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Driving OKR Alignment to Create Employee Engagement


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OKR target with bullseye arrow
Image Courtesy of Adobe Stock: AdobeStock_1012677617

Now that we’ve crafted our OKRs, it’s time to focus on how teams within your company can work together to accomplish these goals. While OKRs empower teams with a significant amount of autonomy, the key to overall corporate success lies in connection and alignment. As you communicate your corporate OKRs, it’s crucial that everyone in the organization not only understands them but also recognizes their importance and how they contribute to the company’s success. A well-executed alignment process creates a direct line of sight from every individual employee back to the corporate OKRs.

Connecting OKRs from top to bottom within your organization helps illuminate the relationship between what employees do and how those actions lead to overall strategy execution. This connection fosters learning in two directions. First, as business units, departments, and individuals develop their OKRs, they showcase their unique roles in creating value for the company. To do this effectively, they must understand the business’s strategy, which deepens their grasp of the organization’s purpose. Second, as leaders analyze OKR scores across the company, they gain valuable insights into how different parts of the business are contributing to the overall strategy.

How Deep to Connect

Ultimately, your goal should be to extend the use of OKRs throughout the entire company. But how quickly should this be done? Should you rush to connect all levels within the first year, or take a more measured approach over several years?

OKRs have the potential to be a transformative tool for your business, sparking new thinking that leads to previously unimagined levels of success. To realize this potential, the framework must be embraced and utilized at all levels of the company, helping you foster fluency in a new corporate language: strategy execution. The faster you connect, the faster your employees will master this new approach, and the sooner you’ll see results.

We believe in the power of momentum and recommend moving aggressively but thoughtfully when connecting OKRs. Aggressively means connecting quickly and deeply across all levels of the company. Thoughtfully means ensuring you can answer these critical questions affirmatively before proceeding:

  • Do we have executive support for OKRs?
  • Do we have a clearly documented strategy reflected in our top-level corporate OKRs?
  • Are we committed to using OKRs to manage the business, regardless of the initial results?

If you can overcome these hurdles, a rapid rollout may be appropriate.

Preparing Your Groups for Connecting

Young people putting their fists together as symbol of unity and achievement, top view. Group of people fist bump assemble together over workplace. Teamwork concept, copy space in middle
Image Courtesy of Adobe Stock: AdobeStock_909279080

In a previous post, we discussed the importance of a mission statement, which conveys your core purpose as an organization. Every business group that will create connected OKRs should develop a mission statement that clearly outlines why they exist and how they add value to the organization.

Armed with their mission statements, each group must then answer a fundamental question: “How do we support the organization’s mission and strategy?” This question primes groups for the task of connecting by having them enumerate in advance how they are going to support the company’s overall strategic goals.

The Key to Connecting Is Influence

The purpose of the connecting exercise is to allow all groups—even individuals—to show how they influence the overall corporate OKRs. This process begins with the top-level set of OKRs. These are the critical levers of your success, and everyone in the company must deeply understand them before you begin connecting. Let’s assume you’re starting from the corporate level. The first real connection occurs when business units study the corporate OKRs and ask, “Which of these OKRs can we influence the most, and how?”

The goal of a well-executed connection process is to provide a direct line of sight from every individual employee all the way back to the corporate OKRs.

Creating Alignment

Ensuring your people are aligned around a common purpose is the number one job for any successful corporation. Connecting OKRs provides an outstanding opportunity to drive that alignment through every job and function in your firm. There are two types of alignment you’ll be fostering during the alignment process: vertical and horizontal.

Vertical Alignment

This is the type of alignment most people think of when considering connecting goals across an enterprise. Vertical alignment creates OKRs that flow downward, eventually reaching the individual employee level. However, as we’ve previously noted, this does not mean the executive team dictates a number of obligatory goals that are forced upon lower-level groups regardless of fit or necessity. Instead, vertical alignment is facilitated when teams, departments, or individuals look to the OKRs of the group to whom they report and ask: “How can we influence those OKRs? What can we do and measure at our level to drive both our success and theirs?”

Here’s an example of driving vertical alignment: The CEO of a mid-sized company declared that customer retention was the top priority. Traditionally, customer retention had been the sole domain of the customer success team, which managed ongoing client interactions and renewals. After the CEO’s announcement, everyone assumed that the customer success team would simply work harder to drive retention while other departments would continue focusing on their current priorities. However, with OKRs in place, the company could create a culture of alignment across all teams.

