The Heartbeat (Continued)
I wrote a post last year called The Heartbeat in which I advocated for a cadence and a rhythm in an organization.
I was reminded of that in this exchange on Twitter over the last 24 hours:
I am a fan of routines and set cadences— Fred Wilson (@fredwilson) April 7, 2019
Many of USV’s portfolio companies use an OKR process to create this rhythm in their teams. What I have learned from watching these companies and listening to how the teams talk about the OKR process is that to some extent it is “form over substance” in that the process is ultimately more important than the specific objectives and key results that flow through the process.
I am not saying that teams shouldn’t be thoughtful in setting objectives and committed to hitting them. They should.
But I am saying that the regular setting of objectives (quarterly is a time frame most companies use) and the weekly or bi-weekly reporting against them is the most valuable thing that comes from the process. It sets the heartbeat and keeps it. And that is so valuable.
Many VC firms, including USV, use a weekly team meeting, often on Mondays, to align the group, report on the week that has past, and focus on the week to come. That weekly cadence allows us to be responsive to entrepreneurs, come to relatively quick decisions as a group, and stay in sync.
Public companies report on a quarterly basis. That rhythm sets up a cadence of setting expectations (guidance) and reporting on results (earnings reports). It is not entirely different from the OKR process in a few important ways. It creates a cadence that is super valuable for execution and performance.
I am a fan of all of these processes. They set a cadence and rhythm for an organization and force decision making and provide for timely execution.
The best companies master this and working in those organizations is fun and rewarding. Setting objectives and meeting them on a regular basis is a virtuous system that brings out the best in people and teams.