{"id":44767,"date":"2023-01-31T07:28:37","date_gmt":"2023-01-31T12:28:37","guid":{"rendered":"https:\/\/balancedscorecard.org\/staging\/?p=44767"},"modified":"2023-01-31T15:14:51","modified_gmt":"2023-01-31T20:14:51","slug":"no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems","status":"publish","type":"post","link":"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/","title":{"rendered":"No, Andy Grove Didn\u2019t Invent OKRs and Other \u201cStake-Your-Claim\u201d Problems"},"content":{"rendered":"\n[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.19.5&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;]<p>This blog is not a critique of Andy Grove, the revolutionary former leader of Intel and author of <em>High Output Management<\/em>, still a management classic. Grove was smart enough to see why the Management by Objectives (MBO) implementation at Intel needed improvement. Where so many others saw MBO as a tool to control employees with tired annual performance reviews and misaligned bonuses, Grove imagined a solution that could focus, motivate, and align employees. It was a tool that everyone could use to strive for excellence the way a great athlete paces progress. He named their approach <em>IMBO<\/em> (Intel Management by Objectives) for a while and then later <em>Objectives and Key Results <\/em>(OKR).<\/p>\n<p>It is great that Andy Grove gets credit for these improvements. The issue that makes me crazy is what I refer to as the \u201cstake-your-claim\u201d issue that is so prevalent in the management world. Every time a management consultant dreams up a slightly improved way to implement an existing set of principles, they feel the need to stake their claim by branding their contribution. We should all be simply giving Grove credit for a more effective way to implement MBO. Instead, the world has declared him the \u201cinventor\u201d of something called OKRs even though OKR and MBO are based on the same principles and follow roughly the same process.<\/p>\n<p>This problem is common (and can be found in the history of some of BSI\u2019s signature products). What if I want to emphasize the fact that some measurements are more important than others? Let\u2019s call those <em><a href=\"https:\/\/www.kpi.org\/KPI-Basics\/\" target=\"_blank\" rel=\"noopener\">Key Performance Indicators<\/a><\/em>! What if the objectives and measures fall into different strategic categories in a way that emphasizes line-of-sight value creation? Let\u2019s dub the categories <em>Perspectives<\/em> and call the system <em>Balanced Scorecard<\/em>. Or let\u2019s use the same principles to focus on areas of responsibility in an HR sense and call some of them <em>Key Results Areas<\/em> (or <em>Key Responsibility Areas<\/em>).<\/p>\n<p>This issue gets infinitely worse in the strategy space. It\u2019s not enough to simply call our areas of focus <em>Goals<\/em>. In the <em><a href=\"https:\/\/balancedscorecard.org\/staging\/bsc-basics-overview\/\">Balanced Scorecard<\/a><\/em> world we call them <em>Themes<\/em> and\/or <em>Strategic Results<\/em>. Some call them <em>Priorities<\/em>, <em>Critical Success Factors<\/em>, or <em>Pillars of Excellence<\/em>. Some separate <em>Wildly Important Goals<\/em> (WIGs) from <em>Pretty Important Goals<\/em> (PIGs). Others create <em>Big Hairy Audacious Goals<\/em> (BHAGs), <em>Moonshot Goals<\/em>, <em>Performance Targets<\/em>, <em>Benchmarks,<\/em>\u00a0<em>Breakthrough Results<\/em> or simply <em>Budget<\/em>. There seems to be no end to the variation in possible hierarchical combinations (and confusion) between <em>goals<\/em>, <em>strategies<\/em>, <em>tactics<\/em>, <em>objectives<\/em>, and <em>initiatives<\/em>. I have watched heated debates about whether PESTLE or STEEPLE was better. One team felt like the SMART mnemonic wasn\u2019t clever enough and so created SMART ASSES. I\u2019m not making this up.<\/p>\n<p>Most of these improvements, and the resulting confusion, were caused by the same stake-your-claim phenomenon \u2013 someone felt they had created a better mousetrap and branded the improvement. The result of all this improvement is that measurement and strategy professionals spend an awful lot of time trying to define terms and clear up confusion.<\/p>\n<p>That effort is difficult. If you look online for help parsing the difference between, say, an <em>OKR<\/em> and a <span style=\"text-decoration: underline;\">KPI<\/span>, you might find the results confounding. The definitions are almost always biased based on which product the author is selling. If I am selling OKRs, I claim that KPIs are trivial and use a misleading metaphor like a car fuel gage or speedometer to describe KPIs while vaguely claiming that OKRs track <em>important<\/em> matters. Meanwhile, if I am a KPI consultant, I can mischaracterize OKRs as trivial and unaligned quarterly activities while KPIs track long-term strategic impact. Almost all these types of differentiations are misleading at best.<\/p>\n<p>Sometimes this parsing is so clumsy it makes matters worse. To differentiate between the terms <em>KPIs<\/em> and <em>metrics<\/em>, one company claims that metrics <em>provide information that can be digested<\/em> while KPIs <em>offer comparative insights that guide future actions<\/em>. Is that helpful at all? How is a measurement practitioner supposed to differentiate between simply digesting any particular measure and gaining insights from it?<\/p>\n<p>Unfortunately, I am only scratching the surface on these types of confusions, so it is tempting to throw up your hands and say that clarifying terminology is a lost cause. But there are some simple tips I would offer to help overcome this challenge.