AI & OKR: A Game-Changing Duo?
Exploring the union of AI with OKR methodologies
A few months ago, my business partner, Mirko De Feo, and I were invited by the Italian OKR Association to join a roundtable discussing the opportunities and risks of implementing AI in the OKR journey.
Following a series of workshops, we published a comprehensive white-paper on the subject. I'll attach it at the bottom of this email for those who want to nerd out.
For everyone else, this newsletter will cover the essential points :)
Enjoy!
First, Why Bother Looking into AI x OKRs?
You might be wondering why we should mix AI with something as fundamentally strategic as OKRs.
Well, the reason is simple: teams around the world are already doing it.
The swift adoption of GPT technology in any written process - OKRs are a text-based methodology, after all - pushes us to analyse AI's impact on strategy and strategy execution. Ignoring its impact on how we set goals, and execute them is unwise.
How It's Currently Used
AI is already impacting OKRs. Here are the main ways it's being used:
🎯 Improving the Definition of Objectives and Key Results
Given a specific team and a general concept of goals, AI is being used to find more motivating and suitable ways to describe the team's purpose. Similarly, given specific Objectives to link to, AI is already helping teams choose suitable parameters to measure their success in achieving the objective.
This usually happens through conversational prompts that ask the AI to generate a series of possible Key Results based on the set objectives, providing valid options to start from.
🗣️ Improving Communication and Reporting on Results
AI is upping the game in communicating results and priorities, making reports easier to understand and act on. AI is helping teams turn data into stories, enhancing the efficiency of the management process. Plus, AI can summarize the OKRs of different teams, improving alignment within the organization.
I've seen firsthand on some teams that I work with how over 50% of the recurring reports on key results are AI-generated.
💨 Speeding Up the Execution-Learning-Execution Cycle
Artificial Intelligence (AI) and NoCode tools are changing the game. They let you develop digital solutions without writing a single line of code. They not only facilitate the analysis and planning of OKRs but also accelerate your experimentation cycle for achieving Key Results.
With AI and NoCode, teams can conceive, test, and adjust initiatives tied to Key Results at lightning speed.
Future Impact
AI progress is happening right before our eyes. As OKR practitioners, we have to ask ourselves which parts of our workflow will AI impact next? Here are three areas for potential future impact:
Continuous Data Forecasting
AI's predictive abilities will help teams set challenging yet achievable targets by analyzing a significant amount of data. Advanced data analysis and continuous forecasting might help teams anticipate future challenges and opportunities, providing strategic planning tips.
Improve Data Reporting by Eliminating Data Lag
AI's predictive capabilities can generate reliable models and simulations. This can expedite the strategic cycle related to OKRs by providing estimated but reliable data right after the period ends, making it actionable for strategic execution. Essentially, you won’t have to wait for Mark in the finance department to send you a file to check your OKR progress for Q2. 😂
Conflict Checking
AI can detect potential conflicts in strategies and OKRs across various teams and projects, promoting collaboration and transparency. In large organizations, this can prevent Business Unit conflicts and foster collaboration on overlapping goals.
A Final Note on Risk (the engagement problem)
Technologists are optimists, and I'm no exception. However, as a strategist, I need to address the main underlying risk of implementing AI in a goal-setting phase.
First and foremost OKRs are a people management tool.
Clearly removing too much of the people’s contribution in a people management tool can seriously hurt its effectiveness.
To be very clear: excessive automation in crafting and reporting on OKRs can limit team engagement.
The core reason why OKRs are so powerful is the engaged and bottom-up process — seeing your post-it on the wall transformed into a company-wide objective can be incredibly motivating.
With this in mind, I remain an OKR and Technology optimist 😉
Am I being delusional? Reply to this email to discuss about it!
Nerd out links
Read the full white paper (in Italian 🇮🇹)
Find out why your teams’ backlog is hurting your OKRs.
Copy some well-written OKRs.
Think your OKR strategy might need a tweak? Let's talk about it. You can always hit me up on LinkedIn, or follow me there for more content like this.
Ciao for now, 👋
Luca