As an award-winning OKR Subject Matter Expert, I have seen firsthand how any organization of any size can achieve the growth-scale ambition with the RIGHT application of management models like OKRs (or even OGSM).
With 65 (and counting) multi-layered OKR projects completed, I can say that companies which set clear, measurable goals using the right syntax of proven models, are more likely to achieve them than those that do not.
This is especially true for startups, which often operate in highly competitive and rapidly changing environments, with minimum processes and maximum possible agility.
One study by Deloitte found that companies that set performance goals are four times more likely to outperform those that do not. Additionally, studies by the Harvard Business Review found that companies that use OKRs are more likely to be successful in achieving their strategic objectives.
Our own in-depth research shows that OKRs when done right from day 1, improve productivity by 40%. And employee satisfaction scores by 55%.
So, how can startups use them to accelerate growth?
As you may know, OKRs, or Objectives and Key Results, is an organizational management model that helps organizations design their goals (using empathy models) and measure progress toward them.
For startups, using OKRs can provide a number of benefits.
1. it can help ensure that everyone in the organization is aligned and collaborating with others effectively. This is ESPECIALLY important in startups where resources are often limited and many people wear multiple hats to hustle towards common and important goals.
2. OKRs, when used in combination with any prioritization matrix, can help startups prioritize amongst conflicting goals. This is important when priorities can change rapidly and it can be difficult to stay focused.
3. Using OKRs can help startups foster a culture of accountability and transparency. Also, it helps call out dependencies and support needed during retrospectives.
4. Using OKRs can help startups stay agile and adaptable in the face of changing circumstances. By regularly reviewing progress towards their goals, startups can quickly adjust their strategies and pivot if necessary.
In summary, if you are a startup looking to grow and scale steadily and definitively, implementing OKRs is a must.
A Word of Caution:
Most startups fail the first time around in their OKR project. That’s because they implement it from the knowledge off the internet (because it “sounds” simple, it must be “easy”, right?). Or they work with inexperienced people who do not understand the business context and imperative of the whole program; and the cost of doing it wrong.
If you are interested in learning more about how to implement OKRs in your startup, we have many free resources available on www.okrleague.com
Please write to us at deepa@deepanagarajan.com