Did you know that 70% of strategic initiatives fail due to poor execution and misalignment? In today’s fast-paced business world, aligning teams and breaking silos is critical. Traditional tools like KPIs (Key Performance Indicators) and KRAs (Key Result Areas) often fall short in driving cross-functional success.
That’s why People Matters and xto10x hosted a virtual webinar, “Beyond KPIs and KRAs: How OKRs Can Drive Growth and Innovation.” Featuring insights from Salil, CHRO at ElasticRun, and Anusha, Head of Business Planning and Execution Practice at xto10x, the session explored how Objectives and Key Results (OKRs) bridge the gap between strategy and execution.
Why KPIs and KRAs Aren’t Enough
KPIs and KRAs have long been the backbone of performance management, offering clarity and structure. However, as Salil noted, they can create silos in today’s collaborative business landscape:
“KRAs and KPIs cascade goals effectively but often isolate teams. Collaboration suffers, slowing decision-making and creating execution bottlenecks.”
For complex initiatives—like launching products or scaling markets—KPIs alone can’t ensure seamless execution.
OKRs: The Key to Strategic Alignment
Unlike department-focused KPIs, OKRs foster company-wide alignment and transparency. Anusha explained that OKRs prioritize strategic bets, bringing clarity and ownership to cross-functional projects. This is especially vital for startups and enterprises with limited resources.
ElasticRun’s OKR Success Story
ElasticRun’s journey with OKRs offers a compelling case study. Salil shared that despite a robust KPI framework, cross-functional coordination was a challenge. By piloting OKRs, ElasticRun transformed planning into execution:
- Defined clear objectives across layers (L0 to L3).
- Assigned ownership to streamline accountability.
- Improved execution speed and team confidence.
“Detailed planning upfront was a game-changer,” Salil said. “Once teams saw seamless execution, ownership soared.”
OKRs and KPIs: Better Together
A common question: Do OKRs replace KPIs? The answer is no. Salil explained that ElasticRun uses KPIs for routine metrics but reserves OKRs for four or five high-impact priorities. Anusha added that OKRs act as a strategic overlay, enhancing existing systems without replacing them.
How to Implement OKRs: Culture and Leadership as Catalysts
Implementing OKRs goes beyond adopting new tools—it requires a fundamental cultural shift. Here are the key pillars for success:
- Leadership Commitment: Leaders must actively champion OKRs to maintain momentum and inspire teams.
- Empowered Teams: Assign ownership based on capability, not hierarchy, to foster accountability.
- Transparency: Use OKR tools to make progress visible, enabling real-time adjustments.
Dive Deeper
Want to explore how OKRs can transform your organization? Watch the full webinar for more insights here
Transform Your Execution Strategy
Deep Experience: xto10x has guided over 200+ startups in building effective OKR systems, bringing industry best practices to accelerate growth. Ready to unlock OKRs for your team? Contact us at growth@xto10x.com or visit us at Planning and Execution to know more.
