Summary
To set goals that focus on outcomes, not activities, an organization needs to ingrain a habit of connecting what its teams are doing to why they are doing it. They need to understand how inputs (like units produced), and outputs such as (units sold) contribute to larger goals. Four questions can help stuck teams gain clarity:
Benjamin Franklin, widely credited with popularizing the to-do list, lived according to a rigid written schedule: rise, wash, work, eat, sleep, repeat. To this day, we’re so used to making task lists that the habit often seeps into how we write OKRs.
Yet it’s results — not actions — that drive organizational progress. Setting goals that drive change and long-term impact can be, well, revolutionary. For example, when Stitch Fix adopted company-wide OKRs, it prompted a shift from tracking basic activities (say, introducing a new web feature) to focusing on outcome-based objectives (like implementing a major new sales strategy). Agile, collaborative innovation flourished. The company reached new month-over-month revenue highs.
To set goals that focus on outcomes, not activities, an organization needs to ingrain its teams to learn to connect what they are doing to why they are doing it.
Assessing team mind-sets
If you have been trying to instill outcomes thinking without success, what’s getting in the way? Is your team more comfortable describing effort versus impact? Old habits are hard to break.
Teams also may not understand how inputs (like units produced), and outputs such as (units sold) contribute to larger goals like becoming a market leader in the industry. Or perhaps they’re trying to save time by recycling project management to-do items into OKRs; or maybe they can’t tell the difference.
Four questions can help stuck teams:
● If we got this done, what would get better?
● What needs to change from where we are today?
● What’s the long-term impact of this work? Is this helping take the company where it needs to go?
● If this initiative doesn’t promote change, what would?
For example, a person on a widgets sales team suggests an Objective: “Implement Fab CRM software company-wide.” That would be the time to dig deeper, asking, “What’s the ultimate effect of that activity, though? Is the CRM tool the goal, or is the goal a larger market share?”
This extra effort can lead to a better Objective: “Lead market share of next-gen widgets.” Measurable, time-bound Key Results may be: Customers order more than 40 percent more widgets year over year. Customer feedback scores on widget performance improved by 30 percent. Widgets sales closed 15 percent faster by third quarter.
Note that not all to-dos must become outcomes. Activities that keep companies running well should be duly recorded and rewarded. However, write them separately from OKRs to keep a clear distinction between the two. The footwear company Allbirds puts initiatives such as improving its account payables system into what it calls the “Breathe List” — things the company needs to do to survive.
Reinforcing outcomes thinking
Outcomes thinking is a lifestyle, not an intervention. Each potential initiative, no matter how exciting, comes with a built-in challenge to glean its true purpose. It takes practice to articulate that in OKRs.
Regularly reviewing progress toward outcomes goals as a team and with one-on-ones can prevent backsliding. Give feedback frequently, encouraging self-reflection and focusing on progress. Make sure that individuals understand your organization’s larger goals and objectives, and take ownership of their OKRs.
Finally, reinforce an agile mind-set by tweaking OKRs as necessary. Be bold in rethinking goals that need to be adjusted or scuttled. OKRs are inherently fluid. By introducing some flexibility into goal setting, teams will respond better to what’s actually happening, not just what they had planned.
