Have you ever heard of the phrase 'measuring what matters'? It's a concept that can transform how you set and achieve your goals. In this blog post, we'll dive into the importance of measuring what matters and how it can help you succeed. We'll also explore the difference between OKRs (Objectives and Key Results) and outcomes and how they work together to drive success.
Setting goals is essential for success, but it's not just about knowing what you want to achieve; it's also about how you execute your plan. That's where OKRs come in. OKRs provide a framework for setting goals and tracking progress towards achieving them. As John Doerr, the author of "Measure What Matters," said,
"It's not enough to have a vague idea of what you want to accomplish; you need a specific plan of action to get there."
OKRs help you do just that - set the right goals for the right reasons and provide a system for execution, which is the most critical factor in achieving success.
OKRs and Outcomes: Understanding the Difference
OKRs consist of two components: objectives and key results. Objectives are qualitative statements that inspire you and/or your team, while key results are quantitative measures that indicate progress towards achieving the objective. On the other hand, outcomes are the results of actions taken. In the product world, outcomes are often thought of as the impact of what is built. For example, a Product Team might build feature X with the goal of achieving outcome Y.
However, the real value of outcomes comes when we flip this perspective. Instead of focusing on what to build, we should start with the desired outcome and then determine if building something is the best way to achieve it. This approach shifts the focus from the output (what is built) to the outcome (the impact achieved). This approach ensures that every action is aligned with the overall vision and goals.
The Power of OKRs: Achieving Outcomes that Matter
OKRs provide a structured and systematic approach to setting goals and achieving outcomes that matter. Here's how OKRs can help you maximise success:
- Clarity and Alignment: OKRs provide a framework for setting clear objectives and key results. This ensures that everyone in the team or organisation is aligned towards a common goal and working towards achieving the same outcomes. Clarity in objectives and key results helps avoid wasting time and energy on tasks that do not contribute to the overall vision and goals.
- Focus and Prioritisation: OKRs help teams and individuals prioritise tasks and initiatives based on their alignment with the objectives and key results. By setting specific and measurable key results, OKRs provide a clear roadmap for what needs to be achieved and what actions should be prioritised to achieve the desired outcomes. This prevents teams from getting overwhelmed with too many tasks and helps them focus on what matters.
- Accountability and Ownership: OKRs create a social contract that holds individuals and teams accountable for achieving their goals. By publishing OKRs and making them visible to stakeholders, OKRs create transparency and ownership, ensuring everyone is aware of the progress towards achieving the objectives and key results. This accountability encourages teams and individuals to take ownership of their work and strive for excellence in achieving the desired outcomes.
- Flexibility and Adaptability: OKRs are not set in stone; they can be adjusted and updated as needed. This flexibility allows teams to adapt to changing circumstances and priorities and ensures that the goals and outcomes remain relevant and aligned with the overall vision. OKRs also provide a feedback loop, as progress towards key results is tracked and measured, allowing teams to make data-driven decisions and course-correct as needed to achieve the desired outcomes.
- Shift from Building to Outcomes: One of the key differentiators of OKRs is the shift from focusing on building something to outcomes. As stated earlier, instead of starting with what we want to develop, we begin with the desired outcome and then decide if building something is the best way to achieve it. This shift in mindset can profoundly impact how we set and achieve our goals. By focusing on outcomes, we ensure that our efforts are aligned with the desired results, and we can be more adaptable and flexible in our approach to achieving those outcomes. This allows for greater innovation, creativity, and problem-solving, as we are focused on the end results, not on specific solutions. This shift in mindset encourages a more strategic, outcome-driven approach to goal-setting, which can lead to more meaningful and impactful results.
In addition, this shift from building to outcomes also promotes a culture of accountability and ownership. Focusing on achieving outcomes encourages individuals and teams to take ownership of their goals and be accountable for their progress. It creates a sense of responsibility and empowers employees to make decisions and take actions that are aligned with the desired outcomes. This fosters a culture of ownership, where individuals are motivated to actively contribute towards achieving results rather than simply completing tasks or activities. It promotes a results-driven mindset, where success is measured by attaining outcomes rather than just completing tasks or projects.
Implementing OKRs Effectively
So, how can we incorporate outcomes into our OKR process? The key is to start with the desired outcome and then use OKRs to track progress towards achieving that outcome. Instead of setting OKRs based on what we think we should achieve, we align them with the outcomes we want to see. This approach ensures that our OKRs are directly linked to the larger vision and desired results.
Here are some practical steps to incorporate outcomes into your OKR process:
- Define your desired outcomes: Start by clearly defining the outcomes you want to achieve. These should be the overarching results or impacts you want to see in your business or organisation. Make sure they are aligned with your overall vision and strategic objectives.
- Set ambitious and achievable key results: Key Results should be ambitious enough to push the organisation to achieve significant progress while being realistic and achievable within the given timeframe. They should be specific, measurable and quantifiable to track and assess progress objectively.
- Align OKRs at all levels: OKRs should be cascaded throughout the organisation, ensuring alignment from top to bottom. This means that team-level OKRs should be aligned with departmental or organisational-level OKRs, creating a clear line of sight between individual goals and the broader organisational objectives.
- Encourage a culture of innovation and experimentation: Encourage your team to think creatively and come up with new ways to achieve the desired outcomes. Foster a culture that embraces innovation, experimentation, and continuous improvement. Encourage team members to share ideas, collaborate, and take calculated risks in pursuit of the desired outcomes.
- Collaboration and transparency are essential: OKRs are most effective when a culture of collaboration and transparency exists. Teams should be encouraged to share their OKRs with others, seek feedback, and collaborate on cross-functional initiatives. Transparency in OKR progress and outcomes helps to create a sense of collective responsibility and fosters a culture of continuous improvement.
- Be adaptable and agile: Recognise that outcomes may evolve or change over time, and be willing to adapt your OKRs accordingly. Be agile in your goal-setting process and be open to revising your OKRs as needed to stay aligned with the desired outcomes, especially in fast-paced and changing business environments.
- Communicate the connection between OKRs and outcomes: Ensure that everyone in your organisation understands the relationship between OKRs and outcomes. Communicate the larger vision and the desired outcomes to your team members, and explain how OKRs are a strategic tool to achieve those outcomes. This will help create alignment and motivation among team members towards achieving the desired outcomes.
- Track and measure progress regularly: Regular tracking and measuring of OKR progress is crucial to ensure that the objectives are on track and progress is being made. This can be done through regular check-ins, progress reports, or OKR software tools that provide visibility into OKR progress at all levels of the organisation.
By incorporating outcomes into your OKR process, you can ensure your goals align with your larger vision and strategic objectives. This approach encourages strategic thinking, fosters a culture of innovation, and allows for adaptability and agility in goal-setting. By focusing on outcomes, you can increase the effectiveness and impact of your OKR process, leading to greater success in achieving your desired results.
