Tag Archives: frameworks

OKRs vs. KPIs: Choosing the Right Framework for Innovation

OKRs vs. KPIs: Choosing the Right Framework for Innovation

GUEST POST from Art Inteligencia

In the world of innovation, measuring success is as crucial as the innovation process itself (a powerful one being The Eight I’s of Infinite Innovation from Braden Kelley). Among the most popular tools for tracking progress are OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators). Though they often appear interchangeable, each serves distinct purposes and can significantly impact the direction and success of innovation initiatives. So, how do we choose the right framework for fostering innovation?

Understanding OKRs and KPIs

OKRs are a framework that sets ambitious objectives linked with quantifiable key results. Invented by Intel and popularized by Google, OKRs encourage stretching beyond comfort zones to achieve groundbreaking advances.

“OKRs are not about spreadsheets. They are about focused and inspired work.” – John Doerr

KPIs, on the other hand, are metrics used to evaluate the performance of organizations, employees, or particular activities. They are generally well-defined and are used to track targets and processes that are stable and need consistency.

Case Study 1: Google – The Triumph of OKRs

Google’s remarkable growth and innovation can, in part, be attributed to its successful use of OKRs. Larry Page and Sergey Brin adopted OKRs from Intel, aiming to balance daunting aspirations with precise actions.

In a pivotal instance, Google aimed to “organize the world’s information and make it universally accessible and useful.” The associated key results included increasing the number of pages indexed and enhancing user satisfaction through a streamlined user interface. This clear alignment of bold objectives and tangible results spurred innovation without stifling creativity, showcasing the transformative power of OKRs.

Case Study 2: A Traditional Manufacturer – The Stability of KPIs

Consider a traditional manufacturing company focused on operational efficiency and quality control. Here, KPIs are indispensable for maintaining precision and reliability in production.

The company aimed to reduce waste and improve product quality. By utilizing KPIs such as scrap rate, production downtime, and customer defect rate, they implemented incremental improvements that led to significant cost savings and enhanced quality.

This structure allowed them to consistently meet customer expectations and stay competitive, showcasing how KPIs serve businesses prioritizing stability and incremental innovation.

When to Use OKRs

OKRs shine in environments where transformative change is sought. Think of startups, tech firms, or any company looking to disrupt the status quo. OKRs encourage risk-taking, freeing teams to explore uncharted territories. They are ideal for organizations that embrace experimentation and are willing to pivot based on insights and discoveries.

When to Use KPIs

KPIs are optimal for situations that require reliability, consistency, and precise tracking. They fit well in established processes where steady improvement and performance monitoring are crucial. Industries like manufacturing, logistics, or healthcare, where the margin for error is minimal, benefit greatly from KPIs.

Integrating OKRs and KPIs for Holistic Innovation

Rather than choosing between OKRs and KPIs, consider blending them. Organizations can leverage the ambitious spirit of OKRs while grounding them with the stable, measurable metrics of KPIs.

For instance, a tech company could set ambitious OKRs to innovate a new product line with radical features, using KPIs to monitor development timelines, budget adherence, and defect rates. Such integration ensures a balance between aspiration and accountability, driving sustainable innovation.

Conclusion

The choice between OKRs and KPIs ultimately hinges on your organizational objectives, industry demands, and desired outcomes. Understanding their intrinsic differences and strategic applications is paramount in optimizing innovation effectiveness.

By carefully considering your framework choice and exploring the potential of combining these tools, businesses can foster an innovative culture that is both adventurous and accountable, paving the way for sustained success.

Innovation thrives on clarity, ambition, and measurable outcomes. Whether through OKRs, KPIs, or a tailor-made blend, harnessing the right framework is key to nurturing the next breakthrough.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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Outcome-Driven Change (ODC)

Outcome-Driven Change (ODC)

When it comes to business, many people would say it is outcomes that truly matter, especially investors on wall street. Investors don’t care what kind of software you’re running or what your stack looks like, or how you do what you do, as long as you deliver the financial outcomes they are looking for in order to earn a return on their investment.

Doctors also focus on outcomes and insurance companies are becoming obsessed with them, forcing doctors and customers into Accountable Care Organizations (ACOs). In healthcare, the outcomes obsession is called Outcomes-Based Management or Outcomes-Based Healthcare. In education, the outcomes obsession has led to an obsession with standardized testing and a practice called Outcomes-Based Education (OBE).

And in the innovation space, Tony Ulwick and Strategyn created Outcomes-Driven Innovation (ODI). In the innovation space this approach can be very beneficial as it helps companies move away from asking questions like “What can this technology do?” to questions that create better outcomes and more value, questions like “What is the customer trying to do?” or “What is the job to be done (JTBD)?”

