The OKR framework (Objectives and Key Results) is a powerful method for driving alignment and progress.
To maximize its effectiveness, it’s important to understand the different types of Key Results within this framework.
By tailoring OKRs to match specific objectives, you ensure that each OKR serves a clear purpose and provides measurable outcomes.
This guide will break down the three primary types of OKRs – Input, Output, and Outcome OKRs—along with Learning OKRs and how to apply lagging and leading indicators for a better approach to tracking progress.
OKR Guide
Table of Contents
OKR Guide Menu
- OKR Guide – Introduction
- What Is An OKR – A Practical Explanation
- OKR Framework – Key Points for Leaders
- OKRs vs KPIs – Understanding the Key Differences
- How To Write An OKR – A Practical Guide
- Strategy and OKRs – From Mission To Implementation
- OKR Examples – From 10 Different Industries
- The Best OKR Software – Pros and Cons of Each
- OKR Templates – Free Templates To Start Now
- OKR Summary – Essential Points To Maximize Results
The Three Primary Types of OKRs: Input, Output, and Outcome
To achieve meaningful results, OKRs must be structured to align with the objective and desired outcomes. Each OKR type – Input, Output, and Outcome OKRs—offers a unique way of measuring success, making them suited to different goals.
1. Input OKRs: Measuring Efforts and Resources
Input OKRs focus on the resources, time, or efforts invested to accomplish an objective. They track what goes into a project rather than the direct result, making them useful when commitment or resources are key to success.
Example of Input OKRs in the OKR Framework:
- Objective: Increase our brand’s digital presence.
- Key Result 1: Publish 10 blog posts per month.
- Key Result 2: Dedicate 30 hours weekly to social media engagement.
- Key Result 3: Invest 15% of the marketing budget in digital ads.
These Input Key Results emphasize the actions and resources necessary to build a brand’s digital presence within the OKR framework.
2. Output OKRs: Tracking Direct Results
Output OKRs measure tangible results, focusing on productivity or immediate outcomes. They capture “what happened” directly due to the efforts, without necessarily reflecting the full impact on long-term goals.
Example of Output OKRs:
- Objective: Improve customer service response.
- Key Result 1: Reduce average response time by 30%.
- Key Result 2: Increase the team’s resolution rate to 85%.
- Key Result 3: Implement a feedback system with a 75% response rate.
These Output Key Results show how the OKR framework can drive operational improvements by focusing on measurable outcomes in customer service.
3. Outcome OKRs: Focusing on Impact and Long-Term Success
Outcome OKRs measure long-term impact, emphasizing results that align with broader organizational goals. These OKRs are ideal when the OKR framework is used to connect day-to-day actions with strategic outcomes.
Example of Outcome OKRs in the OKR Framework:
- Objective: Increase customer satisfaction and loyalty.
- Key Result 1: Achieve a customer satisfaction score of 90%.
- Key Result 2: Reduce customer churn by 20%.
- Key Result 3: Increase customer retention for annual subscriptions by 25%.
Outcome OKRs reflect the OKR framework’s ability to link immediate goals to lasting impact, aligning day-to-day actions with larger aspirations.
Understanding Lagging and Leading Indicators in the OKR Framework
When structuring OKRs, using lagging and leading indicators within the OKR framework can offer additional insight. These indicators help teams understand both the current state and future trajectory, creating a comprehensive view of performance.
- Leading Indicators: Predictive metrics that offer insights into future outcomes within the OKR framework, focusing on Input and Output OKRs.
- Lagging Indicators: Retrospective measures that indicate results that have already occurred, often aligning with Outcome OKRs.
Example of Using Leading and Lagging Indicators in the OKR Framework:
- Objective: Increase employee engagement.
- Leading Key Result: Conduct two monthly training sessions (Input KR).
- Lagging Key Result: Achieve a 20% increase in employee retention by year-end (Outcome KR).
This example shows how the OKR framework can integrate leading indicators (predictive) and lagging indicators (retrospective), providing a balanced view of performance.
A Table Overview of Input, Output, and Outcome OKRs
| Type | Description | Example Key Result |
|---|---|---|
| Input | Focus on resources, time, or actions invested | Publish 10 blog posts monthly |
| Output | Direct, measurable results from the effort | Reduce response time by 30% |
| Outcome | Long-term impact or change aligned with goals | Achieve a 90% customer satisfaction score |
This table provides a quick summary of different Key Results in the OKR framework, making it easy to identify which type best suits specific objectives.
The Three Kinds of OKRs: Aspirational, Committed, and Learning OKRs
Different goals require different structures within the OKR framework. The three kinds of OKRs—Aspirational, Committed, and Learning OKRs—align goals to the organization’s priorities, ensuring each OKR in the framework meets specific needs.
