OKR Rollout at Fujitsu: Key Lessons from Their Transformation Journey

Implementing Objectives and Key Results (OKRs) can be a powerful way to drive strategy execution and organizational alignment. But it also requires change management and a willingness to iterate as you go.

In this in-depth case study, we’ll explore how global technology leader Fujitsu rolled out OKRs in their Finland and Estonia offices over two years. We’ll hear directly from Mikko Lampinen, Fujitsu’s Chief Strategy and Transformation Officer, on the motivations, approach, successes, challenges, and key learnings along the way.

Why Fujitsu Finland Needed to Transform

Fujitsu has an impressive global footprint, with nearly 130,000 employees supporting customers across 180 countries. Mikko describes Fujitsu Finland as like a “legendary Volkswagen Kleinbus” – affordable, reliable and gaining popularity worldwide.

However, as Mikko explains, “good old strengths are not just good enough in this world.” Fujitsu recognized the need to transform in order to stay relevant in a fast-changing environment:

“We live nowadays in the middle of various uncertainties...climate change, pandemics, and geopolitical tensions continue to have major impact on society, business, and people's lives. The issues we face are complex and cannot easily be solved independently."

Simultaneously, emerging technologies were disrupting work patterns and opening up new opportunities:

“The way we work has already been disrupted and the future is already here, it’s just unevenly distributed. AI and automation not only manages our routine tasks, but helps us to be more creative and productive.”

Fujitsu aimed to harness these opportunities to become “human centric, data driven, connected” and drive “not only digital transformation, but sustainability transformation.”

This motivation to stay competitive and positively impact customers and society became Fujitsu’s “why” for exploring OKRs.

Fast Start with a Big Bang

Fujitsu Finland’s managing director had prior experience with OKRs from Google and saw it as an ideal methodology for communicating and implementing their updated strategy.

They designed OKRs to play a central role right from the start. As Mikko explains:

“By day one, we wanted to invite all employees to our OKR journey...we emphasize that OKRs are more like a mindset shift than a technology project for us.”

The launch sequence was rapid:

• Leadership team trained on OKRs and crafted initial company OKRs

• Recruited "OKR coaches" from within the organization

• Managers trained on OKRs

• Introduced strategic priorities and company OKRs to all employees

• Asked all teams to create their own contributing OKRs within the first quarter

As Mikko reflects, “We knew that with such a big bang, it will be far from perfect in the beginning.” But getting alignment and ownership at pace was critical.

This approach enabled Fujitsu to quickly communicate strategic focus across 2000 employees in Finland and Estonia. However, it also surfaced some leadership capability challenges in driving change, as we’ll explore shortly.

Driving Change Through Simplification, Lead by Example and Rituals

Entering the second year, Fujitsu wanted to double down on quality of execution.

They focused on simplifying and overcommunicating strategic priorities. As Mikko suggests, “less is often more, especially in the start.”

Fujitsu also emphasized first-hand leadership:

“We started emphasizing importance of leading by example. Leaders should coach their direct reports, including managers. Show the way and expect certain level of professionalism when it comes to the OKR execution.”

Virtual “Company OKR Core Teams” were established, owned by leadership team members, to drive cross-organizational actions and alignment.

Various rituals and communications campaigns kept OKRs visible and connected to business outcomes:

• Strategy one-pagers

• Regular all-hands video updates tying OKRs to vision

• Public discussions on strategy priorities

• Visualizing and branding of Company OKRs

• Sharing OKR best practices

As Mikko explains, “Where we didn’t do that, I think we missed something”.

Signs of Success But More to Do

After two years of this OKR-enabled transformation journey, Fujitsu Finland is seeing promising results:

• Employee engagement survey scores improved across 18 out of 20 areas

• Customer satisfaction increased by 11 points, outpacing competitors

• Automation driving millions in cost savings

As Mikko concludes, “Is it just an accident? Maybe it’s not.”

While the core of their strategy and OKRs remains consistent, Fujitsu views this as an ongoing journey of learning and Improvement.

Mikko sums it up well:

“I think that OKRs, they are kind of a relatively simple methodology, but the implementation is one kind of fun art form, akin to dance, because every organization and situation is unique.”

Next, let’s explore Mikko’s key learnings for how leaders can drive successful transformation with OKRs, based on Fujitsu’s first-hand experience.

Key Transformation Lessons from Fujitsu’s Journey

Mikko emphasizes the importance of taking a customized approach:

“I strongly believe that we should dare to apply different approaches for different organizations...Our business cultures are different. So I think it’s really important to think what suits you when you go on a journey with OKRs.”

At the same time, he highlights consistent themes around gaining leadership buy-in, intensive upfront support for capability building, leading by example and reinforcing the right mindsets.

Here is a summary of his core recommendations for leading change:

1. Start with the “Why” and Make OKRs Visible

• Clearly articulate the reasoning and intended outcomes upfront

• Make OKRs visible at all levels with regular communications

“It was really important for us to emphasize one the ‘why’. And it was really important for us to make OKRs really visible across the organization.”

2. Ensure OKRs are Meaningful, Concrete and Aligned

• Collaboratively define OKRs to build ownership

• Make them specific enough to drive actions

• Cascade team OKRs to directly support company OKRs

“It’s really important that you need to make sure that OKRs are meaningful, they’ve been built in a participatory approach, they are concrete, and they are aligned with your strategy.”

3. Start Small and Sustain Momentum

• Resist overcomplicating at the outset

• Plan for continuity through changes in staffing or structure

“We have found out that less is often more, especially in the start...You just need to keep repeating and ensure continuity even there are different kinds of changes along the way.”

4. Committed Leaders to Model the Way

• Top-down role modeling and coaching

• Bottom-up examples of what good looks like

“I think management commitment is everything...Their ability to engage is really crucial...Emphasize importance of leading by example. Leaders should coach their direct reports, including managers. Show the way and expect certain level of professionalism when it comes to the OKR execution.”

Key Takeaways for Your Organization

Fujitsu’s experience provides inspiration and practical advice for driving large-scale change.

Here are the top takeaways for leading your organization’s next transformation with OKRs:

• Get Clear on Your “Why”: Connect your OKR initiative to strategic business priorities and intended benefits. This motivation will carry you through ups and downs.
• Customize Your Approach: Every organization has a unique culture and change capability. Design rollout sequencing and pace for your environment.
• Take an Iterative Journey Mindset: Adopt OKRs as a learning journey, not a one-off project. Be ready to simplify, adapt techniques and continue evangelizing as you go.
• Go All-In on Leadership Role Modeling: Lack of first-hand leadership commitment will undermine any transformation. Leaders displaying OKR proficiency is the number one accelerator.
• Make OKRs Tangible: Ensure company and team OKRs are visible through clear messaging, artifacts and rituals. This builds understanding and momentum.
• Double Down on Enablement: Capability building via training, coaching and peer sharing kickstarts proficiency for sustainable change.

OKRs provided focus and alignment for Fujitsu during a complex business transformation. While each organization's journey is unique, these lessons can help you stick the landing on your next strategic change initiative.