As a manager or team leader, do you often find yourself frustrated by the limitations of traditional goal-setting methods like SMART objectives? If you’ve ever struggled to motivate your team with goals that feel overly simplistic or restrictive, you’re not alone.
The problem with SMART objectives lies primarily in the “A” for “Achievable”. While these goals work within a predictable, linear context, they don’t help teams embrace the complex, uncertain environment many face today. If you’re seeking to address this challenge and unlock your team’s true potential, it might be time to ditch SMART objectives and replace them with Objectives and Key Results (OKRs).
The Problem with SMART Objectives
The main issue with SMART objectives, which are often praised for being specific, measurable, achievable, relevant, and time-bound, lies in the “A” – achievable. When you focus on what is achievable, you are limiting yourself to what is already known and manageable. You are essentially setting goals based on predictable outcomes, not factoring in the complexity of real-world challenges.
In many modern organisations, managers and team leaders are constantly confronted with ambiguity and complexity – whether it’s in market conditions, technological disruptions, or shifting consumer behaviours. In these cases, the concept of “achievability” fails to capture the necessary stretch that drives innovation or encourages teams to venture into uncharted territory.
This is where the Cynefin Framework becomes relevant. The Cynefin Framework helps leaders understand the nature of challenges, categorising them into clear, complicated, complex, and chaotic domains. SMART objectives may serve well in clear or complicated contexts, but they are inadequate in complex situations where cause and effect can only be understood in hindsight. Real-life challenges often unfold in unpredictable ways, making achievable objectives seem irrelevant.
SMART objectives tend to operate in a binary system: either you meet the goal, exceed it, or fail to meet it. This simple structure doesn’t account for the unpredictable nature of modern business environments, where teams are forced to adapt quickly, and failure is often a step toward success.
OKRs: A Better Way Forward
OKRs offer a powerful alternative to SMART objectives. While SMART objectives are rooted in performance and measurable outcomes, Objectives and Key Results shift the focus toward long-term, bold objectives and the key results that track progress along the way. In a way, OKRs provide a better framework for embracing complexity and creating meaningful change in your organisation.
The key differentiator between SMART objectives and OKRs is that OKRs are not necessarily achievable within a given performance period. In fact, it’s often expected that the ambitious objectives set by teams won’t be fully realised. This means that OKRs encourage teams to think beyond what’s possible now and explore the unknown. Teams rally around a broader, often visionary goal that stretches their limits, while using key results to measure progress.
One of the most significant advantages of OKRs is their ability to allow failure within the process. Missing a bold objective can still be considered a success, as long as the team made significant progress toward it. This shift in mindset is empowering, as it creates room for creativity, innovation, and experimentation. Unlike the rigid performance judgement of SMART objectives, OKRs focus on growth, progress, and learning, rather than just outcomes.
How to Implement OKRs in Your Team
The challenge for managers and leaders is not only about replacing SMART objectives but creating an environment where OKRs can thrive. Here’s how you can shift your team toward a culture of OKRs:
1. Explore Goal-Setting Beyond Achievability
Start by examining the very nature of goal setting within your team. What would you aim for if you weren’t concerned about the achievability of the goal? This shift in perspective will help your team embrace bolder, more ambitious objectives that challenge the status quo. By taking away the pressure to meet a specific target, you’ll unlock a more creative, results-driven mindset.
2. Align Team Objectives with Organisational Purpose
For OKRs to be effective, they need to align with your organisation’s overarching purpose. Involve your team in discussions about the purpose of their work and the larger vision they’re striving toward. With input from stakeholders, define an objective that truly represents your team’s purpose – not just a simple task to complete.
3. Identify Stakeholder Ambitions
A key element of successful OKR implementation is stakeholder alignment. OKRs don’t just exist in a vacuum; they should be designed to reflect the ambitions and goals of key stakeholders. This alignment ensures that your team’s work contributes to the organisation’s larger strategy, helping everyone understand the bigger picture and stay engaged with the company’s long-term success.
4. Measure Progress, Not Perfection
The beauty of OKRs is that they allow teams to measure progress rather than simply focusing on the end result. Key results can be qualitative or quantitative, but they always represent a step toward a larger goal. Teams should be encouraged to celebrate incremental progress, learning, and experimentation, rather than obsessing over whether they meet a predefined target.
5. Be Open to Iteration
As you implement OKRs, be prepared to iterate on your objectives. Since OKRs often push teams into unknown territory, you may find that some objectives evolve over time. It’s important to maintain flexibility, adapt as needed, and ensure that the objectives continue to align with both the team’s and the organisation’s evolving needs.
OKRs vs. SMART: The Key Differences
To help clarify why OKRs are more effective than SMART objectives in today’s complex business environment, let’s summarise the key differences:
| Aspect | SMART Objectives | OKRs |
| Focus | Achieving specific goals | Ambitious, bold goals |
| Timeframe | Time-bound with fixed targets | Long-term, flexible |
| Outcome | Binary (achieved or not) | Progress-based, open to failure |
| Motivation | Performance-driven, results-focused | Progress-driven, growth-focused |
| Adaptability | Limited flexibility | Iterative, adaptable to change |
As you can see, OKRs place a much stronger emphasis on progress, collaboration, and adaptability, which are crucial when dealing with complex, fast-changing environments. For managers, line leaders, and team leaders who are looking to move away from the rigid constraints of SMART objectives, OKRs present an exciting new approach.
Conclusion: Embracing Complexity with OKRs
For today’s leaders, the real challenge isn’t about achieving “perfect” results, but about guiding teams through complexity, uncertainty, and change. By embracing Objectives and Key Results instead of SMART objectives, you’ll empower your team to think beyond the achievable, venture into unknown territory, and focus on meaningful progress rather than just end results.
The shift from SMART to OKRs isn’t just a tactical change; it’s a cultural transformation. As you guide your team through this transition, be prepared to embrace failure as part of the journey and recognise that true success comes from the learning and growth that happens along the way.
If you’d like support in implementing OKRs in your organisation or exploring team alignment strategies, feel free to contact us at Organisational Coaching Hub for tailored advice and resources.
