OKR vs. project management: choosing the right methodology
OKRs are impact-oriented and focused on a short period of time, while classic projects are input-oriented and more long-term. For very complex problems, OKRs can be subdivided into sub-projects.
OKR and traditional projects are not fundamentally mutually exclusive. However, it is important to understand when which concept is more suitable. In this video you will learn everything you need to know about:
- OKR
- Classic projects
- Complicated problems
- Complex problems
- Deterministic system
The basic rule is:
An OKR fits when the problem is complex. A classic project fits when the problem is complicated.
- A problem is complicated if you know most of the variables and their possible characteristics and dependencies (e.g. introduction of software). In this case, you can create a detailed project plan. You can use defined milestones to monitor whether progress is being made. The need for change during implementation is usually low for this type of problem.
- A problem is complex if you do not know the variables and their possible characteristics and dependencies (e.g. digitalization of the business model).
Deterministic system
This is a deterministic system. In this case, a precise project plan will not help you. This is because you lack the flexibility to react to unexpected developments. Unfortunately, teams and managers tend to create a plan out of habit or convenience, even though the problem is complex. You then only get a false sense of security and cannot generate any real progress. OKRs are ideal for this type of problem.
Define goals: OKR vs. project
In traditional projects, the definition of objectives is input-oriented, whereas in the OKR it is impact-oriented. In contrast to traditional project processes, the OKR approach is planned for a short period of time. The OKR does not identify all necessary tasks, but rather a few key figures (= key results). With OKR, you move mentally from the target state to the starting state. Compared to traditional projects, this is the exact opposite way of thinking. For very complex problems, it makes sense to divide the project into several sub-projects and define sub-key results.
Progress
