Wondering if your company is OKR ready?
How Are OKRs Beneficial For Startups?
OKRs are an acronym that stands for Objectives and Key Results. This is a set of strategic planning tools used to define, prioritize and track the success of your business goals. OKR was created by Andrew Grove in 1983 and is now a key part of many companies’ management systems.
5 benefits of implementing OKR management startup pivot at the right time
If you’re in a startup, the right time to implement OKR management is when your company has reached a critical point.
When this happens, there are five benefits that come with using them:
- Focusing on the most important tasks and making sure they get done.
- Prioritizing tasks based on their importance.
- Making better decisions by setting priorities for each task and then focusing on those tasks until they’re completed successfully.
- Measuring progress toward achieving goals by keeping track of how much work has been done so far (and what needs to be done next).
Top 6 Reasons why startups fail
There are many reasons why startups fail, but some are more common than others. Here are the top six reasons:
1. Lack of a clear vision.
Startups need to have a clear and compelling vision if they want to succeed. Without a strong vision, it’s difficult to rally employees, partners, and customers around a common goal.
2. Poor execution.
Even the best ideas can fail if they’re not executed well. Startups need to focus on execution in order to succeed.
3. No market need.
One of the most common reasons startups fail is because there’s no market need for their product or service. Before starting a business, it’s important to do your research and make sure there’s a real demand for what you’re offering.
4. Running out of cash.
All businesses need cash to survive, and startups are no exception. Many startups fail because they run out of money before they can generate enough revenue to sustain their business.
5. Bad team.
A startup is only as strong as its team. If a startup has a bad team, it’s likely to fail.
6. Not being able to pivot.
Startups need to be flexible and nimble to succeed. They need to be able to pivot quickly when necessary. Often, startups fail because they’re unable to pivot when things aren’t going according to plan.
If you want to know how to avoid these pitfalls in your startup journey, then read on.
3 things you should know about using OKRs
a. OKR tools are a great way to set goals.
b. The OKR management helps you focus on the right things.
c. OKR tools help you measure progress over time so that you know if your efforts are working or not.
2 simple steps to implement OKRs for startups
- Start with OKRs.
What are OKRs? They’re short-term goals, which you and the team set together and update regularly. They’re the things that need to be done in order to reach your ultimate goal of breaking even or making money within a certain time frame (such as “double revenue by December 31”). You can also use them for other long-term objectives like “have 50% of our traffic come from organic search” or “increase our email list by 2X this month.”
- Set goals based on your business model, not just what you want to do but how much impact it will have on customers’ lives (or other stakeholders).
Using OKR software will help your startup grow
An OKR software helps in setting goals for your business, and it is accessible to every employee within your organization. For example, if someone was responsible for creating SEO content on their blog every month, they could create an OKR like this:
- Create at least one post per week that gets at least 200 views within 7 days of publication.
- Publish at least three posts per month with over 400 words each in length and with links to external sources (e.g. other blogs).
- This would help them focus on creating good quality content while also helping them hit their target number of views per week or month by being more strategic about what types of content are best suited for their audience’s interests.
Some outlines for OKR processes
1. Create ambitious OKRs.
2. Use OKRs as a tool for group learning.
3. State important results as quantifiable outputs rather than activities.
4. Pay attention to three to five important outcomes.
5. Start tracking OKRs.
6. Avoid linking OKRs to rewards or promotions.
We hope that this has given you a better understanding of how to use OKRs and why they’re so useful. For more information, check out our blog post on the topic. And if you want more tips on how to implement these at your startup, we recommend hiring a consultant who specializes in helping startups grow!