Strategic Planning Key Terminology

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Counterbalancing Key Result

In the context of OKRs (Objectives and Key Results), a Counterbalancing Key Result is a specific type of Key Result designed to help the objective owner remain aware of the risks associated with becoming too focused on a single goal. This Key Result serves to prevent negative unintended consequences by ensuring that progress towards the primary objective does not lead to imbalances or overlooked priorities.

Key aspects of a Counterbalancing Key Result include:

  • Risk Mitigation: Identifying potential risks or negative consequences that could arise from an intense focus on the primary objective. The counterbalancing KR addresses these risks directly.
  • Balanced Progress: Ensuring that efforts towards the main objective are balanced with other important considerations, such as employee well-being, quality standards, or other strategic goals.
  • Holistic View: Encouraging a more comprehensive approach to achieving objectives by considering a wider range of factors and impacts.
  • Preventing Burnout: Helping to avoid overwork or excessive pressure on team members by setting limits and promoting sustainable work practices.

Benefits of implementing Counterbalancing Key Results include:

  • Enhanced Awareness: Keeps the objective owner and team mindful of potential negative side effects, promoting a more thoughtful approach to goal achievement.
  • Balanced Performance: Ensures that pursuing one goal does not come at the expense of other important areas, leading to more well-rounded and sustainable success.
  • Improved Decision-Making: Provides a framework for making better-informed decisions by considering multiple aspects of performance and impact.
  • Increased Accountability: Adds an additional layer of accountability by requiring teams to manage and report on both the primary objective and the counterbalancing KR.

Example:

If we have an Objective to improve our fundraising performance, an expected Key Result would be something like "Raise $100,000 through new on-line fundraising platform".  A Counterbalancing Key Result would be something like "Keep fundraising expenses to under 10% of revenue"

By incorporating Counterbalancing Key Results into their OKR framework, organizations can achieve their objectives more responsibly and sustainably, ensuring that progress in one area does not create problems in another. This approach promotes a holistic and balanced strategy for reaching goals while safeguarding against potential pitfalls.