How Shape→Ship Actually Works
The complete guide to connecting OKRs with Shape Up methodology. Learn how to move from scattered sprints to strategic impact.
Introduction
When Ryan Singer published Shape Up in 2019, it codified the practices that made Basecamp successful. Since then, many organizations discovered they couldn't adopt it wholesale. This guide merges Shape Up with OKR thinking into a single integrated playbook.
OKRs set the why and what, Shape Up governs the how and when.
Together, they create a closed loop: OKRs → Shaping → Betting → Building → Shipping → OKR Review → Back into Shaping.
This guide is written for teams coming from Scrum or Agile who want a step-by-step, pragmatic adoption approach that connects day-to-day work with strategy.
What is Shape Up?
Shape Up is a product development method created by 37signals (Basecamp) that focuses on shipping meaningful work in fixed time cycles.
Unlike traditional Agile/Scrum approaches, Shape Up emphasizes shaping work upfront rather than breaking down backlogs into tickets. Teams work on well-defined problems with clear boundaries, appetites (time budgets), and circuit breakers to prevent runaway projects.
Key Differences
Core Principles
Shape before you build
Define problems and constraints upfront instead of jumping straight into implementation.
Circuit breakers
Stop projects after one cycle automatically - no zombie projects that drag on forever.
Appetite, not estimates
Set time budgets based on what the problem is worth, not how long you think it will take.
Give teams ownership
Hand off complete problems to autonomous teams, not fragmented tasks or tickets.
Why Shape Up + OKRs Works
❌ Scrum & Agile Often Fail Because
Half-baked projects
Teams are handed vague epics and endless backlogs
Ticket shredder effect
Large ideas get sliced into Jira tickets, losing context
Zombie projects
Deadlines slip, scope balloons, projects drag on
Strategy disconnect
Teams ship features, but leadership can't see impact
✅ Shape Up + OKRs Solves This By
OKRs set outcomes
Teams know which strategic results matter this quarter
Shaping before building
Problems are defined, risks explored, scope contained
Appetite over estimates
Teams work to fixed time budget, not uncertain estimates
OKR Review closes loop
Impact is measured and fed back into shaping
Teams don't fail from lack of effort. They fail when they're given vague work, disconnected from outcomes, with no structure to ship. OKRs + Shape Up fixes both the strategy gap and the execution gap.
The Five Phases
Each phase builds on the last, creating a complete loop from strategic intent to delivered impact.
Shaping (Upstream Work)
Who's Involved:
- • Product strategist (frames problem, ties to OKR)
- • Designer (interaction flows, usability risks)
- • Senior engineer (feasibility, risk identification)
Key Activities:
- • OKR Alignment: Which KR are we trying to move?
- • Problem framing and solution exploration
- • Fat marker sketches and breadboards
- • Risk assessment and spike testing
Betting (Prioritization)
Who's Involved:
Company leadership and shapers
Key Activities:
- • Betting Table: Review pitches and KR alignment
- • Portfolio balancing: Mix large and small bets
- • Trade-offs: Not every OKR gets a bet
Decision Framework:
Building (Cycle Execution)
Team Structure:
1 designer + 2 engineers, autonomous team
Key Activities:
- • Kickoff: Review shaped pitch and target KR
- • Scope mapping and vertical slice delivery
- • Hill chart tracking: uphill → downhill
Core Principle:
Builders don't chase OKRs mid-cycle. Their only job: ship the shaped solution. Impact is assessed later.
Cool-down (Reset & Reflection)
Bug Fixes
Address issues and technical debt
Cleanup
Infrastructure tasks and improvements
Next Pitches
Shaping work for upcoming cycles
OKR Review (Quarterly)
Review Process:
- Review metrics: Did shipped projects move the KRs?
