We know how this works: technology is taking a step forward, so are organizations and their requirements. In this, the good and not so good practices of OKR - from the English Objectives and Key Results- occupy a predominant role in the field of business innovation.

Since digitalization became common currency both inside and outside corporate offices, the implementation of methodologies such as OKR began to gain popularity, especially in horizontal organization charts, where collaborative work is pursued in conjunction with sincere commitment to general and specific goals. In simple words, agility gives rise to the OKR framework and the fact that there is an active presence of agile concepts within the work environment already gives us the idea that this company seeks not only to be competitive, but also seeks to establish a solid organizational culture among its collaborators.

OKR…what is it about?

For those who are reading these acronyms for the first time, it is convenient to cite an article from our blog published a long time ago about what OKRs are specifically and what issues should be taken into account when setting objectives within an Excel spreadsheet, for example. But since we understand that time is ticking, here is a brief overview of what the OKR system is.

The Objectives and Keys Results -OKR- methodology seeks to define the objectives and measure its activities. It is recommended to have between 3 and 5 objectives for each cycle, which is normally three months, and no more than 4 key results that will allow you to measure whether the objectives are being achieved. 

Ultimately, the main purpose of OKRs is to align individual, team and company goals with measurable results. In this way, they work in a unified way, focusing their efforts on completing the most urgent tasks.

When OKRs flash red

To make the application of this OKR system effective, it is necessary to plan objectives aimed at a particular aspect, since otherwise not only will work be carried out with faults but the efforts to carry out the actions will be truncated.

Here we present the most frequent errors when putting the OKR methodology into practice:

1. Writing too many objectives

The management of an organization deals, on the one hand, with the usual processes, which serve to deliver a good product focused on the objective of attracting new customers and strengthening the relationship with collaborators. And on the other hand, it deals with the annual strategy, defining long-term tactics and actions that allow us to take advantage of opportunities and react in time to possible unforeseen events. In this sense, to maintain focus it is essential to follow the motto “less is more”, because giving entity to many misaligned OKRs and with long-term objectives will only bring inconveniences. 

2. Say yes to bottom up

If the definition of an objective comes only from the company's management, this goal will become just another task. That is why involving workers is essential. The top down and bottom up approach implies that top management must ask its collaborators to define their own objectives - they must be inspiring and ambitious, of course - to comply with those previously defined in the company's strategy. It is important for the leader to continuously monitor these tasks to ensure positive and fruitful feedback.

3. Avoid chaos within the organization

To guarantee a correctly aligned implementation, which guarantees the fulfillment of the objectives, one of the first challenges that must be faced comes from disorganization. When putting into practice the OKR methodology, it is necessary to understand the DNA of the company to know what its requirements, strengths and weaknesses are, in organizational terms and business model. In this sense, we must understand that each company is unique, as well as its possible reactions to the changes they may make.

This is how it can be determined that the only way to carry out an effective and global adaptation is through gradual application. Next, within the plan to be designed, each objective and consequent strategy must be assigned to a responsible person who will monitor and guarantee compliance with the plan. A good understanding of the facts, causes and consequences leads to making the best decisions.

4.  OKRs do not give rewards, they only indicate the direction

For those who are involved in the world of business innovation and for those who are still new, the question often arises about a fundamental aspect of the OKR, such as the ultimate purpose of its implementation. From the beginning it should be known that the design of objectives does not have a close relationship with any reward or compensation system.

In the event that it is decided to carry out OKR planning within the internal communication of an organization, and there the strengthening of human resources is established as a strategy, and then actions related to some type of economic compensation are activated, then we can talk about rewards. But this has nothing to do with the OKR itself, it must be taken into account.

Ultimately, the purpose of the OKR is to ensure that the entire organization is committed to delivering on the company's strategy. 

     5) Do not convert the organization into a learning company

The best decision is to transform the organization into a learning company since numerous studies indicate that they are currently a decisive factor in competitiveness at the organizational level.

Companies that manage to maintain constant and transversal learning are more competitive and have a better chance of success.

       6) ALWAYS start at the beginning

It is necessary to focus efforts where they are needed because it is the only way to promote results that mark a distinctive value.

More than changing the organizational philosophy and culture, it is necessary to modify priorities. Distrust and control are two factors that are still present in much of company management.

Keywords such as global vision, innovation, agility, productivity, concentration, transparency and commitment highlight the advantages that this agile methodology brings to organizations.