Writing OKRs pt 2: How to write key results focused on an outcome

To write an OKR that describes an outcome there are specific things we should consider for how key results are written.

Focus on outcomes

Today I will concentrate on what should form outcome-oriented key results that support your objectives.

1. Key results are symptoms or evidence of achievement of the objective
   The key results can help qualify our understanding of the objective. We may have some alignment if the key results were outputs of some activity related to the objective but this leaves a large margin for misinterpretation because the connection between the objective and these details is implicit and it would be possible, even likely, that achieving those outputs did not reflect achievement of the objective.
2. A great example often comes when a customer’s (internal or external) satisfaction is low due to a problem with their experience. Usually, it can be quick to hypothesise a solution that may address the dissatisfaction which can seem adequate until you suggest measuring the improvement of customer satisfaction as the key result.
3. Measuring with the output of a given solution leaves no room for adaptation — you are likely a quarter away from knowing you failed. Whereas using something more closely associated with the customer’s perception of their own experience — the real impact you are trying to achieve gives the opportunity to test, iterate and pivot your efforts ongoing throughout the quarter.
4. Key results often build upon or qualify other key results
   A common pattern I find helpful is to identify the most descriptive volumetric measure of achieving the objective. The ‘measure that matters’, is the thing that increases (or occasionally decreases) when you are making progress towards the goal. Of course, most would be familiar with the potential for measures to lead to perverse behaviour, either gaming or making progress as the consequence of some other important aspect of the organisation. For instance, when sales are made that deliver low value for customers, just so a salesperson can reach their quota.
   So it’s helpful to establish other key results which are addressing other qualitative elements which reflect desirable and undesirable aspects of achieving the goal. For instance, sales are made but the value delivered is high and returns are low or unchanging maybe three complementary measures which help us be very aligned on what success is and isn’t.
5. Key results are leading indicators where possible
   It’s a bit harder to be definitive about this one as it somewhat depends on what you are doing to compliment your approach to using OKRs.
   Many organisations combine OKRs with a longer-term goal-setting practice, sometimes additional OKRs of longer periods, sometimes KPIs or other organisational performance approaches such as the concept of Results from PUMP (a framework that’s comprehensive enough that you could altogether replace OKRs), balanced scorecard or any of a myriad of other options.
   Presuming something of this nature is in place then you lose nothing from opting for leading indicators as measures. The benefit of leading indicators is that they may change soon enough to have meaningful signals during the quarter to be useful for adapting your tactics towards making better progress in achieving your objective.
6. Key results help ‘triangulate’ the group’s common understanding of the goal
   One characteristic which is much more subjective but can be good to keep in the back of your mind is to assess how well the combination of key results is helping the group triangulate on their understanding of the goal. Are they providing enough specificity and perspectives for any member to accurately determine what construes (and does not) achieving the goal?

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Focus on outcomes

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Originally published at https://wioota.substack.com on July 24, 2022.