Also known as leading vs lagging indicators or sometimes proxy metrics. When choosing metrics for your key results, It is important to understand which ones to and how they impact your outcomes. There is nothing worse than choosing the wrong metric and spending time optimising it.
- These are what you control
- Correlates with your output metric
- for example:
- Users have 7 friends in 10 days
- Users play 10 songs in 1st week
- Number of critical bugs faced
- Output metric is what you finally want
- for example:
- Better retention
- NPS (Net promoter score)
- ARR (Annual recurring revenue)
A combination of both input and output metrics can be used in good OKRs. Finding good quality input metrics takes time, it is an iterative process. Teams can use behavioral correlation to learn about what successful customers are doing in order to achieve the desired outcome and then convert these signals into input metrics.
Anatomy of a good OKR
A good OKR consists of both an input metric, output metric and project:
Inspiring Objective or Goal:
Input key result:
Input metrics are the things that you can control. these are the metrics when moved, will move the output metrics.
e.g. % users that sent at least 1 invites in week 1
Output key result:
Output metrics are the things that you cannot control. these are the metrics you want to ultimately achieve but are not directly in your hand.
e.g. User retention, stock market price, annual recurring revenue (ARR)
Project-based key result:
When a project needs to be completed to achieving the KR and the project will take a significant amount of time and is a prerequisite to the KR. Tracking as a project key result could give the teams good visibility.
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