It Doesn’t Matter What Goal-Setting Framework You Use—Just Make Sure It’s Connected to Your North Star

Business leaders often get caught up in choosing the perfect goal-setting framework. Some swear by OKRs (Objectives & Key Results), while others rely on SMART goals, KPIs, or MBOs (Management by Objectives). Each framework has its strengths, but the real challenge isn’t picking the right system—it’s ensuring that every goal ties back to your North Star, the long-term vision guiding your company’s success.

The Framework Trap

Goal-setting frameworks are meant to provide clarity, alignment, and accountability. Yet too often, organizations become obsessed with the structure itself rather than the purpose behind it. They fine-tune their goal-setting process but fail to ask the most important question: Are these goals actually moving us in the right direction? When goals are disconnected from a company’s larger mission, even the best framework becomes an exercise in busy work.

I once worked with a company that was fully committed to OKRs. Every quarter, teams meticulously set their objectives and key results, tracking them in dashboards and aligning them to departmental priorities. On the surface, everything seemed well-structured. The problem? No one had taken a step back to ensure those OKRs were supporting the company’s broader vision.

For example, IT had a goal to launch a new e-commerce system by a specific deadline. Marketing was tasked with increasing website traffic. Sales focused on conversion rates. Each department hit their targets, yet the project was a failure. The new system slowed transactions, marketing’s traffic increase didn’t translate into revenue, and customers struggled with the checkout process. The teams were so focused on executing their individual goals that they lost sight of whether those efforts were contributing to long-term success.

The Cost of Misalignment

One of the biggest risks of a rigid goal-setting approach is misalignment between teams. When IT, marketing, sales, and operations work toward separate objectives without a shared North Star, their efforts can create friction instead of progress. A company might launch a product on schedule, only to realize later that it doesn’t meet customer needs. A sales team might hit revenue targets, but in a way that undermines long-term brand value. Without a unifying vision, individual achievements can add up to organizational stagnation.

Equally dangerous is an overemphasis on short-term performance. Many companies measure success through quarterly goals, but short-term wins can be misleading. If a company prioritizes immediate revenue at the expense of customer experience, they may drive sales today while eroding brand loyalty in the long run. If teams only focus on hitting predefined metrics, they risk chasing numbers rather than real business impact.

Connecting Goals to the Bigger Picture

To avoid these pitfalls, companies must ensure that every goal—regardless of the framework—supports a clear and compelling North Star. This vision should be aspirational yet actionable, providing long-term direction while allowing for flexibility in execution. When setting goals, leaders should ask: Does this contribute to our larger mission? Will achieving this move us meaningfully closer to our desired future? If the answer isn’t a clear yes, it’s time to reevaluate.

Beyond defining the North Star, organizations must communicate it effectively. Employees need to understand how their work contributes to the company’s long-term success. A well-defined vision helps people see beyond their daily tasks, fostering engagement and accountability. When teams understand not just what they’re working toward but why it matters, they become more invested in the outcome.

A Framework is Just a Tool—The North Star is the Destination

A structured goal-setting approach can be valuable, but only if it serves the company’s greater purpose. Businesses should choose the framework that best fits their culture, whether it’s OKRs, SMART goals, or something else entirely. But they should never become so focused on process that they lose sight of results.

Companies evolve, markets shift, and priorities change. Goals should be dynamic, adapting as needed to keep the business on track. The best organizations aren’t defined by their ability to follow a specific framework—they’re defined by their ability to align every initiative, decision, and effort with their ultimate destination.

At the end of the day, it doesn’t matter what system you use to set goals. What matters is that every goal moves you closer to your North Star. The framework is just the vehicle. The destination is what truly matters.