Lisa Guan's Innovation World

When people talk about OKRs (Objectives and Key Results), the spotlight usually shines on ambition. “Set big hairy audacious goals!” they say. But here’s the real trap: most OKRs don’t fail because they’re too bold. They fail because they’re imbalanced.

An imbalanced OKR is like a table with one leg shorter than the others—you can set it up, but sooner or later it wobbles and tips over. The imbalance can show up in many forms: too fluffy, too numerical, too one-sided. Let’s unpack the most common scenarios—and how to fix them.

Scenario 1: Too Fluffy to Drive Action

Fluffy Objectives sound nice but lack clarity. Without measurable outcomes, the team doesn’t know what success means or how to get there.

Example:
Objective — “Be innovative.”
This is too vague. Everyone will interpret “innovative” differently, leading to scattered efforts and little progress.

How to Improve :
Translate vague aspirations into tangible results. Start with the inspiring Objective, then force yourself to ask, “What would success look like if we actually achieved this?” Then Add concrete, measurable Key Results.

Example:
Objective: “Lead the market in customer-driven innovation.”
Key Results: Launch 3 new features co-created with customers; File 5 patents; Achieve >40% adoption for new features

Scenario 2: Too Numerical to Inspire

Numbers alone don’t inspire. When Objectives look like Key Results, they fail to provide meaning or direction.

Example:
Objective — “Increase revenue by 15%.”

This isn’t an inspiring north star; it’s a metric. It pushes teams toward hitting a number without a shared vision of why.

How to Improve:
Separate why from how. Keep the Objective as a qualitative north star that motivates, then put the numbers where they belong—in the Key Results.

Example:
Objective: “Delight customers with faster, smarter service.”
Key Results: Cut average wait time from 12h → 3h; Achieve CSAT of 90%+; Generate $2M in new revenue.

Scenario 3: All Outputs, No Outcomes

Focusing only on what gets done (outputs) ignores whether it made a difference (outcomes). This leads to “activity theater” where teams celebrate delivery but not impact.

Example: Key Result — “Ship AI chatbot.”

The launch looks like success, but did customers actually use it? Did it solve the problem?

How to Improve :
Pair every output with an outcome. For each “we did it” statement, add a “so what” metric that proves value for customers, business, or team.

Example:
KR 1: “Release AI chatbot.”(outcome)
KR 2: “40% of users adopt chatbot within 3 months;”(output)
KR 3: “Reduce support tickets by 20%.”(output)

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Scenario 4: One-Dimensional Focus

Tracking only business outcomes (like revenue) ignores customers, processes, and team health. That’s how you get short-term wins but long-term damage—burnout, churn, or poor product quality.

Example:“Generate $5M revenue from new product.”

The focus is entirely financial. Success here could come at the expense of customers or teams.

How to Improve :
Use a multi-lens approach. When drafting Key Results, run a simple checklist: Does this cover business, customer, internal processes, and team health? Add at least one KR per dimension.

Example:
KR 1: “Business: $5M revenue from new product.“
KR 2: “Customer: App store rating 4.5+.“
KR 3: “Internal: 95% uptime in first 3 months.“
KR 4: “Team: <15% overtime reported by engineers.“

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Scenario 5: Ignoring Risks and Guardrails

Growth-focused OKRs without guardrails are dangerous. Teams might hit the growth target but cause hidden damage, like high churn or eroded margins.

Example: “Grow sales 30%.”

Impressive at first glance, but if churn climbs or margins collapse, the business is worse off.

How to Improve :
Add balancing Key Results that protect quality, customer experience, or financial stability. For every growth metric, ask, “What could break if we succeed too fast?” and make that a guardrail KR.

Example:
KR 1: “Grow sales 30%; Maintain churn <5%; “
KR 2: “Keep gross margin above 60%.“

The Payoff of Balanced OKRs

When you write balanced OKRs, you get more than just clarity. You build trust with your team (because goals feel realistic and inspiring), alignment across departments (because no one’s blind spot is ignored), and impact (because you measure what truly matters).

So next time you sit down to write OKRs, don’t just ask: “Is this ambitious enough?” Ask: “Is this balanced?”