The product team, for instance, had typically focused on features that would attract new customers or differentiate the company from the competition. With the new focus on customer retention, they began asking, “How does this product improvement drive customer retention?” The marketing team also shifted its outlook, taking time at their user conference to interview customers and gather valuable survey data on retention. Even the sales team adjusted its approach, now taking time to call on their installed base to ask how they could add more value and emphasize long-term relationships.

Each of these teams did something different—something relevant to their specific function—but the common denominator was identifying actions that supported the corporate strategy of increasing customer retention. That’s vertical alignment in action.

Horizontal Alignment

While most companies are familiar with the concept of vertical alignment, horizontal alignment is equally important but often overlooked. In the modern enterprise, much of the work involves disparate teams coming together to solve customer issues or create new value. When one unit can’t depend on another, damaging consequences such as duplication of effort, missed opportunities, and escalating conflicts can occur. OKRs can help fill this gap.

Creating horizontal alignment isn’t complicated. It simply requires having the discipline to hold detailed conversations with other units throughout the company to discover mutual dependencies. Both teams then create OKRs that reflect these dependencies. The resulting OKRs may be unique to each unit, or in some cases, they may decide to use “shared OKRs.” Shared OKRs are particularly useful when multiple teams work closely together to achieve a result, ensuring that everyone is aligned and contributing to the overarching goal.

Dividing line down road painted as an arrow in Autumn scene.
Image Courtesy of Adobe Stock: AdobeStock_894649161

Confirming Alignment of Connected OKRs

Creating a set of corporate OKRs that improves focus on what really matters is one thing. However, the value of an OKR implementation increases exponentially when you connect, allowing all participants to announce their contribution to the bigger picture. Connecting may be the most essential part of your OKR process, so it’s critical to ensure it’s done well. Once you begin rolling out the program and having lower-level groups develop their OKRs, you can’t assume that those OKRs are aligned. You must check each set to ensure they draw a clear line of sight back to your strategic goals.

Next up… Managing Effectively with OKRs.

Bill Gelbaugh

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.

Unlocking Outhouse’s Potential with OKRs 


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Courtesy of Adobe Stock By Kattika

2. Preparing for the OKR Journey 

In our first post, we explored why your company might want to adopt OKRs. Now, as we move forward, it’s time to focus on preparation. Just like building a home, laying a solid foundation is crucial before you start raising the walls. The same holds true for OKRs. A little preparation goes a long way in ensuring a successful implementation. And remember, OKRs are a journey, not a one-time event. 

This guide is tailored to help home builders, trade contractors, suppliers, architects, engineers, and others in the housing industry adapt OKRs to your unique company culture. Most of us don’t have a Silicon Valley mindset, so adaptation is key. However, there are some basic questions every company should address to get started on the right path: 

The Planning Phase 

Who Will Champion OKRs? 

Every successful OKR implementation starts with a passionate champion. This person, often a senior executive, must be deeply committed to rolling out the OKR strategy. Without this sponsorship, no initiative will survive. Who in your company has the drive and influence to lead this charge? Identify your champion, and make sure they have the backing they need to succeed. 

What Is the Most Critical First Step? 

Before diving into the nuts and bolts of OKRs, it’s essential to secure buy-in from your team. Everyone needs to be on board with the OKR program. This step isn’t just about understanding the framework, philosophy, and goals—it’s about fostering a collective commitment to the process. By the end of this series, you should feel confident in reviewing OKRs with your team and ready to get them excited about the journey ahead. 

What Matters Most? 

OKRs aren’t about doing everything; they’re about focusing on what’s most important. The beauty of OKRs lies in their ability to help you isolate the most critical business issues and dedicate your efforts to solving them. What are the fundamental priorities for your company right now? Your OKRs should zero in on these key areas, driving your business forward with purpose. 

How Will We Create Transparency? 

One of the greatest strengths of OKRs is their transparency. Ideally, OKRs should be visible throughout the organization, allowing everyone to see what’s being measured and provide feedback. This openness not only fuels collaboration but also ensures alignment and strategy execution across all levels of the company. 

How Will We Live Our OKRs? 

The real magic of OKRs comes from integrating them into the daily life of your company. They aren’t just set and forgotten—they should be part of your daily, weekly, and quarterly routines. From initial planning meetings to status updates and dashboards, OKRs need to be lived and breathed by your entire team. 

