As a Global OKRs Coach, I’m often asked if OKRs are a fad, the latest management obsession. The short answer is no. If you want a longer answer, read on…
OKRs a Fad?
Search the word ‘fad’, and you’ll find this less than flattering definition. A fad is “An intense and widely shared enthusiasm for something, especially one that is short-lived and without basis in the object’s qualities; a craze.” We can all agree there is certainly intense and widely shared enthusiasm for OKRs at the moment. But it is the final component in the above definition that saves OKRs from the scrap heap of management fads. Specifically, “Without basis in the object’s qualities.” The subtext here is that whatever the fad is, there is no underlying value in the notion, concept, or thing represented. This is definitely not the case with OKRs.
Peter Who?
Let’s take a short stroll back to the time of hula hoops and drive in theaters–the glorious 1950s. In 1954, the seminal management guru, Peter Drucker published a book that is nearly every bit as relevant today as it was seventy-odd years ago. The book is titled “The Practice of Management” and in it Drucker outlined what was then a revolutionary idea: Management by Objectives, commonly known as MBOs.
Here’s how Peter describes the system: “Each manager, from the “big boss” down to the production foreman or the chief clerk, needs clearly spelled-out objectives. These objectives should lay out what performance the man’s own managerial unit is supposed to produce. They should lay out what contribution he and his unit are expected to make to help other units obtain their objectives. Finally, they should spell out what contribution the manager can expect from other units toward the attainment of his own objectives…These objectives should always derive from the goals of the business.”
What Was Good in the 50’s is Still Relevant Today
Hopefully we can forgive Drucker for his exclusive use of male pronouns–it was the 50s after all! Drucker’s expectation was that organizations would use MBOs to foster cross-functional cooperation, spur individual innovation, and ensure all employees had a line of sight to the company’s overall strategy. Does any of that sound familiar? The OKRs framework we all have a “widely shared enthusiasm” for is a direct evolution of ideas put forth by Drucker more than half a century ago!
If I thought you had the stomach for it I’d bring up the French system “Tableau de bord,” or regale you with tales of Abraham Maslow. But I don’t think that is necessary to make my point… The foundational principles present in OKRs have been with us for well over a hundred years!