January 2018

Increase your odds of winning by setting smart goals for the new year.

KPIs, MBOs, OKRs. You’ve probably heard of these and several more ways to set your company’s objectives. With so many options to get to the same goal, it is no wonder why by the middle of the year, objectives, as originally set, often go the same way as New Year’s resolutions. The problem often lies on the goal development: sometimes goals are crafted at the leadership level and not effectively shared and refined with the rest of the organization. Also, there’s a tendency to focus on numbers without regards to the operational goals that drive these numbers, for example, growing revenue by x% (a key business goal) may require sales restructuring (an operational goal).

OKR: a framework that may work for you

Although there is no magic formula for setting goals and sticking to them, I’ve found that the framework provided by OKRs (Objectives and Key Results) can set teams on the right track when it comes to goal setting. Before going into details, diving into the Wikipedia definition of OKR can be useful:

“[OKR’s] main goal is to define company and team “objectives” along with the measurable “key results” that define achievement of each objective. One OKR book defines OKR as “a critical thinking framework and ongoing discipline that seeks to ensure employees work together, focusing their efforts to make measurable contributions.”[1] 

The key term to focus on is “to ensure employees work together.” The OKR framework is good at steering top management to align their goals with those actually in charge of driving the business towards them throughout the year. This means that as you think of OKRs, you need to make sure you’re delivering on the key initiatives the company needs to get done to get to where it needs to be. I find it useful to think of a “value chain” that will support the OKRs with specific initiatives from your team.

Some guidelines about setting objectives and key results

Setting goals and key results together – which is basically what OKRs are all about – can help you create the discipline to have the right internal conversations initially and throughout the year to ensure the team stays focused.

Here are three easy ways to get you going:

  • Get buy-in on your objectives early on. This ensures key team members own the goals, starting with your top management and all the way through to the execution level. Buy-in happens when your team sees a clear connection between objectives and the actions necessary to get there. At the same time, be sure to make your objectives challenging – challenges motivate – along with defining the key results that clearly make the path to this challenge visible.


  • Create a culture around goal-setting and goal-measurement.  Start with top down company OKRs and expand from there. It works a bit like fractals, where goal-setting and key results filter down and climb up. This analogy works also for timing: set your OKRs annually and quarterly to make sure you have the flexibility to adjust and the visibility to correct when necessary.


  • Stay simple: Your goals need to be easy to understand in addition to being simple to measure. This way, people will know right away when they’re deviating from the company’s objectives and will be able to take corrective action sooner. Also, don’t have too many objectives at any level – a maximum of five, each with no more than three or four key results.

The benefits of using a framework like OKRs go beyond just ensuring you develop objectives and meet them. Crafting objectives and key results together disciplines thinking at all levels, communicates the company’s vision accurately, establishes a measurement culture, focuses the effort of your team and enables employee engagement.

Are you ready for OKRs?

Goal setting using OKRs is valuable regardless of your size. As stated before, creating a culture around setting measurable objectives is always a good thing. Think in terms of developing OKRs around functional or product teams in addition to the executive team.

No matter your size, aligning goals with the specific results needed to get there will only result in an organization where everyone – from the CEO to the most recent hire – point their efforts in the same direction.

A well-thought initiative for giving back will help you reach the top faster.

The first days of the year are an ideal time to think about empathy and all the good we can be doing before our To-dos take over all the available energy. This can be a perfect time to realize that building a culture of giving in your early stage company is more than just thinking about giving. The good news is that you don’t need to have a “do good” scheme built in your product strategy or in your business plan; it is much simpler than that, yet the effects in your organization, and with your key customers, can be transformational.

Focusing your team on a cause other than the quarterly goals can help you create strong bonds, build motivation and foster loyalty. Giving back through your company also gives your people meaning and a sense of connection. Finally, having a cause you officially support can boost goodwill and adoption with your customer base.

  1. Giving back is good for teams

The days when people were satisfied with donating a tiny portion of their monthly paychecks to causes are over. Millennials, who now dominate early startups want it all: they want you to give back and they want to be actively engaged in that process. Heeding to their demands is good for your organization. Enabling engaging opportunities for your team to give back builds bonds outside the office thru things such as volunteer days, pro-bono consulting and joint projects.

Better if you let your team choose the non-profit to volunteer to for or to work with, there are hundreds of non-profit organizations around you that need your help. You can choose to focus your giving back efforts at places around your location, to causes connected to the nature of your products or services, to charities who are close to your heart, or all of the above. There is no shortage of organizations that can use the expertise, energy and resources of your team to make the world better.

If you want to get creative, you can also think inside the box. For example, just a few blocks from our office here in San Francisco, AirBnB employs several people from The Arc – an organization that focuses on helping individuals with developmental and mental disabilities have normal lives. AirBnB employees love having them around to help with all kinds of office tasks.

  1. Giving back is good for employees

Research shows that a higher sense of purpose is a better motivator than money. Millennials come with a chip for this, and have forced tech giants like Google, Facebook and Salesforce to make giving-back a centerpiece of their mission.

The energy that your people spend helping others on your behalf is actually re-charging energy. It is very common in non-profit and community organizations around the Bay Area to see employees from the likes of Google and Deloitte work on specific project during the day – not after work. For example, the City of San Francisco has an initiative called Civic Bridge where pro-bono consulting volunteers work together for 3 months to use their expertise to help the municipality on very specific issues. These volunteers then bring back to the office new ideas, connections and a sense of purpose that spreads through their companies.

Engaging giving-back opportunities for your employees will ensure your company’s social DNA is built and nurtured, internally and externally, through individuals that become the ambassadors of what your organization is doing beyond profit.

  1. Giving back is good for business development

The third pillar of giving back concerns the effect it can have on your business development efforts. Having your people donate their talent, time and energy locally will connect you to the community in a way that no PR effort can, and will bring in more business and potential employees.

Additionally, combining business with giving builds empathy into your DNA. Actions that you can take early on involve things like creating a .org for your company, giving your product away for free or at a huge discount to non profits. Toms and Salesforce.org  are good examples on how giving can be weaved into your core business to generate additional sales; after all, we are more prone to buying products and services from companies we like and admire.

In order to activate this business development-focused giving, you need to make it easy for a nonprofit to take advantage of your product and for a paying customer to see where some of their dollars go when it comes to social responsibility. In the case of Salesforce for instance, many big non-profits become profitable paying customers when they grow and have the resources to pay full price for a product they’ve been using for years.

It’s never to early to give back.

The positive effects on your team, your employees as individuals and your business development – just to name three areas affected by it – indicate that it is never too early to give back, even for a seed round company. Think about it, and if you need help with the right set-up to make it sustainable, ask your CFO.


Photo courtesy of Christopher Michel.