"The forgotten cousin of OKR that could make it 10x better"

"The forgotten cousin of OKR that could make it 10x better"

My beef with OKR: It doesn’t capture how my work relates to the company's goals. It does little in ensuring focus and maintaining alignment as a company. Because it doesn’t actually improve my team’s ways of working, I saw it as a pointless extra admin that brought no benefit.

However, there is a model that could potentially enhance OKR and address these concerns - the DHM Model. The DHM Model focuses on product strategy and how it can delight customers in hard-to-copy, margin-enhancing ways.

Product strategy is essential in answering the question, "How will your product delight customers, in hard-to-copy, margin-enhancing ways?" This involves building trust with customers over time and delivering consistent value that minimizes any "trustbusters." It also considers network effects, economies of scale, unique technology, counter-positioning, switching costs, process power, and captured resources.

To fully embrace the DHM Model, it is important to engage in product strategy exercises. These exercises help us understand how our product currently delights customers and identify ways to enhance that delight in the future. It also encourages us to explore different pricing and business model experiments over the next 1-3 years.

By incorporating the DHM Model into our OKR framework, we can bridge the gap between individual work and company goals. It provides a clear roadmap for how our work contributes to the overall success of the organization. Additionally, it ensures that our efforts are focused on delighting customers and creating a competitive advantage that is difficult for others to replicate.

To make the most out of the DHM Model and enhance the effectiveness of our OKR process, here are three actionable pieces of advice:

• 1. Align individual goals with product strategy: When setting OKRs, ensure that they directly contribute to the product strategy outlined in the DHM Model. This alignment will help employees understand the bigger picture and how their work fits into the overall strategy.

• 2. Regularly revisit and iterate on product strategy: Product strategy is not a one-time exercise; it requires continuous evaluation and adaptation. Regularly revisit the DHM Model and assess if any updates or adjustments are needed to stay ahead of the competition and maintain customer delight.

• 3. Foster cross-functional collaboration: OKRs are not just about individual performance; they should encourage collaboration and alignment across teams. Create opportunities for cross-functional collaboration to ensure that everyone is working towards the same goals outlined in the DHM Model.

In conclusion, by incorporating the DHM Model into our OKR framework, we can overcome the limitations of traditional OKRs and create a more effective and impactful goal-setting process. By aligning individual goals with product strategy, regularly iterating on the strategy, and fostering cross-functional collaboration, we can maximize the potential of both OKRs and the DHM Model.