Unlocking Enterprise Agility: the role of Objective and Key Results methodology

In the current business landscape, enterprises find themselves immersed in an intricate and dynamic setting characterized by volatility, uncertainty, complexity, and ambiguity. Enterprise Agility (EA) has emerged as a crucial strategy adopted by companies to navigate in such an environment. It is the ability to thrive in a competitive environment of continuous and unanticipated change, sensing and responding quickly to them. However, the journey is not so net and clear: companies face multiple barriers to reaching and sustaining agile capabilities. Researchers and industry practitioners unanimously recognize the pivotal role of performance measurement and management in the effective and efficient management of any business. Recently, a new goal-setting framework called Objectives and Key Results (OKR) has gained widespread popularity in the business world. A systematic literature review has been conducted to identify the main obstacles companies face on the road to agility. Concurrently, a narrative review, primarily drawing from gray literature, investigates the characteristics and benefits of OKR. To complement the literature review, a series of qualitative interviews with Subject Matter Experts supporting large-scale enterprise transformations has been conducted. The results have been summarized using the 7s model as a guide, along with an appropriate coding system. Findings reveal the main obstacles companies encounter are primarily related to unclear strategic priorities and planning, rigid organizational structures, lack of agile workforce, and technical gap. OKR can act as a catalyst in supporting companies on this transformative journey. It promotes alignment, engagement, tracking, stretch goals, empowerment, accountability, and adaptability to changing environments. However, the relevance of this methodology and the benefits of integrating this framework into the new operating model is something that should be evaluated according to the specific context and motivation. Implementing OKR is not a straightforward task and requires a significant effort.