I recently had the pleasure of being hosted on the SpaghettiCode podcast to discuss OKRs usage in Product Engineering teams.
My hosts, Marco and Alessandro, are both engineering professionals with many years of experience, so our chat was a nice exchange where we talked for one hour, learning from each other. I shared various examples of my experience in implementing OKRs in small startups, scale-ups, and fast-growing companies.
In the following paragraphs, I’ll share some highlights from our interview.
The Importance of Simplicity
One of the most relevant aspects of OKRs I highlighted during the conversation is their simplicity. When I first looked into OKRs, what struck me was how straightforward the framework appeared.
It’s very simple. You can learn OKRs in four hours, all the complexity comes from implementing them. The simplicity is crucial in a startup environment. Unlike more complex methodologies that require learning new roles and ceremonies — think about Scrum — OKRs are accessible and can be grasped quickly by everyone in the company. However, the real challenge lies in applying them effectively across different teams and aligning them with the company’s strategic goals.
The Necessity of Focus
Another key element we discussed is Focus. In software startups, opportunities are abundant, but not every opportunity is worth pursuing. This is where OKRs come in handy. They force teams to prioritize and focus, which is vital for a sustainable growth.
Why is (setting OKRS) difficult? Because of its constraints, management oftentimes struggles to define the priorities, especially in an exciting environment like fast-growing startup. You have a lot of opportunities: you can grow in Asia, you can decide to enter the USA market, you can decide to become stronger in your home market. But if you don’t focus, you will find your company in really bad shape after some time because you have a lot of things happening, but nothing is really hitting the mark.
Implementing OKRs Across Different Company Sizes
I also shared my experience in implementing OKRs at Amitree, where, contrary to my previous belief, I proved that OKRs are valuable even in small organizations.
I used to think that in a small setting, in a startup with 10 or 20 people, OKRs were an overhead because it takes time to implement them. You have to define objectives and key results for each department, agree on each word used, implement them and make sure everyone is on board.But recently at Amitree, we decided to give them a try and I have to say that I changed my mind. I thought it was an overhead but now, I thought it was an overhead, but now they are really helping us a lot.
The Critical Role of Communication
Effective implementation of OKRs requires more than just setting goals; it requires creating an environment where open communication, transparency, and cross-department cooperation are the norm. This ensures that everyone in the company understands the ‘why’ behind their efforts, aligning them more closely with the company’s objectives.
In a good cooperation between engineering and product departments, your goal is also my goal. Product and engineering teams should support each other and set OKRs accordingly. While setting OKRs, the product and engineering team should also strive to understand the needs of other departments, such as customer service, markerting or operations. While setting OKRs, you should go to them and ask: “what are your focus areas for the next quarter? Do you need help from us?”.
Challenges and Flexibility
Alessandro and Marco asked if OKRs might be an impediment to a company’s agility, constraining the organization so much that it becomes hard to react to changes, eventually ending up in a situation where you stick to the plan regardless of whether the plan still makes sense.
From my experience, I would say that the risk is quite the contrary. Usually, when companies are not disciplined and focused, what you see is that OKRs get forgotten. The CEO and the management spend time setting them, they present them to the company, and then there are emerging needs, and everyone gets busy with everyday emergencies. Usually, this is just like the elephant in the room — team members just keep going and think, ‘Why aren’t we following the OKRs anymore?’ but no one wants to be the one raising the topic.”
Ultimately, what matters is accountability and clarity of communication.
It is not the end of the world if you change your quarterly goals, but according to the OKR methodology, you need to communicate the change really well.What is the change? Why did you decide to change?So the point is, yes, you can change OKRs. The need can come from a team or from the management; regardless, it is extremely important to be clear about that. And that’s one other aspect that, for me, is very important about OKRs: being accountable.
Conclusion
In conclusion, my discussion on the SpaghettiCode podcast highlighted the multifaceted benefits and challenges of implementing OKRs in product engineering teams. OKRs stand out for their simplicity, a crucial feature for startups that need a straightforward framework without the complexity of roles and ceremonies found in other methodologies like Scrum. However, the real test lies in their application—maintaining focus amid numerous opportunities is vital to prevent resources from being spread too thin. My experience at Amitree shifted my perception, proving that even small organizations can benefit significantly from OKRs by fostering alignment and prioritization. Effective implementation goes beyond merely setting objectives; it necessitates open communication and cross-departmental cooperation to ensure everyone understands the strategic goals. While there are concerns about OKRs potentially hindering agility, my experience suggests the opposite—lack of discipline often leads to OKRs being sidelined. The solution lies in maintaining accountability and clear communication, especially when adjustments are necessary. Ultimately, OKRs can drive a culture of accountability and clarity, empowering teams to adapt strategically while staying aligned with the company’s overarching objectives.
You can listen to the full interview on the SpaghettiCode Podcast.