29 karma · joined February 25, 2007
The only essential is can a team align on a sentence describing what is true if the goal is achieved and 2-3 measurable items of evidence of the goal being achieved or progress towards achieving the goal.
If things change, scrap the goal and write a new one. Presumably you learnt something that invalidated the previous one. If it's because of someone else's whim you've got a different problem.
The quarterly cadence is not essential but it is often helpful to periodically know when there is a great opportunity for alignment across teams.
When timing of goal setting is inconsistent across teams it's hard to be available to each other when you need support across teams e.g. maybe one team provides a service that another team needs to achieve a goal.
E.g. How Measure What Matters and Radical Focus describe OKRs - two of the most popular books on the subject - differ quite a lot.
I think finally there's some consensus that cascading OKRs is a bad practice but unfortunately people keep.doing it because that's how it was described in MWM.
We tended to have goals / OKRs per team and longer term goals they could align to. Flatter the better when possible.
Where I have seen it work well are in competitive markets such as SAAS companies battling for market share.
The maturity for using measurement for decision making is higher because to do otherwise means losing marketshare quickly to a competitor. Network effects often mean regaining a leading market position is tough.
The other element is the leadership treating it very seriously. That means investing in regularly communicating the state of the company's market position and engaging in giving feedback on goals and progress and looking for ways to support the teams.
Unfortunately these are traits missing in many companies.
Some of these are cultural such as it being safe to give feedback and a propensity to act on what is learnt.
The ability to capture and update the persistent model I mentioned in the post requires the leadership to be aligned on the direction.