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5 Ways Your Company May Be Misusing OKRs

Itamar Gilad⁠

⁠

Since their invention at Intel in the late 1970s, Objectives and Key Results have amassed a huge following. It certainly helps that Google, Amazon, Dropbox and other tech super-companies attribute so much of their success to them. John Doerr’s book Measure What Matters is further fueling this fire. Many companies are either implementing or have already implemented OKRs. It’s the tool I get asked about the most.

But here’s the thing — OKRs are just containers for goals. They serve bad goals just as well as they do good goals. In fact, of all the management tools, OKRs are the easiest to misuse, overuse and abuse — many companies fall into this trap. This is a major problem because bad OKRs can amplify the issues the org is troubled with rather than fix them.

In this article I’ll go over some of the most common issues I see with OKRs and ways to address them.

1. Using OKRs to express a plan (Output OKRs)

This is the most fundamental and most common mistake I see (I’m certainly guilty of doing it in the past). Our natural inclination is to use OKRs to express a plan of action.

For example:

O: Become a leader in the enterprise

KR: Launch v2.2 of the mobile app

KR: Integrate with SalesForce

KR: Switch to new onboarding flow

KR: Run 10 paid campaigns

Here’s why this is wrong. Objectives and Key Results are designed to convey goals — what we’re trying to achieve, by when and how we’ll measure success. Building, launching and promoting features and products are not the goals. The goals are the benefits we expect to gain from these actions.

Goals that communicate a plan (known as Output Goals) commit this fundamental logical error:

We want to achieve X (the real goal)

The best way to achieve X is to do Y (a solution)

Therefore doing Y is equivalent to achieving X

In tech steps 2 and 3 represent huge leaps of faith:

Doing Y will indeed accomplish X

Y is the best way to achieve X

Y will not have big negative side-effects

Y is feasible with our current technology and resources.

Y will not cost x2-x4 more than we think

Etc.

Virtually every project I worked on or observed invalidated some or all of these assumptions — especially the first — the assumption that the project will have the expected effect. We may launch v2.2 of the mobile app and users will hate it and usage will plummet. The new onboarding flow may drive no measurable change in user behavior — that’s actually the case with

most product changes⁠

. Running 10 campaigns may help us acquire the wrong right type of users, etc.

Doing stuff isn’t the point. Achieving stuff is.

So the right sequence is: 1) Define what you wish to achieve in the form of Objectives and Key results 2) Plan what you’ll do to achieve it (for more details see the

GIST framework⁠

)

If you find that you keep creating output goals, this simple trick to get to the real outcome/impact goal behind them: ask “why?”

KR: Launch v2.2 of the mobile app → why? → Grow Mobile WAUs >= 300K

KR: Integrate with SalesForce → why? → Reduce churn to < 2.5%/month

KR: Switch to new onboarding flow → why? → Reduce avg. onboarding time < 2hrs

KR: Run 10 paid campaigns → why? → Acquire 2500 leads per month

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Upcoming Workshops

Want to learn more? Check out my public and private workshops:

itamargilad.com/workshops⁠

⁠

2. Using Non-SMART OKRs

Management guru Peter Drucker defined SMART goals in the 1950s, but it’s still a very valid guideline today. Goals should be:

Specific — paint a clear picture of the desired end result; not ambiguous.

Measurable — all key results should have clear metrics.

Ambitious — pushing the team somewhat out of their comfort zone (Google founder Larry Page calls this feeling “uncomfortably excited”, and you do experience this feeling quite a bit in Google)

Realistic — Achievable, Not pure fantasy.

Time-bound — each OKR should have a clear ETA — typically end of quarter or end of year.

The main anti-patterns I see:

High level and vague key results — MBA-speak simply doesn’t work here: “deliver engaging experiences” or “drive customer satisfaction” are neither specific nor measurable.

Non-realistic key results — some managers believe that their job is to ask for pies in the sky as a way to drive people to deliver more. This tactic always backfires — people will seemingly commit, but quietly reject a goal they perceive to be non-feasible. It’s much better to have the people doing the work help you find what’s ambitious-but-realistic.

OKRs are not a zero-sum game — they’re meant to drive collaboration, not hard negotiation.

3. Too Many OKRs

I see this a lot — companies and teams get excited about OKRs and put every conceivable thing they may wish to work on into them. Teams of 4 people try to commit to 6 OKR clusters each with 4–5 key results. Managers expect to see every possible metric captured in the OKRs, and request weekly progress check-ins.

Naturally this falls under that non-realistic goals category, but it’s even worse:

No focus — Having too many goals robs teams of focus. When everything is important it’s very hard to know what to work on and there’s less progress.

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