OKR – How to Create a Measurable Key Result

Objectives are the what—the aspirational goals you aim to achieve. They set the direction and define the desired outcome.

Key Results are the how—specific, measurable actions that lead you toward your Objective. They provide a clear benchmark for success.

In this article, we shall explore how to write a measurable Key Result that aligns with a parent OKR objective.    

Unlike an OKR objective which is aspirational and refers to a business value to be achieved, an OKR result is quantitative and metric-driven; it describes the starting point and end point of the result. 

The Importance of Measurable Key Results

Measurable key results are crucial because they:

• Provide Clarity: Clear metrics eliminate ambiguity, ensuring everyone understands what success looks like.
• Enhance Focus: Specific targets help teams concentrate efforts on what truly matters.
• Enable Tracking: Quantifiable results allow for monitoring progress and making informed adjustments.

Format of an OKR Result 

<Verb +what you are going to track> 

 You would use verbs like: 

Increase from X to Y 

Decrease from x to Y 

Example: 

Increase sales from 20% to 40% 

Decrease call abort ratio from 15% to 10% 

What if you don’t have a starting point?  This means a baseline has not been established.  Then the new state you want to achieve will be your baseline.  

You can then use 

Achieve X 

OKR results must be SMART 

S – Specific 

M -Measurable 

A – Achievable 

R – Realistic 

T – Time-bound 

OKR results could be metric-based or milestone-based. 

Example 

To complete installing of 20 servers by Nov 15, 2022 

Metric milestone describes a deliverable, but does not describe an improved state.  Be careful not to have too many milestone results or it will turn into a task list.   As a golden rule, the milestone key result must be quickly followed by a metric key result to be effective.   

 By OKR best practice, Key result should last 1 OKR cycle, while an Objective could last multiple OKR cycles up to 1 year.   

 The purpose of this is to break up key results so that they can be achieved within 1 OKR cycle, usually a quarter.  You achieve the win and move on to the next cycle.   

Types of OKR Results

OKR result can be:

Metric-Based: Focused on numerical targets.

Increase monthly website traffic from 10,000 to 15,000 visitors.

Milestone-Based: Centered on achieving specific deliverables.

Launch the new mobile application by Q3.

While milestone-based results track progress, it’s essential to ensure they lead to a measurable impact to avoid merely creating a task list.

Aligning OKR Results with Objectives

Alignment ensures that OKR results directly contribute to achieving the Objective. This can be achieved through:

• Cascading Goals: Breaking down high-level Objectives into specific results for teams or individuals.
• Cross-Functional Collaboration: Encouraging departments to work together on shared results.

Best Practices

1. Focus on 3-5 Key Results per Objective to maintain clarity and priority.
2. Frequently assess progress and adjust as needed.
3. Share OKRs across the organization to foster alignment and collective accountability.

In Conclusion 

In the OKR best practice: 

1. A Key result is a child of an Objective 

1. While the objective is aspirational driven, the Key Result is metric drive 

1. Use increase, decrease from X to YY,  

1. Use Achieve X if no baseline 

1. Key results could be metric drive or data-driven 

1. Key results is time-bound to 1 ORK cycle.  If you cannot complete a key result in 1 OKR cycle, mark the completed % and create a separate Key Result for upcoming quarters, if required.  

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Conclusion

Measurable Key Results are the backbone of effective OKRs. By crafting clear, aligned, and actionable results, organizations can navigate toward their Objectives with precision and purpose.

Target Align is an intuitive OKR software designed to help startups create, track, and measure their results effectively. With built-in templates, real-time tracking, and smart analytics, it ensures that OKR results stay measurable, time-bound, and aligned with business goals.

FAQs

1. What if there’s no existing baseline for a result?

Establish a baseline by setting an initial target, then measure progress from that point.

2. How many Key Results should an Objective have?

Ideally, each objective should have 3-5 results to maintain focus.

3. Can OKR results be qualitative?

While qualitative results are preferred for measurability, qualitative ones can be used if they can be clearly assessed.

4. How often should OKRs be reviewed?

Regularly, such as weekly or bi-weekly, to ensure alignment and address challenges promptly.

5. What’s the difference between Key Performance Indicators (KPIs) and Key Results?

KPIs monitor ongoing performance, while Key Results are specific targets set to achieve an Objective.