Lessons From A Failed Founder #6: How OKRs Boost Your Startup (2)
A quick and actionable follow-up on my previous post about the many benefits using Objectives and Key Results in your startup.
Earlier this month I penned down my thoughts on the usefulness of OKRs, and how I regret not introducing them in my very own startup when we still had the chance. In this follow-up, I am providing you with a crash guide to implementing Objectives and Key Results in your daily business + a free, simple OKR Tracker template in Google Spreadsheets.
Before we dive in, I want to recap why OKRs are good for your business:
- They allow you to focus on the bigger picture
- OKRs let you cut up your mission into achievable quarters
- They get your entire team on one page
- OKRs combine the best of both worlds: inspiration + analytics
- They are real conversation starters!
As for the fifth argument, I am talking about encouraging open and brutally honest discourse based on your Key Results. These discussions should happen on a weekly basis, free of judgement and aimed at making things happen. More on that in the last part of this post, “Weekly Cadence”. Alright, time to get your hands dirty, fellow entrepreneurs!
Example: HappyGrains Inc.
Here’s the link to the OKR Tracker: https://docs.google.com/spreadsheets/d/1ZPC0_lCDs9uJMEGdeVwmvlaoaawuJFYKXB3Is2SrMVs/edit?usp=sharing
The OKR Tracker starts with the Example tab, where you’ll find the fictive company HappyGrains Inc, first introduced in my article about finding your startup’s long-term vision and mission. Part of their statement reads:
HappyGrains Inc. empowers every human on earth to grow crops inside their homes, with no agricultural experience needed.
You’ll find that HappyGrains is getting really serious about upping about their brand recognition in the last quarter of this year. While there are 1001 things to be done to create and promote a great brand, we only focus on the top three “must be achieved” in our OKR Tracker. When these three Objectives’ Key Results are achieved, we know we’re doing well.
In fact, “must be achieved” objectives are a great way to cut out all the noise: Focus on the big picture!
Setting up your OKR Tracker
Let’s focus on how we phrase our Objectives first:
I always start my Objective with a power word. They convey the main goal very effectively, and I am a sucker for keeping things simple. Examples of power wors are…
- boost
- increase
- power-up
- professionalise
- maintain
- secure
Remember: Objectives ideally do not contain any numbers! They paint a picture of where you want your company/department to be by the end of the quarter.
Now, Key Results are all about numbers: Get 1000 sign-ups, achieve 95% uptime, achieve a Net Promoter Score of 50 or more, etc.
I always make sure the percentage is tied to the description: So if I need to publish one case study to fulfil my Key Result, 100% will equal one published case study. When the Key Result is to get 1000 new sign-ups, I’ll be at 50% once I have 500 new users to show for. Be honest with yourself: Don’t add 10% just because you’re ‘working on it’!
The top percentage tracker shows you whether you’re on track or not. 47% after 6 weeks is absolutely fine, given that you’ll have another 6 weeks to secure the remaining 53%. Being stuck at 47% in week 10 of 12 should be cause for serious concern, a solution-oriented discussion and getting all the help you need to reach your goals!
Health Metrics to keep an eye on
Next to your strict Key Results, there are probably a couple of things (three to five) you want to keep an eye on. For HappyGrains, those metrics focus on downtime, team spirit and customer satisfaction. Whatever your Objectives, no matter how far or close you are to achieving your Key Results: Make sure your top Health Metrics don’t suffer!
In the example above you’ll find that the downtime is kept to a minimum, which is vital to the company’s existence. But so is the happiness of their team, and it looks things aren’t going too well. How will you know? Talk to your team, pick a random colleague and ask him/her how they think things are going. Listen, learn and fill out the metric in your Tracker.
As for customer satisfaction: That is the one metric that should always be green, but HappyGrains is doing a poor job on keeping their home farmers satisfied. How will you know? Conduct surveys, call your customers and ask for feedback, use a “Rate our Support” tool, etc. Again, measure, learn and fill out the metric — to be discussed during your weekly OKR Focus Meeting.
Weekly Cadence
And with that, we’re getting to the most important part of using Objectives and Key Results in your company: The Weekly Cadence. This all boils down to discipline. It is your job, as a founder, to ensure you meet every single week with the entire team. Not just your management crew: Get everybody and their mother involved!
Loosely based on the excellent book “Radical Focus” by Christina’s Wodtke, I suggest the following Weekly Cadence:
Monday
Meet with the entire team on Monday at 11:00 to discuss this quarter’s OKRs. You will only focus on the Company OKRs, leave the Department OKRs for individual meetings with your managers. Ask questions: Why are we stuck at 15% for our monthly active users? What do you need? How can I help?
Wednesday
Meet with your managers first thing in the morning to discuss their Department OKRs. Again, ask the difficult questions and keep emphasising how their Objectives contribute to the Company’s mission. Never make it personal, always stick to the numbers and keep it constructive.
Friday
Grab some beers, put some snacks on the table and ask every Department to share one win. This could be the achieving of a Key Result, solving a complex issue or simply hiring a great addition to their team. Leave the digits at the door, it’s time to celebrate your amazing people!
And when it’s Monday again, you and your team get back to the grind, you discuss what needs to be done to achieve the Key Results, and you offer and take suggestions to improve the Health Metrics.
I hope this post and my OKR Tracker serve you well. Should you have any questions, suggestions or comments: Please post them below or reach out to me on Twitter or via email: failedfounder{AT}gmail.com. To conclude:
Objectives & Key Results allow you to plan, execute, and celebrate!
Lessons From A Failed Founder is a series of blog posts by a thirty-something entrepreneur who made all the mistakes in the big startup playbook, and then some. My posts are no pearls of wisdom: Consider them the cautionary tales of a young founder who wants you to avoid making the same mistakes.
Feel free to reach out to me at failedfounder{AT}gmail.com
