The value of OKRs in strategy execution
Executing strategy is one of the most significant and impactful challenges companies face today, especially in an environment characterised by continuous change and complexity. Strategic goals are inherently long-term, guiding us towards our desired outcomes. However, turning these lofty ambitions into actionable plans requires more than just a vision.
This is where OKRs (Objectives and Key Results) come into play.
OKRs:
Create focus about which part of your long term goals needs attention in the short term
Make your long term strategic goals adaptive and your organisation resilient to changes in market
Create a cadence for alignment and progress, when used in combination with the right tools
Change the way we think about work
Increase a visible linkage between day-to-day tasks and strategic goals
This dynamic approach ensures that your strategy is not just a theoretical exercise, but a practical, impactful journey towards sustained success.
They create focus about which part of your long term goals needs attention in the short term
Typical organisational strategies go for 3-5 years, and the goals are often large and complex. This can make it extremely difficult to determine what you would prioritise when faced with trade offs with limited resources.
By interacting with “Metrics That Matter”, meaning metrics that are co-designed, agreed, based on business value and facts that can demonstrate you’ve achieved your goals, Leadership teams can agree what part of that MTM is preventing progress and set an Objective to address that specific area. A Key Result can then be agreed to define what success looks like for that objective within the timeframe.
Priorities set by OKRs make the outcome specific and clear for all. An OKR might be an action or outcome where you have clarity about the facts and actions you’ll take, or it might be exploratory where you’re not sure and need to do some discovery to inform the action you’ll take. Either way, OKRs allow you to ignore what’s working and focus on what’s not.
They make your long term strategic goals adaptive and your organisation resilient to changes in market
The ability to pivot and adjust is crucial for any organisation - However, the real challenge lies in implementing adaptability effectively within what could be a complex structure.
Developing this capability requires more than just a desire for change. It involves navigating the intricacies of different operational rhythms, functional priorities, and varying levels of comfort with change among team members. All this while continuing to run the business efficiently.
The OKR framework helps manage change as it provides a structured approach to executing strategy by breaking down a 3-5 year strategic plan into shorter, actionable timeframes. This enables organisations to respond to changing circumstances while maintaining focus on their strategic goals.
Using OKRs also helps embed adaptability into the organisation's culture as it ensures that every team member is aligned with the organisation’s priorities and is prepared to adjust their efforts in response to new information or shifting contexts. As a result, the organisation becomes more resilient and better equipped to navigate the complexities of today’s dynamic business environment.
They create a cadence for alignment and progress, when used in combination with the right tools
When it comes to OKRs, they don’t operate in a vacuum. To truly unlock their potential, OKRs need to work in tandem with other essential tools. Among these, data, prioritisation and consistency are pivotal in ensuring your OKRs are not just ambitious statements, but actual drivers of impactful change.
Establishing a consistent cadence of OKR ceremonies and committing to it is probably the most important thing you can do for your strategic goals. They act as a forum for teams to pause their busy day-to-day work and think and talk about the connection between what they’re doing and what truly matters and adds value, as a way to build muscle to become adaptive and resilient over time.
The value of committing to the ceremonies is that it shapes the rhythm that drives lasting cultural change within an organisation. In the same way that humans don’t change overnight, regardless of how much they could actively be seeking positive change and growth, organisations go through the same. You’ll need to get to a place where you’re comfortable with working tactically at first, sometimes in a disorganised way and build your way up to a more refined and effective approach that will get you more valuable outcomes faster over time.
These consistent OKR ceremonies reinforce the values and priorities that guide everyone’s actions. Over time, this rhythm becomes ingrained, building the muscle memory needed for individuals and teams to naturally align with the organisation’s vision. It’s in this steady, repeated practice that real transformation happens, turning abstract values into lived realities and fostering a culture that grows stronger with each OKR iteration.
They change the way you think and talk about work
Implementing OKRs brings a refreshing shift in how we talk about work. Instead of the usual "How are you going with XYZ initiative?", the conversation evolves into something more impactful: "What is your level of confidence that initiative XYZ will help achieve our strategic goal ABC?"
This simple change in dialogue encourages constant reflection on our part. It prompts employees to think critically about their work and its alignment with the overall organisational goals. Instead of just tracking progress, the focus shifts to assessing the value and effectiveness of each initiative.
By regularly asking, "Is this going to help us achieve what we want?", we create a culture of continuous improvement and strategic thinking. This not only helps people understand how their work aligns to others in the organisation, it also ensures that every effort is purposefully directed towards achieving our goals.
They increase visibility between day-to-day tasks and strategic goals
In any organisation, employees juggle a variety of tasks that contribute to both the day-to-day running of the business and the pursuit of larger strategic objectives. Some tasks are centred around maintenance, ensuring that everything continues to operate smoothly. Others are transformation-focused, aimed at driving growth and innovation.
To ensure that everyone is productive in moving the needle towards organisational goals, OKRs come into play. OKRs help translate broad strategic goals into specific, actionable activities and measurable outcomes. By proposing, committing to, and working towards OKRs, teams can pinpoint the tasks that truly make a strategic impact.
However, it's not uncommon to find ourselves buried in tasks that seem disconnected from these higher-level goals. When this happens, it’s a good moment to pause and reflect: Should we be doing these tasks at all? This reflection can reveal if we’re inadvertently diverting too much effort away from our strategic priorities.
This is where tools like QPP (Quarterly Planning and Prioritisation) come in handy. They help strike a healthy balance between maintenance and growth work, ensuring that teams can focus on both keeping the lights on and driving the organisation forward.
By consistently aligning daily activities with strategic goals through OKRs and leveraging processes like QPP, organisations can ensure that their efforts are both efficient and impactful. This approach not only fosters a culture of purpose-driven work but also moves the organisation towards its long-term objectives.
In conclusion
When done right, OKRs are a transformative tool that bridges the gap between strategic goals and day-to-day operations. By integrating OKRs with robust data analysis and sharp prioritisation, organisations can create a dynamic and adaptable roadmap towards their long-term objectives.
Embrace OKRs to not only navigate the complexities of today’s environment but to thrive and grow in it.
If you’d like to know more about how to get started with executing your strategy with the use of OKRs, get in touch!
