Every successful effort in any team or organization starts with setting clear goals that should be defined, pursued, and followed. In many cases, it is important to be provided with the appropriate tools to set goals and track progress at all stages. In Agile, the full form of OKR is Objectives and Key Results (OKR), which is suitable for this goal-setting framework. OKR is one of the most important processes for setting goals, communicating, and measuring results in everyday life.
The OKR framework
Objectives
An objective is simply what needs to be achieved. Objectives are generally clear, actionable, and significant statements. They are short and inspirational.
Key Results
Key Results are measurable, verifiable, and time-bound outcomes of the objective. The Key Results outcome is either complete or not complete. After a span of predefined time, we can measure the success of the objective by looking into the Key Results.
Let’s understand the OKRs with a simple example:
Objective: Expand and enhance the portfolio of high-quality professional courses to cater to evolving industry needs and trends.
Key Result 1: Get an average course rating of 4.5/5
Key Result 2: Launch 5 new high-quality courses as per the trend in the market
Key Result 3: Collaborate with the top 3 leading certification bodies
As we can observe in the above example, there are significant objectives and Key Results that can measure the success of the objective. This blog is to understand how Agile OKRs are different from traditional OKRs.
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Traditional OKRs Definition
Traditional OKRs are a methodology for achieving a predefined, stable, long-term goal. They have minimal scope for change and are generally focused on quarterly or annual results.
Agile OKRs Definition
Agile OKRs are a modern way of setting up a goal. It promotes iterative, flexible goals. It has shorter cycles like sprints or product increments. It is always adaptable to changes and continuous improvements. It allows the goals to evolve based on regular feedback from the stakeholders and changing priorities.
A simple formula for writing OKRs is:
We will -------Objective------- as measured by ------Key Results------ .
A Summarized View: Traditional OKRs vs. Agile OKRs
Traditional OKRs: The Rigid Planner
Think of traditional OKRs as a thorough planner with a detailed plan. You've listed out every step, every milestone, and every potential pitfall. You're committed to the plan, and deviations are rare. While this approach offers a sense of control and direction, it can be inflexible, especially in dynamic environments.
Agile OKRs: The Adaptable Explorer
Agile OKRs are like a map. You have a fairly general direction, and you are ready to learn from the ways you try, take alternate routes, and change courses as necessary. It makes it flexible and adaptable to emergent change, which suits fast-paced priorities.
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Key Differences and Some Agile OKR Examples
➢ Timeframe:
- Traditional OKRs: It is for a long term, such as a year
Example: A business team sets a goal to increase website traffic by 25% in the next year. There are minimal adjustments to the plan.
- Agile OKRs: It is for a shorter duration. The goal is divided into manageable tasks and action items in a sprint.
Example: The IT team plans to fix all technical debt in a sprint. If a higher-priority task arises, the goal will be re-prioritized.
➢ Flexibility:
- Traditional OKRs: Traditional OKRs are less feasible as they focus more on adherence to the original plan.
Example: If a company Traditional OKRs is usually a target set by upper management and then it is passed on to various other teams.
- Agile OKRs: It is more flexible and adaptable to changing circumstances.
Example: A product team may initially set a goal to launch a mobile app. If market trends change, the features might change
➢ Goal Setting:
- Traditional OKRs: Traditional OKRs are usually targets set by upper management and then passed on to various other teams.
Example: If the CTO aims to increase revenue by 25 %, each team creates initiatives to achieve that goal.
- Agile OKRs: It is a collaborative, bottom-up approach. Teams are involved in setting their own goals, often collaborating with their managers.
Example: A development team may set a goal to improve code and reduce technical debt. This goal is jointly decided by the team members and their team lead.
➢ Focus:
- Traditional OKRs: It is outcome-oriented. No process is monitored.
Example: A development team may set a goal to increase the performance of the website by 25%. The entire focus is on reaching the end goal instead of the process.
- Agile OKRs: It is outcome and process-oriented, and both outcomes and the process of achieving them are important.
Example: A marketing team may set a goal to increase visibility in the market. They may also focus on improving their content creation process and social media strategy.
➢ Measurement:
- Traditional OKRs: It is evaluated at the end of a specific period.
Example: A team’s performance is evaluated at the end of a year based on the success criteria of the OKR.
- Agile OKRs: It is continuously tracked for its progress. Feedback is an important aspect to consider, and it is reviewed regularly
Example: A development team may use daily stand-up meetings to track the progress of the
task and resolve blockers, if any. Retrospective meetings may be used to learn from the experiences and improve the process
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Choosing the Right OKRs Approach
The best OKR approach depends on your organization's specific needs:
Traditional OKRs are suitable for:
- Stable environments
- Long-term strategic goals
- Hierarchical organizations
Agile OKRs are suitable for:
- Dynamic environments
- Innovative teams
- Cross-functional teams
A hybrid approach can often be the most effective, combining the strengths of both methods.
Conclusion:
In the final analysis, you will adopt the approach that best suits you in all aspects of your team. There will always be adjustments when reviewing that you aren't changing your OKRs, for example, when you determine which specific area needs optimization in your goal-setting and performance management process.
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