Wait, what? The desired state before the current state? Shouldn’t you be doing the as-is analysis first?
Yes. Or, to be more precise: You can do the as-is analysis before defining the desired state, but you shouldn’t write down the current state before you define the desired state!
Okay, that’s confusing – let’s start fresh.
Why Define the Desired State First?
Think of transformation like planning a road trip. You need to know where you want to go before figuring out the best route. If you start by describing your current situation, you might unintentionally limit your vision by focusing too much on constraints rather than possibilities.
Defining the desired state first ensures that your transformation is purpose-driven rather than problem-driven. It shifts your mindset from “what’s broken” to “what’s possible”.
A well-defined desired state sets the stage for meaningful objectives and key results (OKRs) – it gives your vision a shape that can be felt and experienced.
How to Define a Strong Desired State
Your desired state should be:
- Clear: Avoid vague, buzzword-heavy statements.
- Precise: Describe what success actually looks like.
- Tangible: Make it something you can measure and/or observe.
Here’s how you do it step by step:
1. Capture the Essentials
Your desired state should define how your company will operate once transformation is successful. Consider these key areas:
- Core competencies & processes: What will your company be exceptionally good at?
- Value delivery: How will customers experience the change?
- Decision-making: How will teams work and make decisions?
- Culture & ways of working: What behaviours and mindsets will define the organization?
2. Don’t Overthink – Just Write!
Start by listing everything that comes to mind. The first thoughts are often the most revealing because they reflect what’s frustrating about the current state. You can refine later – just get ideas down first.
(Pro tip: If you have crafted a desired state that feels bad, you’re doing it wrong! Your desired state should excite you.)
3. Make It Specific
Don’t fall into the trap of vague, generic statements like:
- “We will be an agile organization.” or
- “We will be customer-centric.”
Instead, be concrete:
- “Our interdisciplinary teams make key decisions independently, cutting time from decision to execution – so we can respond faster to market demands.”
4. Connect to Business Outcomes
The desired state is not an abstract vision with no real impact. It helps define how transformation success translates into tangible benefits.
A good “desired state” is tied to real, measurable impact. Ask yourself:
- How will we know we’ve arrived at our desired state?
- What specific improvements should we expect?
- What would our employees, customers, and stakeholders say about the transformation?
The desired state should guide your objectives, not be an objective itself. Avoid embedding specific OKRs or metrics directly into the desired state – it should inspire and direct measurable outcomes without becoming an OKR itself. The desired state leads naturally to measurable outcomes without becoming an OKR itself.
A well-defined desired state ensures that transformation efforts deliver real business value. Instead of just increasing ‘innovation initiatives,’ a strong desired state results in tangible business outcomes—like faster time to market, better decision-making, and stronger cross-functional execution.
5. Check for Common Pitfalls
- Too abstract – If it sounds like a corporate slogan, rework it.
- Too long – If it takes a full page to explain, simplify it.
- Too safe – If it feels like a small improvement instead of real transformation, aim higher.
- Too specific – If it reads like an OKR, i.e. includes metrics, rewrite it!
A Strong vs. Weak Desired State vs. No “Desired State” at All
Example 1: Innovation Culture
Weak Statement: “We will have an innovative culture.”
Strong Statement: “Our teams have the autonomy and resources to experiment continuously, turning innovative ideas into market-ready solutions at a pace that keeps us ahead of competitors.”
You may be thinking: Hey, that’s a bad statement! It’s not measurable at all! I’d like to rephrase it like this:
Alternative Statement: “Our teams will dedicate 20% of their time to experimentation, leading to three new product launches per year.”
You like the alternative one, right? Yes, you do – because you are trained to think in tangible, measurable objectives and this one is measurable, specific, and actionable, not just a vague aspiration.
But that’s wrong! You shouldn’t be liking it at all because it’s not a “desired state” – it’s an objective (or rather an OKR).
The “desired state” is still part of your vision, and therefore you should:
- Keep it visionary (we encourage experimentation).
- Hint at measurable impact (ideas turning into real solutions).
- Avoid making it too rigid (don’t force a fixed number like “three product launches per year”).
A strong desired state hints at impact but remains visionary!
Example 2: Data-Driven Decision-Making
Weak Statement: “We will be a data-driven company.”
Strong Statement: “Our teams seamlessly integrate data into daily decision-making, leveraging real-time insights to anticipate customer needs and optimize business performance.”
Bad Statement (because OKR): “We will conduct five data analytics training sessions per quarter and increase dashboard usage by 30%.”
Why This Is Wrong: It focuses on activities (training, dashboard usage) rather than describing the company’s future state. A desired state should set a direction, not dictate specific actions.
Example 3: Collaborative culture
Weak Statement: “We will have a collaborative culture.”
Strong Statement: “Our teams work across departments without silos, sharing knowledge proactively and co-creating solutions that drive innovation and efficiency.”
Bad Statement (because OKR): “We will increase the number of cross-departmental meetings by 50%.”
Why This Is Wrong: More meetings don’t necessarily mean better collaboration. The desired state should focus on the outcome (seamless teamwork and knowledge-sharing), not just a metric that may not drive real change.
Example 4: The Illusion of a Desired State
Many organizations think they’ve defined a strong desired state, but they’ve actually created something vague, uninspiring, or just a set of objectives in disguise.
Mini-Case Study: The Struggling Tech Company (a potentially fictional story)
A mid-sized tech company wanted to improve innovation, so leadership wrote this as their desired state: “We will be a leading innovator in our industry, leveraging cutting-edge technology to stay ahead of competitors.”
This sounds nice – but what does it actually mean? How will employees know if they’re making progress? Does it guide decision-making? Not really.
As a result, their objectives ended up being disjointed and arbitrary:
- “Increase R&D spending by 15%.”
- “File 10 new patents per year.”
While these are measurable, they don’t necessarily create a culture of innovation. Employees were focused on checking boxes rather than truly embedding innovation into the company’s DNA.
How to Fix It:
A stronger desired state would be: “Our teams have the autonomy, resources, and collaborative spaces to experiment continuously, ensuring a considerable amount of our product pipeline comes from employee-driven innovation.”
This provides clear direction while leaving room for adaptation. From here, OKRs could be crafted that support – not dictate – the vision.
Final Thought: Your Desired State Drives Everything and Leads to Better OKRs
Once you’ve defined your desired state, you’ll have a clear direction for the rest of your transformation journey.
A well-defined desired state sets the stage for meaningful objectives and key results (OKRs):
- It provides direction. A clear desired state ensures that objectives align with long-term transformation goals rather than short-term activities.
- It ensures flexibility. The focus remains on the outcome (e.g., fostering collaboration), while OKRs can evolve based on strategy and measurement.
- It prevents activity traps. Without a strong desired state, teams may set arbitrary OKRs that don’t drive meaningful change (e.g., “increase meetings” instead of “foster collaboration”).
The desired state will serve as your North Star, guiding decision-making, investments, and strategic actions.
Now that you’ve nailed down your desired state, it’s time to take a hard look at where you are today—and figure out how to bridge the gap.
Next up: Spotlight on: Current State.