Whether it is healthcare, education, business, or innovation, a focus on outcomes can be very helpful, but in these contexts we are looking at managing to a certain set of outcomes, or improving a certain set of outcomes, at a fixed point in time.

In the area of organizational change however, the focus often is not on outcomes, but on behaviors. Far too much of the literature and practice focuses on behavior change, which could also be described as “what people do.” And this focus on behaviors instead of aligning thoughts, feelings, behaviors and outcomes is part of why up to 70% of change efforts fail.

Too many people are jumping in head first and not approaching organizational change holistically, having the tough conversations around not only around how behaviors (doing) need to change but also how the how the outcomes need to change, along with how people’s thoughts and feelings need to change.

And when it comes to organizational change, we are not trying to achieve a certain set of outcomes or optimize a certain set of outcomes, but instead to ascertain what the relevant outcomes are in the current state and what we want them to become in the future state.

To help change leaders work though these incredibly necessary conversations and to help change managers achieve alignment within the organization around how all four components need to change (outcomes, thinking, feeling, doing) as part of a planned and coordinated effort, I have created the Outcome-Driven Change (ODC) Framework and worksheet to add to the Change Planning Toolkit™ v7 for existing subscribers and new subscribers alike.

Change is Possible

Thinking, feeling, doing…

People have been linking these terms together since at least 1895 when E.W. Scripture released an interesting book titled Thinking, Feeling, Doing on how scientists conduct research affecting these three parts of our humanity. Many people have added to the conversation since then speaking about how we are of three minds (Merriam-Webster dictionary definitions below), which are the:

1. Cognitive

Of, relating to, being, or involving conscious intellectual activity (such as thinking, reasoning, or remembering)

2. Affective

Relating to, arising from, or influencing feelings or emotions

3. Conative

An inclination (such as an instinct, a drive, a wish, or a craving) to act purposefully

Not coincidentally, these match up with the three domains of learning, defined as early as 1956 by educational psychologist Benjamin Bloom.

Others like to ascribe these three elements of humanity into Mind, Body, and Soul.

The key thing to remember from all of this discussion is that we are speaking about three very distinct things:

  1. Thinking
  2. Feeling
  3. Doing

IT IS possible, and happens with surprising frequency, that all three are not in agreement when you are dealing with human beings. Which the obvious truth of course is that in any change effort, or project for that matter, you are. People are fully capable of thinking one thing, feeling another, and end up doing something totally incongruent with either OR both whatever they are thinking and feeling. Confused yet?

Author F. Scott Fitzgerald once famously said:

“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.”

This is one reason why change of any kind, organizational or personal, is so hard. Because, in order to be successful you must achieve alignment between all three elements of human reaction to the change in order to achieve the outcomes you seek.

Hopefully I’ve captured all of this in this single image of the Outcome-Driven Change Framework and this single quote from it:

“When what people do aligns with what they think and feel, then and only then, will you achieve the outcomes you’re looking for.”

Outcome-Driven Change Framework by Braden Kelley

In the Change Planning Toolkit™ v7 paying subscribers will find 11″x17″versions of this framework and the Outcome-Driven Change™ Worksheet to help your change planning team guide the conversations with change leaders that will help you surface the outcomes you’re currently achieving and what people in the organization are thinking, feeling, and doing to create the current outcomes and what members of the organization will need to think, feel, and do in order to achieve the new set of outcomes that you determine are necessary for the change to be successful.

People purchasing a commercial license and organizations or governments purchasing a site license or city/state/country license will get access to a poster size version (35″x56″) of the Outcome-Driven Change Worksheet.

This is just a taste of the kinds of frameworks, worksheets, and other tools you will find in the Change Planning Toolkit™ that I introduced in my latest book Charting Change along with a lot of great case studies and other next practices shared by some of the leading minds in the areas of organizational change and innovation.

So what are you waiting for?

  1. Get started using the Outcome-Driven Change Framework to spark dialogue among your change planning and leadership teams
  2. Download the 10 free tools from the Change Planning Toolkit™
  3. Grab your copy of Charting Change and get access to even more tools for free from the Change Planning Toolkit™ (including the Change Planning Canvas™)
  4. And then when you’re ready, get a license to all the rest of the 50+ frameworks, worksheets and other tools, and beat the 70% change failure rate!

Still have questions about how the Change Planning Toolkit™ can help your organization get better at change?

Then please contact me!

Or check out the Introduction to the Change Planning Toolkit™ webinar below:




Accelerate your change and transformation success

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What’s Next – The Human-Centered Innovation Toolkit™

What's Next - The Human-Centered Innovation Toolkit™… and a new Innovation Intervention service.

