Aligning AI and Customer Focus: Crafting OKRs That Drive Real Impact

The measure of success is not output. It’s outcome—it's a change in human behavior that drives business results.

So says Jeff Gothelf, who, alongside Josh Seiden, wrote Who Does What By How Much. Jeff and Josh joined me on my recent livestream to share how their journey from design to leadership led them to a striking realization: Traditional organizational goals often clash with customer-centric approaches.?

According to the co-authors, their conversations with teams and leaders offered a consistent refrain:?

We want to work this way, people said.?

We want to lead our teams this way.?

We want to build organizations this way.?

…But our goals are getting in the way.?

Their solution? Better Objectives and Key Results (OKRs).

Here, Jeff and Josh share insights from their recent book and offer us the opportunity to reflect on just what it really means to be customer-centric.?

(Note: The following livestream excerpts of Jeff’s and Josh’s comments were lightly edited for clarity and brevity.)

The Measure of Success?

First, Jeff shared how OKRs would look in an ideal world.?

Jeff Gothelf: The way we define OKRs is simple: Objectives are the qualitative customer benefit that we'd like to see in the world when we succeed. It’s our goal.

The key results should measure the behavior change that we would like to see in our customers that tells us that we’ve met our objective.?

This really changes how an organization works. What will people be doing differently if we succeed?

If we do it right, it answers the question the book’s title poses.?

Implementation vs. Value

Next, Josh and Jeff discussed some of the challenges they’ve seen with GenerativeAI.?

Josh Seiden: One of the things that we see on a regular basis is some really powerful technology comes along and offers us the promise of so many benefits. But too often what happens is that instead of pursuing those benefits, the focus becomes, “We could implement this technology.” Implementation gets us part of the way there, but that's not actually what we want. We want to get value from it.

AI follows that pattern. It's exciting, and it’s easy to see the potential in it. And if we're working in any given area, there's potential to apply this technology to our work. But applying technology is hard. And so a lot of times we get lost in just building the thing, and we lose track of the value we're trying to deliver by building.?

Jeff Gothelf: Let me give you an example. I use a fantastic email client called Spark. I've been using it forever. There's a ton of features, and I just love it. Unfortunately, Spark continues to prioritize the implementation of AI into the email client, and it's useless. It adds nothing to the product. It doesn't make my email writing any easier. It doesn't respond to emails for me, nor does it speak in my voice. I never use it.?

What I would prefer they focused on was product stability, or enhancing the features that I do use—and I've given them this feedback. I feel like they feel a pressure to include these features in their email client, because other email clients have it as well, rather than truly rethinking how to apply this new tool in a way that makes my email experience—which to this day is something I still spend hours doing—better, more efficient, more productive, more successful. It feels like a “me, too” product—they have it, so we have to have it as well.?

Josh Seiden: The promise of OKRs is that we can align around a value goal. When we've implemented AI, who will be getting value from it? What will they be doing differently that they're trying to do,? and that we can see them doing? How much of it can we expect? Who does what, by how much??

By just saying, “We’re going to implement AI,” we're falling short.

Best Practices

Josh and Jeff offered some essential tips when it comes to using AI and developing meaningful OKRs.

Josh Seiden: I would not start by asking how we can apply Generative AI. It's sort of like saying, “Well, I'm a carpenter. And I really want to use my hammer a lot today.” That’s not going to make great cabinets. If the goal is to make great cabinets, you may incidentally use a hammer, but that’s adjacent to the question.?

Innovation is when we have new capabilities to address unmet needs. We know we've got this amazing new capability in Generative AI, so the first question should be, “What are the unmet needs that I can address?”?

Jeff Gothelf: In our book, we recommend that you start with an aligned strategy. You can certainly do OKRs without strategy (and a lot of organizations do that because it's missing from their conversation!). But having an aligned strategy ensures that as you're setting goals, everybody in the organization is setting goals in the same direction.?

Then, it’s all about defining the problem space that you're trying to solve. Foundationally, what's the most important thing we need to deal with at the moment? And if we solve that problem, what does the world look like? How will we know that we've achieved that qualitative state? What are the other behavior changes that we want to see in the humans that consume our products?

You can throw this all out and just write an OKR. But is it the right OKR? Is it strategically aligned? Is it meaningful to the company??

I think those are the questions that a lot of organizations struggle with. If you start with strategy and then identify the problem space, you end up with a set of related OKRs that teams can then work towards.

Who Is Your Customer, And What Will They Do Differently?

In closing, Josh and Jeff shared some final thoughts.?

Jeff Gothelf: As you’re considering the implementation and integration of Generative AI into your products, ask yourself,? “What will people be doing differently once we integrate this?” And if you don’t have an answer to that question, answer that question first. This gives you the success criteria from the start, beyond just “we integrated AI.”?

Josh Seiden: Everybody has a customer. You might feel like you're not sure who your customer is: Your customer might be the end consumer. It might be the buyer. It might be a person in the next cubicle who could benefit from the application of AI products that you're building for them.?

Everybody has a customer. So who's yours?

You can learn more about Josh and Jeff’s book at https://okr-book.com/.?

If this information was helpful, there’s plenty more!?

Katia Walsh and I are hosting an “Ask Us Anything” session, where we will be talking about AI strategy on Wednesday, July 24 at 10 a.m. PT / 1 p.m. ET. link below: https://us02web.zoom.us/meeting/register/tZwsceuurjIuHd2tJrPZKNC42xmVDQlaf-Xg#/registration and be sure to also sign up here for updates and early access to the book,

Catch my most recent webinars:

“Unlocking The Power of Generative AI.” I explain how to set up a generative AI “playground,” three ways to elevate your leadership with step-by-step instructions, and the broad outlines of creating a strategy. Get the recording and slides here.

“Developing a Winning Generative AI Strategy for Competitive Advantage.” I walk through the steps needed to create a cohesive AI strategy that will last. Get the recording and slides here.?

Your Turn

How are you thinking about your organization’s objectives and key results??