OKR (Objectives and Key Results) is a goal setting system used by Google and other successful companies. OKR methodology can create alignment and engagement around ambitious goals. But OKR is not only for big and digital companies; can help startups to be agile, focused and move fast regardless of size or funding.
Doerr’s formula is the best way to explain the structure of an OKR:
“I will (Objective) as measured by (this set of Key Results)”
OKR examples that can give you guidance
Defining well-structured OKRs and creating a system is not easy. Examples are the guidance for your organization’s OKRs. Different companies operate their OKR setting differently; you should use the examples for inspiration. Don’t forget every change in process, effort, time and commitment are needed to succeed.
The Objective is an ambitious goal, sets a clear direction for everyone. It basically tells you where you want to go.
Key results are a set of metrics that that need to be achieved in order to meet the objective. For each Objective, you should have a set of 2 to 5 Key Results. More than that it is difficult to focus.
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Through OKR goal setting process you should include all employees in the strategy processes. Top-down meets bottom-up: The best way for setting objectives: “Don’t tell people what to do; tell them what you need accomplished, and you’ll be amazed at the results.” General Patton
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Separate the OKR and performance system.
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Don’t set too many Objectives.
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Don’t set vague Key Results
OKR examples that can give you guidance
Defining well-structured OKRs and creating a system is not easy. Examples are the guidance for your organization’s OKRs. Different companies operate their OKR setting differently; you should use the examples for inspiration. Don’t forget every change in process, effort, time and commitment are needed to succeed.
Sales
Objective: Skyrocket MRR
KR 1: Increase MRR from $220k to $300k
KR 2: Increase average monthly subscription size from $150 to $250 per month.
KR 3: Reduce monthly churn rate from 3.5% to 1.5%
Objective: Drive-up ARR to new levels
KR 1: Increase the retention rate from 95% to 105%
KR 2: Increase the company average deal size by 25% with upsells
KR 3: Decrease the sales cycle from 2 months to 1.5 months.
Objective: Grow our Corporate Global Business
KR 1: Win 20 new enterprise deals
KR 2: Recruit 6 new channel partners in EMA
KR 3: New 18 deals from partners
Objective: Decrease sales lifecycle
KR 1: Upsell product to 25% of existing customers.
KR 2: Decrease POC period 30 days to 15 days
Marketing
Objective: Win the Google Search Ranking Game
KR 1: Find SEO keywords that have a monthly search volume of at least 1000.
KR 2: Decrease website organic bounce rate from 72% to 48%
Objective: Turn content into a lead-generation star
KR 1: Reach a click-through rate of 60% for email newsletters
KR 2: Increase content click-through from 2.500 to 5.000 clicks monthly
KR 3: Boost e-book downloads by 40%
Objective: Increase social media reach
KR 1: Double social media reach from last quarter
KR 2: Increasing the number of daily Instagram comments from 20 to 35
KR 3: Increase the number of monthly leads from social media sources from 900 to 2.000
Product
Objective: Make successful product launch for 3rd version of Product X
KR 1: Increase the conversion rate sign-up to trial from 33% to 45%
KR 2: Increase the conversion rate trial to paid from 45% to 70%
KR 3: Get published product reviews in 10 publications
Objective: Improve first user experience
KR 1: Reduce the sign-up flow churn from 27% to 7%
KR 2: Improve NPS from 8.5 to 9.7
KR 3: Reduce bugs found after the release by 99%
People
Objective: Successfully implement OKR methodology
KR 1: 100% participation in OKR weekly check-ins
KR 2: 80%+ positive employee feedback after 3 months of implementation
Objective: Improve employee engagement
KR 1: 100% of team members receive feedback this quarter
KR 2: Implement 20% additional employee engagement activities
KR 3: 100% of team members receive feedback this quarter
Software Engineering
Objective: Improve product stability
KR 1: Reduce API response time to 2s
KR 2: Improve unit testing coverage from 70% to 90%
KR 3: Decrease TrackJS errors by %60
Objective: Improve speed of feature releases
KR 1: Increase length of QA testing phase before entering user testing phase by 2 weeks
KR 2: Reduce reported bugs by 50% a week prior to feature release
KR 3: Decrease of reported issues during development process by 25%
Objective: Improve User Experience
KR 1: Decrease New user signup time from 2 minutes to 1 minutes
KR 2: Increase NPS of clients by 20%
Download the OKR Guide for Startups
In the chaotic environment, OKRs help organizations prioritize and execute without losing focus. That’s why startups can benefit more by implementing OKR. Here's everything you need to know to Get Started!
