Shape Ship
From objectives to outcomes: shape pitches, place bets, ship value.
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 TSF 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.
Watch: Shape Up Introduction
Ryan Singer explains the core concepts and methodology behind Shape Up.
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.
The Shape Up Cycle
Work moves through distinct phases with clear handoffs and decision points. Each cycle is time-boxed and autonomous.
Quick Facts
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 and meaning
Zombie projects
Deadlines slip, scope balloons, and projects drag on
Strategy disconnect
Teams ship features, but leadership can't see the 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 a fixed time budget, not uncertain estimates
Empowering builders
Teams own end-to-end solutions, not isolated tickets
Stopping zombie projects
Fixed cycles and circuit breakers force real trade-offs
OKR Review closes the loop
After shipping, 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 in Detail
1. Shaping (Upstream Work)
From validated problem to bet-able pitch
Who's Involved
Product strategist (frames problem, ties to OKR)
Designer (interaction flows, usability risks)
Senior engineer (feasibility, risk identification)
Key Activities & Sessions
OKR Alignment: Which KR are we trying to move this quarter?
Framing: Define the problem worth solving.
Exploration: Brainstorm solution paths (A/B/C options).
Sketching: Use fat marker sketches or breadboards.
Risk assessment: Identify rabbit holes, landmines.
Spikes: Quick tests for risky areas.
Output Artifact: A Pitch
A document with problem, appetite, shaped solution, risks, and the targeted KR.
2. Betting (Prioritization)
Leadership decides which pitches to fund
Who's Involved
Company leadership (control resources)
Shapers (present pitches)
Key Activities & Sessions
Pitches: Review pitches, weighing both feasibility and KR alignment
Portfolio balancing: Mix large and small bets, multiple KRs vs. doubling down
Trade-offs: Not every OKR will get a bet. Some KRs are influenced indirectly
Output Artifact: Cycle Plan
Projects selected for the next 6 weeks, each explicitly tied to an OKR/KR
3. Building (Cycle Execution)
Autonomous teams deliver working product increments
Who's Involved
Small autonomous team (1 designer + 2 engineers)
No PM micromanaging tasks
Key Activities & Sessions
Kickoff: Team reviews shaped pitch, including which KR it aims to impact
Scope Mapping: Builders break work into scopes
Get One Piece Done: Deliver a vertical slice early
Hill Chart Updates: Track scopes from uphill → downhill
Midpoint check-in: Managers review Hill Chart, not tasks
Output Artifact: Working Product
A working product increment that delivers the shaped pitch
Principle
Builders don't chase OKRs mid-cycle. Their only job: ship the shaped solution. Impact is assessed later.
4. Cool-down (Reset & Reflection)
Recovery and preparation for next cycle
Who's Involved
Entire product/engineering org
Key Activities
Bug fixes, refactoring, operational tasks
Shaping new pitches for next cycle
Optional reflections or retro-lite
Output Artifact: Clean Slate
A clean slate for the next cycle
Principle
Teams get breathing room before new bets
5. OKR Review (Quarterly)
Close the loop between strategy and execution
Who's Involved
Leadership, product strategists, outcome pods
Key Activities & Sessions
Review metrics: Did shipped projects move the KRs?
Learn: If yes → reinforce; if no → reshape
Prioritize: Feed learnings back into shaping
Output Artifact
A quarterly review deck or session linking cycle outputs to KR progress
Worked Example: OKR-Aligned Team Calendar Feature
Quarter OKR Context
1. Shaping
2. Betting
3. Building
4. Cool-down
5. OKR Review
🎯 OKR-Aligned Outcome
Feature shipped successfully but only moved KR halfway. The OKR Review process identified the need for timezone support, which becomes the next shaped pitch. This closes the loop between execution and strategy.
Step-by-Step Adoption Guide
Moving from Scrum/Agile to Shape Up:
1. Start Small: One Pilot Cycle
- Best: Run single 6-week experiment with dedicated team (1 designer + 2 engineers)
- Alternative: Start with better shaping inside your Scrum process
- Compromise: Switch to longer cycles (4-6 weeks) before full shaping
2. Shape Work Before Building
- Gather product, design, and senior engineering for shaping sessions
- Explore risks, trade-offs, and possible approaches
- Produce shaped pitch (not backlog epic, not pixel-perfect spec)
3. Set Appetites, Not Estimates
- Decide time you're willing to spend (2-6 weeks)
- Avoid "how long will it take?" → Ask "what can we do in this time?"
4. Stick to the Cycle
- Cycles are time-fixed, scope-variable
- If it doesn't fit, cut scope or stop
- Use circuit breaker to prevent zombie projects
Scrum vs Shape Up vs Shape Up + OKRs
| Scrum | Shape Up | Shape Up + OKRs |
|---|---|---|
| Backlog of user stories | Shaped pitches only | Shaped pitches tied to OKRs |
| Sprint velocity | Appetite + Hill Charts | Appetite + Hill Charts, KR review |
| PO prioritizes backlog | Pitches page decides | Pitches page weighs KR alignment |
| Success = velocity | Success = shipped projects | Success = shipped projects and KR movement |
| Continuous sprints | Cycles + cooldown | Cycles + cooldown + quarterly OKR review |
Quick Start Checklist
This Week
Next Week
Ready to Start?
Begin with a validated problem, then shape a solution.