OKRs vs. PI Objectives in SAFe
The Scaled Agile Framework (SAFe) has become the most widely adopted scaling framework. SAFe claims that the framework is used in 70% of the Top 100 companies in the Fortune 500. An overview of SAFe can be found here.
SAFe leverages many established methods like Lean, Scrum, Kanban, Design Thinking, and WSJF. The SAFe delivery model is based on a framework for scaling development with multiple synchronized delivery teams organized into Agile Release Trains (ARTs), operating within fixed time-box planning cycles (Program Increments – PIs).
Whereas the OKR method has become very popular in product management (see Better Backlogs from OKRs), SAFe advises against using OKRs as PI Objectives in PI Planning. (see Applying OKRs in the Scaled Agile Framework). The basic concern is twofold, first that it would take too much time during PI Planning to write effective OKRs, and secondly that Key Results are typically lagging indicators making it impossible to realize them within a single PI timebox.
Special mention is deserving of the application of OKRs to writing PI Objectives. The typical format for describing PI Objectives is to make them S.M.A.R.T. On the surface, it would seem a simple endeavor to change this to the OKR format. However, there are reasons we caution against this. We must be mindful of the time it would take to write, review, and eventually assess, the team PI objectives in the OKRs format. S.M.A.R.T. objectives can typically be expressed in a single sentence or phrase. OKRs are much deeper and take more time. Teams have limited time during PI Planning, and drafting objectives, each with 3-5 key results, leaves less time for the actual planning activities. Furthermore, key results often represent lagging indicators and may not be achievable within the PI timebox.
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PI Objectives are business summaries of what each delivery team in an ART intends to deliver in the next PI. PI Objectives are a refined version of the business goals defined by the business stakeholders as an input to PI Planning. These refinements are based on the results of each team’s planning deliberations.
The basic problem is not lack of time to create OKRs, but rather that the ‘O’ in OKR is not an apples-for-apples substitute for a PI objective. PI Objectives are business summaries of what each delivery team in an ART intends to deliver based on the results of their planning deliberations. Whereas OKRs would be considered inputs to a planning process, PI Objectives are outputs. Of course delivery teams in SAFe do not show up to a PI Planning event with no idea what the business priorities are for the upcoming PI. Organizational readiness for PI Planning requires alignment on goals and priorities between all business stakeholders before a PI Planning event. PI Objectives serve to establish how much of the defined business goals can be achieved based on the results of the planning process.
PI Objectives are not the same as OKRs. But, OKRs can play a valuable role in PI Planning.
While it is true that there is unlikely to be enough time to develop OKRs during a PI Planning event, they can be established ahead of the event as a way to improve the clarity of objectives.
OKRs have 2 parts: A what (objective) and a how (key results). The following definitions are from John Doerr’s book, Measure What Matters.
OKRs (Objectives and Key Results) are a collaborative goal-setting protocol for companies, teams and individuals.
An Objective, is simply WHAT is to be achieved. Objectives are significant, concrete, action-oriented, and (ideally) inspirational.
Key Results benchmark and monitor HOW we get to the objective. Effective KRs are specific and time-bound, aggressive, yet realistic. Most of all they are measurable and verifiable. You either deliver a Key Result or you don’t. At the end of the designated period (typically a quarter), we declare the Key Result fulfilled or not.
Key Results should represent tangible business outcomes – not activities, tasks or even features to be delivered. Key Results should move product KPIs like conversion rates, customer signups, delivery lead-times and so on. Conversations around Product Strategy should be about problems to be solved – not solutions (features) – leave that up to the delivery teams.
Incorporating OKRs into the delivery framework can help improve alignment, focus, and engagement. Talking about Objectives and Key Results makes it easier to engage all stakeholders directly into conversations about what is needed to achieve a Product Vision and how to accomplish it.
PI ART Backlog Items are derived from Product Strategy/Product Roadmap, or a Portfolio Backlog, which are typically captured as epics in SAFe. Objectives in a roadmap define “what” needs to achieved to support the vision. ART Backlog items (features) describe the “how” – specific solutions for those objectives. Teams build features that provide value to users which in turn contributes to business outcomes.
Thus, a PI Objective should have 3 connected elements:
What: What does the feature do
So That User Value: What’s the benefit to the user
So That Business Value: How does this contribute to a business outcome.
Example:
What: Provide multiple high resolution product images with all search results
So That User Value: User is more confident in making a purchase decision
So That Business Value: Contributes to improving sales conversion rate
Improving Sales Conversion Rate is a good example of a PI Objective for a team that was planning to develop the High Res. Product Images feature.
Product features can be considered as solutions to achieve KRs.
The diagram shows a set of objectives defined to achieve the overall product vision. Each objective has a set of Key Results that specify the criteria for confirming the objective is done. Finally each Key Result has a set of implementation- or solution-specifics (features) needed for its realization.
OKRs can play valuable role in bringing clarity to business objectives and for aligning everyone in an ART on goals and priorities. Used in this way OKRs should be established in advance of a PI Planning event, and used to drive feature prioritization and better alignment with business objectives.
The SAFe literature has the following steps for PI Planning preparation. Preparation effort is required in 3 areas:
- Organizational Readiness: Alignment on goals and priorities among business stakeholders
- Content Readiness: Executive briefing on business context, Product Manager updates on Product Vison, and Program Backlog (now known as the ART Backlog).
- Logistics Readiness: Locations, tooling, technology
For organizations that operate using PI Planning, defining OKRs for the next PI will be done ahead of the planning event as part of the PI Planning Preparation step. The input to planning for the next PI will now include a set of OKRs, and the target feature set for the PI can be linked directly to these objectives.
When setting up an OKR planning cycle, ensure that it is synchronized with delivery planning cadences.
