Objectives and Key Results:
A (not so) Secret Weapon for Managing Very Smart People
Introduction
This is part two of a three part series.
Previously, I shared some of my thoughts on managing smart people and how focusing on autonomy, mastery, and purpose can lead to a thriving work environment. Now, I want to dive into a secret weapon that can help you take your management skills to the next level. Particularly when working with some of the brightest minds in the world: Objectives and Key Results (OKRs).
First some callouts.
This post was deeply inspired by "Measure What Matters" by John Doerr, and my own personal experiences with OKRs at Intel and some of the startups I built over my career. In this post I will explore the power of OKRs and how they can help you avoid the dreaded problems of micromanagement while at the same time keeping your teams focused, motivated, and aligned with the organization's overall goals. I’ll also be highlighting why OKRs are not a panacea. As John covers in his book, the progenitor of the system many of us are familiar with today was former Intel CEO Andy Grove.
John also credits Coach (Bill Campbell) for his tireless focus on our (those charged with the supervision of others) people. As Coach said: “People are the most important thing that we do. We have to try to make them better.” We do well when we take that advice to heart, for ourselves, for the people under our supervision, for our teams and our organizations.
One thing that is always in our control is to try to be better at what we do each and every day. As a good manager of people, you are a coach. The best coaches tend to be player-coaches. It doesn’t matter if you are or aren’t a player-coach, when you are supervising others, you are a coach, and there is simply no getting out of that.
The Magic of OKRs: Amplifying the Power of Smart People
OKRs are a powerful goal-setting framework that enables organizations to set ambitious objectives and track progress through measurable key results. As mentioned earlier, it was initially developed by Intel's Andy Grove and popularized by John Doerr and Bill Campbell though the interactions with hundreds of founders and companies over the years. Also covered in John’s book is the fact that OKRs have become the go-to management tool for tech giants like Google, as well as other industry leaders such as the Gates Foundation and Bono.
When working with very smart people, OKRs can be particularly effective, as they empower individuals to take ownership of their goals and use their unique strengths to achieve them. By setting clear objectives and aligning them with the organization's overarching mission, OKRs ensure that everyone is working towards a common purpose, fostering a sense of unity and collaboration.
As a coach, you will see your team charge ahead as you build a strategy to help people leverage their strengths and enable to team to help buttress them against their weaknesses. You need to take the time to figure out how to combine your team’s strengths to ensure no one person’s weaknesses (we all have them) will impede progress towards the objectives you set.
Using OKRs with Smart People Drives Teams As Seen In:
Clarity and Focus: OKRs enable you and your team to set clear objectives that are directly aligned with the organization's overall goals. By establishing well-defined targets, your smart people can focus their efforts on the most impactful tasks, ensuring that everyone is working in harmony toward shared outcomes. This clarity fosters a strong sense of direction, which is vital for keeping smart people motivated and engaged.
Autonomy and Accountability: One of the core strengths of OKRs is that they empower smart people to take ownership of their work. By setting specific key results, your team members have the freedom to determine the best path to achieve their objectives. This sense of autonomy is highly motivating for smart people, as it allows them to apply their creativity and problem-solving skills. Moreover, OKRs promote a culture of accountability, as each individual's performance is measured against clearly defined benchmarks.
Agility and Adaptability: OKRs are designed to be flexible and responsive to the rapidly changing business landscape. By setting short-term goals (typically quarterly - but sometimes as often as weekly), your team can quickly adapt to new information, market conditions, or organizational priorities. This nimbleness is particularly valuable for smart people, who thrive in dynamic environments that require constant learning and evolution.
Collaboration and Cross-Functional Alignment: OKRs encourage teams to work together toward shared objectives, fostering a culture of collaboration and collective problem-solving. By breaking down silos and promoting cross-functional alignment, OKRs help to ensure that the diverse perspectives and skill sets of your smart people are fully leveraged to drive organizational success.
Transparency and Visibility: With OKRs, goals and progress are made transparent across the organization, allowing everyone to see how their work contributes to the bigger picture. This visibility enables smart people to identify opportunities for collaboration, share insights, and learn from one another's successes and challenges. Moreover, transparency helps to create a sense of purpose, as individuals can see firsthand how their efforts contribute to the organization's overall mission.
Continuous Improvement: OKRs promote a culture of ongoing learning and improvement, as teams regularly review their progress, identify areas for growth, and adjust their strategies accordingly. This emphasis on continuous refinement is particularly appealing to smart people, who are intrinsically motivated to develop their skills and expertise.
Measurable Success: OKRs provide a framework for quantifying success, with clearly defined key results that can be tracked and measured over time. This data-driven approach helps to ensure that your team's efforts are yielding tangible results, while also providing valuable insights for future goal-setting and strategic planning.
