10 Goals and Practices for Leading Teams: No 3. Ditch SMART objectives and replace them with OKR’s

Introduction

The problem with SMART objectives is the “A” - Achievable. If you know it’s achievable you can’t appreciate complexity. Achievable objectives operate with what is known, not with the unknown. The unknown, and the unknowable, is the realm of complexity, and matches our real lives. Complexity is an environment where cause and effect are only understood in hindsight. See Cynefin Framework.

OKRs (Objectives and Key Results) are set by teams with an objective that goes beyond the horizon - beyond the team’s control. Progress is indicated by the Key Results. Even missing really bold objectives achieve success. This is one of the key differentiators between SMART and OKRs. SMART objectives are linked to performance with inevitable judgements of “meeting”, “exceeding” or “not meeting” the objectives. OKRs are unlikely to be achieved within a performance period so aren't directly linked to performance. Instead teams rally around the objective, driven into the unknown and using the key results to measure progress. They live in the knowledge that their progress into complexity will be recognised with the merit of hindsight, rather than the futility of foresight.

The Goal

For all teams within your organisation to use OKRs as their primary driver of progress and for performance to be based on the merits of their efforts (this could be an Objective in an OKR!)

The Practice

Explore with the team the nature of goal setting and performance. What would we aim for if we weren’t being judged on if we could achieve it or not? Agree as a team an objective that clearly represents the team’s purpose (see #1). This needs to be aligned with stakeholder ambitions too. With the team, explore stakeholder ambitions. Be prepared to alter your objective so that you and your stakeholders are aligned towards the overarching purpose of the organisation. 

Links to the other nine Goals and Practices for Leading Teams:

No 1. Be clearer on the team's purpose

No 2. Appreciate team dynamics - and use them to team better

No 3. Let's ditch SMART objectives and replace them with OKRs

No 4. Empathise with our stakeholders - more, with skill

No 5. Don't motivate your team - create the conditions for them to motivate themselves

No 6. Make performance a team game

No 7. Agree on how to disagree

No 8. Don't delegate, or empower - coach

No 9. Let the team engage with uncertainty

No 10. Learn to self-manage - together