Executive Zone >> Measure what Matters >> Verticle and Horizontal Alignment >> How Epics and OKRs Bridge the Gap in Software Projects

Software projects, at their core, should serve tangible business goals. However, the connection between lines of code and boardroom objectives can often become blurred. This is where Epics and OKRs (Objectives and Key Results) shine, providing a powerful framework to ensure that software development remains tightly aligned with overarching business strategy.

The Disconnect: When Software Projects Drift from Business Goals

Too often, software teams get caught in the weeds of technical implementation, losing sight of the bigger picture. Features are built, bugs are fixed, but the question lingers: "Are we truly moving the needle for the business?" This disconnect can lead to wasted resources, misaligned priorities, and ultimately, a product that fails to deliver on its intended impact.

Epics and OKRs: A Powerful Partnership for Alignment

Epics and OKRs, when used in tandem, create a clear line of sight from strategic business goals to granular software development tasks.

Epics: Breaking Down Large Initiatives into Manageable Chunks

• What they are: Epics are large bodies of work that can be broken down into smaller stories. In software development, they represent major features or initiatives that span multiple sprints.  

• How they help:

  • They provide a high-level view of the project, ensuring that all teams are aligned on the overall scope.  

  • They facilitate breaking down complex projects into manageable chunks, making them easier to plan and execute.  

  • They allow for tracking progress against large initiatives, providing visibility into the overall project status.  

• Business Goal Connection: Epics are derived from business requirements, ensuring that software development efforts directly support strategic objectives.  

OKRs: Defining and Tracking Measurable Outcomes

• What they are: OKRs are a goal-setting framework that defines ambitious, qualitative Objectives and measurable Key Results.  

• How they help:

  • They provide a clear and measurable way to track progress towards business goals.  

  • They foster alignment and transparency across the organization.

  • They encourage a focus on outcomes rather than just outputs.  

• Business Goal Connection: OKRs are directly tied to strategic business objectives, providing a clear link between software development efforts and business impact.  

The Synergy: Epics and OKRs in Action

1. Strategic Alignment:

   • Business goals are translated into high-level OKRs.  

   • These OKRs inform the creation of Epics, ensuring that software initiatives directly support strategic objectives.

2. Granular Execution:

   • Epics are broken down into smaller user stories, which are then prioritized and assigned to development teams.  

   • Key Results within the OKRs provide measurable targets for each Epic, ensuring that progress is tracked and aligned with business outcomes.  

3. Continuous Monitoring and Adjustment:

   • Progress towards Key Results is regularly monitored, allowing for adjustments to be made as needed.  

   • Epics are reviewed and refined based on feedback and changing business needs.  

4. Data-Driven Decision Making:

   • OKRs provide data-driven insights into the impact of software development efforts.  

   • This data can be used to inform future decisions and prioritize initiatives that deliver the greatest business value.  

Benefits of Using Epics and OKRs Together:

• Increased Alignment: Ensures that software development efforts are tightly aligned with business goals.

• Improved Transparency: Provides clear visibility into project progress and business impact.  

• Enhanced Accountability: Creates a culture of accountability by focusing on measurable outcomes.

• Faster Time to Value: Helps to prioritize initiatives that deliver the greatest business value, leading to faster time to market.

• Data-Driven Decisions: Enables data-driven decision-making, leading to better outcomes.  

By integrating Epics and OKRs into their software development process, organizations can bridge the gap between code and commerce, ensuring that their software projects deliver real and measurable business value.

Further reading;

• Mastering the Art of Managing Up: Influencing Your Success

• Navigating Collaboration and Dependencies Across Software Teams

• How Epics and OKRs Bridge the Gap in Software Projects