Scalability: OKRs are a scalable management tool that can be effectively applied at any level of the organization, from individual contributors to executive leadership. This versatility enables you to consistently manage smart people, regardless of their position or function, fostering a cohesive and high-performing organizational culture.
By embracing the magic of OKRs, you can create an environment that allows your smart people to really thrive, unlocking their full potential and driving innovation, growth, and the long-term success for your organization. However …
OKRs Are Not a Panacea
While the OKR framework has proven to be a powerful tool for managing very smart people and driving organizational success, it's essential to remember that OKRs are not a cure-all solution for every challenge or issue you may face as a manager. It's crucial to approach OKRs with the right mindset and recognize their limitations, as well as their strengths.
First and foremost, it's important to understand that OKRs are most effective when used as part of a broader management strategy. They are not a replacement for good leadership, clear communication, and genuine support of your team members. As a manager, you should still actively engage with your employees, provide feedback, and encourage collaboration and innovation, even as you utilize OKRs to align objectives and track progress.
Additionally, be cautious about overemphasizing metrics and quantifiable goals at the expense of softer, less tangible aspects of performance and workplace culture. While OKRs can be a valuable way to measure progress and outcomes, they should not be the sole focus of your management approach. Encouraging creativity, empathy, and personal growth among your team members is just as important as achieving specific performance targets.
Remember that not all aspects of an individual's work or contribution can be easily quantified or measured. Overreliance on metrics can lead to a narrow focus on short-term outcomes, at the expense of longer-term vision, strategy, and growth. Strive to strike a balance between using OKRs to track progress and maintaining a holistic view of your team's overall performance and well-being.
Finally, it's crucial to ensure that the OKR process does not become a source of stress or burden for your team. In some cases, the pressure to achieve ambitious objectives can lead to burnout, disengagement, or a myopic focus on results at the expense of creativity and collaboration. As a manager, be mindful of the potential pitfalls of OKRs and work to create a supportive, balanced environment that nurtures the well-being of your smart people.
Conclusion
OKRs can be a game-changer when managing very smart people.
By providing clear objectives, measurable key results, and the autonomy to determine the best path forward, OKRs empower your team to take ownership of their work and contribute their unique talents and perspectives. This powerful framework fosters collaboration, innovation, and continuous improvement, all while keeping your team aligned with the organization's mission and goals. It also allows people to leverage their strengths by engaging in work that is both helpful to the team or organization AND something they are interested in (which is often an indicator of a personal strength).
Remember, as a manager of smart people, your role is not to dictate every detail of their work, but to guide, support, and unleash their potential. To coach. By embracing OKRs and the principles of autonomy, mastery, and purpose, you'll create an environment in which your team can excel and drive your organization to new heights.
If you haven't already, grab a copy of "Measure What Matters" by John Doerr and add it to your reading list alongside the previously recommended books:
Soar with Your Strengths: A Simple Yet Revolutionary Philosophy of Business and Management
Drive: The Surprising Truth About What Motivates Us
Insanely Simple: The Obsession that Drives Apple's Success
By incorporating the valuable insights from these books AND diligently applying the OKR framework, you'll be well on your way to coaching and inspiring the very smartest people in the world. Two thirds of the way there anyway.
A Sneak Peek: Smart People and CFRs
In the next post in this series, I'll dive into another powerful management tool which complements OKRs and will help you more effectively manage very smart people: Conversation, Feedback, and Recognition (CFRs). We'll explore how smart people respond to this approach of continuous performance review, as opposed to the traditional (and often dreaded) annual review process.
CFRs emphasize the importance of ongoing dialogue, actionable feedback, and timely recognition of accomplishments. This approach aligns well with the needs of smart people, who often crave opportunities for growth, development, and validation of their efforts. By incorporating CFRs into your management strategy, you can create a dynamic environment that fosters open communication and ongoing improvement, tailored to the unique needs and aspirations of your top talent.
My upcoming blog post will delve deeper into the following aspects of CFRs:
Conversation: Engaging in regular, meaningful dialogue with your team members to better understand their perspectives, concerns, and aspirations.
Feedback: Providing constructive, actionable feedback that empowers smart people to learn from their experiences and continuously refine their skills and approaches.
Recognition: Timely acknowledgement and celebration of accomplishments, reinforcing the value of their contributions and motivating them to continue striving for excellence.
By focusing on CFRs, you can transform the way you review and manage performance, complementing the annual review process (or shifting away from that process) which often fails to resonate with smart people. This continuous approach to performance management aligns with the fast-paced, evolving nature of today's business landscape, making it particularly well-suited for managing top talent.
Stay tuned for an in-depth exploration of CFRs and discover how incorporating this approach into your overall management strategy can help you better support, engage, and inspire the very smart people you are charged with supervising.