The Human Psychology Behind OKRs

OKRs, (Objectives and Key Results), is a goal-setting framework that has gained popularity in both business and personal settings. At Motion Consulting Group, we frequently facilitate OKR creation sessions with key leaders as a part of an engagement. Consistently, they approach the exercise from one of three perspectives:

1. Necessary but not that important - We are going through this exercise because it’s what companies do today. In the end it really won’t make a difference.
2. Command and Control - OKRs are my weapon to keep everyone doing what I want, when I want - or else.
3. Lead with Inspiration - Then there are the leaders who comprehend the power of clearly stated goals that bring clarity to the objective and positively influence the behaviors they wish to inspire. In other words, they are change leaders who understand the psychology behind OKRs.

The psychology behind OKRs can be understood through various principles and psychological concepts:

1. Clarity of Purpose: OKRs provide a clear sense of purpose and direction. Having specific objectives helps individuals and teams understand what they are working towards, which can increase motivation and commitment.
2. Goal Setting Theory: OKRs align with the principles of goal setting theory, which suggests that setting specific and challenging goals can lead to higher performance. Objectives in OKRs are ambitious and measurable, pushing individuals to strive for excellence.
3. Intrinsic Motivation: OKRs allow people to connect their work with meaningful objectives, fostering intrinsic motivation. When employees understand the purpose behind their goals and see how they contribute to the larger picture, they are more likely to stay engaged and enthusiastic about their work.
4. Focus and Alignment: OKRs encourage focus by limiting the number of objectives and key results. This helps prevent goal overload and allows individuals and teams to align their efforts towards achieving specific outcomes.
5. Continuous Improvement: OKRs promote a growth mindset by encouraging regular check-ins and learning from successes and failures. This iterative process of setting, reviewing, and adjusting goals fosters a culture of continuous improvement.
6. Autonomy and Empowerment: OKRs can be set at different levels within an organization, allowing employees to have a sense of autonomy and ownership over their work. When people have the freedom to set their goals, they often feel more empowered and responsible for their outcomes.
7. Feedback and Recognition: Regular OKR reviews facilitate ongoing feedback and recognition. Recognizing progress and achievements boosts morale and reinforces positive behaviors.
8. Cognitive Dissonance: When OKRs are challenging, they may create a state of cognitive dissonance, where individuals experience discomfort due to the gap between their current performance and the desired results. This dissonance can motivate individuals to make changes and improve their performance.
9. Social Motivation: OKRs can encourage social motivation as teams work together to achieve common objectives. Collaboration and cooperation increase as team members strive for collective success.
10. Visualization and Commitment: Writing down and sharing OKRs with others enhances commitment and accountability. When individuals publicly commit to achieving specific objectives, they are more likely to work towards them.

Final Thoughts

“The true value of a leader is not measured by the work they do. A leader’s true value is measured by the work they inspire others to do.” - Simon Sinek

The psychology behind OKRs is deeply rooted in motivation, goal setting, autonomy, and learning. By aligning individual and team efforts with clear and meaningful objectives, OKRs can lead to higher performance, improved focus, and a culture of continuous improvement. Be a valuable leader. Don’t control with OKR’s. Inspire with them.

About the Author:

Gina Davis, Executive Director - Motion Consulting Group is a dynamic and visionary leader who has been at the forefront of transformation initiatives across industries. With a passion for driving change and empowering individuals and organizations to reach their full potential, Gina has established herself as a respected thought leader in the field of digital transformation and change leadership.

Gina's passion for transformation stems from her belief in the potential of individuals and organizations to evolve and thrive. Through her thought leadership, she inspires and empowers others to embrace change, overcome challenges, and unlock their full potential. Gina's unique blend of strategic thinking, change management expertise, and focus on developing effective leaders has enabled her to make a significant impact on the transformation journeys of numerous organizations.

With Gina Davis as a transformation thought leader, organizations gain a trusted advisor, an inspirational speaker, and a catalyst for positive change. She and her team at MCG daily deliver the ability to navigate complexity, drive cultural shifts, and harness the power of technology setting them apart as a leading partner in the field of digital transformation.