One of the biggest reasons for not implementing OKRs, or getting their implementation wrong, is misunderstanding. Leaders simply don’t get what they are, how to set them or understand their potential benefits to their organisation. People convince themselves that OKRs are complex or confuse them with forms of performance measurement.
At There Be Giants, we’ve been around long enough to have heard ALL the excuses and fallacies around OKRs. So, it’s time to put some OKR myths to bed. Forget everything you think you know about OKRs and read on to learn the truth about these amazing transformational nuggets and how they can benefit your organisation.
If you think of anymore as you’re reading through, please drop us a line. We’re only too happy to bust a few more OKR myths and show the world how transformational they can be!
1. OKRs should just be used for BAU
Wrong! OKRs should be used to spotlight key high-level priorities, not as a detailed measure for business as usual activity. OKRs should be used to give focus to the most important priorities. Think of them as spotlights, shining a concentrated light on your most important priorities, not as a floodlight casting a broad beam of light over everything.
2. Only large businesses need to use OKRs
Wrong! OKRs can be applied to any size of business. In fact, every business looking to scale up should be using OKRs. Even the smallest businesses can benefit from setting a focus on where to go and how they’re going to get there. Whether your objective is to improve team alignment, encourage cross-functional collaboration, or cut out those silos that restrict growth, OKRs are for you.
3. OKRs are the same as KPIs
This couldn’t be more wrong! OKRs and KPIs are two completely different things, but you can (and should) use them together. OKRs provide a focus on the transformational change or opportunities that will take you from where you are now to where you aspire to be. Use them to spotlight your priorities and draw attention to those that will be involved in achieving that priority – at every level. Read more about what OKRs are here.
KPIs are indicators that measure whether or not your business is operationally healthy. They focus on operational, repeatable, day–to–day activities that maintain the foundations of a healthy business. KPIs will tell you if your business is performing effectively enough to keep the lights on at the end of the day.
4. OKRs should be used to evaluate employee performance
We don’t recommend linking OKRs and performance reviews together. OKRs should not provide a direct measure of employee performance or a basis for compensation. However, you can use OKRs for feedback on goal-related outcomes and outputs. Instead of asking how an employee’s work has directly impacted an OKR, ask how their activities have indirectly contributed towards your team or organisation’s progress against OKRs.
5. OKRs don’t allow for flexibility
Nothing is set in stone. It would be impractical to set an OKR that cannot offer some form of flex. Customer needs change and the external business climate is always evolving, so businesses need to be able to flex their priorities and OKRs allow you to do this. This is why we advise regular check-ins to address issues and challenges and course–correct, if required.
6. OKRs are only for tech businesses
While OKRs are rooted in the technology giants of Silicon Valley, any business in any sector can use them. OKRs are a tool to help businesses set priorities and the actions they will take to achieve them.
7. You can have as many OKRs as you want
Okay, so this one is actually true, but not advisable. Having too many OKRs can cause confusion. Having too many OKRs is a bit like having a to-do list longer than your arm. It becomes overwhelming and you won’t know where to start, so you either put everything off or choose the easiest or quickest tasks.
There’s no hard and fast figure on how many OKRs you should have, but we recommend no more than five. Focusing on a handful of key priorities and gaining clarity on these will be of greater benefit to the whole organisation. This is why it’s really helpful to have an expert to guide you through the creation process. OKRs are all about the future and that’s pretty exciting. It’s very easy to get carried away and go down a detailed rabbit hole!
8. OKRs need to drill down to individual level
This isn’t true. OKRs should be set at team, not individual level. OKRs are a team sport and treating them as such can bring rewards akin to Olympic outcomes! Building an OKR squad made up of OKR owners, contributors, coaches and trainers will help you to generate and maintain momentum towards achieving them.
OKRs are powerful transformational tools
We hope this post has achieved its aim of well and truly busting common OKR myths. Our objective was to provide clarity on what OKRs are and are not, and how they can support business change. There are many myths circulating around OKRs, but in truth, when implemented correctly OKRs pack a powerful punch for any size or sector of business to bring about transformation. If you would like to understand how our Giants can support you and your team to do this, take a look at our OKR Consultancy service or book a call and speak to one of our team. We can’t wait to hear from you!