Setting Goals that Align with Business Objectives

In engineering and technology, having clear goals helps teams work together toward broader company aims. Three main frameworks — OKRs (Objectives and Key Results), V2MOM (Vision, Values, Methods, Obstacles, and Measures), and the Balanced Scorecard — assist in bringing alignment across different departments. This article breaks down the strengths and trade-offs of each framework, helping engineering leaders decide which approach fits best with their team’s pace, culture, and day-to-day reality.

TL;DR

- OKRs: Ideal for agile, short-term goals with measurable outcomes, suited for dynamic settings.

- V2MOM: Focused on values and long-term objectives, great for maintaining alignment with company culture and mission.

- Balanced Scorecard: Best for thorough alignment across various business dimensions. Business fields; good for older companies with set procedures.

Each goal-setting system has its own benefits. OKRs are quick and can be measured easily, V2MOM includes values in planning, and the Balanced Scorecard gives complete monitoring of different business fields. Engineering leaders may select or merge parts of these systems depending on company culture, needs, and the desire for change.

Top-Down Approaches for Goal Setting

1. OKRs (Objectives and Key Results)

OKRs help organizations set bold goals and monitor progress through measurable key results. Companies like Google and Intel use OKRs to promote agility and frequent changes, often quarterly.

- Advantages: OKRs are flexible and measurable, perfect for engineering teams that need to adjust goals quickly to keep up with shifting needs. They also support ambitious goals, letting teams aim high without the worry of failing if they don't fully achieve their targets.

- Disadvantages: Sometimes, OKRs can lead to picking overly ambitious goals, risking team burnout. Teams may also overlook the broader vision since OKRs tend to focus on short-term results.

Best For: Quick-moving organizations and engineering teams that value adaptability, transparency, and regular goal reviews.

2. V2MOM (Vision, Values, Methods, Obstacles, Measures)

Developed by Salesforce, V2MOM highlights the importance of aligning with company values and planning thoroughly. This framework starts with a long-term vision and values, followed by actionable methods, obstacles, and measurable results.

- Advantages: V2MOM fosters decisions driven by values, helping teams stay aligned with company goals and culture. It is suitable for teams that need to incorporate core values in everyday tasks.

- Disadvantages: The extensive nature of V2MOM can require significant time and lacks the quick adaptability of OKRs. This structure may make frequent goal changes challenging, reducing responsiveness to fast-paced industry changes.

Best For: Organizations that prioritize culture and values, where long-term alignment is vital for success.

3. BSC (Balanced Scorecard)

The Balanced Scorecard is a structured framework used by large organizations to align and manage goals across financial, customer, internal process, and growth perspectives.

- Advantages: This framework provides a balanced method, linking overall company goals with specific operational and learning objectives. It also includes performance tracking in essential areas, aiding engineering teams in achieving a balance between innovation, efficiency, and long-term growth.

- Disadvantages: The Balanced Scorecard can be complicated and demanding in terms of resources, with its annual review cycle being less adaptable to changes. It works best for established companies that thrive on structured systems.

Best For: Established organizations needing alignment across various aspects of the business, particularly those with complex engineering needs.

Bottom-Up Alternatives for Goal Setting

For engineering teams that need flexibility, bottom-up methods encourage them to play a significant role in defining their own goals:

1. 4DX (Four Disciplines of Execution): Concentrates on defining “Wildly Important Goals” (WIGs) set by each team based on the company's main objectives. This encourages team accountability and includes regular progress updates.

2. SMART Goals (Specific, Measurable, Attainable, Relevant, Time-Bound): While SMART is not an all-encompassing framework, it serves as an effective technique for creating clear, achievable goals that align with broader corporate objectives.