<\/p>\n<p><span style=\"color: #1d5878;\"><strong>Broad Principles Are More Important Than Rigid Rules<\/strong><\/span><br \/>Frameworks are great for organizing your thoughts, but only as long as the relative framework is intuitive within your culture. Knowing when to rigidly stick with the system and when to adapt usually means understanding the underlying big-picture principles the framework is designed to help with. In the strategic measurement space those principles are, among others, that: 1) it is useful to visualize and articulate the outcomes you are trying to accomplish, 2) successful strategy execution requires your team to connect dots between elements in the system and to prioritize collectively, and 3) measurement is foundational to any improvement effort. Changing the name of our measurements from <em>key results<\/em> to <em>performance targets<\/em>, or vice-versa, doesn\u2019t violate any principles. Implementing KPIs found on a website without first establishing consensus about what we are trying to accomplish does.<\/p>\n<p><span style=\"color: #1d5878;\"><strong>Clearly Define Terms<\/strong><\/span><br \/>As long as I am accomplishing these principles, the exact terminology or framework details can vary wildly. Almost by definition, no model is a perfect fit for every situation. The lexicon that BSI teaches can be found in <em>The Institute Way<\/em> or in any of our classes, but every organization must determine what definitions will work best with their culture. Almost all our clients customize a bit so that the lexicon is more intuitive for their employees. Then they keep that dictionary handy for easy reference. My only warning there is to not veer away too far from convention, because as employees come and go the onboarding is easier if incoming employees don\u2019t have to unlearn old habits.<\/p>\n<p><span style=\"color: #1d5878;\"><strong>Consistency Matters<\/strong><\/span><br \/>Once the lexicon is determined, work to be consistent to avoid miscommunication. It is not uncommon for a disgruntled employee or team to disagree with your terminology usage and try to ignore the discipline you are trying to impose. This can create quite a mess and so needs to be addressed. Even if they disagree with your definitions, most people can be convinced that there is a greater good to be gained by having everyone use the same language.<\/p>\n<p>To learn more about any of these frameworks, please consider one of our <a href=\"https:\/\/balancedscorecard.org\/staging\/training-certification\/course-catalog\/\" target=\"_blank\" rel=\"noopener\">Professional Certification Programs.<\/a><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>Andy Grove changed the Intel MBO review cadence from annually to quarterly and dubbed it OKR. But if I cook pizza in the microwave and call it Pizzaz, have I invented a new food? This type of \u201cstake-your-claim\u201d problem creates confusion.<\/p>\n","protected":false},"author":4,"featured_media":44772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:table -->\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Measurement is hard enough when things are \u201cnormal\u201d. How do you measure impact when things keep changing?<\/td><\/tr><\/tbody><\/table><\/figure>\n<!-- \/wp:table -->","_et_gb_content_width":"","content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[1791,1],"tags":[1889,63],"class_list":["post-44767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-uncategorized","tag-okr","tag-okrs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No, Andy Grove Didn\u2019t Invent OKRs and Other \u201cStake-Your-Claim\u201d Problems - Balanced Scorecard Institute<\/title>\n<meta name=\"description\" content=\"Andy Grove changed the Intel MBO review cadence from annually to quarterly and dubbed it OKR. But if I cook pizza in the microwave and call it Pizzaz, have I invented a new food? This type of \u201cstake-your-claim\u201d problem creates confusion.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No, Andy Grove Didn\u2019t Invent OKRs and Other \u201cStake-Your-Claim\u201d Problems\" \/>\n<meta property=\"og:description\" content=\"Andy Grove changed the Intel MBO review cadence from annually to quarterly and dubbed it OKR. But if I cook pizza in the microwave and call it Pizzaz, have I invented a new food? This type of \u201cstake-your-claim\u201d problem creates confusion.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/\" \/>\n<meta property=\"og:site_name\" content=\"Balanced Scorecard Institute\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/StrategyManagementGroup\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-31T12:28:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-31T20:14:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/balancedscorecard.org\/staging\/wp-content\/uploads\/2023\/01\/OKR-Bizman-with-flag_500x333.png\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"David Wilsey\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BSCInstitute\" \/>\n<meta name=\"twitter:site\" content=\"@BSCInstitute\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Wilsey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/\"},\"author\":{\"name\":\"David Wilsey\",\"@id\":\"https:\/\/balancedscorecard.org\/staging\/#\/schema\/person\/fc6bce5df8a4613f373c6517da6515fc\"},\"headline\":\"No, Andy Grove Didn\u2019t Invent OKRs and Other \u201cStake-Your-Claim\u201d Problems\",\"datePublished\":\"2023-01-31T12:28:37+00:00\",\"dateModified\":\"2023-01-31T20:14:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/\"},\"wordCount\":1161,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/#organization\"},\"image\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/balancedscorecard.org\/staging\/wp-content\/uploads\/2023\/01\/OKR-Bizman-with-flag_500x333.png\",\"keywords\":[\"OKR\",\"OKRs\"],\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/\",\"url\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/\",\"name\":\"No, Andy Grove Didn\u2019t Invent OKRs and Other \u201cStake-Your-Claim\u201d Problems - Balanced Scorecard Institute\",\"isPartOf\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/balancedscorecard.org\/staging\/blog\/no-andy-grove-didnt-invent-okrs-and-other-stake-your-claim-problems\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/balancedscorecard.org\/staging\/wp-content\/uploads\/2023\/01\/OKR-Bizman-with-flag_500x333.png\",\"datePublished\":\"2023-01-31T12:28:37+00:00\",\"dateModified\":\"2023-01-31T20:14:51+00:00\",\"description\":\"Andy Grove changed the Intel MBO review cadence from annually to quarterly and dubbed it OKR. 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