Strategy Execution with OKRs

The disconnect between strategy and actual execution is a common headache for leaders across all industries and company sizes. As the complexity of an organization increases, projects and ideas that don’t align with the overall vision often begin to pull attention and funding away from what matters most. Even well-established organizations can get off-track chasing the wrong things.

Objectives and Key Results (OKRs) can help avoid this misalignment, and power the high-performing, results-driven cultures of today’s most successful companies. KPIs, often incorrectly thought to have a similar purpose, are in fact a measuring framework.

👓 Read more about the key artifacts - Mission, Vision and Strategy which set the foundation for using OKRs to execute your strategy.

OKRs (Objectives and Key Results)

OKRs set ambitious goals with measurable outcomes to achieve progress. Put simply, OKRs help you execute your strategy. OKRs do not account for all of your work – they are ambitious, have an end, and focus on driving progress toward achieving specific objectives.

• Objective: A qualitative and inspiring statement to set the overall direction.

• Key Results: Quantitative and time-bound milestones – the measurable way in which the Objective will be achieved.

Example:

• Objective: Improve company culture.

• KR1: Achieve an 85% employee satisfaction score.

This KR example could be a KPI; or it would move to a KPI once a satisfactory level is consistently achieved.

KPIs (Key Performance Indicators)

KPIs measure ongoing performance and health, typically tied to steady-state operations. Establishing and monitoring KPIs provides actionable insights into performance, enabling data-driven decisions and early identification of issues.

• Focus: Ongoing processes and outcomes.

• Nature: Stable and continuous.

Example:

• KPI: Customer churn rate below 5%.

• KPI: Increase monthly revenue by 10%.

Key Differences

Aspect	OKRs	KPIs
Focus	Goals and outcomes	Performance metrics
Time Horizon	Short-term (quarterly/yearly)	Continuous (ongoing monitoring)
Nature	Ambitious and adaptable	Stable and consistent

How OKRs Reinforce an Agile Mindset

• Alignment: OKRs connect daily activities to broader organizational goals, ensuring everyone moves in the same direction.

• Focus: By prioritizing key outcomes, teams avoid distractions and concentrate on high-impact work.

• Continuous Improvement: Regularly reviewing OKRs fosters iterative learning, encouraging teams to refine processes and achieve better results.

• Transparency: OKRs make goals and progress visible across teams, fostering trust and collaboration.

• Adaptability: OKRs are inherently flexible, enabling organizations to adjust priorities as they learn and respond to change.

Steps to Implement OKRs Successfully

1. Align Leadership: Start with a leadership workshop to define high-level Objectives that align with the Mission, Vision, and Strategy.

2. Collaborate with Teams: Involve teams in defining Key Results to ensure buy-in and feasibility.

3. Limit Focus: Set three to five (3-5) Objectives, each with one to five (1-5) Key Results.

4. Set a Cadence: Establish a regular review cycle (e.g., quarterly) to assess progress and adapt. KRs should be monitored weekly, ensuring progress is being made.

5. Use Tools: Choose a tracking method (e.g., spreadsheets, Jira, dedicated OKR platforms) to ensure visibility and accountability.

6. Reflect and Improve: Host retrospectives to refine the process, celebrate successes, and address challenges.

Common Pitfalls and How to Avoid Them

• Setting Too Many Objectives:

  • Problem: Dilutes focus and makes it harder to prioritize.

  • Solution: Limit Objectives to three to five (3-5) per team or department - treat the Leadership Team as a team; their KRs become objectives for the team(s) or department(s) they serve.

• Lack of Alignment Across Teams:

  • Problem: Creates silos and misaligned efforts.

  • Solution: Hold cross-functional planning sessions to align OKRs with organizational goals.

• Overly Simple Objectives Easily Achieved:

  • Problem: False sense of accomplishment; not sufficiently ambitious to challenge the team -or- drive the objective.

  • Solution: Ensure that objectives are challenging enough that 80% achievement has a positive impact on the business.

• Vague or Unmeasurable Key Results:

  • Problem: Leads to confusion and hinders tracking progress.

  • Solution: Ensure Key Results are specific, time-bound, and measurable.

• Infrequent Reviews:

  • Problem: Results in stagnation and reduced accountability.

  • Solution: Establish regular check-ins (e.g., weekly or biweekly) to assess progress and course-correct.

• Overly Ambitious Goals Without Support:

  • Problem: Demoralizes teams if goals are unattainable.

  • Solution: Balance ambition with realism, and provide necessary resources and support.

Practical Examples of OKRs

Company Culture

• Objective: Develop an excellent company culture.

  • KR1: Achieve 90% employee retention.

  • KR2: Conduct quarterly work satisfaction surveys.

  • KR3: Organize quarterly company outings.

  • KR4: Implement monthly team-building activities.

Operational

Operational OKRs are typically associated with a significant technology change, and their KRs move to KPIs once the driving Objective is achieved and/or becomes part of your day-to-day work.

• Objective: Improve internal document management.

  • KR1: Transfer all records to a cloud platform.

  • KR2: Reduce document retrieval time by 30%.

Customer Experience

• Objective: Delight our customers.

  • KR1: Improve customer satisfaction score to 95%.

  • KR2: Resolve 90% of customer issues within 24 hours.

• Objective: Improve customer satisfaction.

  • KR1: Increase NPS score to 70.

  • KR2: Resolve 95% of support tickets within 24 hours.

Product Delivery

• Objective: Enhance product delivery efficiency.

  • KR1: Reduce average delivery time by 20%.

  • KR2: Improve predictability to 95%.

• Objective: Reinvent Old Product

  • KR1: Eliminate all dependence on Business-owned physical infrastructure

  • KR2: Testing is 85% automated

Conclusion

In a world of constant change and growing complexity, aligning strategy with execution has never been more critical. OKRs provide a structured yet adaptable framework to navigate these challenges, ensuring that organizations stay focused on what matters most. By turning ambitious goals into measurable outcomes, OKRs empower teams to innovate, collaborate, and deliver results that truly drive the business forward.

Success with OKRs doesn’t happen overnight. It’s a journey of small steps, continuous learning, and iterative improvement. Start by setting clear Objectives that inspire, crafting measurable Key Results, and embedding OKRs into the rhythm of your organization. Reflect often, celebrate progress, and adjust as you learn.

The organizations that thrive in today’s landscape are those that embrace agility, transparency, and purpose/results-driven execution. OKRs are not just a tool—they’re a type of fuel. Adopt OKR use, and you’ll create the focus and alignment needed to turn vision into reality, no matter the challenges ahead.