OKR: Agile Management Method

For many companies, the OKR method is considered a recipe for success for their strategy implementation and team leadership. On the one hand, OKR relies on the participation and active integration of all employees in the planning and implementation of strategic goals. On the other hand, OKR brings with it a clear focus on the most valuable and therefore most important issues. This results in a targeted and open way of working for the entire company. Learn more in the following interview with Oliver Vollrath - Managing Director of VEND consulting GmbH.

Oliver, before we talk about OKR (Objectives and Key Results), please explain briefly what "agile working" means to you.

Oliver Vollrath: For me, agility is the ability to adapt quickly to changes in a dynamic environment. Among other things, through agile methods and frameworks such as Scrum, Kanban and many more. But that alone does not make me agile. Rather, it depends on how one fills the frameworks just mentioned with life. Ultimately, I see values behind this: What things shape our behavior and actions? For example, the topic of focus. I often hear executives proudly say, "We've now launched 20 initiatives." I'm always skeptical of statements like that, because that's where agility starts. It is better to set a clear focus on the things that really move you forward, instead of doing 20 things at the same time and accordingly achieving an unsatisfactory result, even though you could do better.

Cue "focus" is the perfect segue to the "OKR method". Why do you call it "Google's magic bullet"?

Oliver Vollrath: OKR is an agile framework that describes how I plan, implement and reflect on goals. In the process, goals have different functions. The most important function is: They give us orientation. This aspect is especially important in dynamic and fast-moving times to gain clarity about what I want to achieve. And goals help us to weigh up different alternatives and ultimately make a concrete decision. Last but not least: Goals motivate! If I formulate them correctly and, above all, realistically, they drive us forward. And it is precisely this strategically sensible approach that the OKR method involves.

What is the difference to classic goal management systems?

Oliver Vollrath: OKR stands for Objectives and Key Results and this is the way we formulate goals. Objectives are qualitative goals that we formulate in such a way that they motivate us. One example is: We want to be the most sustainable consultancy in Franconia. That's a very ambitious goal, but what happens? I create a clear state that I want to achieve. Qualitative, but not measurable. That's why you need Key Results in this process. They show whether I have achieved my objectives. Here I would like to emphasize again that the focus setting already discussed is important when formulating Objectives. That is, on enterprise level down to the team level maximally two to four Objectives are formulated.
Another substantial difference is the period. In classic target systems, targets are usually formulated for the entire fiscal year. OKR takes into account "surprises" that may occur during the year. OKRs are planned for a period of three months, implemented and finally their achievement is reflected. Thus one gets also on a strategic level the necessary flexibility and does not stick stubbornly to defined plans and goals.

Let's stay with the example "most sustainable consulting in Middle Franconia". What would be a tangible result here?

Oliver Vollrath: Measurable would be whether the company is already CO2 neutral or has received various awards on the subject of sustainability.

If I say "I want to become CO2 neutral", then I have to follow this goal with tasks that must be fulfilled in a certain period of time. Right ?

Oliver Vollrath: Exactly. That's what's special about OKR. I first think about what I want to achieve. In practice, however, I often see companies start at the tasks and say "I have to do this and that" and forget what they want to achieve.

Do you recommend every company to use the OKR method?

Oliver Vollrath: This is not easy to answer, because OKR is not just a method, but also leads to change structures and corporate cultures. Thus, the topic of "mindset" plays a crucial role in OKR and other agile frameworks. At any time, everyone can see what is being done, what has already been achieved, where there are challenges. There is no longer top-down communication; instead, managers, in particular, enter into a dialog with their employees. From experience, not every manager feels comfortable with this openness.

Are there also traps in OKR that it is better not to fall into?

Oliver Vollrath: My first recommendation is to consciously decide in favor of OKR and not just jump on a hype because, for example, Google lives OKR. Companies should seriously reflect "Is OKR a method that will take us forward?". My second recommendation is to bring someone on board who already has experience with OKR. This can be, for example, an external coach who has accompanied companies several times and knows how to implement OKR and how OKR can change individual teams or the entire organization. My third recommendation is that a person must be defined internally who feels responsible for the topic. This includes "mundane" tasks, such as keeping prescribed meetings, maintaining project status, communicating challenges, etc.


The interview was conducted by Dr. Tanja Jovanovic, Head of Technology and Innovation Management at Bayern Innovativ GmbH.

Listen to the full interview as a podcast: