Dear Andy: The Value of a North Star OKR

dear andy, a new OKR advice column from the team at WhatMatters.com

Dear Andy,

As a consultant, I was in charge of steering a major regional cooperation project with a wide diversity of cultures, languages, and administrative practices. I’m tempted to use OKRs as a substitute for traditional KPIs, which only present the result to be achieved and measure any deviations, unlike the more flexible steering of OKRs, which indicate the path and provide feedback that enables successive adjustments to be made.

My questions are: Given the heterogeneity of our partners and the diversity of objectives and sub-objectives, should we leave it up to each of them to set and manage their own OKRs, or is it possible, with extensive consultation and coordination, to put together a set of common and specific OKRs?

Sincerely

Charles-Edward

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Hi Charles-Edward!

With a project this size, alignment is everything. Though teams will have different aims and different ways of working, it will behoove (great word, right?) your project if everyone rows in the same direction. Enter OKRs!

To implement OKRs in such a diverse organization, start small and start at the top. There must be at least one reason all these different teams are included on this same project. That’s the start of your North Star. What does this project most need to accomplish this year? How would meeting those needs serve your organization’s top priorities? These should yield a clear direction that everyone, regardless of geography or function, can rally around. Now put it into the format and grammar of an OKR.

Step one: Define the common thread

For example, we’ve advised a global nonprofit, Ariadne Labs, which designs, tests, and scales solutions that address critical gaps in the healthcare system. One of the challenges Ariadne faces is that it is a hybrid of three types of institutions: one part academic, one part start-up, and one part nonprofit.

Though each branch has its own priorities and processes, OKRs help the branches unite around the common thread: impact. Every paper published, every dollar raised, every patient seen ultimately adds up to “lives touched.” Some years they focus on scale, other years the top priority is innovation. It has been a game changer for Ariadne, and I predict doing the same will benefit your project similarly.

Step two: Group your stakeholders

Once you’ve got your North Star in place, determine the smartest way to group people around strategic outcomes. It might be by region. It might be by function. In tech, sometimes companies create impermanent groups called “squads.” Define your groups for the year, then let each set their own OKRs, checking for alignment with the North Star goals.

In some cases, it may make sense to create another layer of OKRs. But, when starting out, try to limit yourself to as few OKRs as you can. That will keep your team focused and the process more manageable. The biggest value comes from regular dialogue about how progress is happening, and what to do if it’s at risk.

And you’re absolutely right, creating aligned OKRs takes considerable consultation and coordination. But you’re making a challenging job even more challenging until you find a common, top-level goal.

Step three: Identify your OKR Champions, Conductors, and Shepherds

Having the right OKR team in place will help. This video in our OKRs Explained training course. explains the three key players — the Champion, the Conductor, and the Shepherd — that make an OKR program work and who in the organization is best suited to them.

Thanks for writing in, Charles-Edward, and best of luck to you and your team(s) on your OKR journey.

Sincerely,
Billy from the What Matters Team

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