MBO, OKR, KPI, WTF?
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A person arranges yellow sticky notes on a large sheet of paper during a collaborative planning or brainstorming session.
Your acronym decoder ring:
Turning business alphabet soup into strategic gold
No, these aren’t new AI tools. But they might be quietly running your business… or your boss’s latest obsession.
If you’ve ever sat through a meeting where someone casually dropped one of these acronyms and felt your brain short-circuit, you’re not alone.
Let’s break them down: what they mean, how they’re used, and why one of them (spoiler: it’s KPIs) is probably worth your time.
MBO: Management By Objective
This one dates back to 1954, from Peter Drucker’s The Practice of Management. The concept was a refreshingly human one for the time: let employees help set their goals so they are more invested in achieving them.
Sounds great, right? But there’s a catch: MBOs are tied to raises and bonuses. Naturally, everyone started “strategically lowering the bar” to ensure they hit their goals… and their targets for compensation.
I’ve worked under this model… and, yes… the criticism holds. When every level of the organization is sandbagging, you start to wonder what kind of progress is actually happening.
OKR: Objectives and Key Results
This is the cooler, younger cousin of the MBO, and the star of Measure What Matters by John Doerr. He didn’t invent OKRs, but he did work closely with Andy Grove at Intel, who did.
Here’s what makes OKRs different:
Not tied to compensation.
Key Results are specific, measurable, time-bound, and verifiable.
Designed to stretch, not just succeed
The idea is that by removing financial pressure, people feel safer to aim higher. That said, even Doerr himself warns:
“OKRs are not a silver bullet. They cannot substitute for sound judgement, strong leadership, or a creative workplace culture.”
So, if your business has trust issues, leadership gaps, or a culture powered by chaos, maybe don’t bet everything on OKRs just yet. But for a team that is ambitious and aligned? They can work wonders.
KPI: Key Performance Indicators
KPIs are the numbers that matter most to your business. Think of them as your dashboard - not every light on the control panel, just the ones that signal how you are doing.
And, no, they aren’t just for huge corporations. KPIs can (and should be) used by small and mid-sized businesses, especially if you are trying to grow with less guesswork and more clarity.
Used well, KPIs can help you:
✅Catch early signs of trouble (like profit up, but cash down)
✅Make smarter decisions (e.g. hire now or wait?)
✅Focus your efforts (no more chasing shiny strategies that don’t move the needle)
WTF: Yes, a real acronym where I worked
This one is here mostly for comedic relief (too many acronyms bores even me), but it’s also true. I once worked somewhere with a real internal system called “WTF.” I’ve fully repressed what it stood for, but someone definitely signed off on it.
So, Why Does Any of This Matter?
… Because a lot of small businesses skip right over goal-setting frameworks and performance tracking (too busy… too corporate… too many acronyms).
But here’s the thing: your business already has goals. And you’re already reacting to data… just maybe not the right data.
You don’t need a CFO to track KPIs.
You don’t need OKRs to motivate your team.
And you definitely don’t need MBOs unless you want to reward people for playing it safe.
What you do need is a handful of useful metrics, a way to track them consistently, and someone who can help you figure out what they’re really saying. (👋🏼Hi, that’s me.)
Final Thought: Don’t Let Familiarity Fool You
If you’ve heard of KPIs before and tuned out because they sound too basic, too boring, or too corporate - I get it.
But most of the time, the thing that feels “obvious” is exactly what’s being ignored.
KPIs aren’t about spreadsheets for the sake of it.
They’re about clarity, confidence, and momentum.
And, if you are feeling stuck, stretched thin, or unsure of where to go next - your numbers might be trying to tell you something.
What’s Next?
💬 Wondering what your KPIs should be (and which ones you can ignore forever)? Let’s talk.
📲Follow me on Instagram or LinkedIn to get the KPI starter guide when it drops—and for more tips without the jargon headache.
📧 Know someone running a business off vibes instead of numbers? Forward this their way. It’s time.
About Me
I’m Tara, founder of Alchemy Advising, a consulting practice that helps small and mid-sized businesses grow with clarity, confidence, and a lot less chaos.
This blog is where I share reflections on entrepreneurship, ambition, motherhood, and the magic (and mess) of building something meaningful—one decision at a time.
Curious about working together? Reach out here—I’d love to hear more about your business.