The OKR Trap:
Reporting vs. Progress

READ ON

PUBLISHED

Nov 12, 2024

READING TIME

3 min & 04 sec

Dear Reader,

Similar to being focused on Discovery motions, but missing Discovery decisions, simply filling in OKR templates will lead to reporting, but not measuring progress.

OKRs that report numbers try to get a template-based Objective right and define a Key Result as something with a number.

OKRs that measure progress take care of the hard conversations through Key Results first and make sure these are leading and influenceable.

Example: A checkout team’s Key Result is about company-wide NPS or revenue figures, which they can only contribute to a little bit. When they should measure specific conversion steps or behaviors, they can influence.

What you can do to change: Show OKR sponsors how focusing on your team's direct influence areas will help you make better decisions and contribute to better overall business goals.

OKRs that report numbers settle for business-as-usual KPIs without digging deeper into which metrics they need to uncover first but represent their actual priorities.

OKRs that measure progress ensure clarity on strategic topics first, before committing to initiatives and efforts.

Example: A feed team uses vanity metrics like the number of post viewings or an increase in published content when they would monitor (and react to) these anyway.

What you can do to change: Think about the one chance you have to do something differently about moving closer to your Vision next year. Identify one underserved user segment or behavior pattern that could transform your product next year.

OKRs that report numbers are fine with irregular, “slow” check-ins without linking work to changes in metrics.

OKRs that measure progress use change in Key Results to set weekly/bi-weekly priorities.

Example: OKRs are only reviewed at the end of a cycle with lots of discussion about what went right or wrong.

What you can do to change: Schedule 30-minute bi-weekly check-ins to discuss OKR progress and adjust priorities accordingly. Even if your OKRs won’t be very useful in the beginning, they will create a discussion and shine a light on the problems you have to fix to make them more useful.

If you have ever benefited from my work, I'd appreciate it if you would share this newsletter on LinkedIn. It truly helps.

Thank you for Practicing Product,

Tim

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Finally, without developing your outcome muscles, looking at a great set of OKRs can feel like watching Simone Biles perform at the Olympics. I can see what she did, but I have no idea how to do it myself. So although I use different examples in my workshop, I focus on teaching people the principles and techniques they need to understand what makes a great OKR and how to do it themselves. As each team goes through the workshop, we use their OKRs to build an internal list of great examples that the next teams inside the company can use.

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The Measurement Trap

Drucker’s actual view on measurement was more cautionary: “What gets measured gets managed—even when it's pointless to measure and manage it, and even if it harms the purpose of the organization to do so.” This perspective highlights the potential dangers of focusing solely on measurable outcomes while neglecting the broader, often intangible aspects that are crucial to an organization’s success.

Read it here