If you follow me on LinkedIn, you know that I occasionally conduct Q&A sessions. The next one may be your chance to ask your questions.
Question
This time, I respond to Jacopo, who asks for clarification on crucial issues: alignment and accountability. He questions whether teams should be organized by operational role or by the system to which they contribute.
Background
If you have not yet read my book, MAKE PROGRESS with OKRs, I will help you understand how to make business organization clear. I present two perspectives:
- Look at the company through systems: Don’t focus on the organizational chart, but on creating value in a web of interconnected systems.
- Group these systems into two major groups: Those concerned with the success of the company and those concerned with the success of customers.
These concepts are fundamental to understanding Jacopo’s question and my answer.
Answer
The question is about how to divide the company, how to organize ourselves internally to use OKRs. The answer? It depends on the strategy and size of the organization. In a small company, people may work in multiple systems; in larger organizations, they may be dedicated to a specific system.
The real issue is to see the business through the lens of systems. This allows us to focus on priorities and assign accountability to the right people, equipping them with the resources they need to achieve greater results.
Beware, however: OKRs do not measure activities, but impact. KPIs measure activities performed, such as posts made on LinkedIn. OKRs focus on the effect these activities have. Accountability is about entrusting some freedom in tactical choices to achieve the desired impact.
Looking at the business through the lens of systems allows you to select the right tactics to realize the greatest impact. Here is the key to effective business strategy.
