Tips to implement the OKR framework in large companies
The OKR framework is a key framework for large companies to create more focus, alignment, and transparency. OKRs combine bold, ambitious goals with measurable metrics, the key results. That way, key results create a realistic path that you can follow to move from everyday reality to your desired aspiration. No wonder so many large companies have already implemented the OKR framework such as Spotify and Linkedin but also startups.
Now, is it true that implementing OKRs is a lot easier in smaller organizations? Maybe, because there are just fewer people and processes to sync with. However, that does not mean that implementation of the OKR framework in large companies should be hard or challenging. Far from it!
The only thing that is needed is a clear approach around the OKRs’ purpose, plan, and people. Let’s call those the 3Ps. In this blog post, we’ll dive into the 3Ps and give some ideas that can help you get started with a bigger-scale implementation.
The 3 Ps in the OKR framework
Purpose
The most important part of an OKR implementation is understanding why you want to use OKRs. Is it just something cool you heard about or are you actually looking to improve how your business prioritizes and unifies its departments and teams? Most large companies looking to use OKRs will have a shared purpose: to increase focus mainly. But there may be other reasons to implement the OKR framework such as to stimulate innovation or to get better engagement.
All of these reasons are valid as long as it’s clear to you what kind of change you wish to achieve with OKRs. If you’re just looking for the next trendy tool out there, you won’t follow through and believe it can really make a difference for your company.
Plan
After the purpose of the OKR implementation is clear, for example, to boost innovation and inspire more creative thinking, it’s essential to create an OKR plan. This doesn’t have to be a huge slide deck or an enormous document. It should be a guide that identifies important points such as the timeline, who will be involved in the rollout, and how it will all be communicated to employees. As a summary, it includes the process(es) that will be followed and also which tools are necessary to make the implementation a success.
In large companies, it’s good to think about how to start off, but it’s equally essential to map out how the OKR framework will be scaled once the momentum is there. In this part of the process, it’s essential to identify the skills and training necessary for employees.
An OKR plan should be to-the-point and with as little complexity as possible, outlining the necessary steps involved to get started and scale the OKR framework once it has landed. The plan should also allow for flexibility: OKR rollouts usually never go completely according to plan, and it will be helpful to take an agile approach in the process.
People
Once a basic plan is set up, in large companies, it’s absolutely critical to get the right people on board to make the implementation of the OKR framework a success. It’s ideal to create an OKR implementation team, for example with one or two leadership team members, a Program Manager, and for example an Agile Coach. As a team, these people can liaise with the external OKR Coach and provide information about the company culture, strategy, and way of working. Other useful roles on this team would be someone from HR and someone from Communication. Let’s have a look at each role and see how they can support:
- Leadership team member(s) — acts as the link between management, and makes OKRs role modeled in the right way to the rest of the org.
- Program Manager — can make the OKR process gets embedded in the right way across the different departments and teams.
- Agile Coach — can help with OKR training and the facilitation of OKR meetings.
- HR representative — will make sure there is clarity on how OKRs complement existing processes and policies around performance management and engagement.
- Communication Specialist — will make sure the OKR implementation gets communicated in the most simple and effective way across the organization, making sure people feel inspired and engaged throughout.
Ideas to start with the OKR framework in large companies
There are several ways you can get started with the implementation of the OKR framework in large companies.
Hierarchical or vertical implementation
My personal preferred way in large companies is to start in a hierarchical or vertical manner. The Leadership team gets trained on OKRs first and explores the OKR framework for 1 or 2 quarters by setting company OKRs. Once they have gotten the hang of it, they move to the next level, departments. Once the departments are comfortable too, the final stage is a team implementation.
Department by department implementation
Another option for large companies is to start the implementation in one department only, as a kind of testing ground. That department can be the guinea pig and act as an inspiration to other parts of the organization. The downside of this type of implementation is that the department may not have a lot of opportunities to align their OKRs with the rest of the business, as they are not using them yet. As a result, it may feel wobbly. If you would like to explore this kind of implementation, it’s highly recommended to have a very clear department roadmap and at least some company objectives to align to.
Team first implementation
Lastly, we get to a team first implementation model. This is possible, and may be beneficial in large companies where experimentation is highly appreciated and where leadership is happy to provide full autonomy at team level. Once this is indeed the case, 1 team or a few teams can start exploring the OKR framework for a quarter and see how it supports them. Just like with departments, it is important to give teams something to align to, at least some rough department objectives or major milestones. That way, the team can test the OKR framework while making sure it’s heading in the right direction.
How OKRmentors can help
In this blog, we have explored the 3Ps, as well as three ideas to get you started on the implementation of the OKR framework for large companies.
Here at OKRmentors, our world-class experts are used to help with large-scale implementations so that the plan, purpose, and people side of it are well taken care of. Our self-paced OKR certifications are an essential part of the success recipe, providing team leaders, OKR ambassadors, and co-workers with the right toolset to make the best use of OKRs, at scale!
Click here to book a free consultation with one of our experts.
