THE KPI-OKR SYSTEM: ARTICULATING THE PARADOXICAL TENSIONS OF STRATEGY AND EXECUTION: articulating the paradoxical tensions of strategy and execution

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Title: THE KPI-OKR SYSTEM: ARTICULATING THE PARADOXICAL TENSIONS OF STRATEGY AND EXECUTION: articulating the paradoxical tensions of strategy and execution
Authors: Miguel Pina e Cunha, Ricardo Parreira, Luca Giustiniano, Arménio Rego
Source: IEEE Engineering Management Review. :1-26
Publisher Information: Institute of Electrical and Electronics Engineers (IEEE), 2025.
Publication Year: 2025
Subject Terms: OKRs, Organization design, Goals, Management by Objective, KPIs, OKRs, Performance measurement, Performance management, Paradox, Management by objectives, Goals, KPIs
Description: We adopt a paradox theory’s lens to discuss “Objectives and Key Results” (OKRs), a third generation of goal-directed, management-by-objectives systems, which was preceded by “management by objectives” and “goal setting.” We not only explore both the similarities and the differences between OKRs and alternative systems, but also assert that in combination with “Key Performance Indicators” (KPIs), OKRs can compose a dual system to simultaneously consider strategy and execution with a focus on both stability and change. Using vignettes from practice, we argue that the combined adoption of KPIs and OKRs (KPI–OKR) allows managers to invest in the pursuit of current objectives while simultaneously promoting new strategic objectives. In this way, the KPI–OKR combination may constitute a (new) form that promotes ambidexterity through a paradoxical approach to organizational goals. We locate the difference brought by the OKR system in this potential to articulate paradoxical demands.
Document Type: Article
File Description: application/pdf
ISSN: 1937-4178
0360-8581
DOI: 10.1109/emr.2025.3562759
Rights: IEEE Copyright
Accession Number: edsair.doi.dedup.....61e0bf29a42bf4c44e4aaebbcc48a1f7
Database: OpenAIRE
Description
Abstract:We adopt a paradox theory’s lens to discuss “Objectives and Key Results” (OKRs), a third generation of goal-directed, management-by-objectives systems, which was preceded by “management by objectives” and “goal setting.” We not only explore both the similarities and the differences between OKRs and alternative systems, but also assert that in combination with “Key Performance Indicators” (KPIs), OKRs can compose a dual system to simultaneously consider strategy and execution with a focus on both stability and change. Using vignettes from practice, we argue that the combined adoption of KPIs and OKRs (KPI–OKR) allows managers to invest in the pursuit of current objectives while simultaneously promoting new strategic objectives. In this way, the KPI–OKR combination may constitute a (new) form that promotes ambidexterity through a paradoxical approach to organizational goals. We locate the difference brought by the OKR system in this potential to articulate paradoxical demands.
ISSN:19374178
03608581
DOI:10.1109/emr.2025.3562759