Lean Strategy Operating System

For quite a while now, I've been helping companies implement OKRs while also using them myself in my full-time roles. Over that time, I've learned which aspects of the methodology to let slide and which ones to insist on.

What I recommend keeping

• Choosing the right top-level objectives. What do you actually need to achieve? What are your key drivers for success? What positive change needs to occur? At this stage, forget the "rules" – use natural language and don't let the OKR wording slow you down. Get to it later. It's about doing the right things vs. doing things right.
• A fast, honest feedback loop. Monthly check-ins with a simple metrics and a traffic light status, more detailed reviews quarterly. Tactical levels even more frequently. And the moment someone starts sugarcoating the truth (and they will), address it immediately. Keep the traffic lights simple:
  • Green = On track.
  • Amber = Likely to get there, but there's a risk (how are we managing it?).
  • Red = Unless something changes, we won't make it (so, what is changing?).
• Outcome over Output. KRs should measure the value created (outcomes), not just a list of tasks (outputs). But be careful not to over-engineer this. It's easy to spend two weeks crafting "perfect" KRs while the actual work stalls.

What I would remove

• Obsessing over wording. Spending ages finessing the "O" and "KR" phrasing often turns into a distraction. People get bogged down in semantics while the work halts.
• Complex tracking systems. To quote one of my favorite authors: "If you need software to track it, your goals are too complicated".
• Endless "OKR vs. BAU" debates. Don't get stuck debating what counts as "Business as Usual." Just draw a line in the sand and get to work. If it doesn't feel right, adjust it later. There is no single "correct" way to split them, anyway.
• Sophisticated cascading. Trying to align every lower-level goal so the "sum" perfectly equals the higher-level goal creates massive overhead. Keep OKRs for strategic objectives. At the tactical level, let the teams use whatever system works best for them.