Uploaded on Dec 20, 2021
Goal setting for the teams around strategic objectives has always been prevalent. Why the new interest in OKR? The answer may lie in the huge traction and adoption of Agile across organizations. We believe combining OKR and Agile practices go a long way in engaging the team and aligning them with strategic endeavors. This article only broaches the topic of OKR’s but should help the uninitiated to get some direction.
OKR Introduction
Objective Key R
esults (OKR) –
An introduction
Goal setting for the teams around strategic objectives
has always been prevalent. Why the new interest in
OKR? The answer may lie in the huge traction and
adoption of Agile across organizations.
The intent of this blog is to simplify the context of OKR
and to draw a parallel with agile ways of working. As a
coach simplifying the context with the right intent and
starting with the core, just enough basics is the key to
working with OKR’s or with any other tool. Creating quick
success stories and cross pollination within teams is one
of the main factors to ensure the right adoption.
Objective Key Results is a simple goal setting
mechanism within an organization. Setting goals for
individuals and teams motivates them, gives them a
sense of accomplishment and brings inclusivity while
pushing individuals to achieve their goals and increasing
productivity. Let’s define some key terms for better
understanding.
Objective is a picture of a better future. A statement
which is short , engaging and motivating. What one
wants to accomplish, significant, action oriented and
aspirational. Simply – “what is it you want?”
Key results explain how the objectives can be measured.
These are quantifiable outcomes. As the acronym SMART
suggests, KR’s should be smart, measurable, aligned ,
relevant to the strategic objectives and timebound.
Activities describe the actions or initiatives to be taken
to achieve the stated objectives.
The strategic objectives or the vision is set by the
leadership and it is cascaded to the lower levels. The
activities are undertaken by the teams and the OKR’s are
set by them in alignment with the strategic goals.
Usually the strategic goals are set annually and cascaded
to the department level, which sets quarterly OKR ‘s,
which are then further broken down to team level and
individual level.
How to set OKR’s?
Conduct OKR sessions at all levels to bring in transparency
and to onboard teams. Start setting fewer strategic
objectives (maximum/recommended is 5) . Set 3-4 Key
results for each of the objectives. It is a good practice to set
tolerances of threshold for each of the goals.
Break the high level objectives into projects or initiatives and
assign them to the teams.
Teams should then get together and pick the Key results to
be showcased to achieve the objective. These results have to
undergo a quarterly review to check if the teams are making
progress or if the management intervention is needed to
remove any impediments.
Similarly managers in discussion with individuals have to
identify what activities they will have to undertake to achieve
the team goals. Frequent cadence meetings should be called
to check if there are any show stoppers . Also frequent
progress review meetings help teams to maintain focus on
their goals and to ensure early detection and resolution of
issues.
Usually goals are set and forgotten. This shows performance gaps
and lack of focus, Doing so results in losing confidence on OKR’s.
Also having haphazard meetings takes away the focus from the
goals Cadence meetings should become a habit, it will help to keep
results on top of the mind. More frequent meetings can be done at
the team and individual level, quarterly meetings at the
department level and annual review meetings at the strategic
level. Choose and customize the cadence based on the needs of
the organization.
OKR’ s share the same mindset as Agile. Below are a few principles
which overlap.
• Bidirectional flow of the objectives
• Empowering the teams to set their goals by being
aligned with the vision of the organization.
• Frequent review process to support fail faster culture.
• Shorter cadence meetings to shorten the feedback
loop.
• Prioritizing the objectives and whenever required
reprioritizing them
• Higher level annual goals set at the top level. More
detailed and incremental goals set at the team level.
• Outcome/Value based results.
How to focus on OKR’s while using SCRUM Framework?
• Activities to achieve the Key results can be part of the Product
and Sprint backlog.
• Sprint Planning can help prioritize which Key results can be
achieved and come up with activities to achieve those.
• DOD can showcase what percentage of the Key results will be
delivered to achieve doneness of the sprint.
• Daily scrum can be used by individuals to voice out any
impediments they face to complete the activities which help in
achieving the key results
• Sprint Retrospective can be used to review the progress or
understand the effectiveness of the activities undertaken to
achieve the key results.
• In organizations where agile ways of working are introduced,
bringing OKR’s as goal setting tools could be effective.
Changing the old ways of goal setting mechanisms which is
usually a top down approach set by leadership and reviewed
annually and managers reviewing their teams to understand
their progress quarterly could be challenging.
• Cadence meetings are considered overhead or a repetition.
Teams and individuals find the key results a bit overwhelming
all though they are set by them.
• Starting small with fewer objectives and key results will be a
better approach in onboarding teams. Publishing the progress
of the teams on information radiators would instill a sense of
ownership towards their work.
We believe combining OKR and Agile
practices go a long way in engaging the team
and aligning them with the strategic
endeavours. This article only broaches the
topic of OKR’s but should help the uninitiated
to get some direction.
Sudha Madhuri Burra
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