Many companies adopt OKRs (Objectives and Key Results) hoping to boost execution and align teams. But months later, an unsettling feeling creeps in: despite colorful dashboards and well-written goals, the business doesn’t seem to move any faster. The engine has no more torque. This phenomenon has a name: the rise of “Cosmetic OKRs”And it may be the most silent risk to your strategy.
What Exactly Are Cosmetic OKRs?
They are objectives that look flawless in presentations but fail in their fundamental purpose: creating real business impact. They’re makeup that hides a lack of execution muscle. You can spot them by three clear signs:
- They live in a vacuum: Defined at the start of the quarter and only resurface when preparing slides for the results meeting. They are not embedded in daily routines and decision-making.
- They measure activity, not impact: Focused on vanity metrics (“run 10 workshops”) rather than business outcomes (“increase operational efficiency by 15%”). They confuse being busy with being productive.
- They’re lone wolves: The objective is not formally connected to the risks that threaten it, nor to the variable compensation of the team responsible for achieving it.
The result is a dangerous illusion of progress. The company celebrates the “green” in reports while opportunities are lost and resources are wasted on moves that generate no real value.
The Root Cause: Governance Fragmentation
Cosmetic OKRs are not a people problem — they are a system problem. They arise from chronic fragmentation in corporate governance.
- The Strategy lives in one system.
- The Risk Management (Compliance, ESG, etc.) lives in another.
- The Performance and Incentive Management lives in a third, often in isolated spreadsheets.
This structural fracture makes it impossible to create a direct, transparent line between a goal, its risks, and the right incentives to achieve it.
The Antidote: From Makeup to Strategic Muscle
Eradicating Cosmetic OKRs requires more than writing better goals. It requires building management muscle based on three fundamental connections:
- Connect Strategy and Risk: Every goal should be constantly evaluated through the lens of the risks that may block its success.
- Align Objectives and Incentives: The goals that define company success should also define success and rewards for its leaders.
- Enable Active Governance: Technology must be a pillar of effective management rituals (check-ins, discussions, analysis), not just a passive data repository.
Take a moment to look at your company’s OKRs. Be honest: are they the driving force of your business — or just a layer of pretty makeup?
