Beyond Bureaucracy: How to Fuel the Value Creation Revolution with OKRs
The Objectives and Key Results (OKRs) framework can operate as a practical execution tool capable of implementing and sustaining the core ideas of the Value Creation Revolution within traditionally bureaucratic environments.
The Value Creation Revolution rests on three interdependent principles: prioritising Customer Value, replacing Rigid Hierarchies with Autonomous Networks, and adopting Adaptive Mindsets rather than Mechanistic Processes. OKRs help public institutions navigate this transition by addressing systemic problems such as the execution gap and bureaucratic inertia.
Below is a detailed explanation of how OKRs support the implementation of each principle of Value Creation in the public sector:
1. Implementing a Focus on Customer Value
(Customer Value > Short-Term Profit)
Value Creation requires that an organisation’s primary purpose is to create and delight its customers, with profit (or, in the public sector, budgetary efficiency) serving as a by-product rather than the ultimate goal.
OKRs translate this customer—or citizen—obsession into practice through their components and structure:
Purpose-Driven Objectives:
When defining an OKR, the Objective must be clear, inspiring, and include the “why”—the impact the organisation intends to create. In the public sector, this appears in statements linking the objective to a greater mission, such as “…to increase social justice in the state” or “…to promote high-quality education”. This clarity prevents teams from focusing solely on cost-cutting or rule compliance (short-term profit/extraction) and strengthens the pursuit of meaningful societal outcomes.
Measuring Perceived Quality:
Key Results (KRs) require teams to measure what truly matters—echoing Peter Drucker’s “you cannot manage what you cannot measure”. OKRs shift attention away from deliverables (easy to measure but not guarantees of value) and towards outcomes. This often involves incorporating Quality KRs, which assess citizen/user perception (satisfaction or perceived service quality) alongside Value KRs (production numbers).
The Customer in the Value Chain:
The Macro Value Chain model (INPUTS ➔ PROCESSES ➔ PRODUCTS) helps public organisations view their services as “products” that deliver value to citizens. Strategic OKRs can then be crafted to improve the effectiveness, quality, and volume of service delivery, ensuring that metrics remain aligned with the institution’s purpose.
2. Implementing Autonomous Networks
(Autonomous Networks > Rigid Hierarchies)
The principle of Autonomous Networks replaces top-down control with self-managing teams operating within competence-based networks, promoting agility and innovation.
OKRs act as a beneficial “Trojan Horse” for introducing this cultural shift:
Aligned Autonomy:
OKRs decentralise authority by assigning “owners” to Objectives and KRs. These owners, typically close to day-to-day operations, hold the autonomy to define the weekly action plans (“the how”) needed to progress their KRs. This contrasts with the obsolete Command-and-Control model, which no longer fits the highly skilled workforce found in today’s public institutions.
Breaking Silos through Cross-Sector OKRs:
Rigid hierarchies reinforce siloed ways of thinking. OKRs counter this by requiring KRs to have owners from different departments (cross-sector OKRs) working towards a shared Objective. This structure forces communication and collaboration. Brazilian examples—such as cooperation between PGE-BA and the Public Prosecutor’s Office, and the shared OKRs used by the Federal Court of Accounts (TCU) and ANVISA—demonstrate the potential of Autonomous Networks in government.
Bottom-Up Planning:
The OKR model inverts the traditional planning flow. While strategy remains top-down, the construction of annual and quarterly OKRs is bottom-up, inviting frontline staff to contribute insights and co-develop plans. This increases engagement and fosters ownership and accountability, as staff feel heard and valued.
3. Implementing Adaptive Mindsets
(Adaptive Mindsets > Mechanistic Processes)
The principle of Adaptive Mindsets seeks to replace rigid processes with “learn-it-all” cultures that value experimentation and agility.
Rapid Feedback Cycles:
The core of the OKR system is the weekly check-in meeting (15 to 30 minutes) following the 3 Ps format: Progress, Problems, and Plans. This ritual creates a continuous learning loop (the PTA cycle: Plan–Test–Adjust). Regular evaluation of “planned versus executed” ensures plans are not forgotten and allows teams to adjust course quickly, preventing organisations from becoming trapped in outdated processes.
Innovation Culture and Challenging Results:
Adaptive mindsets require innovation. The use of Challenging KRs—with targets set around 30% above what would normally be achievable—pushes teams to think creatively, reassess processes, and adopt new technologies such as AI to achieve results, rather than relying on unsustainable overtime.
Cultural Foundations for AI Adoption:
The successful implementation of Artificial Intelligence depends on an organisational culture with clear strategic thinking, empowered staff, and effective execution. OKRs help build precisely this environment: they promote strategic clarity (through the simplicity of the OKR structure) and empower employees (through aligned autonomy). This allows AI to become a force multiplier rather than an amplifier of organisational weaknesses. AI can also act as an “Intelligent Companion” for KR owners, supporting proactive plan analysis, identifying risks, and recommending data-driven strategies in real time.
In Summary
Although the ideas of the Value Creation Revolution originated in the private sector—with an emphasis on customers—they are operationalised in the public sector through OKRs. The OKR framework provides the structure, discipline, and measurement focus required to overcome bureaucracy, increase accountability, and direct daily work towards the creation of measurable value for citizens and society.
