How to Correct a Common OKR Mistake

If you find that your startup’s OKRs aren’t working effectively, there are several potential reasons why that’s the case. But the most likely reason is that your startup has become too dependent on departmental OKRs. It’s a common occurrence when startups grow have a clear division between multiple departments.

In most cases, the marketing department, finance department, engineering department, and other parts of the company all have their own OKRs. While this might make sense, it creates silo thinking throughout the company rather than looking at the bigger picture.

Instead, thinking about five things (always do no more than five OKRs per quarter) the company needs most over the next quarter. It’s not about what each department needs or even what they can contribute. Think about the company as a single entity and what it needs to accomplish.

This means thinking end-to-end across the entire organization. Think about investor needs or the customer journey. What do the people outside of the company want from your startup? This helps you see the bigger picture and avoid departmental silos. By doing so, you’ll begin to see what goals and OKRs should be set for the next quarter.

In some cases, one department may not have an OKR for the following quarter. This is often because that department is already ahead of the rest. It doesn’t make sense to push them further ahead while other departments lag behind. 

Rather than guaranteeing an OKR for every department, the department that’s ahead of the rest can help the other catch up. After all, every part of the company should be on the same page and pulling in the same direction, not competing with each other. By focusing on company-wide OKRs rather than silo thinking, the entire company can reach a higher level, getting your startup to the next stage of growth faster.

If you’re not sure about your current OKRs or your team isn’t hitting its targets, reach out to the Midstage Institute for a mid-quarter OKR review that can help you gain clarity and get actionable insight to start hitting your goals.