“What’s Possible” vs. “What’s Valuable” When Setting OKR Numbers

Hey folks, 

In this newsletter, we're diving into a crucial aspect of OKRs that often gets overlooked: the balance between "what's possible" and "what's valuable." It's a game-changer for setting effective goals that actually drive your business forward.

I'm also excited to share some updates on the resources we've created to help you implement OKRs successfully. Plus, I've got a couple of blog posts that tell some pretty interesting stories from my career – including how I once got fired for trying to improve a product!

Let's jump in and make those OKRs work for you.

Cheers,

Jeff

P.S. Join us for our upcoming webinar, "Planning 2025 with OKRs: The Basics." It's free and it could be the breakthrough you need to transform how your organization sets and achieves its goals. 

Article: “What’s possible” vs. “what’s valuable” when setting OKR numbers

When it comes to setting OKRs for your company, it's easy to get caught up in the numbers. But not all numbers are created equal. To really make OKRs work, you need to understand the difference between "what's possible" and "what's valuable."

Let's break it down:

"What's possible" is all about your team's capabilities. It's the max you could theoretically achieve if everything went perfectly. Maybe your sales team could make 1000 cold calls a day if they worked around the clock. That's what's possible.

"What's valuable," on the other hand, is all about impact. It's focusing on the outcomes that will truly move the needle for your business and your customers. In this example, maybe making 200 highly targeted calls to ideal prospects would actually drive more revenue and satisfaction.

Wondering why this matters? Well, it all goes back to the “why.”

When we only focus on the numbers, we risk losing sight of our purpose. We might hit impressive numbers, but are they the right numbers? Are we actually solving problems for our customers and growing our business in a meaningful way?

On the flip side, if we only consider what's valuable without considering what's possible, we might set unnecessary limits on what we can achieve. There's a sweet spot where ambition meets achievability.

Here's how to strike that balance:

1. Start with the customer: Before setting any numbers, ask yourself how this objective will benefit your end users. This grounds your OKRs in real value.

2. Assess your capabilities honestly: Look at your resources, skills, and past performance. This gives you a realistic sense of what's possible.

3. Set stretch goals, not impossible ones: Aim high, but keep it within the realm of possibility.

4. Focus on outcomes, not just outputs: Instead of purely quantitative metrics, include qualitative measures of success that reflect real impact.

5. Review and adjust: Regularly check in on your OKRs. Assure the number you choose is meaningful for the business. Are you hitting the numbers but missing the point? Is it a good use of your efforts, and if not, what should you focus on instead? Be ready to recalibrate. 

This approach helps you become truly customer-centric while ensuring you continue to manage for business success. Instead of chasing numbers, you're focusing on outcomes that matter to your customers. You're building an organization that can pivot when needed and celebrate the right kind of success.

Remember, the goal of OKRs isn't just to tick boxes. It's to align your organization around objectives that drive genuine progress. By balancing what's possible with what's valuable, you create OKRs that are both ambitious and meaningful.

What’s new on the blog

How I got fired for offering to improve a product - When I worked at a product development studio, we faced a tough choice: compromise our values for a lucrative app project or stick to our guns. We chose the latter, proposing product discovery first. The client fired us, but we kept our integrity. It was disappointing, but reinforced our commitment to being true partners, not just another dev shop.

How I convinced a leadership team to implement Lean UX - I've learned that introducing Lean UX to companies can be tricky. To make it work, we rebranded it, started small with one team, and linked it to leadership goals. By managing emotions and proving value step-by-step, we got a financial services company to embrace customer-centric product development across hundreds of team members.

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Watch, Listen, Read

Watch: I've been glued to my TV lately, catching up on a range of good shows. House of the Dragon has me hooked with all its Targaryen drama, while season three of The Bear is serving up more intense kitchen chaos that I’m enjoying. I'm also loving the fresh take on Star Wars with The Acolyte on Disney+.

Listen: I've been on this nostalgia trip lately. Ended up revisiting Siamese Dream by The Smashing Pumpkins. It's wild how that album still holds up, bringing back all those '90s vibes without feeling dated.

Read: I'm currently diving into Build to Sell by my friend Sandrine Olivencia. It's pretty cool to see her ideas on paper, especially since we've chatted about some of this stuff before. I've gotta say, the book's packed with insights that could really help anyone looking to build a business with long-term value in mind.