Are OKRs relevant in Large Enterprises?

Michael Sare
Michael Sare Member Posts: 7 Contributor
edited August 2023 in CS Org Conversations
Calendar Q4 is coming to a close and I was just thinking of metrics. I've been in the startup world for nearly 4 years now and driving to support company and departmental OKRs. I don't remember having OKRs prior to the startup world but was wondering the following:
  • I think OKRs are good for startups until they get their legs underneath them but I am not sure of its effectiveness in Large Enterprises
  • Are you a working for a Large Enterprise company? And if so, are you using OKRs?
  • Are OKRs part of your weekly mindset? Do you think they're effective for a Large Enterprise company?
  • Are OKRs used around the world? Let me know if your company uses them and where your HQ is based out of.
  • What defines in your mind a successful CSM practice?
Thank you in advance for sharing your thoughts.



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Comments

  • James Conant
    James Conant Member Posts: 37 Expert
    Second Anniversary
    edited November 2020
    Hi Michael - 

    We used them at ADP and they were a key component in the development of annual strategic objectives. They started at the corp level and then were cascaded down thru departments and teams. Every dept, team, and employee knew exactly where they needed to focus their efforts, and all established a cadence to discuss status, risks, etc. I found them invaluable in keeping a team, that's easily drawn into day-to-day minutiae, focused on things that matter.

    Jim
  • Michael Sare
    Michael Sare Member Posts: 7 Contributor
    edited December 2020

    Thank you James. Did you actually call them OKRs at ADP?

    At first I thought OKRs were only known and used in startups but it must be a cultural thing then, regardless of stage or size of company, influenced by VCs and/or who leaders follow.

    I feel if it's not introduced early on then it can be viewed as an additional source of friction to those who like to just GSD (get sh!t done) unhindered.

    I don't mind them, but it's good to know if an organization uses them because there is a certain rhythmic feeling and pace to progression as you mentioned.

  • Ed Powers
    Ed Powers Member Posts: 189 Expert
    Fourth Anniversary Photogenic 10 Comments 25 Likes
    edited December 2020
    According to Wikipedia, OKRs originated at Intel and are attributed to Andy Grove, their legendary CEO. OKR's were Intel's name for Management by Objective (MBO), and while Google and others have adopted them at the prompting of Kleiner-Perkins, MBO is nothing new to large enterprises. Peter Drucker talked about it in the 1950's and it became widespread practice. 

    If you are looking for an approach that's far superior to MBO (and OKRs), I recommend investigating a Japanese method called hoshin kanri. It's the most popular alternative and it is widely used by HP, 3M, Sony, Toyota, Danaher, and many other top global firms. Hoshin is an integrated process of planning, deployment, execution, and review that allows firms to make enterprise-wide breakthrough performance improvements. Since it starts by aligning on a business problem, not a functional issue, it suppresses organizational silo-ism and sub-optimization, some very serious side effects that come from both MBOs and OKRs. 
  • Michael Sare
    Michael Sare Member Posts: 7 Contributor
    edited December 2020
    Awesome Ed! Thank you so much... I will certainly look into hoshin kanri.
  • Tom Mollerus
    Tom Mollerus Member Posts: 3 Seeker
    edited December 2020
    I work for a startup now where we don't have company-wide OKRs, but I make my own. I think they're appropriate and useful for smaller companies. Back when I worked for a larger company, I found it difficult to create OKRs for my team that corresponded to the company and department OKRs. We were just too big to have goals that made sense all the way down the reporting structure.
  • Renee Murphy
    Renee Murphy Member Posts: 18 Thought Leader
    Second Anniversary First Comment
    edited December 2020
    another alternative is V2MOM process that Salesforce uses.   https://www.salesforce.com/blog/how-to-create-alignment-within-your-company/

    The difference for me on this process was the alignment and inspection across the different departments on the the goals and blockers rather than silos.  It allowed us to realign and reprioritize from the top down AND across the organization.
  • Michael Sare
    Michael Sare Member Posts: 7 Contributor
    edited December 2020

    Thank you so much Tom for weighing in.

    I tend to agree regarding what is effective for larger enterprises but I am reviewing Renee's response on V2MOM and Ed's on hoshin kanri.

  • Michael Sare
    Michael Sare Member Posts: 7 Contributor
    edited December 2020

    Thank you Renee!

    I will certainly check it out.

  • Matt Myszkowski
    Matt Myszkowski Member Posts: 143 Expert
    Photogenic First Comment Second Anniversary
    edited December 2020
    Great shout - I am a massive fan of the V2MOM.

    It is structured to ensure everyone understands it all levels in a simplified, one-pager rather than multi-page complex business plans that do not leave the boardroom.

    Happy to share mine if anyone is interested (still a WIP for 2021).
  • Renee Murphy
    Renee Murphy Member Posts: 18 Thought Leader
    Second Anniversary First Comment
    edited December 2020
    I would love to see what you have as a WIP.  It is great to see how others are structuring them!
  • Michael Sare
    Michael Sare Member Posts: 7 Contributor
    edited December 2020
    Awesome... yes please, Matt!
  • Sherri schaffroth
    Sherri schaffroth Member Posts: 1 Navigator
    edited December 2020
    I too would love to see yours.
  • Matt Myszkowski
    Matt Myszkowski Member Posts: 143 Expert
    Photogenic First Comment Second Anniversary
    edited December 2020
    Sorry everyone for the delay - it has been chaotically busy at my new gig.

    Here is my V2MOM - happy to have your feedback come my way.
    image

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