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CTO Realize Your North Star in Enterprise Technology OKRs
CTO Realize Your North Star in Enterprise Technology OKRs
Introduction3
In the post-pandemic era, it’s hard to find a role with more technical
differentiation and multi-tiered responsibilities than the Chief Technology
Officer (CTO). Defining what the CTO does depends on the industry, size of
the company, and context of the organization’s needs, all of which continue
shifting.
This is why you’re reading. You, the CTO, need a north star for enterprise
technology strategy to survive an era of rapid change and demand.
Evan Campbell
C H I E F T R A N S F O R M AT I O N
OFFICER,
GTMHUB
Radoslav G eorgiev
C H I E F T E C H N O LO GY O F F I C E R
AND CO -FOUNDER,
GTMHUB
A bank is just a
computer with
a marketing
department
GEOFFREY MOORE
These difficulties ensue because the Office of the CTO typically does not have
direct control of the work or people implementing and buying technology.
This direct reporting can fall under the CIO, VP of Engineering, or Product
Development.
Adding to these difficulties, CTOs not having direct control over the work
or the people they manage further complicates the position. How do CTOs
manage their fluctuating responsibilities and the potential pitfalls of the
organization?
One tested and proven technique for successfully deploying and executing
strategy is Objectives and Key Results (OKRs).
The popularity of OKRs is booming with organizations of all sizes and types
because of the valuable (and well-publicized) “superpowers” that OKRs
convey, including:
Alignment
Focus
Empowerment
Accountability
Innovation
Ambition
These “superpowers” aren’t just buzzwords from marketing teams that make
you feel good. They’re practical outcomes gained from a technically sound
OKR process.
At this point, you might be skeptical. “Oh, so this is just a pitch for OKRs?”
Any skepticism is well received when it comes to OKRs. They take work, and
often, organizations fail to understand, implement, or stay consistent with
them. This is not a pitch for OKRs: it’s a pitch for building a framework that
brings empowerment back to Chief Technology Officers.
We can explore more about how OKRs do this through the lens of the CTO’s
responsibilities.
In the digital economy, all types of product and services firms must become
technology companies to survive and win, as explained in “Why Software
Is Eating The World,” plus thousands of other articles and books promoting
digital transformation and digital business models.
What are the macro trends affecting the products, services, and business
models of their markets? What emergent digital-native competitors are
preparing to disrupt or disintermediate their firm?
With these charges for the CTO, the OKR superpowers of alignment and
focus are levers for success. The CTO must understand the business strategy
and strategic objectives to focus and prioritize investing in the technologies
that provide the greatest impact.
In the role of influencer, the CTO must deploy a technology strategy with
clarity and comprehensive understanding. This strategy brings focus, aligns
legions of people across the organization who are doing technology-related
work, and teaches them how to prioritize work of the highest value.
The power of focus provides the north star that various functions and
departments of the organization must steer to, providing the CTO with the
much-needed trump card that overrides all parochial departmental priorities
and interests.
Ambition and innovation are core drivers of the CTO’s mandate. At the
CTO’s core, aligning innovation investment to strategic objectives is crucial to
the CTO’s success.
However, having the ambition to win in the market as expressed through bold
and aggressive moonshot objectives — the kinds that disrupt markets and
propel firms to decimate competitors — drives the spirit of innovation.
Practices like:
• Test-driven development
• Continuous integration and deployment
• Behavior-driven development
• Domain-driven design
The CTO plays a critical role in the portfolio management process. Ensuring
technology implementation decisions are sound per the organization’s risk
tolerance and expectations of investment return creates additional layers of
complexity for the CTO.
The office of the CTO is a critical participant and guide in the “definition of
done” — an agile denotation of fitness and quality standards — for various
types and categories of systems within the enterprise to track accountability
and fit for purpose.
The CTO can use OKRs to drive the improvement program, helping
employees stretch for ambitious new levels of competence and mastery in
the organization. They can define standards that align to strategic objectives
producing quality user experiences, built on secure and safe platforms,
through OKRs.
The CTO can navigate with OKRs as the north star for envi-
sioning and enabling technology team outcomes.
Scenario 1
The company has a high-level objective to reduce its costly and
inefficient traditional co-dependent channels. They want to sell and
service their end consumer directly. Providing services on the technology
devices ubiquitous to everyone is a Key Result supporting that Objective.
The CTO aligns to the corporate strategic OKR with an OKR like this:
Key Result 3: Grow mobile app usage for new order acquisition
by 25%
Scenario 2
The organization has a strategy to break down technology silos with
better integration and the reuse of software assets. They want to let
systems leverage and integrate with less friction. How does the CTO
optimize this?
Outside of an OKR framework, the Office of the CTO has great prestige but
little direct control. Applying influence effectively is critical to success. OKRs
help the CTO influence and affect the behavior of functions they don’t control
through the OKR superpower of focus.
The CTO can illustrate how top-level enterprise objectives are served by these
OKRs, and why parochial departmental priorities must come second to these
higher priorities.
Like writing itself, deliberate practice and the right guidance separate good
OKRs from the bad.
The practice is on you. The guidance is on us with these seven tips for better
OKRs:
Having the temptation to put numbers in your Objective will be there, but
we have Key Results, KPIs, and Tasks for our quantitative focus. Objectives
are like great tweets. Make sure they are concise, punchy, and easy
to understand. We recommend that the Objective is no longer than 70
characters.
