If you’re running a startup, you probably have a lot on your plate.
Whether you're working remotely with a small team or scaling up, aligning everyone around clear goals can be tough. That’s where the OKR cycle comes in.
But what exactly is an OKR cycle, and why should you use it?
An OKR cycle refers to the specific period in which you set, track, and evaluate your OKRs (Objectives and Key Results). It’s like a focused sprint toward achieving your company’s biggest goals.
In this article, I’ll break down what the OKR cycle is, why it’s important, and how you can use it to bring structure and clarity to your startup. And of course - how you can use it to achieve your ambitious goals.
The Structure of an OKR Cycle
An OKR cycle is made up of three essential phases:
- Setting your OKRs
- Tracking progress
- Evaluating your success at the end of the cycle.
Let’s break this down.
1. Setting OKRs (Beginning of the Cycle)
The first step in your OKR cycle is setting clear objectives and key results.
At the start of the cycle, usually at the beginning of a quarter or another defined time period, you’ll decide what you want to achieve. Your objectives should be ambitious (i.e. stretch goals) and qualitative, while your key results will be specific and measurable (i.e. SMART goals).
You’ll want to align your OKRs with your startup’s overall strategy to ensure that everyone is working toward the same big-picture goals.
2. Tracking OKRs (Throughout the Cycle)
After you set your OKRs, the next step is to track progress.
This is where the real work happens. During this phase, your team should work toward achieving the key results. The best part? You’ll regularly check in to see how things are progressing.
Holding weekly or bi-weekly check-ins with your team helps keep everyone on track.
This also gives you the opportunity to adjust if things aren’t moving as expected, whether that means reallocating resources or revising key results to reflect new priorities.
3. Evaluating OKRs (End of the Cycle)
Once your OKR cycle comes to an end (usually after a quarter), it’s time for evaluation.
This is the reflection phase. You’ll assess how well you did in achieving your objectives and key results. This is often done during a quarterly review where you look at the progress, celebrate wins, and learn from any failures.
You’ll review whether the OKRs were achievable and relevant, and use that insight to adjust your approach for the next cycle.
This makes OKRs a tool not just for tracking performance, but for continuous improvement (i.e. the cycle).
Recommend reading: How to Write Effective OKRs
Why Does the OKR Cycle Matter?
Now, you might be wondering: Why does the OKR cycle matter so much?
You already know that startups move fast, and priorities shift on a dime, but here’s why the OKR cycle is key for staying on track:
1. It Drives Focus
With so much to do in a startup, it’s easy for your team to get distracted by non-essential tasks. The OKR cycle forces you to focus on a few critical goals and track measurable results.
It helps you prioritize what will move the needle and keeps you from getting sidetracked by less important things.
2. It Ensures Alignment
Whether your team is small or growing fast, alignment is everything.
The OKR cycle helps you ensure that everyone is working toward the same company-wide objectives. When teams understand how their work connects to broader business goals, they can better align their efforts.
This shared sense of purpose drives productivity and collaboration.
3. It Promotes Accountability
When everyone knows the key results they are responsible for, accountability becomes automatic.
OKRs keep your team on track and accountable to the goals they’ve set, making it easier for you to communicate progress and ensure that no one is falling behind.
4. It Provides Flexibility for Improvement
One of the best things about OKRs is that they are dynamic.
They give you the flexibility to make adjustments as needed. If something isn’t working, you can re-evaluate and make changes in real-time. This adaptability is crucial for a growing startup, where things change quickly.
Typical Length of an OKR Cycle
The duration of your OKR cycle will depend on your startup’s needs, but the most common lengths are:
- Quarterly (3 months): This is the most widely used cycle. It provides enough time to make meaningful progress but is short enough to stay agile and make adjustments when necessary.
- Annually (12 months): Some larger organizations may opt for an annual cycle, but this may feel too long for startups. Quarterly cycles tend to keep teams more focused and allow for quicker feedback.
- Monthly (1 month): In fast-moving environments, some startups use monthly cycles. However, this may be too short to track long-term progress on bigger goals.
How to Get Started with an OKR Cycle
Now that you understand the structure of an OKR cycle, how do you get started?
It’s easier than you might think:
- Set Clear Objectives: Choose 1-2 major goals for the quarter that align with your business priorities.
- Define Measurable Key Results: Break your objectives into specific, measurable outcomes. These should be easy to track and time-bound.
- Pick Your OKR Cycle Duration: Start with a quarterly cycle to get a feel for the process and see what works best for your team.
- Track Progress Regularly: Find the best OKR software for startups to track progress in real time. Make sure to set up regular check-ins to discuss updates and obstacles.
- Review and Reflect: At the end of the cycle, take time to assess what went well and where improvements are needed. Use this feedback to make adjustments for the next cycle.
Recommend reading: 5 Free OKR Software Tools for Startups
Conclusion
The OKR cycle is a way to align your team, track progress, and improve your processes over time. By setting clear objectives, defining measurable key results, and regularly reviewing your performance, you can keep your startup on the path to success.
The OKR cycle helps you focus, align, and adapt - three essentials for any fast-growing startup. So, what are you waiting for?
Start your first OKR cycle today with OKRsTool.com. It’s time to track your results, and watch your team take action toward achieving your startup’s most ambitious goals.
