How to Identify Good Key Results?
The job of Key Results is to measure how close you are to achieving your goal. Once you've analyzed your top priorities and decided to focus on a specific goal, you need to decide on your Key Results. Remember, Key Results are how you measure your Goal. Key Results should be numerical and can be updated over time. If your Key Result is binary, it may not be a Key Result, but rather a task or plan. Which brings us to the next point.
Company goals do not need key results, as these goals will be driven by the OKR team. Our Key Results should include numbers, clearly stating how we measure success and when we evaluate the goal to be achieved. Measurable Key Results can be set in different ways:
Increase sales of product from 500 to 1000
Reduce service cost by 5%
You are moving the Target forward by moving the needle on Key Results. Key Results can be based on growth, performance, revenue or engagement.
Characteristics of a good Key Result:
Specific and measurable: Key Results should be measurable, meaning they should include a numerical value that can be measured.
Difficult but actionable and achievable: Identify Key Results that will motivate the team to do their best, but they need to be achievable and actionable. Unrealistic Key Results are unmotivating.
Objectively graded: Must express a specific criterion.
Time-bound: There must be a timeframe that specifies when the Key Outcome must be achieved.
Aligned with the Goal: Key Results should be directly aligned with the Goal and reflect its achievement.
They focus on results, not outputs: Ideal Key Results focus on results. Include less than 5 Key Results for each Goal: Identify 3-4 measurable key results under each goal.
Example of a good Basic Results Setting
While plans and projects are important to support your goals, Key Results are measurable business results and should be treated as such.
First, we prepared a good Objective example stating: "Increase product access in France".
Some good examples of Key Results for this Goal include:
KR1: Increase conversion rate of returned products from France Keep conversion rate between 1 and 5%
KR2: Increase France calls 10 to 15
KR3: Increase internal company connections within France 20 to 30
These examples should be measurable (Quantifiable), objectively rated and achievable, albeit challenging.
Let's take a simpler example.
Objective: Increase the number of visits to your company's website.
Key Results:
KR1: Increase organic search traffic to our website by: 20%
In this example, the Goal is aspirational and will move the company forward; KRs are numerical and objectively measure the success of the overall Goal.
Example of a bad Basic Results Setting
Discuss how we will market our product in France
This Key Result cannot be measured numerically and it is not clear how it contributes to the goal, it does not show any progress. It is just something to do. Remember that goals are ambitious goals and Key Results are a measurable measure of that goal.
What are the results and what are not
The biggest challenge most companies face is creating a list of actionable deliverables instead of defining Key Results as measurable outcomes.
Results are the measurable results you expect to see once you have completed your deliverables. Results are not about doing; they are about delivering real, valuable business results. If the marketing plan is our deliverable, the desired outcome might be that the implementation of the new marketing plan increased the number of incoming leads from 3,000 to 5,000 in 3 months.
Why are results important?
The core point and value of the OKR methodology is the identification of measurable business results. OKRs are about focusing on results that deliver real business value, rather than just performing different activities. If you don't identify any measurable results, it's impossible to see the real benefits of this methodology.
Many companies say, "This is how we do OKRs." If at the end of the day you're still doing the same projects and delivering deliverables that don't deliver the results you need, why go to all the trouble of having people change workflows and adapt the new OKR method?
Results are measurable Key Results and indicators of success for your Goal. When a Goal defines direction and focus, Key Results help you understand what you want to achieve. Key Results measure success so you know when you've reached your Goal.
Let's take a marketing example. Your company realizes that you need more customers to increase sales. Let's create a new plan to acquire potential customers. In this case, we know that your Marketing team needs to promote the brand to achieve its Goal. This is one way to approach the new plan. From this Goal, we can see that we need to define Key Results in at least two areas:
1) How many new leads do we hope to get?
There are many ways to promote your brand. For example, if you have a website, you can set a KR that says "Increase new site visitors by 25%". You can also try to be more visible on social networks by setting a KR that says "Increase Linkedin average post views from 50k to 60k".
The first thing you can do is set a Key Result to publish one new post per week. This is not a result, it is an output! Focus on the results!
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