework.
2. Too many lagging indicators.
3. Too many OKRs
4. Relating performance management and OKRs together.
5. Too much cascading when starting out.
Wow! That was a pretty cosmic gathering of wisdom on the biggest challenges an organisation might face when adopting OKRs experts! I’ve had a read and a think, and here’s my summary of the top themes from everything above:
1. Alignment & Support: One big hurdle is getting everyone on the same page — from management support to aligning OKRs with strategy, vision, mission, and daily tasks. Your OKRs and your actions should be best buddies!
2. Culture & Communication: OKRs aren’t just about ticking boxes — it’s a cultural shift that requires openness, transparency, and yes, a bit of grit. And remember, no space for “fake change” or “bureaucratic exercises” on this ship!
3. Quality & Clarity of OKRs: Writing good OKRs is an art. They need to be specific, measurable, time-bound, and more than just a cool-sounding goal. Keep in mind, it’s better to have a few well-defined OKRs than a bunch of vague ones.
4. OKR Process & Discipline: Just like sticking to a fitness regime, maintaining discipline to the OKR cycle, from workshops to weekly check-ins, is crucial. But remember, don’t overcomplicate it. Keep it simple, star sailor!
5. Learning & Mindset Shift: OKR adoption requires learning, a change in mindset, and sometimes, a pinch of scientific thinking skills. Embrace the new and remember — it’s okay to stumble before you float!
6. Avoiding OKR Pitfalls: Watch out for OKR fatigue, ideological resistance, conflicting goal systems, vanity metrics, and relating performance management with OKRs too closely. Stay vigilant, because as W. Edwards Deming says, “People with targets and jobs dependent upon meeting them will probably meet the targets — even if they have to destroy the enterprise to do it.”
Remember, adopting OKRs is a journey, not a sprint. It might be a bumpy ride, but you’ll speed up and soon be hurtling towards your objectives at warp speed- You just have to keep shooting for the stars!
