OKRs are widespread but often implemented wrong. Here's 5 first principles when implementing OKRs: 1️⃣ OKRs should align, not cascade The most prolific mistake I see when implementing OKRs is making them cascade in a top-down fashion. This not only remove autonomy, it reduces flexibility as KRs get inherited meaning that pivoting or adapting requires moving back 'up the chain' and to change higher level OKRs. Instead you should think of aligning your OKRs like a constellation of stars, not a linear ladder. 2️⃣ Outcomes over outputs OKRs should describe outcomes not outputs. Avoid having KRs or Objectives that says something like; “Launch app X” 3️⃣ OKRs are a model of you Strategy OKRs don't exist in a vacuum. They should represent the strategic levers you are choosing to pull in order to forward and measure progress towards your strategy. Therefore you must have a strategy first before you set your OKRs. 4️⃣ Customer AND Business impact A common mistake with OKRs are they can become too internally (business) focused. I see companies describe OKRs which state things like "Grow DAU by x% YoY" and "Reach $20M in ARR" etc. And whilst all appropriate goals to strive towards we can easily become too internally focused on forwarding our own agenda and neglect the customer. Therefore the OKRs should balance our goals as a business as well as outcomes for the customer. If we do want to reach a certain ARR then we should be asking ourselves - what customer outcomes might help us get there? These must also become part of our OKRs. 5️⃣ OKRs ≠ KPIs You need both. OKRs = the things we want to change. KPIs = measures of health KPIs are key indicators of performance, they represent the measures that would indicate a performing and healthy product or business. For example, we may want to monitor 'churn', 'conversion' our CAC and costs base, revenue, etc. However we may only want to reduce 'churn' for example. This would then become your OKR. Whilst the other metrics are still important and therefore remain as your KPIs. ===== More on OKRs: 📺 Best Practices on Implementing OKRs ([https://lnkd.in/gW6Nms_V](https://lnkd.in/gW6Nms_V)) 🗒️ Latest newsletter issue: OKRs vs KPIs ([https://lnkd.in/gbmTh_hf](https://lnkd.in/gbmTh_hf)) ![[Pasted image 20230824100804.png]]