1. Aspirational OKRs: Stretch Goals
Aspirational OKRs are challenging goals within the OKR framework that inspire teams to achieve more than the status quo. While they carry a risk of not being fully accomplished, they’re designed to drive growth.
Example:
- Objective: Establish our brand as an industry leader.
- Key Result 1: File patents for five new technologies.
- Key Result 2: Increase innovation grant funding by 50%.
- Key Result 3: Launch two new products by year-end.
Aspirational OKRs within the OKR framework push for major achievements, motivating teams toward substantial progress.
2. Committed OKRs: Realistic Goals for Accountability
Committed OKRs are realistic, must-achieve goals essential to the organization’s operations. These OKRs align closely with day-to-day activities, ensuring that key priorities are met within the OKR framework.
Example:
- Objective: Improve product reliability and reduce returns.
- Key Result 1: Decrease defect rate by 15%.
- Key Result 2: Reduce return rate by 10%.
- Key Result 3: Raise post-purchase support satisfaction to 90%.
With Committed OKRs, the OKR framework provides accountability by focusing on critical operational priorities.
3. Learning OKRs: Experimentation and Knowledge
Learning OKRs emphasize knowledge and exploration, helping teams understand new areas within the OKR framework. These OKRs are ideal when goals involve testing ideas and gathering insights.
Example:
- Objective: Understand customer preferences for new features.
- Key Result 1: Conduct five customer focus groups.
- Key Result 2: Gather 500 survey responses.
- Key Result 3: Identify top three desired features.
Learning OKRs support the OKR framework’s role in collecting insights that inform future strategies.
Inputs, Outputs, and Outcomes
Each OKR type can incorporate Input, Output, and Outcome Key Results within the OKR framework. Here’s how they fit:
| OKR Type | Input Key Result | Output Key Result | Outcome Key Result |
|---|---|---|---|
| Aspirational | Allocate 15% budget to R&D | Release three innovative products | Become a recognized industry leader |
| Committed | Dedicate 20 hours weekly to training | Improve team efficiency by 25% | Maintain 95% team performance consistently |
| Learning | Conduct 3 monthly customer surveys | Identify 5 preferred features | Gain insights on customer preferences |
This table illustrates how different Key Results contribute to each OKR type within the OKR framework.
Combining OKRs for Balanced Goals in the OKR Framework
Using a balanced combination of Input, Output, and Outcome OKRs provides a complete view within the OKR framework. This approach ensures tracking from efforts and execution to end results.
Example of Combined OKRs:
- Objective: Boost product innovation and customer satisfaction.
- Input KR: Dedicate 20% of R&D budget to innovation.
- Output KR: Increase product release speed by 25%.
- Outcome KR: Achieve a 90% customer satisfaction rating on new products.
In this example, the OKR framework supports a balanced approach, combining different types of Key Results to track the full journey from investment to impact.
Wrap-Up: Mastering the Different Types of OKRs
Understanding the different types of OKRs within the OKR framework empowers teams to set goals that are purposeful, measurable, and aligned with broader organizational objectives. Whether using Input, Output, or Outcome OKRs, each type has a distinct role that complements the others. Input OKRs focus on the resources and actions invested, Output OKRs capture direct results, and Outcome OKRs emphasize long-term impact.
Key takeaways:
- Recognize the unique value of each OKR type within the OKR framework, enabling more tailored and effective goal-setting.
- Leverage lagging and leading indicators to gain a complete view of progress, with predictive and retrospective insights.
- Balance Input, Output, and Outcome Key Results to ensure comprehensive tracking from actions and direct results to long-term impact.
To take a deep dive into OKR’s – you can read the book by John Doerr – Measure What Matters.
Next Section
Need Help With OKRs?
OKR Rollout Program – A 12-Month Plan
This program addresses a key challenge faced by CEOs: executing strategy effectively. The OKR Implementation Program helps organizations bridge the gap between strategic intent and outcomes by deploying the right OKR framework to drive focused execution across the organization.
OKR Coach
With an OKR Coach, your company gains the knowledge of the Agile leadership method, Objectives and Key Results (OKR). This workshop is ideal for agile coaches, directors, and executives seeking to understand and apply this framework effectively to drive impactful outcomes, accelerating the organization’s path to success.
OKR Strategy Sessions
This an online set of session (3 * 3 hours), that provides a hands-on OKR way to design your strategy and align your OKRs. This is ideal for CEOs, executives, operations managers, and direct managers. By using a proven OKR system, this session enhances team alignment with company goals, enables precise performance measurement, provides actionable feedback, and drives improved results.