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Rethinking Operational OKRs: A Fresh Perspective

Writer's picture: Carsten LeyCarsten Ley

In today’s fast-paced business environment, the Objectives and Key Results (OKRs) framework is widely used to enhance productivity and align teams. However, it’s time to rethink BAU & operational OKRs to better suit our evolving landscape. Here’s how.


The Limitations of BAU & Operational OKRs


Operational OKRs can be rigid, overly focused on metrics, misaligned with organizational goals, and lead to employee burnout. These issues can hinder innovation and engagement.


Operational OKRs, while beneficial for focusing teams and driving progress on short-term goals, also have certain limitations:

  • Short-Term Focus: Operational OKRs tend to prioritize short-term gains and may neglect long-term strategic objectives. This can lead to a lack of innovation and a focus on maintaining the status quo rather than pursuing breakthrough opportunities.

  • Tunnel Vision: The intense focus on specific operational metrics can create tunnel vision, causing teams to overlook other important factors that contribute to overall success. This can hinder collaboration and create silos between departments.   

  • Lack of Flexibility: Operational OKRs, with their emphasis on measurable targets, can sometimes stifle creativity and adaptability. Teams may become hesitant to deviate from the established plan, even if unexpected challenges or opportunities arise.

  • Potential for Gaming the System: If the focus is solely on achieving the numbers, there's a risk that teams might engage in activities that boost the metrics without necessarily contributing to genuine progress. This can lead to a misalignment between actual performance and reported results.

  • Neglecting Qualitative Factors: While operational OKRs are adept at measuring quantitative outcomes, they may not capture the full picture. Important qualitative aspects like customer satisfaction, employee engagement, and brand reputation might not be adequately addressed.

  • Increased Pressure and Stress: The relentless pursuit of operational targets can create undue pressure and stress on employees, potentially leading to burnout and decreased morale.

  • Resource Constraints:  Operational OKRs can sometimes result in an overallocation of resources toward achieving specific targets, leaving other important areas neglected.



Operational Goals
Operational Goals


Strategies for a Fresh Approach


1. Embrace Flexibility

Treat OKRs as evolving guides rather than fixed targets. Regularly review and adjust them based on changing circumstances.


2. Balance Goals

Incorporate qualitative objectives alongside quantitative metrics to foster creativity and collaboration.


3. Foster Alignment

Ensure everyone understands the broader vision and how their goals contribute to it through regular communication.


4. Prioritize Well-being

Encourage realistic key results that promote a healthy work-life balance and celebrate progress, not just outcomes.


5. Encourage Experimentation

Create an environment where experimentation is welcomed. Stretch goals can inspire innovation, and lessons learned from unmet objectives are invaluable.


Conclusion

Operational OKRs can be a powerful tool for driving execution and performance, it's important to be aware of their limitations. To ensure a balanced approach, organizations should combine operational OKRs with strategic OKRs that focus on long-term vision and innovation. Additionally, incorporating qualitative measures and fostering a culture of flexibility and learning can help mitigate the potential downsides of an over-reliance on operational OKRs.


Therefore rethinking OKRs involves adopting a flexible, balanced, and human-centered approach. By prioritizing adaptability and well-being, organizations can foster a culture of engagement and innovation, ultimately driving sustainable success.


For more information how to implement OKRs successfully please contact us on transform@asiapmo.com or on our contact form.


This blog was written by Carsten Ley, Entrepreneur, Enabler & Project Lead in Customer Experience, Project & Business Transformation leading large scale project implementations in Retail, E-commerce, Banking, Consulting & Experience Management for companies like Deloitte Germany, VW Mexico, Rolls-Royce UK, Lazada Vietnam and H&M South East Asia. He founded 2018 Asia PMO, a consulting firm focussing on getting clients fast and efficient into implementation of company objectives, customer & employee experience improvements to foster a result- and team-oriented environment.

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