“Create XX amount of new software assets for the cloud” might seem like
a good Key Result. But why choose this figure in particular? Creating new
assets is an output that has no connection to quality or team focus.
Now look at the updated Key Result: “85% of new software assets will be
developed in the cloud, for the cloud.”
The number of assets does not matter for this Key Result. Teams will continue
to push new assets at a sustainable, healthy rate and have focus where
it matters. By targeting a percentage, teams are no longer worried about
pushing out a certain number of assets that can be subpar, but instead
developing assets for what matters: usability in the cloud.
If you must use Yes/No Key Results, make sure you have a way of measuring
their progress.
A KPI stands for Key Performance Indicator. OKRs stands for Objectives and
Key Results.
Objective and Indicator have some relation (one influences the other), but they
are not the same thing.
A task is a specific unit of work, such as “Write a section on great OKR tips”
or “Implement push notifications feature.” OKRs are not meant to be an
elaborate to-do list.
Asking “So what?” puts the outcome mentality first in your KRs. They aren’t
just about the output of the work, but instead, the result of the work or feature.
You want to increase the total number of users for the quarter. So what? That
number can be gamed with awareness campaigns and free trials. Take this KR
a step further by shifting to increased daily users. This KR is now a measure
of consistency and lasting outcomes.
Asking “So what?” can help your Key Results pass the vanity metric sniff test.
7. Consistent education
OKRs are a muscle that takes exercise, nutrition, and balance — there is
never a moment to stop learning about them. When you acknowledge this,
your OKRs will improve each quarter.
Learn more about what dedicated OKR software can do for you versus
spreadsheets or simple task management software. Understand the cost
of software’s practical application versus the cost of not improving your
business outcomes. Expand your understanding of the methodology through
blog posts, articles, and whitepapers like the one you are reading.
We can help you do all of this. “Sign up for a free demo of Gtmhub now to get
started.
One week, we had everyone in person. As the stories go, by the next week we
had nobody.
During the pandemic, we were embracing our growth and shifting to remote
culture. When considering hiring, new candidates must align with the mission
we have set as an organization and as a team, as this is a critical underpinning
for OKR success. This is as much of a priority as the role’s responsibilities.
So, hiring can tie into management, but how can we be proactive and find
opportunities in hiring?
Management, hiring, and OKRs have a positive feedback loop with each other.
Using OKR methodology as a management example, we can ask, “If a new
hire joined us tomorrow, would they understand where we’re at as a team and
what needs to be accomplished?”
OKRs clear the path to our desired outcomes. If we engage with our OKRs
consistently as a team, updating our Key Results and managing tasks to
achieve our Objective, we can answer “yes” to the question.
We are not just hiring for the position we need — we are hiring the leaders
of tomorrow. How well a person embraces the OKR culture can tell us much
about the quality of work they will bring and their fit on our team, thus, how
well we can manage that team.
Other companies had their employees in the dark. On the tech side,
programmers, software engineers, and countless others sat in the dark for
weeks with incomplete projects and a robbed sense of purpose. OKRs made
Each team member knew what their outcomes were for the quarter, and while
the environment changed, the finish line was always visible. It would have
been easy to default to easy goals and coast as a company. But OKRs were
as much motivational as directional. Our teams were ready to push.
If someone was struggling or lagging with a task, that feedback would show
in our Key Result progression. Team members could get help and balance the
load where other companies were still figuring out how to get started. OKRs
saved us.
Hybrid work is evolving as a compromise between the past and future. Giving
employees the choice of where to work isn’t only idealistic, but brings with it a
compelling business case. Organizations that offer the freedom to work from
home are:
This whitepaper isn’t written to to convince you that your organization should
shift to hybrid work.
You should get the choice: do you want a framework that works regardless
of where you decide to work? In the results-focused culture of OKRs, micro-
management and output obsessions are phased out. Leadership can sidestep
the behaviors that achieve rigid compliance and ego fulfillment. Instead, they
can focus on helping employees achieve the goals that matter to the business.
OKRs gave structure to Gtmhub — the CTO, CEO, and beyond — amid the
largest shift in work since the boom of the internet. The future of work may be
uncertain, with the decision of remote, hybrid, or in-person setups depending
on your location, industry, and position.
What’s certain? The impact of OKRs, no matter the workplace they may find
themselves in.
For the web and mobile app transactions to be processed, the transactional
systems of record must have APIs or services exposed. You can see in this
OKR alignment view how the CTO is providing alignment and focus on this
strategic objective — organizational elements and teams are coordinated to
enable the strategic Objective to be fully realized.
In the strategy execution process, the CTO and others can track the work
progressing in real-time through progress updates on the KRs. Leadership
can intervene promptly if progress lags in any one area. Ideally, these KRs are
integrated with development and work management systems of record so the
status of the KRs is always accurate and up to date.
Effective OKR processes and tooling illustrate the extent to which these
aligned OKR objectives are, or are not, being achieved as work is delivered
throughout the quarter. Transparency created by OKRs permits effective
governance and early intervention for a strong strategy execution competency.
The challenges of the CTO and the rewards of OKRs can work in parallel.
This whitepaper has shown you at a minimum that being CTO may come with
increasingly difficult and rapidly changing challenges in all industries, but you
do not have to fly without a safety net. Having the right system in place is a
critical first step in reducing complications in your role.
In a constantly shifting landscape, OKRs may serve as the north star for
guiding your technology strategy into the future.
Try now