Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it)

by Salim Ismail

In operation, an OKR program, as its name suggests, operates along two tracks. An Objective, for example, might be to “Increase sales by 25 percent,” along with “Form two strategic partnerships” and “Run AdWords campaign” as the desired Key Results. OKRs are about focus, simplicity, short(er) feedback cycles, and openness. As a result, insights and improvements are easier to see and implement. In contrast, complexity, secrecy and broad goals tend to impede progress, often leading to unintended consequences. As Larry Keeley, president and co-founder of the innovation strategy firm Doblin Group, says, “The truth is there are about 65 different metrics for innovation. No company needs all 65. You need half a dozen. You need to pick the right half dozen contextually for whatever it is you’re trying to achieve strategically.”