OKR: A remedy or solution in the “new normal”?

Historical development of professional business and hence “performance management” is coincided with turning points which played as a primary role in the change management of companies/corporations. Whereas entrance of Management by Objectives (MBO’s) is a complimentary output of Cold-War period and impact of social-welfare state on the political economy, entrance of S.M.A.R.T approach was hands-in hands with so-called Washington Consensus of 1978 with rise of monetarism (change in currency regime) after the perceptional fallacy of Keynesian point of view in the Western bloc. Dominant philosophy of performance management, so called “Balanced Score Card (BSCs) of 1990’s, on the other hand was welcoming the end of Cold-War or end of history as Fukuyama argued. In that context, new approach and disciplines in the field of performance management was not only a vital starting toolkit for change management, but also a byproduct of “new normal” of that particular era coincided with macro-economic and structural environment. It is at that point that the popularity of Objective and Key Results (OKRs) shined like a star in the performance galaxy as a change management window by 2000s, millennium started with 9/11 and pursued with frequent financial crisis and social unrest named under the famous post-modern wording of VUCA. The so called “new normal”, thereby, necessitated a new change management for the organizations and companies in line with the principle of social-Darwinism for better adoption to new and destructive business competition as a natural derivative of new world disorder.

To what extent, OKR could be a guideline for sustainable change management is an important matter of question for today’s pandemic orderliness. It is not simply driving impact of pandemic but simultaneously a consequence or a reaction to changing currency regime of the world economy. In other words, success of OKR to drastic and devastating transformation will be its manifest destiny to dominate 2020s as mostly reliable methodology for post-modern epoch.

To answer the question of whether or not OKR could be remedy or solution in the “new normal”, shall we develop three main arguments based on OKRs major principles.

In the first place, OKR’s emphasis on transparency and participation in goal setting and decision making process seem an important asset to act as an agile actor for the companies’ survival and sustainability. That’s to say, participation of new generation into the workforce and their demanding for openness, discussion and questioning could be meet by OKRs bottom-up and bi-directional emphasis in performance management process. Given the fact that, performance management and target setting process have been perceived as non-value added operations in the eyes of white collars, focus on alignment at horizontal and vertical levels could be a solution to overcome that problem. That is also about to improve information flow and lessen the hierarchy in the organizational framework with a lean approach to design.

Secondly, OKRs’ understanding of continuous performance management is worth to mention. OKR methodology relies on communication, feedback and recognition, with so-called CFR mentality. Hence, its main theme has a linkage with the development of mutual trust and respect in the organization. Achievement of continuous performance management by individuals can only be available with improvement with leadership style, company culture and decision making process. Unlike other/previous performance disciplines, OKR’s focus on competency, soft-skills and development may decrease the level of alienation from performance management. It is without doubt that, emphasis on CFR (value creation) make employee’s empowerment, delegation of authority and ownership of target form more possible for any employee.

For another thing, OKR’s green revolution via less is more approach could make sense in today’s fast changing business environment. In other words, focusing on 3-5 objectives with well-correlated key results of 2-4 could decrease the opportunity cost of effort and contribute to efficient use of scarce resources. Attempt to make anything written on the balanced score card could leave us with average business results. However, highly concentrated focus on “what matter” make us write success story with a higher impact on all stakeholders.

Consequently, given the fact that there is no “one size fits all” for OKRs, successful integration of that breakthrough with the organizational culture enable satisfactory implementation of that methodology via providing the internalization of OKR discipline in the company. However, to evaluate the impact of OKR as a remedy for historically “mechanic problems” in the performance system, shall we give time to organization for participatory practice to make it an organic item of the institutions in a sustainable path? If we give, change every person for a right to say in designing and implementing for a tailor-made OKRs for the company, the results could be more than satisfactory. More is not always better, in fact, better is sometimes more?