Dr. Deming Would Hate OKRs, But He'd Love SLOs

Throughout my career, I've encountered a myriad of management systems, each promising to be the key to organizational success. Yet, it's through these experiences that I've developed a way of looking at things critically. My philosophy has evolved not from a place of mere preference but from a foundation built on practical application, effectiveness, and a profound respect for the theories of Dr. Edwards Deming on management systems.  Using this framework, I want to contrast Objectives and Key Results (OKRs) with Service Level Objectives (SLOs).

My journey into the territory of OKRs and SLOs has led me to the following realization: OKRs, while widely adopted for their straightforwardness in setting and achieving goals, often fall short of fostering a cooperative and systemic improvement environment. This realization stems from witnessing their implementation across various organizations, where the focus on hard targets frequently overshadows the importance of the underlying processes that drive genuine progress. In contrast, SLOs, with their roots deeply embedded in Service Level Indicators (SLIs), have shown me the value of a systems thinking approach, emphasizing the 'how' over the 'what' in achieving organizational goals.

Dr. Deming, whose work profoundly influences my views, championed the notion that understanding and improving the method behind achieving goals is crucial. He argued that a focus solely on outcomes, as is common with OKRs, could lead to detrimental practices such as gaming the system, especially when outcomes are directly tied to personal incentives like bonuses. This perspective resonates deeply with me, reinforcing my belief in the effectiveness of SLOs for promoting a healthier, more cooperative organizational culture.

Moreover, SLOs inherently encourage a focus on cooperation and systemic improvement, aligning closely with Deming's principles of quality and productivity enhancement. This alignment is not coincidental but a testament to the thoughtfulness of SLOs in design and application. By prioritizing the means, often called management by means — the Service Level Indicators — SLOs create a framework that not only aims for but also achieves sustainable success through improved process understanding and refinement.

In conclusion, my advocacy for SLOs over OKRs is more than a preference; it's a call to embrace a management philosophy that values method and systems thinking. This approach not only enhances organizational effectiveness but also to foster a culture of cooperation and continuous improvement. By aligning more closely with Deming's principles, SLOs offer a path to a more effective, cooperative, and principled organizational culture, underscoring the importance of focusing on the how rather than the what in our pursuit of excellence.

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Deming in the News 2/23/24