How to manage your

small business with OKR?

Getting results for your small business is hard. 


Therefore it is essential to have a system to organize your business by setting goals and measuring progress. One of the overarching tactics we have been using is OKR.


This approach I have been using for the last 4 years with other teams and now at Pineapple Builder. It helped me and my team to stay focused on things that matter and allow other team members to work together and independently to fulfill the company's goals. It is used by many companies and it was pitched by John Doerr to Google at early days. As he says in Measure What Matters : “OKRs - the simplest Idea That Drives 10x Growth”



What is OKR?


OKR stands for Objectives and Key Results, and is a framework for setting measurable goals and tracking progress. It is used by businesses of all sizes, across all industries, starting from Google and many small startups.


Why is it different?

OKR is different from other goal-setting frameworks in a few key ways:

  1. It is a framework for setting goals at all levels of an organization, from the individual contributor to the CEO.

  2. It is a framework for setting goals that are specific, measurable, achievable, relevant, and time-bound.

  3. It is a framework for setting goals that are aligned with the company's strategy.

Examples
Objective


Where to?


"Build best OKR blog for SaaS"


Key Result


How?


"Publish 10 blog posts per month"


Initiatives


Where to?


"1st blog post about OKR basics"


How to start with OKR? 


There's no one-size-fits-all answer to this question, as the best way to start using OKRs will vary depending on the specific organization and what's important to them. However, some tips on how to get started with OKRs include: 

  1. Define what you want to achieve: The first step is to define what your organization wants to achieve with OKRs. This could be anything from increasing sales or web traffic, to improving customer satisfaction or employee engagement.

  2. Set measurable goals: Once you know what you want to achieve, you need to set measurable goals that will help you track and assess your progress. These could be quantitative goals like increasing sales by 10% or reducing customer churn by 5%, or qualitative goals like increasing customer satisfaction scores by 2 points. 

  3. Create a timeline: To ensure you stay on track, it's important to create a timeline for each goal. This will help you break down your goals into manageable pieces and ensure you're making progress towards them. 

  4. Assign responsibility: Each goal should be assigned to someone in your organization who is responsible for achieving it. This will help to ensure each goal is given the attention it deserves. 

  5. Track progress: Finally, you need to establish a system for tracking your progress towards each goal. This could involve setting up regular check-ins, creating dashboards or using software like Objectives and Key Results (OKR) to track progress.


What are bad OKR examples? 


  1. Focusing on the wrong things: Some companies focus on the wrong things when setting their OKRs. For example, they may focus on short-term gains rather than long-term objectives, or they may focus on individual performance rather than team performance. 

  2. Not being specific enough: Some companies set OKRs that are not specific enough. For example, they may set a goal to “increase sales” without specifying how much sales need to increase by. 

  3. Not being realistic: Some companies set OKRs that are not realistic. For example, they may set a goal to “doubling sales” when their current sales are only $10,000 per month. 

  4. Not being aligned with strategy: Some companies set OKRs that are not aligned with their overall business strategy. For example, they may set a goal to “increase market share” without considering how this will impact their profitability. 

  5. Not being measurable: Some companies set OKRs that are not measurable. For example, they may set a goal to “improve customer satisfaction” without defining what “improvement” means.

Bad OKRs
Double our SEO ranking

Shouldn't be measurable

Create a lot of new blog posts

Needs to be measurable

Create million post a week

Should be ambitious, not impossible

Final points
  • Give it a try for at least three quarters 

  • Don’t set more than three Objectives on each level of your organization

  • Align them across different teams

  • Make them transparent

  • Update regularly the progress and refine strategy

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