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OKRs for startups: real examples, explained

A startup OKR holds up when it forces the one question that matters this quarter, usually about proof, not polish.

Startups misuse OKRs in a specific way: they import the big-company version, five objectives and a cascade, into a team of nine. At that size the framework should do one thing: force the company to name the single question this quarter must answer. Usually it is a proof question: do people want this, will they pay, does the motion repeat without the founder.

The strongest startup OKRs are almost uncomfortable to read because they make failure visible. That is their value. A quarter that ends with a clear no is cheaper than three quarters of maybe.

A startup team working around one table

Company-level Startup OKR examples

Objective: Prove the DACH market can carry our next stage of growth

  • Grow annual recurring revenue from €1.2M to €1.6M
  • Raise the share of new ARR from the DACH region from 5% to 15%
  • Shorten CAC payback from 19 to 15 months

Level: Company Company type: SaaS Company type: Startup

Coach’s score ★★★★★

Measurable ★★★★★

Outcome-based ★★★★★

Focused ★★★★★

Niklas Olsson

Niklas Olsson · OKR coach

Overall, this is a strong OKR, but it's quite sales- or finance-oriented, leaning almost a little too much toward a budget. The only strategy here is a focus on a specific geography. What that often means is that it's directed at a specific team, maybe not a rallying cry for the entire organisation. When these work, what I usually see is the sales effort, together with marketing, needing to adapt to a new language, for example. Product needs to adapt to a new market, or maybe legal even has to start work to support the sales effort in Germany. It is possible to rally the entire organisation around something as simple as a new geography with financial metrics like this, but this example does not quite show that yet.

Overall, this kind of OKR works well. I would say all three hold up here, including shortening payback. For clarity, if this is a strategic OKR for the entire organisation, it would be nice to write out customer acquisition cost, but it's also hard to understand how that fits into the objective. Why do we have a CAC target on this one? Maybe we need to clarify the objective, then talk about how DACH can sustain the next stage of growth. For example, sales in this new market need to hit a specific level of profitability. For the right organisation in the right context, this hits the marks.

Objective: Prove people want this before we scale it

  • Raise week-4 retention of new signups from 18% to 40%
  • Grow paying customers from 8 to 30
  • Reach 40% of users who would be very disappointed without the product, up from 22%

Level: Company Company type: Startup Company type: SaaS

Coach’s score ★★★★★

Measurable ★★★★★

Outcome-based ★★★★★

Focused ★★★★★

Niklas Olsson

Niklas Olsson · OKR coach

Overall strong, clear, and very ambitious, which is common with startups. Many times startups are exactly the kind of organisation that can really benefit from ambitious OKRs. With a lack of baselines, experts, and experience of what actually works, you can see results that double or triple the current level.

Number three is a fun one: reach 40% of users who would be very disappointed without the product. At the same time it needs some kind of measurability settled up front. Will this be measured at the end of the quarter with a survey to all customers, or is there a better metric for this satisfaction score?

Objective: Build the sales engine our next stage needs

  • Close 4 deals without a founder in the room, up from 0
  • Win 30% of new deals following the documented 30-day playbook, up from 0%

Level: Company Company type: Startup

Coach’s score ★★★★★

Measurable ★★★★★

Outcome-based ★★★★★

Focused ★★★★★

Niklas Olsson

Niklas Olsson · OKR coach

This OKR has its heart in the right place, and it's clear what it wants to achieve. I would say the key results are maybe a little limiting, or uncertain about whether they're hitting the right thing here. Would this potentially force the founder out of the room in important sales processes? Is that really what the team wants to achieve? And is playbook adherence really the road to building a sales engine without the founder involved?

There are a couple of thoughts in here that might have the effect that the team avoids taking support from the founder, or avoids taking the decisions needed to close the deal because they're adhering to a playbook. It risks having a problematic effect on the team, even though its intention is clear. I think it's more about reformulating and finding stronger key results for this one.

Good questions

How many OKRs should a startup set?

One company objective is a respectable answer, two is plenty. Every objective you add divides the attention of the same ten people. If the honest priority list has five items, the OKR's job is to admit which one pays for the others.

How do startup OKRs differ from corporate ones?

Corporates use OKRs to align many teams; startups use them to focus one. That changes the content: less cascading, more existential metrics, shorter feedback loops. Retention cohorts, paying customers and runway beat any framework diagram at that stage.

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