It's time to build a better accelerator with OKRs

Why we need more focus to accelerate startups successfuly

Having build-up and lead several startup accelerator programs and innovation hubs in the last ten years, there is one eminent learning: Lack of focus and unclear objectives is jeopardizing the success of the startups and the accelerator! So many accelerators are like a spray and pray event – many pretty good ones by the way – where it "rains" all kinds of valuable inputs and connections where the impact to the startups tends to be serendipitous.

Why it matters? Because you act in an environment where unclear focus and distraction are harming the startup and in the end, the accelerator itself! So instead of progress and success, you see a lot of "accelerator theater" on both sides. 

But I see a proper solution to this challenge: Objectives and Key Results.

A short introduction to Objectives and Key Results

There is an excellent methodology to prevent any defocus, misalignment, and lack of coherence of actions, called Objectives and Key Results or short OKRs. John Doerr, a partner at the prestigious venture capital firm, Kleiner Perkins, became the most influential advocate of this management methodology and introduced it to many of his portfolio companies at Kleiner Perkins. The most famous example is Google, which entirely runs on OKRs since 1999. 

Objectives are WHAT you are going to achieve until a defined point in time. Objectives are significant, concrete, action-oriented, and inspirational. Key Results are the quantitative benchmark to measure IF and HOW are you are achieving your Objective.

Defining OKRs for each of the startups of an accelerator program is making the areas of actions plain clear. With this valuable information at hand, it is easier for every mentor and expert to stay focus on topics that matter for the startup. Everyone's task is to contribute to achieving the set OKRs coherently; everything else is a conversation, which is also lovely, worthwhile, and can be a valuable impulse for serendipity.

But how to get pure focus for startups of an accelerator program?

Implementation at the Good Life Accelerator

As always, execution is vital to validate what works, what does not work, and learn how to improve operations. Luckily, I had the chance to support a new accelerator program called The Good Life Accelerator in Colombo, Sri Lanka. It focuses on startups pre series A with an operating product or service in place and serving customers already in Sri Lanka. Industry scope is the food and agritech space.

 I introduced OKRs in the second week of the program with a two-day introductory session and exercises to get familiar with formulating Objectives and defining the Key Results. On the second day, each of the teams had to set their OKRs until the end of the program. The OKR sheet consisted of the purpose of the startup, three Objectives, and three to four corresponding Key Results. The teams challenged their OKRs, and we jointly improved the formulation, clearness, and ambition level. In the end, we assigned responsible startup team members and someone from the accelerator team for each of the Key Results. As a tool, we used a joint Google Spreadsheet document, so we had a transparent overview and insight to each of the teams (find the template here), which is essential to make ambition and progress between the startups visible, boosting learning and competition.

But we did not stop there. We also asked the startups to define the OKRs for GLX, which gave us not only an insight into the expectations of the teams, but that also sent out a clear message: We are sitting in the same boat and both have to contribute and achieve their OKRs to become successful.

To implement OKRs into a weekly routine, we kicked off the week with a brief update on:

1. the current state of the Key Results,
2. what worked and what did not work so well,
3. what are/were current impediments that need to get solved,
4. and what the weekly scope of actions will be.

This week-start-routine should not take longer than 5min per team and is for informational purposes only. We discussed every issue in-depth in separate meetings and communicated learnings and outcomes via group messaging with the startups.

To end the week, we held an after-action review to reflect more in-depth on learnings, questions, and the input or advice needed by the startups. 

In both meetings, the GLX team was not only the moderator but also presented their very own state of OKRs and learnings to the startups.

How does it work throughout the program?

Due to the reflection on the main focus topics at the beginning of GLX and setting the corresponding OKRs, areas of action were apparent right from the start. Support for the startups could be funneled for startups as intended. But not all startups were able to stay persistent with their OKRs.

The more significant challenge was that the startups all had the day-to-day operations of their businesses, which pushed some of them - at least for certain portions of time - off the accelerator track and some therefore spent less time on it than intended.

Taking this into consideration, in the end, all participants had a pretty decent achievement rate.

For being the first batch of GLX and so to say a beta run, and we have implemented OKRs in this context for the very first time, we were quite happy with the results. But there is also room for improvement!

Lessons learned and upcoming improvements 

The initial analysis of the startups to identify the most challenging topics and the most significant opportunities to tackle during the program needs more time to come up with even better matching OKRs for each of the startups. Therefore running "due diligence" to turn the startup upside down would be adequate to come up with OKRs that are going beyond the surface.

By doing this in the first week, and iterating and fine tuning the OKRs based on the findings and feedback of the experts should create even more relevance and commitment.

The more the startups are left by their daily operational challenges, the less they focus on the strategic improvements to go to the next level, which is one of the aims of an accelerator program. If operational difficulties are identified as fundamental flaws of the startups, these also can be defined as one of their OKRs.

Timely commitment to be on site is also a critical point to accelerate the learning curve through expert feedback and peer learning. Spending dedicated time all together at the same venue, and taking the weekly routines is the foundation to get feedback, implementing the learnings, and creating a positive peer-to-peer dynamic to achieve the KRs. 

OKRs have the intended potential to structure and create the focus needed to get the most out of an accelerator program. The proposition of the accelerator is getting stronger to the sponsors and investors looking for qualified and fundable startups on the demo day. 

Also, most of the startups plan to continue working with OKRs to manage their teams and actions. For example, Dush Ratnayake, the biscuit pudding company Belissima is now using an OKR board in his artisan kitchen to make the company's Objectives and Key Results transparent to everyone in his team. So the team is reminded every day what they need to achieve to "Make the best desserts on Earth."

?Feedback from startups and the GLX management

Sanchitha Silva (Venture Development at GLX)

"OKRs definitely helped create focus and steer the overall operations of the companies. Through the OKR implementation process many of the teams realized how setting priorities according to their overall objectives was crucial for growth and scaling. The OKR boards also provided a good way to quantify achievement and a way to compare progress during the program period."

Peter Borchers (International Venture Strategy at GLX)

?Keeping up a rigorous OKR training regime throughout the course of the program helped the teams not only to learn how to properly use OKRs to manage their businesses, but also to integrate it so deeply into the day to day operations of their companies that many will keep relying on it as one of their basic steering tools."

Dush Ratnayake (Founder of Bellissima)

I was introduced to OKRs by Sebastian during the GLX accelerator for which my company Bellissima was selected for in Colombo. Whilst I had goal set and had certain KPIs that I was tracking, my vision and mission for the company was missing a bridge to those KPIs. The OKRs were the missing link and since introducing them, Bellissima feels like a ship that has found its rudder; and now there is a sense of purpose which feels more steered as opposed to floating in a generally desired direction.

Final words

The program aims to foster the development,growth and internationalization of startups and building upon a thriving and vibrant startup ecosystem in Colombo. To create the entrepreneurial community that will shape regional and national economies now and in the future is a crucial ingredient for sustainable economic development in the unique context of a country and its people.

Thanks to the initiative of Gesellschaft für Internationale Zusammenarbeit (GIZ) of the German Federal Ministry of Economic Cooperation and Development to start the Good Life Accelerator. Also big kudos to the GIZ and The Hatch team in Colombo: Randhula de Silva, Marton Kocsev, and Sanchitha Silva. As well the other supporters Peter Borchers, Toni Kappesz, and Jan Eherlers.