Are you struggling to measure progress towards your goals? If so, you’re not alone. As a leader, it’s essential to set effective goals that lead your team to success. However, measuring progress can be a challenge. That’s where Key Results come in.
In this post, we will guide you through the different types of Key Results in OKR. By the end, you’ll have a clear understanding of how to use each type effectively in your own goal-setting efforts. But first, let’s start with a brief overview of OKR and the difference between objectives and Key Results.
What is OKR?
OKR is a goal-setting methodology used by organizations to set and achieve ambitious goals. This framework aligns teams and focuses their efforts on high-priority objectives while providing measurable outcomes to track progress.
- Objective: is a specific and clear goal that you want to achieve. It is typically ambitious, inspiring, and time-bound. Objectives describe what you want to accomplish and provide direction for your efforts.
- Key Results: are measurable milestones or outcomes that track progress toward the Objective. They define how you will achieve the Objective and provide a way to quantify success. Each Objective should have several KRs that are specific, measurable, achievable, relevant, and time-bound (SMART).
The OKR framework emphasizes a clear connection between Objectives and Key Results, ensuring alignment across the organization and promoting transparency and accountability. Now that we have a better understanding of OKR and the difference between Objectives and Key Results, let’s dive into the different types of KRs based on John Doerr’s book Measure What Matters.
Quantitative Key Results
Quantitative Key Results are all about numbers and measurable targets. Think of metrics like revenue, profits, and growth rates.
Example: Increase sales by 20% in the next quarter.
Pros:
- Clear and straightforward measurement.
- Provides specific benchmarks for success.
Cons:
- Can sometimes overlook qualitative improvements.
- May focus too much on the numbers, potentially sacrificing other important aspects of performance.
When to Use: Quantitative KRs are best for objectives that involve hitting specific numerical targets. They provide clear benchmarks to measure success and track progress.
Milestone-based Key Results
Milestone-based Key Results focus on achieving specific milestones or completing major tasks.
Example: Launch the new product line by the end of the quarter.
Pros:
- Helps track progress on projects or initiatives with clear stages.
- Keeps focus on important tasks and milestones.
Cons:
- May be less flexible if circumstances change.
- Achieving a milestone doesn’t always guarantee the desired outcome.
When to Use: These KRs are great for tracking progress on projects or initiatives with clear stages or phases. They help ensure you’re moving forward and hitting important milestones along the way.
Qualitative Key Results
Qualitative Key Results measure subjective or perceptual aspects of performance, such as customer satisfaction.
Example: Improve customer satisfaction ratings from 3.5 to 4.0 on a 5-point scale.
Pros:
- Captures aspects of performance that numbers may not reveal.
- Useful for measuring customer or employee satisfaction.
Cons:
- Can be harder to measure accurately.
- May rely on subjective data sources like surveys or feedback.
When to Use: These are perfect for measuring customer or employee satisfaction and other qualitative data points. They’re often based on surveys, feedback, or other perception-based measurements.
Time-based Key Results
Time-based Key Results emphasize deadlines and time constraints for tasks or goals.
Example: Resolve 90% of customer support tickets within 24 hours.
Pros:
- Encourages efficiency and promptness.
- Provides clear timeframes for goal completion.
Cons:
- May put pressure on teams to meet deadlines at the expense of quality.
- Can be challenging if external factors cause delays.
When to Use: Use these when you want to track efficiency and promptness in executing work. They ensure that tasks are completed within the desired timeframe.
Process-based Key Results
Process-based Key Results focus on improving or optimizing processes within the organization.
Example: Reduce production cycle time from 20 days to 15 days.
Pros:
- Identifies areas for operational improvements and efficiency gains.
- Helps streamline processes for better performance.
Cons:
- May overlook outcomes if too focused on process improvements.
- Can become too rigid if changes are needed in the process.
When to Use: These KRs are great for objectives involving operational improvements and efficiency gains. They help identify areas where processes can be refined for better performance.
Learning and Growth Key Results
Learning and Growth Key Results emphasize personal or team development and knowledge acquisition.
Example: Provide leadership training to 50% of the management team by the end of the year.
Pros:
- Encourages continuous improvement and adaptability.
- Invests in employee development and organizational growth.
Cons:
- Can be hard to measure the impact of training and development initiatives.
- May not provide immediate results.
When to Use: These are perfect for objectives related to fostering growth, skill-building, and staying adaptable in the ever-evolving business landscape.
Outcome-focused Key Results
Outcome-focused Key Results emphasize the impact of activities rather than the activities themselves.
Example: Increase the average user session length from 5 minutes to 8 minutes.
Pros:
- Keeps focus on achieving specific end results.
- Measures the impact of work on overall goals.
Cons:
- May overlook important steps in the process if too focused on outcomes.
- Could lead to neglecting other valuable activities.
When to Use: These KRs are ideal for objectives focused on achieving specific end results or impacts. They keep you focused on the final goal rather than just the process.
Bundle Key Results
The types of Key Results you choose for your OKR framework can greatly impact the success of your goal-setting efforts. It’s important to note that using a variety of KRs can provide a more comprehensive approach. Bundle Key Results are a group of related KRs that work together to achieve a single Objective. They address multiple aspects of the Objective at once, making for a more holistic approach to goal-setting. This balance ensures that teams don’t prioritize one aspect over the other and maintain focus on both measurable outcomes (quantity) and perceptual outcomes (quality).
Example: Objective: Launch a successful new product.
- Key Result 1 (Quantity): Reach 1,000 pre-orders for the new product.
- Key Result 2 (Quality): Receive a minimum customer satisfaction rating of 4.5 out of 5 for the new product.
In this example, combining a quantitative Key Result (pre-orders) with a qualitative Key Result (customer satisfaction) helps the team focus on both selling the product and ensuring customers are happy with it. By measuring both aspects, the team can assess the overall success of the new product launch.
When to Use: Bundle KRs are useful when the Objective involves multiple interrelated aspects that must be addressed concurrently. Using Bundle Key Results can provide a more nuanced and well-rounded approach to achieving the Objective.
I hope this guide helps you understand how to use these different types of Key Results effectively. Let me know how this approach or my other post Zombie OKRs works for you and your team! Until next time, keep striving for well-rounded success in your OKR journey!