- Learn: If yes → reinforce; if no → reshape
- Prioritize: Feed learnings back into shaping
Participants:
Leadership, product strategists, outcome pods
Real-World Example
See how a team calendar feature connects to OKRs through the complete cycle
Quarter OKR: Improve cross-team coordination
Key Result: Reduce scheduling conflicts by 30%
1
Shaping
Problem: Teams can't see each other's availability
Appetite: 6 weeks
Options explored:
- • Full Google integration (too big)
- • Shared event list (too weak)
- • Internal free/busy grid (just right)
Decision: Internal free/busy grid, single timezone
2
Betting
Betting table selects:
- • Calendar feature (6 weeks)
- • Billing improvements (2 weeks)
Calendar assigned to pod aligned with coordination KR
4
Cool-down
- • Bug fixes and small improvements
- • Shape follow-up: Timezone support pitch
3
Building
Team maps scopes:
- • Calendar Grid
- • Availability Model
- • Editing
- • Sharing
Week 1: Get one piece done (render calendar for 1 user)
Weeks 2-5: Iterative scope completion
Week 6: Buffer + polish
5
OKR Review
Results: Usage shows conflicts reduced by 15%, short of 30% KR
Decision: Leadership decides to re-bet on Timezone support pitch
Step-by-Step Adoption Guide
Start small and scale progressively. Here's your roadmap to success.
Start Small
Pilot one cycle with 1 team, linked to 1 KR. Prove the model works before scaling.
Shape with OKR Context
Always anchor the pitch to a KR. If you can't connect it to strategy, don't bet on it.
Set Appetite
Decide time budget (2–6 weeks, measured in working days — e.g., 6 weeks = 30 days). This is your circuit breaker, and cycles always start on a Monday.
Betting Table
Choose pitches based on both feasibility and KR impact. Not every good idea gets a bet.
Build Autonomously
No micro-tracking. Use scopes and Hill Charts to track progress from problem to solution.
Cool-down
Handle bugs, prep next pitches. Teams need breathing room between intense cycles.
Quarterly OKR Review
Close the loop. Did we move the KR? Learn and feed insights back into shaping.
vs. Traditional Methods
See how Shape Up + OKRs compares to other popular methodologies
| Aspect | Scrum | Shape Up | Shape Up + OKRs |
|---|---|---|---|
| Work Planning | Backlog of user stories | Shaped pitches only | Shaped pitches tied to OKRs |
| Progress Tracking | Sprint velocity | Appetite + Hill Charts | Appetite + Hill Charts, KR review |
| Prioritization | PO prioritizes backlog | Betting Table decides | Betting Table weighs KR alignment |
| Success Metrics | Success = velocity | Success = shipped projects | Success = shipped projects and KR movement |
| Work Rhythm | Continuous sprints | Cycles + cooldown | Cycles + cooldown + quarterly OKR review |
Scrum Challenges
Endless backlogs, ticket fragmentation, velocity focus over outcomes
Shape Up Benefits
Better work shaping, fixed time cycles, autonomous teams
Strategic Integration
Clear strategy connection, outcome measurement, closed feedback loop
Quick Start Checklist
Everything you need to get started with your first Shape Up + OKR cycle
✅ Before You Start
Set Your OKRs
Have clear quarterly objectives and measurable key results
Form Your Team
1 designer + 2 engineers who can work autonomously
Identify Shapers
Product strategist, designer, and senior engineer for upstream work
Setup Tools
Hill chart tracking and pitch documentation system
⚠️ Anti-Patterns to Avoid
❌ Chasing metrics mid-cycle
Builders should focus on shipping, not OKR numbers
❌ Treating OKRs as backlog items
They are goals to influence, not tasks to complete
❌ Zombie projects
Circuit breaker still applies even if tied to a KR
❌ Shaping without KR alignment
Wastes cycles on non-strategic bets
Ready to Get Started?
Shape Up with OKRs isn't about rituals—it's about strategic clarity + delivery discipline. Teams that master this loop turn ambitious OKRs into real, shipped outcomes.
Ready to Transform Your Delivery?
You now understand how Shape→Ship connects strategy to delivery. Start building your first shaped pitch today.
Join teams already using Shape→Ship to move from scattered sprints to strategic impact