Initiatives in OKR model

Intro

OKRs Initiatives

Second article on the OKR model . This time, we will explore the initiatives. They are not explicitly part of the model:

Let’s start with a reminder on the model itself:

• Objective : where are we going, more precisely, where we want to be in a certain time horizon?
• Key Result : how do we plan to get there and what does achieving our goal mean?

To make this model executable, we are missing the what. Initiatives are the action plan associated with this goal.

Example of an outcome-based key result

Increase the conversion rate from the free version to the Pro version from 10 to 15%

Example of a project-based key Result

Successfully launch V2 in June

So, rather outcome or project based?

This distinction has a virtue: it reminds us that not all the results are project-based! The negative side is that it opens the door to project-based key results. Concretely, when you start an OKR program and already have a roadmap, the risk is just to reformulate the roadmap into project-based key results. That’s it, we switched to OKRs but nothing changes! It almost always works!

In this regard, good practices recommend a good mix between two types of results. Personally, I prefer to focus more on the outcome-based than the project-based key results. More, the notion of project-based key surprised me at first. And this is where the initiatives come in.

Initiatives

An initiative is an action that should allow us to move towards our goal. A project-based key result can therefore be seen as an initiative.

The difference is the commitment behind one or the other.

For key result, the commitment is strong and visible. While the initiative is not. An initiative is only a means of achieving an objective, so as long as it is achieved …

At this stage, it is up to you to decide whether to use the project-based key results or initiatives. It depends on the level of engagement desired.

Finally, a key result may itself have its own action plan.

Enriched OKR Model

Benefits of the initiatives

In a way, the initiatives are part of the OKR model. But beyond that, they, above all, make the link between strategy / tactics and operations. This is what ensures the proper execution and monitoring of it. These are both key points.

The objectives thus become a factor of organization and prioritization of the daily work of the teams.

Objective and agility

OKRs are making a strong comeback to the corporate scene. In large part due to the agile transition that reaches its glass ceiling. On the one hand, we need strategic thinking. And this, even in a context of change and uncertainty, no matter what. If only to plan a minimum and be able to invest in the core business in the medium term. Or to explore future business models.

The OKRs approach is particularly suited to the time horizons it offers: typically one-year cycles for strategic objectives. And quaterly for the tactical objectives (we more and more find a duration of four months). It is not imposed by the method, but the framework allows such a cadence.

This allows the strategy to be viewed not as a five-year plan set in stone but as a sliding window of reflection and projection. This makes it possible to review and adjust of course the tactics, but also the strategy.

But the real agility in this method lies precisely in the initiatives.

Imagine that the key result is, as in our example, the production of the version 2 of our product, therefore project-based. The commitment is strong because it is an expected and visible result. What is more, this result is binary: passed or failed on the target date. If there is any change, we are blocked by this commitment.

Now consider a result such as an increase in Net Promoter Score , not that I am a fan of this indicator. In terms of initiative, this opens the doors to new functionalities (and therefore the v2 of the product), work on the User experience , improved support, improved onboarding, …

The list of possible initiatives is now growing. We will be able to start on an initiative and test it. That is to say, check its impact on the result. Possibly change the initiative if this has no impact. This brings us closer to the techniques of Lean startup.

You can be agile on initiatives and stay on target. The OKRs are stabilized, unlike the roadmap which is becoming more scalable.

Conclusion

In this article, we saw that :

• The place of the initiatives in the OKR model,
• They play an essential role in the proper execution and monitoring of strategy and tactics,
• They make it possible to stabilize the OKRs while remaining very agile at different levels (strategic / tactical).