ROI Case File No.266 | 'Atlas Foods' North Star Alignment'

Chapter One: Scattered Priorities - Stagnation from Goal Proliferation

The week following the resolution of NordicFlow Systems' Logic Tree case, a consultation arrived from North America regarding a rapid-growth startup's goal management. Episode 266 of Volume 21 "Deepening Analysis" tells the story of pointing the entire organization in one direction and accelerating execution speed.

"Detective, all our employees work hard. But everyone tackles 'what they think is important,' and organizational momentum isn't being generated. By month's end, we can't see 'what actually progressed.'"

Atlas Foods' Chief Operating Officer, Emily Chang from San Francisco, visited 221B Baker Street unable to hide her anxiety. In her hands were goal lists from each department and graphs showing stagnating sales growth in stark contrast.

"We operate a frozen health food D2C brand in California. We've grown rapidly for 3 years since founding, but growth has slowed this past year. Everyone's busy, but results aren't visible."

Atlas Foods' Growth Stagnation: - Founded: 2021 (Health food D2C) - Monthly revenue: $7M (flat for 6 months) - Employees: 45 - Departments: 6 (Product Dev, Marketing, Sales, Logistics, CS, Admin) - Total departmental goals: 87 items - Achievement status: Unclear

Emily's expression showed deep confusion.

"The problem is each department has its own goals and claims theirs are 'important.' Product development wants new products, marketing wants to grow social media followers, sales wants corporate contracts. Everything's important, but we can't decide top priority."

Goal Proliferation: - Product Dev: 5 new products developed, 10 existing product improvements - Marketing: 100K social followers, ad ROI improvement, brand awareness increase - Sales: 20 corporate contracts, retail entry, 10K subscription members - Logistics: Faster delivery, 15% cost reduction, zero quality complaints - CS: Shorter inquiry response time, 4.5+ satisfaction, FAQ page setup - Admin: System renewal, 5 new hires, financial structure improvement

"Everyone's running, but in different directions."

Chapter Two: Using OKR to Decide "What Not to Do" - The Art of Focus

"Ms. Chang, how are your current goals managed?"

To my question, Emily answered with a bitter expression.

"At year-start, each department sets goals and shares them in all-hands meetings. But departmental goals are independent, and 'what to prioritize company-wide' remains vague. As a result, everyone just pursues their own goals."

Current Goal Management (Department Optimization): - Format: Annual Goals - Setting method: Each department sets independently - Company-wide alignment: Weak - Progress management: Quarterly review (perfunctory) - Priority: Unclear

I explained the importance of goal hierarchy and focus.

"Too many goals equals no goals. OKR - Objectives and Key Results. This method is the art of pointing the entire organization in one direction and clarifying 'what not to do.'"

⬜️ ChatGPT | Catalyst of Concepts

"Set the North Star. If everyone watches that star, the ship moves straight."

🟧 Claude | Alchemist of Narratives

"Focus isn't deciding what to do, it's deciding what not to do."

🟦 Gemini | Compass of Reason

"OKR is the organization's compass. Hierarchy goals, point everyone the same direction."

The three members began their analysis. Gemini deployed the "D2C Startup-Specific OKR" framework on the whiteboard.

OKR (Objectives and Key Results) Structure: - Objective (O) - Qualitative goal (ambitious and vivid) - Key Results (KR) - Quantitative outcome indicators (measurable and challenging) - Hierarchy - Company O → Department O → Individual O - Cycle - Set and evaluate quarterly

"Ms. Chang, let's reorganize Atlas Foods' goals with OKR."

Chapter Three: Quantifying KRs and Progress Rhythm - Measurable Ambition

Phase 1: Setting Company-Wide Objective (1 week)

First, we narrowed the company's top priority to one.

Company-Wide Objective (Q3 2025): "Establish a subscription model for health foods and build a sustainable revenue foundation"

Company-Wide Key Results (narrowed to 3): 1. Subscription members: 3,000 → 8,000 (+167%) 2. Monthly retention rate: 78% → 90% 3. Revenue per member: $70/month → $100/month

If these 3 KRs are achieved, monthly revenue grows from $7M to $8M, and subscription ratio increases, improving revenue stability.

Phase 2: Aligning Department OKRs (2 weeks)

We set each department's OKRs to realize the company-wide OKR.

