by We talk a lot about goals and OKRs at 15Five, because we believe in the value of using a consistent goal-setting framework for high-performing teams. We use OKR internally and embed it into our platform to help keep people, processes and activities across the organization focused on the right priorities.
A question we often hear is what role Scrum plays in an OKR process. Are OKR and Scrum similar? What makes them different? Can you do both? In this article, we’ll share what you need to know about OKR and Scrum and how an organization can have both processes in place.
What are OKRs?
The OKR methodology helps organizations, teams, and individuals define and track business goals and results. The methodology was created by former Intel CEO Andy Grove and later introduced to the general public by John Doerr, who described it in his book, measure what matters. In the book, Doerr shares how using OKR goals has helped companies like Intel, Google, and Microsoft achieve exponential growth.
The OKR formula: I will do ‘X’ measured by ‘Y’
This formula essentially means that an individual or team will complete a specific goal as measured by the completion of a given set of key results. Goals should be aspirational and motivating, and key results should be data-driven, time-framed, and numerical.
Here’s an OKR example:
Aim: Turn our best customers into loyal brand ambassadors.
Key results:
- Develop and launch a customer community in the third quarter.
- Publish 10 new customer case studies by the end of the year.
- Increase NPS score from 6.5 to 7.5 between Q2 and Q4.
Learn more about creating great OKRs >
What is Scrum?
Scrum is a project management methodology that was created by Jeff Sutherland and Ken Schwaber in the 1990s to meet the demands of the fast-paced culture of product development. (“Scrum” is a rugby term referring to a period of play in which players huddle together to get the ball.)
Scrum It is product-oriented and is most commonly used for software delivery, agility, and other complex products. The framework is meant to be more agile, with each component serving a specific purpose essential to success and usage.
The idea behind Scrum is that teams can work together to tackle projects in small parts, while having the flexibility to experiment and provide feedback to learn and improve as they go. It is a collaborative and flexible way to create value and accumulate small profits as a team.
How do OKRs and Scrum compare?
Scrum is more typically used for software development or other complex projects, while OKRs can be beneficial to a wide range of projects and teams. OKRs also help a team or individual achieve bigger and more ambitious goals, whereas Scrum focuses more on short-term quick wins over time.
Both OKRs and Scrum use time-bound metrics, but OKRs are often quarterly, while Scrum projects use shorter timelines (called “sprints”), typically monthly or weekly. Scrum is also a team-based process, while OKRs can be for an individual, a team, a department, or an entire organization.
How can OKR and Scrum work together?
You don’t have to choose one or the other when it comes to OKR and Scrum. You can have your cake and eat it too, as both methodologies work well together when used in the right way to meet short- and long-term organizational goals.
Key results measure results, not results. Therefore, using OKR to set broader organizational goals and using the Scrum framework to then tackle the work to achieve those goals can be a great way for teams to integrate both processes. For example, if you have monthly Scrum sprints, your sprint goal might correspond to one of your OKR goals.
Timeliness and measurable results are important in both frameworks, and both drive higher performance. Employees can see what success looks like and have a clear idea of what they need to do to achieve it. Both frameworks also encourage greater transparency, accountability, and teamwork in an organization.
Do you want to know more about OKRs?
The OKR framework can help your employees understand what is expected of them and how their work relates to company goals, which can increase employee engagement and performance.
Learn the importance of goal setting, how OKRs can fit into your performance management strategy, and common pitfalls to avoid in our comprehensive OKR manual.
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