Common Mistakes in Okr Adoption

OKRs were never meant to solve all problems. Each one of these "weaknesses" is an opportunity to mix in other tools/methods to supercharge OKRs. A quarter is an arbitrary duration A quarter is an odd duration: too long to promote small, iterative work and too short for deep strategic focus. No way to express uncertainty There's no good way to express uncertainty, assumptions, or the need to learn. Teams feel pressure to sound confident. “Good” OKRs turn out overly certain and definitive. OKRs emphasize vertical alignment, ignore horizontal progressions The dominant linking model is vertical (e.g., supporting a higher-level OKR). This misses how one goal is a stepping stone in a broader progression. No mechanism to reset goals mid-cycle Many companies lack a process for revisiting and adjusting OKRs when conditions change. Teams try to force-fit progress to outdated plans. Teams set goals against untested metrics Many key metrics are poorly instrumented, poorly understood, or newly created. Setting goals against them can be premature and misleading without baseline understanding. OKRs ignore how outcomes are achieved The systems, habits, and approaches used to reach goals often matter as much as the outcomes themselves. OKRs don’t express or guide relative prioritization While you can try to infer what matters most, OKRs don’t explicitly convey relative importance or trade-offs between goals. They lack built-in prioritization logic. OKRs ignore KTLO and BAU work Keep-the-lights-on and business-as-usual work often isn’t reflected in OKRs. This creates confusion about where time went and can lead to unrealistic expectations around capacity. OKRs structured by org chart mask real dependencies When OKRs mirror the org chart, they create a false sense of independence. Teams may appear accountable in isolation, but in reality, progress depends on other groups (and those links often go unacknowledged). OKRs create a double burden alongside actual work tracking Teams still need to track and coordinate the work (tasks, deliverables, timelines, etc.) OKRs often live in a separate layer, leading to redundant effort and disconnects between goals and day-to-day work. OKRs are tacked onto existing work Rather than shaping priorities, OKRs are often retrofitted to projects teams already planned to do. This creates the illusion of focus without actually changing behavior or decision-making. OKRs strip away context and narrative OKRs are meant to be concise, but in doing so they often lose the story behind the work (why it matters, how it connects to other efforts, and what trade-offs are involved, etc.)

How to Avoid 5 Common Mistakes with 2025 Goal Setting As we gear up for 2025, many founders set goals with the best intentions—only to get stuck or see underwhelming results. Why? Because even well-meaning goals can fail if you don’t avoid these common pitfalls. Here are 5 mistakes to watch out for, and what to do instead: 1. Picking Goals That Don’t Align with Your Team’s Skills A lofty goal sounds exciting, but if your team lacks the skills to achieve it, frustration and poor morale will follow. For example, if your team excels in organic marketing but lacks paid ad experience, setting a goal to double revenue through Facebook Ads could backfire. Instead, align goals with your team’s strengths while planning for growth where needed. 2. Setting Objectives Without Clear Ownership If no one is accountable for a goal, how can you expect it to succeed? Every objective and key result (OKR) needs an owner who’s responsible for driving progress. Clear ownership ensures focus and follow-through. 3. Measuring Progress with Lagging Indicators Lagging indicators like revenue or profit only show what’s already happened. If your goal is to lower product costs but you’re sitting on six months of inventory, FIFO accounting means you won’t see results until mid-year. Instead, use leading indicators like supplier cost reductions or negotiated terms to track progress in real time. 4. Focusing on Abstract Key Results Key results like “Increase EBITDA” might look good on paper, but they’re too abstract for most teams to act on. Instead, focus on tangible metrics your team can control, like: Increasing conversion rates from 2% to 3%. Growing customer lifetime value by 10%. Clear, actionable metrics create engagement and drive results. 5. Tying OKRs to Bonuses or Performance Reviews OKRs should be aspirational, not a checklist for rewards. Tying them to bonuses can lead teams to set safe, conservative goals rather than ambitious ones. It can also shift focus from collaboration to individual performance, misaligning team efforts. Instead, use OKRs for alignment and innovation—not as a carrot or stick. Set Yourself Up for Success in 2025 The key to thriving isn’t just setting goals—it’s setting them the right way. Avoid these mistakes, and you’ll give your team the clarity and focus they need to succeed. What’s one thing you’re doing differently for 2025 goal-setting? Let me know in the comments—I’d love to hear. #eCommerce #GoalSetting #OKRs #FractionalCFO #2025Planning

Three mistakes I see managers do when defining their teams's OKR: 1. They define the objectives as an inheritance from their boss'es OKRs. While it sounds logical, it's a mistake. Your team has a job to deliver a product or service to someone, and it's usually not your boss. Your key objectives should be to make your customer/client—internal or external—successful. This definition of success should be your objective. 2. They define the "What" needs to be done, not key results and milestones. The key results inform us that we're on track to achieve our objectives. If you describe the "what" in your key results, you're already dictating to your team what to do and rob them of their creativity! They will consider this as micromanaging! 3. They don't empower employees to take an active part in defining the key results. While managers want their employees to be engaged, they miss the opportunity to partner with employees in defining the strategy and actions the team can take to reach an objective. Very few people want to be told exactly what to do. They want freedom to think and contribute their experience and creativity to the process. If you partner with employees to answer the question, "What key results will show us that we're on track to achieve this objective?" They will step up and share their wisdom. What is your experience with using OKRs? And what have you done well to make it work? #Pro-Leadership-Tips #leadershipdevelopment #management #OKRs