If culture eats strategy for breakfast, OKRs are just the cheap juice everyone gulps down first

Six hundred years ago, in the early 2010s, I was working a contract—a heritage company that needed their website to be responsive—where I met my first digital transformation consultant. A few weeks in I found out their day-rate was literally twice mine, so I asked them what they actually did. The answer was that after all the stakeholder fluff, their actual work was to find and look every function involved in the digital side of the company, and recommend how to align everyone’s incentives for a good outcome. I nodded sagely and had no idea what that actually meant; until then I had worked for large companies with long histories and already aligned missions, or tiny research teams that were making it up as they were going along. Well, I’ve worked for very different companies since then, and I have seen the pain of mismanaged alignments, usually in large companies that don’t take the time to define themselves.

There’s this moment burned in my brain from when I was in a 1-on-1 with an organizational advisor about some of the issues that were massively, massively frustrating trying to getting good design delivered in the company. I had pulled up an org chart that depicted two departments that were supposed to work together to make good things for customers but were instead just barely pushing a few new features out.
The advisor pointed to the topmost leaders of each department and told me how they advised both of these people and thus was cross-organizationally aware.
And soon confidently added: “They have the same OKRs, right, so that is how they stay aligned.”
I managed to not fall off my chair.

Gentle reader, if, for example, the Customer Service and the Product departments share an OKR of lowering customer complaints, but CS is culturally and financially incentivized for high throughput of calls, then CS may invest in a CRM to record the customer issues but they will not really work with the caller to find the root issue and then log it exhaustively. They will just report that 80% of all issues are password-related and put in some more voice-over messaging to send callers to the chat bot on the website, while the User Research department will have to spend a ton of money to find out what customers already desperately want to tell the company on the phones every day about what they are trying to do that doesn’t even need a password. The OKR is indeed empowering every department to chart their own course—separately.

Sales and Digital Delivery may share an OKR to increase new conversions, but if the management of Digital incentivizes rapid fail-fast online revolving experimentation, while Sales is leaning into the reliable, trustworthy, solid aspects of the established brand in their outreach, the user really will end up, at best, unnerved by the difference between what they are told and the rawness of what they use, and the designers and content strategists in Delivery trying to bridge this chasm into one experience will burn out in no time from being yelled at by Sales. By focusing only on a measurable quarterly outcome that can be pursued independently, the OKR is doing nothing to align where it counts and chewing up the people in-between.

These examples are made up, by the way, I can’t write about what I have actually seen fail.

The literature about OKRs all say things like “Objectives and Key Results (OKRs) provide a framework for businesses to execute and achieve their desired strategies through simple, collaborative goal setting” and that those create internal alignment, but the alignment ends up being only about which measurements to game this quarter or year. OKRs say nothing fundamental about what kind of relationship the company wants to have with their customer beyond “let’s make money this specific way right now”. It’s not a framework that includes a vision of how that specific money-making thing fits in the long-term relationship between the company and the customer, what the values and standards are of what the company considers acceptable to offer to customers. That’s the company culture and it needs to be set and maintained separately. Of course, that activity doesn’t generate an immediate return, so that’s a non-starter these days except in some very committed companies.

Some might right now say “wait, no, a good OKR absolutely defines a quality level: if the experience or product or marketing is below a certain quality level then you won’t make your key result, and therefore the OKR implicitly aligns the product and marketing and experience departments to this particular level; they have to talk to each-other to reach that ambitious result.”
To which my answer is: look around you at the disjointed mediocre experiences from all these companies who are supposedly all-in on OKRs. Without a company culture defining a baseline of expected quality that can only be achieved when groups work together, a culture maintained from above, departments will just do what they can themselves because creating that alignment horizontally by themselves is just too hard. The alignment will stop at the boundaries of departments committing to separate numerical targets. Every department will try to achieve the key result they settle on with the tools they control: one department may go all-in for quality in their space while the other goes for gaming and dark patterns. While everyone is also loudly complaining about internal waste and separation, of course.

OKRs supposedly communicate and align strategy. Culture eats strategy for breakfast, especially if the strategy comes in as a two-line description of a numerical target. Between all the merging and slicing of companies by current venture capitalism, the corporate cultures that unify departments have been totally eroded. When the main product companies actually are tasked to produce is a higher stock price, everything else becomes secondary to that, including even keeping customers alive, even if that was a guiding principle for absolutely decades. All that is left is departmental culture, and it only takes one group deciding on a different course from the others to make the experience disjointed to the customer.

There’s no free breakfast. Aligning takes work in very large companies, and it has to come from the top, looking at what is being put out, holding it up to the company standard you have taken time to define, doing the leg-work until you know who made what and why so you can shape teams and align incentives and create the right communication channels until everyone is making their part of the same thing. It’s so seductive as management to think you just need to write a couple of goals and target numbers in an OKR format and you can then just throw it down the pyramid to “empower” departments and everything will be alright and everyone will innovate and make their best stuff. And they will make their best stuff—within their constraints, expectations, and reward structures. Aligning those is where the real management work is.