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Teams often mistakenly believe setting OKRs is the same as having a strategy. OKRs are a measurement framework—like a car's dashboard showing speed and fuel. They indicate progress toward a goal but don't define the destination, the route, or why you're taking the trip.

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The "memo is the strategy" isn't just a CEO problem. Teams often run the same play, creating roadmaps, OKRs, or retro actions that serve as announcements of intent but lack any real execution or follow-through mechanism.

Instead of cascading goals directly from a vision, use "Strategic Themes." These are broad, directional choices (e.g., "Leverage critical partnerships") that act as guardrails, or "lanes on the interstate," guiding how teams set their specific, measurable objectives.

Instead of setting rigid goals, the OHL framework defines objectives as puzzles. Teams then form hypotheses on how to solve them and are measured on their learnings through a cycle of three questions: "How well did it work?", "What did you learn?", and "What will you try next?"

Tekmetric's marketing team uses OKRs for creating new capabilities needed for future growth (e.g., founder-led content). KPIs are used for monitoring ongoing operational health (e.g., paid media performance). This distinction clarifies strategic versus tactical work.

Adi found the traditional OKR framework too heavy and complex, creating too many priorities. They replaced it with a single "North Star" metric, such as EBITDA, which became a powerful, simple organizing principle that focused the entire company's efforts and streamlined decision-making.

For startups tackling monumental challenges, complex planning frameworks like OKRs are a distraction. Instead, maintain a clear, ambitious long-term vision and focus the entire company's energy on executing the immediate next step with maximum speed and quality.

Decades before OKRs became popular, W. Edwards Deming identified their core flaw. He argued that 'management by numerical goal' is a substitute for leadership and a way to manage without understanding the system of work. It encourages short-term thinking and gaming metrics, the precise issues plaguing modern companies.

A team hitting all its targets is not an endpoint for celebration, but the starting point for an investigation. This counter-intuitive approach prompts leaders to ask critical questions, such as what unintended negative consequences this success could be creating for other departments months from now.

Most business struggles stem from a misaligned or forgotten North Star Metric (NSM). A successful framework aligns the entire company by ensuring all OKRs ladder up to a single, durable NSM, with KPIs serving as health checks for those OKRs. This creates a clear hierarchy for decision-making and resource allocation, preventing strategic drift.

Don't build a feature roadmap and then write OKRs to justify it. Instead, start with the outcome you want to achieve (e.g., "move metric X to Y"). This frames all features as experiments designed to hit that goal, empowering teams to kill features that don't deliver value.

OKRs Are a Dashboard for Your Journey, Not the Strategic Map Itself | RiffOn