The Blindspots of an OKR Implementation that no one tells you about

After 85 successful OKR Projects globally, I can confidently tell you that OKRs are simple.  Period.

But simple ≠ easy.

Why, you ask?

Let me first share with you what can go wrong in OKR Implementation.  And then few tips on what you can do to avoid them.

Some statistics first:

1. Globally the OKR success rates are around 25-30%
2. 95% of OKR Implementations fizzle out in three years
3. 95% of companies OKR becomes an HR Initiative than business strategy
4. 90% of organizations where CEO/head of the company is not directly involved in OKR, fail in implementation
5. 77% of organizations where OKR is not given due weightage in performance conversations
6. 65% of our OKR Projects are second timers after a botched attempt at implementing OKRs

So, where does the narrative dilute or go wrong?

Again, our own research across 32 organizations across India, has given us astounding insights into the reasons where OKRs fall through the cracks.

•       Only 8% of leaders are good at both strategy and execution.  (And the OKRs are the sweet spot to be able to balance these two dimensions)

•       In many organizations, up to 95% of the employee base doesn’t even understand the strategy of the company they work for

•       OKRs are essentially a short cycle of goals.  (And this means you should be/open to become an agile and better structured organization)

•       Reading OKRs off the Internet and implementing by using the online examples

•       Failing to align the goals with vision and mission of the organization to help you get your business visibility

•       Making this an exclusive HR initiative.  OKRs are NOT an HR exercise of getting employee KPIs together.  This single reason is why many organizations fail in OKRs

•       Not giving the right weightage to OKRs in your organizational performance conversations

So how do you overcome these challenges and what more can you do to get your OKRs right from DAY ONE!

First and foremost, reading about OKRs the way Google did it and heavily relying on that model to work for your organization is a major folly. The way it worked for Google will most definitely not work for you.  Get your organizational OKR Readiness assessed before you take your entire teams along the journey.  It is better for the companies to not start the OKR program – yes, I say program because you need to manage it like an organizational, mission critical program – if you are not committed to the rigor and the initial learning curve.

Secondly, have a Designated OKR Champion (DOC) to run the OKR rigor.  Now, who is an ideal DOC.  An OKR Champion should essentially be a senior business leader in your organization who understands the nuances of the organization, and also has a forest view of the business.  You can make the HR your execution partner but they are not the ideal owners of the OKR program.  It is a business initiative and that’s how it should be.

Thirdly, do not get swayed by the spawn of OKR tools in the market who do not understand OKRs themselves but present a tech tool to you, making you believe that the tool will get your goals achieved and help you track that achievement.  Believe me, once you get the OKR Triangle aligned right – the people, the process, the parameters – a tool is only an enabler and makes things easier.  But on the other hand, if you do not have a hold on your OKR narrative from day 1, the tool cannot save your OKR program. 

Last but definitely not the least, your initial two quarters of OKR planning and the execution discipline is the critical success factor ever.  The OKR Planning process for quarter 1 is the most important part of the project initiation and the transition from Q1 to Q2 is the second most important milestone.  Once you get these two right, you will align with the OKR rhythm.  So, give yourself and your organization a minimum of two quarters for the dust to settle and to bend around the learning curve successfully.

Moral of the Story:  OKRs sound Simple.  But the devil is in the initiation and execution.  Get this right and you’ll start seeing the power of OKRs playing music to your organizational ears.  Enjoy the business visibility, performance control, and consistency of achieving the milestones that OKRs bring.