As a management consultant, I learned that pretty much anything
can be described in a 2x2 matrix. My 2x2 matrix for getting started with OKRs
is finally here!
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2x2 OKR Deployment Matrix |
This matrix evolved over the last few months after
conversations with dozens of start-ups who either recently got started with
OKRs or were in the process of planning their deployment.
X-Axis: Single or
Multiple OKRs. Christina Wodtke, a super-cool OKR expert and colleague, introduced
me to the possibility of a single objective with just three key results. Most
OKR projects encourage teams to define multiple objectives, typically 3-5 objectives,
each with 2-4 key results, or even more as noted in my prior
post.. However, for small companies first getting started with OKRs, I’m
now recommending starting with a single OKR. That’s right, instead of “OKRs”
I’m suggesting you go with just one “OKR” for the company and each management
level.
Three reasons to start with a SINGLE OKR
- Easy to
remember. When the company defines a single OKR, everyone in the company
should be able to commit that single OKR to memory.
- Alignment.
Getting everyone to align around a single OKR can be quite challenging, but
also quite rewarding. For example, one of my clients had the following company
Objective, “improve the user experience for our existing install base.”
- Not overwhelming.
As with any organizational change program, you’re going to have a group of
employees that resist change or feel that a new system is just too much effort to
learn. Well, if you take OKRs which is already a pretty lightweight program and
simplify even further to a single OKR, anyone who thinks that’s too much to handle,
is probably asking permission to look for a new job.
Y-Axis: Phased deployment
at company only or to entire organization, possibly down to individual level. The Google video on OKRs notes that OKRs are set at three
levels: company, team, individual. Well, I spoke with several at Google
including Rick Klau who noted that the fact that Google has OKRs at multiple
levels in no means should be interpreted as a recommendation to deploy OKRs at
three levels from the start. In fact, the more I work with organizations
getting going with OKRs, the more it becomes clear to me that there’s a trend
to begin with company only or company/team only. Very rarely will OKRs be
deployed at the individual level from the beginning. OK, so I know I said it’s
a 2x2 matrix, but I’m breaking deployment plan into THREE basic options:
- Company
only: When first getting started with OKRs, it may be best to take a phased
approach. Simply get the executive team to agree on a company-level OKR or set
of OKRs and stop right there. Then, explore rolling out to teams and/or
individual contributors after the organization has had a chance to get some
real experience with OKRs.
- Company
and team only: In many cases, executives agree on the overall company OKR/s
and team leads who report directly to the CEO work with their teams to create
OKRs. This is a phased deployment plan since it does not require or encourage
individuals or teams way down the organizational chain of command to adopt OKRs
right from the start. The individuals that comprise these teams certainly do
provide input to create team-level OKRs “bottoms-up.”
- Entire
organization: Even as I type “entire organization,” I sense this will be tough
for most organizations. If you’re a start-up with a few employees, it’s
probably fine for everyone to set their own OKRs from the start, but for larger
organizations, simply declaring “we’re doing OKRs now” will at best create
confusion. Introducing OKRs carefully with a single person on point to manage
the deployment clearly stacks the odds in favor of success.
Conclusion. I recommend organizations looking to deploy OKRs assess
which quadrant best fits their organization by using the 2x2 OKR deployment
matrix. Here is an analysis of each quadrant.
- Quadrant
I. Company only/Multiple OKRs. This is a very easy way to get going with
OKRs. Try to set up each company OKR so that multiple teams feel they
contribute to each OKR. Otherwise, you may be in Quadrant III without knowing
it.
- Quadrant
II. Company only/Single OKR. This is the easiest way to get started and
requires the smallest level of investment. The benefits can still be big,
especially if the main goal is to improve the communication of the overall
company strategy to all employees.
- Quadrant
III. Entire organization/Single OKR. This is a great way to get everyone
involved with OKRs while limiting the potential for “overwhelm.” People will
all realize that we’re not simply listing everything we do at work, since we
only get to set up a single OKR.
- Quadrant
IV. Entire organization/Multiple OKRs. You’ll need help. Call me!