Any Start-up that is thriving to grow will grow exponentially in people and revenue. While growing at a 10x speed what makes a start-up stay focused on the goal and continue to work successfully. The customers we worked with chose OKR software. The famous goal-setting platform was adopted by Google. Defining the objectives and the quantifiable key results helps you to achieve the desired goals.
Goal settingis very vital for any business. Industry leaders like Twitter, LinkedIn, Spotify, etc. embrace Objective and Key Results (OKR) driven strategies. OKR has a key role to play in their journey. But, it is still a frequently asked question if this can be adopted by start-ups as well. How could a brand that has not yet launched a product in the market find use with OKR? At what stage in a company’s journey should OKR be embraced? Let’s get this answered here.
Table of Contents
What is the Objective and Key Results(OKR) framework?
OKR is a goal-setting framework that helps organizations to measure their goal performance.
Objective – Objectives are the goals or the destination
Key Results – Key results help us reach our goal or destination with a measurable target and timeline.
How Does OKR Software Help the Start-up Industry?
Start-ups have high aspirations and their goals are mostly audacious. They possess great energy and innovative ideas. The vital component that converts the ideas into execution is the focus and the accountability of the team that works towards the goal.
Since OKRs have a proven track record of driving business performance it helps the organizations to move forward. Don’t get convoluted by setting up too many objectives. All you have to do is set an objective and then keep the key result to a maximum of two. A small company with a minimum number of employees can have a timeline of like, say, four weeks for their miniature objective.
OKR for Startups and Small Business
OKRs influence all aspects of business and connects every single stakeholder who is responsible to create an impact on business. The impact needs to be measurable and the progress should be monitored continuously.
Start-ups tend to digress from their vision mostly as it is overwhelming for them and staying aligned to the vision becomes a challenge. OKRs help in alignment with the vision and give a constant update on how it is progressing and what are the key contributors for success. The alignment helps us to stay on top of our priorities.
As human beings, we have little control over how often our mind wanders and it becomes a great challenge to stay focused on the objectives set for the organization. OKRs create focus, as all the tasks we perform are not converted into OKRs. Specific Key results are added to the objective that matters to the business. Keeping 3 to 5 OKRs each quarter increased focus.
OKRs by their core value are very transparent. The organization’s objectives are set and published for the rest of the team to act upon. Departmental and individual objectives follow to create transparency. As the OKRs are transparent it motivates the team to travel forward.
Since OKRs are networked it becomes easy to measure interdepartmental dependencies. It allows different teams to work together for a common goal.
Top 10 Examples for start-ups
OBJECTIVE 1: Grow and increase our business by 30%
KR1: Grow revenue to $XM
KR2: Launch the 5 new products by Q2
KR3: Customer churn to be reduced to 3%
OBJECTIVE 2: Increase customer delight
KR1: Collect feedback from XX customers/month
KR2: Increase customer retention to XX%
KR3: Achieve NPS (Net Promoter score) from X to Y
OBJECTIVE 3: Improve and enhance Digital marketing
KR1: Improve SEO site health from X% to Y%
KR2: Increase traffic through backlinks from X% to Y%
OBJECTIVE 4: Increase the predictable revenue
KR1: Increase Monthly Recurring Revenue (MRR) to $XMn
KR2: Increase the Average Revenue Per Customer (ARPC) by X%
OBJECTIVE 5: Increase the ROI per customer
KR1: Increase the customer lifetime value to XX years
KR2: Decrease customer churn rate from X to Y
OBJECTIVE 6: Create and increase the experience of customer support
KR1: CSAT > X%
KR2: First response time < X hours
KR3: Average time to resolve down by X%
OBJECTIVE 7: Transition to proactive customer strategy
KR1: Reduce customer at churn risk by X%
KR2: Reduce complaints by X%
KR3: Increase total enriched leads to X%
OBJECTIVE 8: Introduce the right candidates to teams sooner
KR1: Reduce time from application to HR screen to X days
KR2: Reduce time from HR screen to 1st interview to X days
OBJECTIVE 9: Create an enhanced employee experience
KR1: Increase work-life balance survey score to X
KR2: Reduce overtime by X hours
KR3: Increase employee satisfaction score to X
OBJECTIVE 10: Foster a learning culture to support our employees’ professional development
KR1: Increase in skill certifications to X
KR2: Increase in performance review learning score to XX
OKR can be used in the area of business advancement or change is required. OKRs should be driven by the leadership team hence creating and communicating the objectives to the entire team and there is a safety nest cast to the team as it is driven top-down. Whenever a startup sets an objective, its aim should be on benefiting or creating value for customers and/or employees. Set OKR such that it serves customers or the team, value over results. OKRs are stretch goals and it is important to keep track of the goal as it will be a key contributor to the future.
Implement OKR Software solution for your Startups or Small Business
While implementing OKRs in the Startups it is essential to understand the process and key metrics as the Startups team is aligned directly toward the organizational performance. Setting clear department goals and individual goals is very important as there are various metrics available. Recognizing the key metrics that matter to business will help in crafting OKRs.
OKR methodology gives value to the customer and to the team, both of which a new startup needs. If you are a startup, it is recommended to have your OKR on a dedicated OKR software rather than an excel sheet, which makes the whole process simple and easy to use. Setting up OKR can be a challenging process but observing it regularly and updating is the most important for the success of the objective. Write to us to start with your OKR journey and our team will work along with you to implement OKR Software and ensure the success
OKRs can be set from day one of the start-up. Setting up goals will help start-ups to travel in the right direction with clarity. The agility of the start-ups totally aligns with the shorter cadence of OKR
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