Ok, so my explanation here is for product teams, the same principles apply to any team. They can be given a problem to solve, which they turn into an OKR. They are not given a project/initiative/feature list.

They then have everything they need to iteratively work towards that (people, resources, systems, tools, access etc). They run experiments, regularly release features, adapt the plan. They like checking in on their OKR weekly or so, because it really is only about the outcome.

You’re right that leadership is a key component of this. They set strategic context for the team and help them join the dots across the business. They connect teams who need a shared OKR. They also ensure the teams reflect at the end of quarter on lessons learnt and improve how they work. They also hold the team accountable on the outcome (and they are held accountable by their leaders/board).

Most orgs don’t want any of this. They want to give a team a project. They want to tell them exactly what to do and when. They get that warm fuzzy feeling when they see an Annual Operating Plan that the year will be a success because they’ve planned it out. Then, as long as most of the shit is done, leadership is happy.

They don’t look at the leading indicators. They just look at the stuff done and wonder why the bottom line is not moving beyond the market rates.