OKRs in the Bootstrapping Phase of a Startup
Isabel Carbotta (-Steiner) & Marcel Eyer, Co-Founders of Happy Lab
On May 26, Isa Carbotta-Steiner and Marcel Eyer shared their experiences with the OKR method during the bootstrapping phase of a startup. After a brief input from their side (see video), in which they highlighted their highs and lows, our community split into two groups to discuss these challenges. It turned out that Isa and Marcel were by no means the only ones who had difficulties with the OKR framework during a bootstrapping or founding phase.
Value Orientation - Useful in This Phase?
A fundamental problem quickly emerged: How do you arrive at outcome-oriented Key Results when hardly any measurable value is being created yet? Not only Isa and Marcel, but also several members of the community are familiar with this challenge. Often, there was a desperate search for outcome-oriented Key Results to avoid “subjective” or “gut-feeling” KRs. The result? Activities were measured (e.g., the number of feedbacks collected), which ultimately did not necessarily help. But what is actually the problem with “subjective” KRs, such as “I feel we are on the right track (1-10)”? The community was largely in agreement: in this phase, these Key Results, which express a gut feeling, can be very valuable—certainly more valuable than forced output measurement.
What Is Important in This Phase?
The solution seems to lie in adjusting the mindset (and methodology) somewhat and moving away from rigid outcome orientation. In the bootstrapping phase, aspects are important that do not necessarily produce measurable results: developing an understanding of the direction in which a product or initiative is evolving, being able to determine the further course of the project, and building an information base on which such decisions can be made.
Because: this phase is characterized by a lot of uncertainty, unforeseen changes, and the constant balancing act between perseverance and necessary pivoting. Outcomes are similarly diffuse: a good feeling, a clearer idea, new drive, and motivation. Attempting to measure these results numerically can even distort the process. On the one hand, the OKR framework is sometimes almost too rigid because one would have to regularly throw the OKRs overboard in this phase, which feels wrong. Or the OKRs all show red, indicating a need for drastic measures—while the team feels they would like to continue pursuing this approach a bit longer.
OKR - The Wrong Method for the Founding Phase? Not Necessarily!
Although it becomes clear that OKR and Design Thinking or the Double-Diamond principle do not fit together perfectly, and OKR and Lean Startup might be a better combination, the framework is not to be completely discarded. Best practices from the community show that, for example, adapting the cycles to shorter units, combined with midterm goals or similar, has led to success.
Additionally: OKR is not primarily a method for achieving goals. The process itself, the regular engagement with priorities, creating focus, and team exchange are at the center and were also perceived by Isa and Marcel as very valuable advantages of OKRs in this phase, despite the challenges.
There Is No OKR Police
As with any tool, it is about finding the appropriate form for the current context that generates the most value. If this requires slightly modifying the framework or combining it with other approaches, nothing stands in the way.
In this sense: we thank all participants for the exciting exchange, and Happy OKR!