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@trondhjort@hachyderm.io

Post #3528725

2026-04-30 10:28 UTC

Organisational Dysfunction of the Day OKRs imposed from above Context: Many organisations have adopted OKRs, but a common way of doing them is like a cascade: company OKRs are set by leadership, then broken down into department OKRs, then into team OKRs. Everyone has objectives and key results. The teams go through the quarterly ritual of setting them, reviewing them, and scoring themselves at the end. Some teams engage genuinely, while others may treat it as a compliance exercise. A common complaint is that the team-level OKRs are effectively dictated by the level above, with little to no room to define what matters to them. The framework says teams should own their goals, but the structure says otherwise. OST explains: OKRs are a good idea applied in the wrong structure. In DP2, goal-setting is one of the core functions of the self-managing group; it is not something done to them. When goals are cascaded down from above, even with good intentions, the team is not really setting its own objectives; it is translating management's objectives into local language. That is a DP1 (bureaucratic) function dressed in DP2 clothing. The quarterly scoring ritual then becomes a performance review proxy, which is about the last thing a self-managing team needs. In a genuine DP2 structure, the team's goals emerge from its understanding of its own work, its environment, and the shared organisational purpose it has participated in defining. That is a fundamentally different starting point, and it produces fundamentally different commitment. #OpenSystemsTheory #SocioTechnical #OrgDesign #strategy

Replies (1)

  • @trondhjort@hachyderm.io 2026-05-04 08:19

    Organisational Dysfunction of the Day The agile terrarium Context: Agile transformed how software is built. Iterative delivery, short feedback loops, cross-functional teams, and continuous improvement. These were genuine advances over the heavyweight waterfall projects they replaced. The lean movement provided much of the intellectual scaffolding: eliminate waste, optimise flow, respect the people doing the work. And yet, decades on, the research is clear that agile has not delivered the engaged, self-managing, high-performing teams it probably hoped. The process works reasonably well. The organisation around it largely does not. @einarwh@mastodon.social described agile teams as terrariums: self-contained ecosystems that look alive and healthy from the inside but are sealed off from the real environment around them. Most people working in agile organisations will recognise that image immediately. OST explains: The terrarium image is more precise than it might seem. A terrarium is a closed system; it regulates its own internal conditions but does not transact with its environment. That is exactly what agile teams are often designed to be: protected from the turbulence outside, given a stable backlog and told to focus. An open system survives by engaging with its environment, learning from it, and actively adapting to it. Sealing it off does not make the turbulence disappear; it just accumulates outside the glass until something breaks. The agile founders identified "structure" as the problem and removed supervision, but left coordination undefined and control in the hands of individuals. The result was not a move to self-managing groups, what we call DP2, but laissez-faire: an industry lost in the wilderness between DP1, the bureaucratic structure most people work inside, and the self-managing alternative. Research surveying the software industry found 55.7% of respondents were predominantly high laissez-faire, more than either DP1 or DP2. Agile is not failing because the process is wrong. It is failing because a closed system cannot adapt, and the industry has been trying to solve an open systems problem with a delivery methodology. #OpenSystemsTheory #SocioTechnical #OrgDesign #agile

    Open ##3528722