Disadvantages of the OKR Method & Why OKRs Might Not Make Sense for You

Where there is light, there is also shadow – of course, the much-praised and highly effective OKR method for setting goals has disadvantages! (you can find the biggest advantages of the OKR method here)

These arise from the nature of the OKR method and its application.
And the people who use OKRs also play a role.

Here are the most significant disadvantages of the OKR method:

1. Disadvantage: Transparency

If you’re using OKRs alone for yourself, then there’s no problem with transparency.

But as soon as OKRs are used in a team – or, as they’re intended, across the entire company or at least across departments – transparency becomes both an advantage and a disadvantage.

The disadvantages of OKR-induced transparency include:

 Transparency is not always welcomed in some companies.
Often, certain managers don’t want their goals or those of their team or department to be made transparent. They prefer to work “under the radar.” Whether this is because they struggle to define a plan or fear they won’t meet their goals and look bad as a result? Who knows…

When this happens, OKRs might work great in other teams (with other managers), but the actual value of OKRs will not come into play for the company. OKRs show their true power when the whole company pursues transparent goals.

It’s like driving a Ferrari – but only in first gear. Sure, you move forward, but not nearly as fast as possible. A Ferrari wasn’t built to stay in first gear, and OKRs aren’t meant to be used behind closed doors.

Transparency can create fear among employees of surveillance, control, and being “weeded out.”
In organizations where goals haven’t been defined before, many employees are often skeptical when encountering OKRs, fearing more control and monitoring.

In companies where goals have traditionally been used primarily to put employees under pressure, OKRs are often seen as “old wine in new bottles.” That’s why it’s essential, when introducing OKRs, to demonstrate that their primary purpose is to work with employees to define achievable goals together. The regular meetings and OKR reviews are meant to support employees, not control them.

The role of leadership is critical here.
Managers who micromanage and monitor their employees will struggle to implement OKRs. If the company culture (or “anti-culture”) is one where “underperformers are weeded out,” then OKRs can be discarded from the start.

Transparency can unintentionally cause self-imposed pressure among employees.
Depending on their personality, some employees may feel attacked if their performance is compared to others—or at least could be compared. The transparency of OKRs makes such comparisons easy.

It’s fascinating: even in companies with excellent workplace cultures, employees sometimes suddenly become anxious once their work becomes visible to others through OKRs. This can happen even if no one on the team compares performances.

Therefore, an open culture, built on trust is a prerequisite for successful OKR implementations.

2. Disadvantage: OKRs require regular communication between managers and employees

“OKRs sound great. I also like the idea of monthly reviews.
But it won’t work. I’ve only had one conversation with my boss in the last two years.”
This comment from a participant in my online OKR training OKR 101 is representative of many others.

So, the regular contact between managers and employees required by the OKR method can be considered a disadvantage. Unfortunately, there are many cases where managers rarely speak to their employees.

This could be due to overwork, large teams, or constant travel.

It could also be because some managers simply don’t care to talk to their employees. Or they believe, “If something’s wrong, my team will let me know—and if I don’t hear anything, everything’s fine.” This is rarely the case.

Yes, there are industries where little communication is okay, and that’s fine. A software developer may prefer to focus on coding rather than have monthly performance reviews. Still, even a developer wants to know they’re making progress with their OKRs and have this recognized.

For some managers, OKRs allow them to rethink their behavior and adopt a more situational management style. And that’s a good thing.

However, if managers have no interest in engaging with their employees, OKRs will fail.

3. Disadvantage: OKRs require a healthy culture of failure

If OKRs are used “only” for everyday tasks (they shouldn’t; read more aboth this topic here: Does daily business belong in OKRs?), then the culture of failure plays a limited role in their success. But as soon as ambitious OKRs are set, such culture becomes crucial.

And that’s one of the disadvantages of OKRs: you need a healthy culture of failure.

An ambitious objective is one where, when setting it, it is likely that it won’t be fully achieved. That’s why it’s ambitious!

For example, in early 2020, I aimed to write 90 blog posts in 100 days. That was highly ambitious because, during the second half of 2019, I had only managed to publish 24 posts. In six months. Failure was almost guaranteed.

In fact, I didn’t hit the target of 90, but I did publish 60. That’s actually a huge success, as it means I increased my output by five times compared to 2019.

However, for this to be recognized as a success, a company needs to foster an error culture that frames “failure” in the right light.

OKRs will fail if ambitious OKRs are misunderstood and used only to squeeze out more of employees.

4. Disadvantage: Acceptance of people who are “not goal-oriented” is needed

I am very goal-oriented. But not everyone is like that.

OKRs and their focus on goals and interim goals can be a massive challenge for people who simply aren’t comfortable with goal-setting.

There are (not only a few) people who either never believed in setting goals or have had so many bad experiences with goals that they’ve given up.    

Some people also feel that setting goals restricts them and kills their creativity. I don’t want to judge that. However, trying to set OKRs with such an employee will likely be an uphill battle for the manager.

The employee will likely say:
“You define my goals, and I’ll see what I can get done.”

At review meetings, they will offer vague updates on progress.
Whether the goals are achieved or not will have little impact on this person’s motivation. This is a reality we have to accept.

Applying OKRs is like trying to make everyone goal-oriented. And any method has a disadvantage when it attempts to paint everyone with the same brush.

5. Disadvantage: Discipline is essential

Another potential disadvantage of OKRs is the discipline required to use the method consistently over the long term.

Few people sit idle at their desks, eagerly waiting for an OKR review. But just like our long-term fitness won’t improve if we jog 10 kilometers per day for four weeks and then do nothing for eight weeks, OKRs are ineffective without a minimum level of discipline.

This is one of the main reasons why an OKR Master can be helpful, at least in the beginning (learn more about it here: What does an OKR Master do?).

If basic building blocks such as:

 

• Documenting OKRs at the definition stage,
• Regular follow-ups (1x month at least),
• Updating progress,
• Quarterly planning

aren’t done, OKRs are meaningless.

In my experience as an OKR advisor, the required discipline is one of the method’s three biggest disadvantages.

6. Disadvantage: OKRs must be embraced by the entire company

Finally, the last disadvantage of OKRs involves the entire company, especially the upper management levels.

Google has been using OKRs since 1999. Back then, the two founders, Sergey Brin and Larry Page, were convinced of this method and have lived by it ever since.

The company’s OKRs are discussed with the entire management team every quarter. They have rigorously ensured that all management levels use OKRs.

This is why, over 20 years later, OKRs remain the management tool at Google.

For OKRs to be successful, the management must demonstrate a strong and consistent commitment to the method.
No exceptions. No special rules. No shortcuts.

If this is demonstrated by top management for at least a year, OKRs can work.

If not, OKRs will be another management idea introduced with flying colors and abandoned quietly.

If you are unsure if your company or at least your department is ready for OKRs, if you have struggled with goal setting or alignment, my OKR consulting services may be the best next step for you: OKR consulting service