Aligning for Impact: 3 Years of OKR Lessons from Pearson

Organizations of all sizes strive to execute strategy and drive meaningful business outcomes. But the path from strategic planning to execution is often unclear. How do you ensure that your entire company is aligned and focused on the handful of goals that matter most each quarter or year?

Objectives and key results (OKRs) offer a solution. OKRs help organizations communicate priorities, focus efforts, strengthen alignment, and track measurable results. Global education company Pearson has used OKRs to transform strategy execution over the past three years.

This case study is brought Cindy White, Vice President of Operational Excellence at Pearson, and Sara Lobkovich, Principal Consultant at Red Current Collective. They shared valuable lessons from Pearson's OKR journey. Read on to learn how Pearson has honed its approach to achieve alignment and impact in one of our most compelling OKR Success Stories and Case Studies.

Starting the OKR Journey

Pearson's introduction to OKRs stemmed from an article a divisional president shared at a leadership team meeting. Cindy recalls receiving the pre-reading and researching OKRs in preparation for the discussion.

The concept immediately resonated given Pearson's focus on lifelong learning. As Cindy notes, "Pearson believes that education is a lifelong journey. Two of our favorite values are 'we ask why' and 'we ask what if' - those are mindsets that I really appreciate."

After the leadership team meeting, the president asked Cindy to spearhead Pearson's OKR program. She enthusiastically took on the role but soon realized the immense effort required.

"I remember the day exactly," says Cindy. "It started with that first inkling of, 'Hey, let's get started on this. What does everybody think?' And that's how we began."

Year 1: Getting Started

Reflecting on the first year, Cindy emphasizes the significant amount of work involved, particularly before engaging Sara’s expertise.

"I would say that we still had a lot of issues with people thinking aspirationally," she explains. "People were used to setting targets about things they could achieve. To get them to think, 'No, what is the best possible outcome? How do we measure that?' - that was tough."

Limited engagement across the organization was another Year 1 challenge. While the leadership team participated, they did not actively encourage adoption across the business. Cindy spent substantial time writing OKRs for teams versus facilitating immersive working sessions.

"A lot of it was, before you were engaged, just trying to get people to engage," she tells Sara. "There was a little bit limited engagement with folks."

Sara emphasizes the importance of executive commitment. When leaders model OKR behaviors, others follow suit. Without that tone at the top, organizations struggle to gain traction.

"I think your approach to that has been really unique and successful," Sara tells Cindy. "You have a leader who is a learner. That's been part of the accelerant here."

Year 2: The OKR Reboot

Pearson used Year 1 learnings to inform their "OKR reboot" in Year 2. Four key improvements drove better engagement and results:

1. Aligning on words and meanings. The team invested time upfront confirming definitions and expectations around OKRs. Cindy cites this as "critical to get people to engage."
2. Shifting focus to outcomes. Teams struggled to move from outputs to outcomes in Year 1. The emphasis on measurable outcomes intensified in Year 2, though not all teams embraced this shift.
3. Reducing the Center of Excellence workload. Cindy pulled back on writing teams' OKRs in Year 2: "I spent a lot of time in Year 1 saying, 'How does this sound?' I'd have people nod their heads yes. Then it came down to, they didn't own it. It was Cindy's OKR. So I think in Year 2, I stepped back a bit. And I let them do the labor."
4. Identifying early adopters. Two executives modeled effective use of OKRs in Year 2. Instead of forcing universal adoption, the Center of Excellence supported willing teams. Early success stories and executive advocacy ultimately influenced others.
   
   
   

Year 3: Network of Goals

In the third year, Pearson's OKR maturity was readily apparent. Cindy highlights three noteworthy improvements:

1. Alignment on top-line measures. The leadership team agreed on key results that cascaded across the organization. This facilitated alignment versus setting disconnected or competing goals.
2. Cross-functional collaboration. Business leaders came together to define shared objectives versus working in silos. Pearsons saw "huge shifts" in leaders asking to partner versus protect their domain.
3. Embedded OKRs. Regular exposure during leadership meetings increased adoption and familiarity. If OKR progress stalled, the president asked why - reinforcing accountability.

Sara also observes the acceleration in Pearson's second OKR division, benefiting enormously from lessons with the first team. "It was a really, really fast adoption in the new organization," she notes. "Now I think you're going to find yourself busy in other parts of Pearson as this goes on."

Overcoming Resistance

While executive commitment accelerates OKR adoption, organizations invariably face resistance. Pearson's challenges included:

• Aspirational, inspiring goals. Teams struggled to define measurable targets beyond what they could easily achieve. The president persistently pushed teams past their comfort zone.

• Outputs vs. outcomes. Despite intensive focus on measurable outcomes, some teams insisted on activity-based OKRs. "The resistance in some areas was incredible," Cindy shares.

• New leaders, new mindsets. With ongoing organizational change, new leaders join with perspectives on goals. Re-engaging leaders and "giving it a try" remains an ongoing challenge.

To navigate resistance, consistent executive support has been instrumental. Cindy emphasizes, "What's acceptable is what's allowed. When the senior leader allows people to lean out or stay in activity land, why would anyone do anything different?" Sara concurs - with the president fully on board, OKR adoption accelerated.

Adaptations to the Classic OKR Formula

While Pearson follows OKR best practices, the team has made adjustments for scale. Two notable adaptations include:

• Initiative mapping. With so many cross-functional connections, Pearson maps how specific projects and initiatives ladder up to shared objectives. This clarifies ownership and alignment.

• One objective owner. Instead of multiple objective owners, Pearson assigns single individuals accountability. This streamlines updates and improves quality dialogue.

Cindy also cites the annual operating plan integration and custom workbooks as important adaptations. By tweaking the classic OKR formula, Pearson advanced strategic alignment.

Key Benefits Realized

After three years of focused efforts, Pearson’s Center of Excellence is seeing clear returns from its OKR investment:

• Strategic clarity. OKRs differentiate important goals from ongoing operations. Employees understand top priorities and how their efforts connect.

• Outcome mindset. Though not perfect, teams have shifted from activity-based goals to measurable outcomes.

• Cross-functional work. Breaking down silos to identify shared objectives has been hugely impactful.

• Accelerated learning. Regular progress reviews and retrospectives help teams quickly learn and adjust.

Final Takeaways

Pearson's three-year OKR journey offers insightful lessons for organizations of all sizes:

• Start small. Don't force universal adoption from the start. Run a pilot, gather feedback, and build positive momentum.

• Connect to strategy. Clearly communicate how OKRs ladder up to strategic priorities to inform employees and gather buy-in.

• Train extensively. Allocate time for interactive training and ongoing coaching - don't just launch OKRs via email.

• Review progress. Build cadence around regular check-ins to sustain focus and renew alignment.

• Address resistance. Seek to understand underlying issues. But don't force universal participation - ensure executive support.

• Adapt thoughtfully. Tweak the OKR formula when needed, but stay true to foundational principles like outcomes and alignment.

Pearson continues to learn and evolve its approach. However, after three years, the team firmly believes in OKRs' ability to connect strategy with day-to-day efforts.

"It's constant transformation for a little bit," Cindy concludes. "But as long as we keep learning and keep going in the right direction, I think we're going to be good."

What lessons from Pearson's experience resonate with your organization's OKR journey?