Which Key Result type to choose?
When you get started with OKRs, it seems like there is a lot to learn. Especially, how do you model key results? Is it even worth it to go through the learning process?
Answer: Without a doubt! The learning curve is somewhat steep. But once you get past that stage, you'll be left wondering how we survived without these.
One of the most intricate ideas in the OKR world is how to represent your key results. We know that there are 7 types of key results in Profit.co. But which type do you choose in a given situation? The simple decision-making flow shown below serves as a guide.
The seven key result types are:
- Percentage Tracked
- Milestone Tracked
- Task Tracked
- Baseline KPI
- Increase KPI
- Decrease KPI
- Control KPI
Can you measure your key outcome, or is tracking the only option?
Some examples of measurables are revenue, the number of leads generated, reducing churn rate, increasing employee satisfaction, and so on, which can be measured using the KPIs. Profit.co also has more than 300+ KPIs built into the system by default.
Non-measurable /Trackable key result types
Examples of non-measurables are hiring a sales manager, developing a sales plan, and penetrating a new region, which can be tracked using the trackable key results.
Let's look at some non-measurables and how to track them in Profit.co.
Let’s take an example: Prepare a budget for the product launch or establish a sales process. While you can drill down and create steps to track, it might be preferable to simply indicate the status of the percentage completed. In this case, choosing the percentage tracked key result will be the right step.
A key result like “Hire VP” can actually have multiple steps like,
- Prepare Job Description
- Source Candidates
- Assess Candidates
- Identify Top 3
- Make Offer
- Start Candidate
Since the Hire VP key result involves going through multiple steps before hiring the right person, the “milestone tracked” key result will be the correct approach.
Let’s take an example of a key result “Create 5 blogs related to KPIs” You can create Key Results using Task Tracking non-measurables. With this KR type, your tasks are directly linked to the created key result, allowing you to monitor their progress from the workspace via key results.
Measurable key results
This key result type can be used when you don’t have a clear idea about the value of a KPI and you want to establish one. For example, this could involve either establishing a customer satisfaction score or an employee satisfaction score. It’s about finding something you don’t have at the moment and need to establish a baseline for moving forward.
Assuming that we know the baseline value, we’d want to do one of the following three actions for the KPI using Increase KPI, Decrease KPI, or Control KPI.
This can be used when you are trying to increase the value of a KPI. For example, you may use this option to measure revenue or increase the number of lead-generation activities that your organization focuses on. Depending on what you’re looking to increase, you can make your KPI increase the value of a specific number, percentage, currency, time etc.
In some instances, it may be best to lower the value of a KPI. For example, an organization may aim to reduce the employee attrition rate, reduce the customer churn rate, or reduce the number of issues in a test or product. With Decrease KPI, you can decrease the numeric value, percentage, currency, or time of the key result.
The control KPI, allows you to keep the value of a KPI within a specific range, mostly above or below a certain amount.
For example, if you want to control the employee training hours between 20-40 hours a month, and maintain the click per cost at $2 to $4, it can be measured using the control KPI measure type “In between” because you’re looking to maintain a range between certain values.
Sometimes, It can be helpful to set goals from time to time. For example, you might aim at least 10,000 visits every week on your website. The "at least" measurement type in the control KPI can be used in this case to measure the visits.
Consider the scenario where you want to enforce an upper limit. The key result of "Maintain APIs response at 400 milliseconds" is a classic example. In this case, you are measuring the API response which shouldn't go over 400 milliseconds. Here "at most" measurement type in Control KPI is the right choice to measure the value and progress the key result.
Note: Control KPI can also be tracked in Numeric, Percentage, Currency, or Time.
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