Product Development OKR: - O: Build product lineup members won't tire of - KR1: Provide 6 monthly rotating menu items every month - KR2: "Won't tire" rating in member survey 4.2+ - KR3: New product initial order rate 85%+

Marketing OKR: - O: Clearly communicate subscription appeal and accelerate member acquisition - KR1: Subscription LP conversion rate 2.5% → 5.0% - KR2: First-time buyer subscription conversion 15% → 30% - KR3: 20% of members refer friends through referral program

CS OKR: - O: Provide experiences that make members want to continue without canceling - KR1: Retention rate for cancellation-considering members 40% → 70% - KR2: Member community participation rate 8% → 25% - KR3: Inquiry response time 12 hours → 2 hours

Phase 3: Clarifying "What Not to Do"

Items not included in OKRs won't be executed this quarter.

Q3 "What Not to Do": - New retail entry (unrelated to company-wide OKR) - Social follower growth initiatives (don't directly drive subscriptions) - Large-scale system renewal (postpone to Q4+) - Delivery speed improvement (current level sufficient)

Emily asked anxiously.

"Is it okay to decide not to do these?"

"It's fine. What matters is everyone moving toward the same goal. Focused effort is far more powerful than scattered effort."

Chapter Four: Quarterly Review Truth - Achieving High-Speed PDCA

Phase 4: Introducing Weekly Check-ins (Ongoing)

We implemented a mechanism to confirm OKR progress weekly.

Every Monday 10:00 (30 minutes): - Report each KR's progress with numbers - Declare 3 action items for this week - If blockers exist, immediately discuss solutions

Week 4 Example:

Marketing KR2 Progress: - Target: First-time buyer subscription conversion 30% - Current: 22% (from 15% at start) - This week's actions: 1. Improve follow-up email after first purchase 2. Strengthen subscription benefit messaging 3. Optimize subscription offer at second purchase

CS KR1 Progress: - Target: Retention rate for cancellation-considering members 70% - Current: 58% (from 40% at start) - This week's actions: 1. Implement countermeasures for top 3 cancellation reasons 2. Design special offer before cancellation 3. Strengthen community event invitations

Phase 5: Quarterly Review (End of Q3)

After 3 months, we reviewed OKR achievement status company-wide.

Company-Wide Key Results Achievement: - KR1: Subscription members 3,000→7,200 (90% of 8,000 target) - KR2: Monthly retention rate 78%→88% (98% of 90% target) - KR3: Member spending $70→$93/month (93% of $100 target)

Overall Achievement Rate: 94%

Not complete, but astounding progress.

Results: - Monthly revenue: $7M→$10.7M (+51%) - Subscription ratio: 35%→78% (revenue stabilization) - Employee satisfaction: 3.8→4.6 (effect of clear goals)

Employee Voices:

Marketing Staff (28 years old): "Before, I didn't know what to focus on. OKR clarified priorities, and I could move without hesitation."

CS Staff (32 years old): "Seeing progress in weekly check-ins keeps motivation going. There's a real sense of accumulating small successes."

Chapter Five: The Detective's OKR Diagnosis - Eliminating Confusion with the North Star

Holmes compiled the comprehensive analysis.

"Ms. Chang, the essence of OKR is 'focus.' Everyone looks up at the same North Star and moves toward it. Not the courage to decide what to do, but the courage to decide what not to do. That creates organizational momentum."

Final Report After 12 Months (End of Q4):

Atlas Foods established a unique position in the health food D2C market.

Final Results (4 Quarters Cumulative): - Subscription members: 3,000 → 18,000 (6x) - Monthly revenue: $7M → $23M (3.3x) - Operating profit margin: 5% → 18% (subscription model effect) - Employee count: 45 → 62 (growth-aligned hiring)

Emily's letter contained deep gratitude:

"Through OKR, we transformed from 'an organization that's just busy' to 'an organization that produces results.' What mattered most was the courage to decide 'what not to do.' Everyone running while watching the same goal. I never knew that unity could be this powerful. Now we set a new North Star each quarter and chase it together."

The Detective's Perspective - Focus Creates Power

That evening, I contemplated the essence of goal management.

The true value of OKR lies in its constraints. You can only have 3 Key Results. This constraint forces focus on the organization. Pursue everything and achieve nothing. But narrow to 3, and those 3 will certainly be achieved.

Constraints don't take away freedom. Constraints give true freedom.

"One North Star is enough. If everyone watches that star, the ship moves through storms."

The next case will also depict the moment when the power of focus opens an organization's future.

"To-do lists can be infinitely created. But only those who can create not-to-do lists truly produce results." - From the Detective's Notes