Many organizations we work with claim to have focus and alignment. But once we dig below the surface, most of their teams don’t know exactly how their work fits — not only into the bigger picture, but also as a part of a value proposition for the customer.
The root cause for this comes from assigning detailed tasks to teams without giving them any context. Teams will complete their tasks but, aside from “it works,” won’t have any idea whether they’ve actually delivered something of value and helped the company deliver on its mission.
This practice of giving detailed, prescriptive tasks without any context and/or direction can affect outcomes. However, when work is assigned with the overall goal focused on positively impacting the customer, the culture can align with corporate goals. The Objectives and Key Results (OKRs) framework can help teams set and track specific and measurable goals, which can enlighten them on how their contributions directly benefit the organization, and the bigger picture.
The OKR Framework at Work
Here are the benefits of using the OKR framework:
- OKRs are focused on the customer-focused.
OKRs shift the focus from prescriptive tasks to customer-driven goals. Teams define the qualitative benefit they aim to deliver and measurable customer behaviors that indicate success. Instead of task-based objectives like, “deploy a new learning management system (LMS),” the goal becomes “ensure staff stays current on the latest technologies.” This approach prioritizes meaningful outcomes over mere task completion, aligning teams with customer needs and the company’s core value.
2. OKRs have a family tree.
With teams aligned on the customer, we now need to align them with other teams and leadership. Every OKR in the company is connected to a “parent” OKR, which serves as a leading indicator for another team’s goal. Consider this example: Let’s say you have a team that works on authentication, and the team’s goal is to quickly authenticate customers into the system successfully. That OKR is a leading indicator of what customers will do next in your system — such as, “add a product to the shopping cart.” Without authenticating, the next step isn’t possible. The authentication team is aligned with the work that follows theirs, understanding how their efforts contribute to the bigger picture. Every OKR is supported by “child” OKRs, which act as leading indicators of progress. These child OKRs help teams consider what actions customers take before reaching their stage of the customer journey. OKRs allow an organization to build a “family tree” of goals that connect all the way from the top to the bottom.
3. Cultural transparency and alignment through OKRs.
Historically, traditional goal setting has left many teams in the dark — for both customer and cultural goals of the company. OKRs create the transparency between teams to understand why each team is doing the work they’re doing. Also, it ensures that, when deciding what work to do, cultural priorities become clear. These choices impact not only the team’s work but also how they do it.
By aligning OKRs across teams, each team can understand how their work fits into the broader company goals. This can create a clear focus on customer needs and ensure that every team’s efforts are contributing to meaningful outcomes. With parent and child OKRs guiding progress, teams can be better equipped to track success and make adjustments, ultimately driving greater value and alignment across the organization.