The Development Phase 

Once you’ve answered these foundational questions, it’s time to roll up your sleeves and start developing your first set of OKRs. Here’s how to approach this next phase: 

  1. Mission, Vision, and Strategy: Your OKRs should be deeply rooted in your company’s mission, vision, and strategy. These elements are the bedrock of your OKRs, driving the achievement of your long-term goals. Make sure they’re solid before moving forward. 
  2. Corporate-Level OKRs: Start at the top by creating OKRs at the corporate level. You might involve a small team, gather input from employees through surveys, or conduct executive interviews. However you approach it, the key is to ensure that these OKRs align with your broader strategy and are communicated clearly to the entire organization. 
  3. Presenting OKRs: Don’t just send out an email and call it a day. Use multiple channels to communicate your OKRs—share them electronically, post them on your intranet, and most importantly, discuss them in person. An all-hands meeting, for example, can be a great way to facilitate dialogue and ensure everyone understands the OKRs and the reasons behind them. 
  4. OKR Education: While OKRs are simple in theory, they require proper education to implement effectively. Take the time to educate your team not just on the fundamentals, but on why you’re choosing to use OKRs now, success stories from other firms, and what they can expect along the journey. 
  5. Monitoring OKRs: OKRs are not a “set it and forget it” tool. You need to monitor them regularly, using an OKR Scorecard and following a quarterly, monthly, or weekly schedule—whatever cadence works best for your organization. 
  6. Reporting Results: At the end of each quarter, score your OKRs and communicate the results across the organization. This isn’t just about accountability; it’s about learning and improving as you move forward. 
Courtesy of Adobe Stock By SakdaSong

The Strategy Alignment Phase 

OKRs should never exist in isolation—they need to reflect your company’s broader purpose, long-term goals, and strategy. Here’s how to ensure alignment: 

  • Company Mission: Your mission statement defines your core purpose—why your company exists. It’s your organization’s guiding light, constantly pursued but never fully achieved. Aligning your OKRs with this mission ensures that the work you do today contributes to your long-term purpose. 
    Your mission isn’t just a lofty ideal—it’s the compass that guides every decision your company makes. It reflects why your employees show up every day and serves as a reminder of the bigger picture, the greater good your company is striving to achieve. Whether it’s building homes that stand the test of time or creating communities where families thrive, your mission should be the foundation upon which your OKRs are built. 
    Unlike a vision or a strategy that may evolve over time, your mission remains a constant. It’s the steady north star that ensures every OKR you set is aligned with the core purpose of your organization. When your mission is clear and compelling, it’s much easier to steer the company in the right direction, keeping your OKRs in sync with the ultimate goal. 
  • Long-Term Vision: While your mission defines your company’s purpose, your vision paints a picture of where you want to be in the future. This vision is the bridge between your mission and your strategy—it’s the destination on the horizon that everyone in your organization is working toward. 
    Your vision statement should be a vivid, concrete picture of your desired future state, whether it’s five, ten, or fifteen years down the line. It’s not just about imagining a better tomorrow; it’s about providing a clear, tangible target that informs your strategy and your OKRs. Without this vision, your team might work hard, but without a clear direction, their efforts could be scattered and less impactful. 
    When your vision is well-defined, it fuels motivation and aligns your team’s efforts. Every OKR should serve as a stepping stone towards achieving this vision, ensuring that your short-term actions contribute to long-term success. It’s this alignment that transforms a collection of individual goals into a cohesive, strategic push towards a shared future. 
  • Annual Strategy: Your strategy is your game plan for achieving your vision. It’s about making tough decisions—choosing which markets to target, which customers to serve, and which opportunities to pursue or pass on. This is where the power of “No” becomes critical. Not every opportunity is worth chasing, and your strategy helps you focus on what matters most. 
    An effective strategy clarifies your priorities and sets the stage for your OKRs. It answers the critical questions: What are our preferred markets? Who are our optimal customers? What are their most pressing needs? By addressing these, your strategy guides the creation of OKRs that not only align with your vision but also address the real-world challenges and opportunities your company faces. 
    When your OKRs are directly tied to your annual strategy, they become a powerful tool for executing that strategy. They provide clarity, focus, and a roadmap for achieving your strategic goals, ensuring that every part of the organization is working in harmony towards the same objectives. 
    Finally, remember that a great strategy isn’t static—it evolves as your market changes, as new challenges arise, and as you learn from your successes and setbacks. Your OKRs should reflect this dynamism, allowing your company to remain agile and responsive while staying true to your mission and vision. 

Ready to start developing your OKRs? With a clear understanding of your most critical objectives and how to adapt OKRs to fit your company’s culture, you’re now ready to take action! 

Next up… Crafting Great OKRs – Part 1. 

Bill Gelbaugh Outhouse Senior Partner

Bill Gelbaugh is one of our Senior Partners here at Outhouse and champions our OKR efforts.