People have been asking me recently – What’s next?

I think managers and leaders are wondering now that I’ve written two popular books (Charting Change and Stoking Your Innovation Bonfire) and a chapter in a third (A Guide to Open Innovation and Crowdsourcing), if I’ll ever write another book.

But, they’re also curious given all the great tools in the Change Planning Toolkit™ that can fundamentally transform how we plan our projects and change initiatives, helping individuals and organizations move beyond theory to practice, whether I’ll ever create anything similar to help companies increase their innovation success.

The answer to both questions is a resounding YES!

I am pursuing, in parallel, the Define, Design, and Develop phases on a number of different tools to form the basis of a Human-Centered Innovation Toolkit™ for organizations to leverage in pursuit of my evolution of value innovation.

If you’ve attended one of my innovation keynotes or workshops you’ve seen how my innovation viewpoint (Innovation is All About Value) leads to all types of innovation, including disruptive innovation, and how it links to LEAN methodologies so that organizations can organize and execute across the entire spectrum of improvement and innovation possibilities.

Some of my most recent clients, including The Bank of Montreal and OSF Healthcare, have received an advance preview of some of the early components of the upcoming Human-Centered Innovation Toolkit™.

At the same time, I am also finishing efforts to define a new Innovation Intervention service offering to help organizations who have started an innovation effort or built an innovation program, only to see it go off the rails. I will work with organizations in an Innovation Intervention to help them get back on track towards success and build a foundation capable of sustaining continuous innovation. Forward-thinking organizations that haven’t begun an innovation program or a focus on innovation and want to get off to a strong start will be able to leverage this upcoming Innovation Intervention service too.

Finally, when I do write a third book, it will probably dig deeper into how to build an organization wired for continuous change, including successfully executing a digital transformation and sustaining full spectrum innovation and improvement excellence.

So, this is what’s next.

If you’d like to find out more about my Innovation Intervention or Human-Centered Innovation Toolkit™ in advance of their launch, in order to get a jump on your competition, please contact me.

Stay tuned for more information on these efforts soon!

Innovation Audit from Braden Kelley

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10 Free Change Planning Tools

Get Your 10 Free Change Planning ToolsHave you downloaded your ten free change planning tools?

NEWSFLASH: I’ve added sample QuickStart Guide content to the download package, so if you’ve already downloaded the 10 Free Change Planning Tools, you’ll want to download them again to get this bonus content.

Research shows that 70% of change efforts fail. There are many reasons why, including that many people find the planning of a change effort overwhelming and lack tools for making the process more visual, collaborative and human.

Following the successful launch of my latest book Charting Change and a suite of tools called the Change Planning Toolkit™, I have made several access levels available to spread the methodology and help get everyone literally on the same page for change:

Get 10 Free Downloads from the Change Planning Toolkit™I am making 10 free change planning tools from the toolkit available as 11″x17″ downloads along with JUST ADDED sample content from the QuickStart Guide,
Get 26 of the 50+ Change Planning Toolkit™ toolsbut book buyers will get access to the Change Planning Toolkit™ Basic License (26 of 50 tools) at 11″x17″ size — a $500 value,
Get all 50+ tools in the Change Planning Toolkit™and buyers of the Change Planning Toolkit™ Bronze License will get access to all 50+ tools for individual educational use at an 11″x17″ size — a $1,200 value.

Change Planning Toolkit Levels and Free Downloads

I am very excited to share with you the Change Planning Toolkit™, including the popular Visual Project Charter™, Change Planning Canvas™ and many other great tools for increasing your change success!

Increase your consulting revenue or your organizational agility and get a jump on your competition!

Click here to get your 10 Free Change Planning Tools

Site licenses are available for professional or commercial use starting at $2/yr per employee*, and include access to poster size versions of many of the tools (35″x56″).

*Bronze Site Licenses have a one-time setup fee of $299. Site License fee based on total number of employees in the organization.

Below you’ll find a downloadable presentation that gives you five reasons to invest in the Change Planning Toolkit™:


Click here to get your 10 Free Change Planning Tools
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Click on the tool name to read the article about each of the 10 Free Change Planning Tools:

  1. Five Keys to Successful Change
  2. Architecting the Organization for Change
  3. Building a Global Sensing Network
  4. Visual Project Charter™
  5. Motivation Ability Worksheet
  6. PCC Change Readiness Framework
  7. Eight I’s of Infinite Innovation™
  8. ACMP Standard for Change Management® (Visualization)
  9. Organizational Agility Framework
  10. The Eleven Change Roles™


Accelerate your change and transformation success

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