{"id":5381,"date":"2022-01-04T10:55:00","date_gmt":"2022-01-04T18:55:00","guid":{"rendered":"https:\/\/bwblogdev.wpengine.com\/?p=5381"},"modified":"2022-11-21T23:33:28","modified_gmt":"2022-11-22T07:33:28","slug":"the-top-5-mistakes-executives-make-when-running-an-okr-program","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/the-top-5-mistakes-executives-make-when-running-an-okr-program\/","title":{"rendered":"The Top 5 Mistakes Executives Make When Running an OKR Program"},"content":{"rendered":"\n

By aligning employee outcomes with business goals, an Objective and Key Results (OKRs) program can transform the way a company and its workforce set, measure and achieve their goals. However, moving to an OKR program<\/a> is no small undertaking. As with so many things, these initiatives are best lead by example from the top<\/a>, but executives who are leading their company\u2019s OKR initiative should be careful to avoid these top five mistakes that can easily derail their efforts.<\/p>\n\n\n\n

1: Letting Perfect Become the Enemy of Good<\/strong>
<\/h2>\n\n\n\n

At its core, the OKR<\/a> methodology is a prioritization mechanism for helping you execute on the top priorities, be they individual, departmental, or for the business as a whole. As part of the objective setting process, it\u2019s important to have meaningful discussions with your team about the work that will have the greatest impact on your business in the next 90 days. However, there is a difference between deliberate consideration and \u201canalysis paralysis.\u201d
<\/p>\n\n\n\n

As a leader responsible for setting the company vision for your teams to align to, your delays have disastrous ripple effects. I hear it all the time: \u201cWe need a little more time this quarter to make sure our top company objectives are really <\/em>great.\u201d The problem is, no matter how \u201cgreat\u201d your objective is, if it\u2019s announced late into the quarter, you\u2019ll lose significant execution time that you\u2019ll never get back. The day your top company objectives are done is the day that everyone else can start prioritizing work to align with those objectives, not the day that the work actually begins.
<\/p>\n\n\n\n

Also, if there\u2019s one way to lead by example, it\u2019s by being consistent. If you deliver what you say you will, on time every time, you signal loud and clear that everyone else should, too.
<\/p>\n\n\n\n

2. Forgetting to Measure Progress<\/strong>
<\/h2>\n\n\n\n

You probably had a lot of great reasons for rolling out OKRs when you began this journey: poor employee engagement scores, no visibility into goal progress, and lack of visibility into alignment, to name a few. Why are you now only focused on the one number at the top: your progress on top company OKRs?
<\/p>\n\n\n\n

You risk getting bogged down in an all-or-nothing mindset if the only thing that proves the success of your OKR<\/a> program is whether or not the top company objective is complete.
<\/p>\n\n\n\n

Be sure to regularly report on and review the ancillary numbers that show the program is working its magic in other ways, including helping all employees have regular meaningful conversations with their managers or updating objective progress every two weeks.
<\/p>\n\n\n\n

Remember: you get what you measure. If you stop regularly reporting on these engagement numbers, people will start to think their OKRs are no longer important.
<\/p>\n\n\n\n

3. Over-cascading <\/strong>
<\/h2>\n\n\n\n

John Doerr, partner at VC firm Kleiner Perkins Caufield & Byers and bestselling author of Measure What Matters,<\/a>  explains how Objectives and Key Results at the top of an organization can be assigned down your organization with expanding layers of key results beneath them. This is powerful, and ensures progress-linked alignment for tracking crucial initiatives.
<\/p>\n\n\n\n

However, running too far with this concept can doom your program fairly quickly. It\u2019s not because alignment in your OKR program isn\u2019t important, but because alignment only works if perfectly balanced with bottoms-up OKR setting and creativity.
<\/p>\n\n\n\n

Consider this: OKRs help people align to their organization, but just as importantly, they are a tool for inspiring people to reach above and beyond. According to Dan Pink<\/a>, people are motivated by mastery of a subject, purpose, and autonomy. If you engineer your entire OKR tree from the CEO level all the way down to every employee in your organization, you\u2019ll kill that feeling of autonomy that\u2019s crucial to motivation.
<\/p>\n\n\n\n

Removing autonomy seriously marginalizes the contributions you would otherwise get from each individual. It can also lead to OKRs that are so complex that you lack flexibility to adjust to changing priorities mid-quarter, and agility to set goals quickly at the beginning of the quarter.
<\/p>\n\n\n\n

So remember: control is not the end goal of OKRs. Communication and inspiration are much more important benefits to strive for.
<\/p>\n\n\n\n

4. Tracking KPIs Rather than Inspiring Your Team<\/strong>
<\/h2>\n\n\n\n

Another crucial mistake I\u2019ve seen new executive teams make is conflating KPIs with their new OKR initiative. KPIs are useful for measuring the health of your business, just like your blood pressure is a great number to monitor to gauge your physical health. But knowing your current blood pressure and your target blood pressure still tells you nothing about how to get there. That\u2019s where your OKRs come in. If your target KPI is a blood pressure at 140\/90, your OKR is the plan to exercise 15 times with a personal trainer.
<\/p>\n\n\n\n

If your top company OKRs are a list of your NPS, CSAT, and MQL progress, you\u2019re going to fail.<\/p>\n\n\n\n

KPIs aren\u2019t OKRs. And I bet you already knew what your KPIs were and had a reasonable way of tracking them without the weight of an OKR system.
<\/p>\n\n\n\n

Remember, if you want to inspire change and build a bridge to a desired future state, use OKRs to prioritize the important initiatives and outcomes to get you there.
<\/p>\n\n\n\n

5. Giving Up When the Going Gets Tough<\/strong>
<\/h2>\n\n\n\n

Building an OKR program is like building a muscle–it takes effort and discipline. When you first start out, your executive team will gripe, and that\u2019s natural. But it doesn\u2019t mean you should stop.
<\/p>\n\n\n\n

If you\u2019re the core believer in OKRs at your organization, continue to preach to your colleagues and be patient. OKR programs that have only one advocate on the executive team are always at more risk than those with multiple or unanimous executive support. These lone advocates tend to get overwhelmed by the resistance of their colleagues clamoring for an \u201ceasier\u201d way, the way it used to be done. The problem is, it\u2019s not supposed to be easy, and if the old way was so successful, you never would have tried OKRs in the first place.
<\/p>\n\n\n\n

Keep up the good fight, lead by example, and keep returning to the big \u201cwhy.\u201d
<\/p>\n\n\n\n

For more insights, get your free copy of Betterworks\u2019 brand-new <\/em>Ultimate Guide to Utilizing OKRs within Continuous Performance Management\u00ae<\/em><\/a> to learn more about creating a goals process that truly drives results for your business. <\/em><\/p>\n\n\n\n

More Resources: <\/em>Effective Onboarding<\/em><\/a>, <\/em>Retain Your Top Talent<\/em><\/a>, <\/em>Create a Feedback Culture<\/em><\/a>

<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Rolling out an OKR program is no small feat. Don’t let your efforts be derailed by these five common mistakes.<\/p>\n","protected":false},"author":44,"featured_media":77856,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[59],"tags":[],"featured_location":[3387],"industry":[],"class_list":["post-5381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategic-alignment"],"acf":[],"yoast_head":"\nThe Top 5 Mistakes Executives Make When Running an OKR Program - Betterworks<\/title>\n<meta name=\"description\" content=\"Moving to an OKR program is no small undertaking, and executives who lead their company\u2019s OKR initiative should be careful to avoid these five mistakes that can derail their efforts.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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