Evaluating OKR Framework as a Strategy Implementation Tool : A Case Study for an IT Company
Lehto, Milka (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023122239071
https://urn.fi/URN:NBN:fi:amk-2023122239071
Tiivistelmä
In this thesis, the effectiveness of the Objectives and Key Results (OKR) framework as a strategy implementation tool was examined. The study was conducted for a Finnish IT company, aiming to formulate recommendations to enhance the performance of the OKR goal management model.
Key concepts in the theoretical framework include formulating corporate strategy, challenges in strategy execution, change management, reward systems, and strategy implementation models such as Objectives and Key Results (OKR) and Balanced Scorecard (BSC). These theoretical themes provide a comprehensive foundation for addressing the research and development questions.
The development work involved integrating various methods and approaches concerning both materials and techniques. This approach was justified due to the study's dual descriptive and explanatory purposes and research questions. In the quantitative study, OKR results from two different periods were analyzed, categorizing teams into three groups based on their success in achieving OKR goals. Six team leaders, whose teams had achieved the most impactful results, were semi-structurally interviewed to understand what successful teams did better compared to others, and what other teams could learn from them. The results were compared with the theoretical framework, and a set of recommendations was formulated based on the analysis.
The findings indicated that, during both studied periods, all teams had chosen to pursue easy key results instead of ambitious goals. Key observations from the coding and classification of the interview material included the need for a distinctive factor in the company's strategy, and the corporate culture supporting the strategy implementation. Job content was a significant motivational factor, and the importance of salary and rewards was emphasized too. The OKR model was perceived as positive and easy, although requiring extra effort compared to customer work.
As the selection of conventional key results slows down the company’s strategic change, attention should be focused on teams so that they will set sufficiently ambitious goals, and key results should aim for change rather than outputs. Additionally, as in any change process, individuals drive change, emphasizing the importance of creating and maintaining individual motivational factors, such as rewards, as well as a positive and open corporate culture. The OKR process should be guided and supported, and assistance should be available. The results and recommendations align with the analysis of the theoretical framework on factors that generally contribute to the success of employees and teams in their work.
The client found the observations of the thesis concrete and the development suggestions useful. As a suggestion for future research, the verification and measurement of the effectiveness between OKR results and progress in strategy implementation were proposed.
Key concepts in the theoretical framework include formulating corporate strategy, challenges in strategy execution, change management, reward systems, and strategy implementation models such as Objectives and Key Results (OKR) and Balanced Scorecard (BSC). These theoretical themes provide a comprehensive foundation for addressing the research and development questions.
The development work involved integrating various methods and approaches concerning both materials and techniques. This approach was justified due to the study's dual descriptive and explanatory purposes and research questions. In the quantitative study, OKR results from two different periods were analyzed, categorizing teams into three groups based on their success in achieving OKR goals. Six team leaders, whose teams had achieved the most impactful results, were semi-structurally interviewed to understand what successful teams did better compared to others, and what other teams could learn from them. The results were compared with the theoretical framework, and a set of recommendations was formulated based on the analysis.
The findings indicated that, during both studied periods, all teams had chosen to pursue easy key results instead of ambitious goals. Key observations from the coding and classification of the interview material included the need for a distinctive factor in the company's strategy, and the corporate culture supporting the strategy implementation. Job content was a significant motivational factor, and the importance of salary and rewards was emphasized too. The OKR model was perceived as positive and easy, although requiring extra effort compared to customer work.
As the selection of conventional key results slows down the company’s strategic change, attention should be focused on teams so that they will set sufficiently ambitious goals, and key results should aim for change rather than outputs. Additionally, as in any change process, individuals drive change, emphasizing the importance of creating and maintaining individual motivational factors, such as rewards, as well as a positive and open corporate culture. The OKR process should be guided and supported, and assistance should be available. The results and recommendations align with the analysis of the theoretical framework on factors that generally contribute to the success of employees and teams in their work.
The client found the observations of the thesis concrete and the development suggestions useful. As a suggestion for future research, the verification and measurement of the effectiveness between OKR results and progress in strategy implementation were proposed.