No, I'm not referring to BOS or BSC this time, although the acronym I will use has become almost as universal as ABC in the business community. Before diving into the next framework, I want to provide a reminder of the back story:
Let’s examine how a fictional company, Concentric Circle Corp (CCC), a mid-sized technology firm looking to scale its business, can use Balanced Scorecards, OKRs, or Hoshin Kanri to Drive Success.
One of the first steps to successfully executing a strategy is selecting the correct short-term goals and having a concise and understandable tool to share progress with the organization. In this regard, every company, whether a startup, SMB, or established enterprise, needs a clear and focused strategy deployment framework. Without one, even the best-laid strategies fall apart in execution.
At CCC, the leadership team has established three key short-term goals for the upcoming year, all in line with the company’s BHAG and supporting strategy.
Sales Growth: Improve customer acquisition and retention to increase revenue by 15% while maintaining profitability. In parallel, they will also identify and complete due diligence on two acquisition targets, at least one of which is in a new vertical where CCC does not currently compete.
Technology Innovation: Upgrade internal and external systems to enhance efficiency, application performance, readiness for advanced AI applications, and data security.
People Development: Launch a leadership training program to develop future company leaders to support best-in-class employees at all levels.
Setting goals is one thing—tracking, measuring, and achieving them is another. To ensure alignment and execution, CCC is evaluating three popular strategy deployment frameworks:
2. Objectives and Key Results (OKRs)
OKRs (Objectives and Key Results) were first developed at Intel in the 1970s by Andy Grove, who adapted the concept from Peter Drucker’s Management by Objectives (MBOs). The framework gained widespread popularity after John Doerr introduced it to Google in 1999, helping the company scale rapidly. Since then, OKRs have been widely adopted by tech companies, startups, and enterprises worldwide to drive focus, alignment, and measurable outcomes.
OKRs provide a more straightforward, dynamic way of setting and tracking goals through measurable outcomes. Objectives (aka short-term goals) provide clear direction, while key results track measurable outcomes that indicate success. OKRs are commonly cascaded down to departments and individuals, often quarterly (rarely monthly).
How CCC Could Use OKRs:
Objective 1: Sales Growth
Increase revenue by 15% while maintaining profitability through customer acquisition, retention, and strategic acquisitions.
KR1: Achieve a 15% increase in total revenue year-over-year while maintaining a net profit margin above X%.
KR2: Increase customer retention rate by X% through enhanced customer engagement strategies.
KR3: Improve lead conversion rate by X% through refined sales and marketing alignment.
KR4: Identify and conduct due diligence on two acquisition targets, ensuring at least one is in a new vertical.
Objective 2: Technology Innovation
Upgrade internal and external systems to enhance efficiency, performance, AI readiness, and data security.
KR1: Implement a new CRM or upgrade the existing system to improve sales and customer service efficiency by X%.
KR2: Reduce system downtime by X% by optimizing IT infrastructure and application performance.
KR3: Increase cybersecurity measures to reduce security risks by X% through enhanced protocols and training.
KR4: Complete an AI-readiness assessment and deploy at least one AI-enhanced application or tool by year-end.
KR5: Improve data processing speed and system efficiency by X% through technology upgrades.
Objective 3: People Development
Launch a leadership training program to develop future company leaders.
KR1: Design and finalize the leadership training curriculum by [specific date].
KR2: Enroll at least X high-potential employees in the first wave of the program.
KR3: Achieve at least X% participant completion rate in the first wave.
KR4: Measure and improve leadership competencies, achieving an average participant rating of X% or higher.
KR5: Launch a mentorship program, pairing at least X participants with senior leaders for ongoing development.
There is no firmly established tracking tool for OKRs. Below is a simple example of how they would look.
Pros of OKRs:
✔️Agile and flexible—goals can be adjusted quarterly.
✔️Simple to understand and implement.
✔️Focuses on measurable outcomes.
Cons of OKRs:
❌Risk of overloading employees with too many objectives.
❌Requires regular check-ins to maintain progress.
As you can see from the examples above, OKRs provide a more detailed level of clarity than a BSC. For this reason, they are often suited to operate at a division, department, or even individual level.
In the next blog, I'll discuss Hoshin Kanri and summarize all three frameworks, comparing their strengths and challenges.
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