OKRs are crucial for scaling a fintech startup as they provide a clear roadmap and focus the activities of the teams. There are many reasons why it makes sense for fintechs to consider the method. OKRs enable an organisation to align their efforts toward common objectives and track progress in a measurable way. By setting ambitious yet attainable goals and key results, fintechs can prioritise their resources effectively, drive innovation, and foster accountability. As well as giving a framework to adapt quickly to changing circumstances, for instance a drop in venture capital investment. Ultimately accelerating their growth and maximizing their chances of survival and success. Using OKRs with one end goal in sight: better strategy execution.
OKRs and Strategy Execution: a Great Match
OKRs play a vital role in strategy execution for many organisations, including fintech companies. They translate strategic objectives into measurable and actionable goals, ensuring alignment between high-level vision and day-to-day activities. Going from strategy to execution.
By setting clear objectives and key results, companies can establish a systematic approach to track progress, evaluate performance, and make data-driven decisions. This framework fosters accountability, promotes transparency, and empowers teams to focus on the most impactful initiatives, enabling effective strategy execution and driving organisational success.
What are the best practices for fintech companies?
Disclaimer: OKRs are not a one-size-fits-all approach.
That’s because different organisations have varying goals, cultures, and operating contexts. For instance, a French fintech scaleup told Fintech Review that almost everybody in The French Tech Next40 uses OKRs… but all in a different way.
What works well for one company may not be effective for another due to differences in particular industry vertical, size or stage of development. Customising the method allows companies to tailor the framework to their specific needs, enabling flexibility, adaptability, and alignment with their unique strategic priorities.
From priorisation to better alignment
OKRs facilitate the transition from prioritisation to better alignment by providing a framework that connects individual and team objectives with overarching strategic goals.
It enables teams to prioritize their efforts effectively, ensuring that everyone is working towards a common purpose and driving alignment across the organisation.
From growth to profitability
OKRs can be instrumental in shifting a company’s focus from growth to profitability. Which is a very big topic right now in fintech. After years of laissez-faire.
For instance by setting objectives that prioritise revenue optimisation, cost management, and operational efficiency. By aligning key results with financial metrics and profitability targets, OKRs provide a framework for driving strategic initiatives and operational changes that ultimately lead to improved financial performance and sustainable profitability.
Examples of best practices when it comes to OKR implementation
Clear and transparent communication
Effective OKR implementation requires clear and transparent communication at all levels of the organisation. In short, strong and effective leadership.
Leaders should clearly articulate the purpose and benefits of OKRs. That will lead to everyone understanding how their work aligns with the broader goals. Regular communication and updates on progress create a sense of shared ownership and keep everyone engaged and motivated.
Focus on outcomes
OKRs should emphasize outcomes rather than simply listing activities or tasks. Which is a common mistake. By focusing on desired results, teams are empowered to determine the most effective and efficient ways to achieve them. This approach encourages innovation, creativity, and strategic thinking. This ultimately will lead to better problem-solving and improved performance across the company.
Regular review and adaptability
OKRs should be reviewed and adjusted regularly to ensure they remain relevant and aligned with changing circumstances. Regular check-ins allow for progress evaluation, identification of obstacles, and timely adjustments to improve performance. This iterative process promotes agility, learning, and continuous improvement. It is ensuring that OKRs remain a dynamic and effective tool for driving success.
Bottom line
Fintechs are at a crossroads. For many that have been surfing on the unlimited VC cash wave, it is time to shift from growth to profitability. Easier said than done. The OKR method provides a way for fintech companies to make that shift. It helps to re-align the organisation towards a different goal. Ultimately increasing the chances of success.
If you are still not convinced and do not believe in the power of OKRs for better strategy execution… Check out the The Global State of OKRs 2023 Trend Report by OKRmentors & Quantive. This very comprehensive report outlines a lot of interesting statistics about how overachievers implement the OKR method, what to do… and what to avoid.