25+ Years Designing Digital Futures | Workplace Culture Strategist | Human-Centered Innovation Leader
There’s no denying the efficacy of Objectives and Key Results (OKRs) in driving alignment and focus within an organization. They've been a cornerstone in the strategic toolbox of many companies. However, when it comes to catalyzing innovation, OKRs can sometimes prove to be more of a straitjacket than a springboard. Here's why: 1️⃣ OKRs can stifle creativity: OKRs are typically tied to specific, measurable outcomes. While this works well for tracking progress, it can limit expansive, generative thinking. In an effort to 'meet targets', teams might be discouraged from exploring bold, disruptive ideas. 2️⃣ OKRs can create a tunnel vision: With a laser focus on the key results, organizations might overlook peripheral opportunities or 'happy accidents' that might have tremendous innovative potential. 3️⃣ OKRs may not adapt quickly: In the ever-changing landscape of innovation, the desired outcome can shift faster than the OKRs do. Rigidity can hamper adaptability, a core trait of any innovative organization. So, if not OKRs, then what? 💡 Enter Innovation Accounting: This is a way of evaluating progress when all the metrics typically used in an established company (like revenues and profits) are effectively zero. It involves creating a balanced scorecard that takes into account not just the financials, but also aspects like customer satisfaction, market validation, and process improvements. 💡 MVP and Iterative Experimentation: Instead of focusing solely on end-goals, the innovation process should be seen as a series of hypotheses that need to be tested. Develop minimum viable products, collect data, and learn. This allows you to adapt and evolve based on real-world feedback. 💡 Pulse Metrics: These are short-term, leading indicators of success that provide insight into whether you're on the right track. They're flexible, quickly adaptable, and keep a finger on the pulse of your innovation efforts. Innovation requires the courage to venture into the unknown and the wisdom to know "failure" isn’t a roadblock, but a stepping-stone. The right measurement framework can provide the freedom to experiment, iterate, and ultimately, innovate. #Innovation #OKRs #InnovationAccounting #MVP #PulseMetrics #BusinessStrategy