OKRs: Outputs & Outcomes

OKRs are an intrinsic representation of the value generated by a team. An opportunity to demonstrate the impact a team has on the business. But in many OKR definition exercises, this is not entirely clear.

It is common, especially among people who are taking their first steps in OKRs, not to differentiate outputs from outcomes. We can call outputs the value delivery paths. These can be activities, tasks, deliverables or projects. They do not directly represent the value generated, but are a vehicle; that is, a means to generate value. They answer the question: How do I generate value in my team? And it is associated with work.

The opposite of an outcome, which mainly represents the reason why we do things, represents the purpose or a valuable end point that we need to reach. An outcome answers the question Why do I want to do it? And is associated with value.

When we look at OKRs, we seek to demonstrate value. We define them around an expected outcome and thereby obtain precision in what we are looking for. In a simple example, an output could be our sales plan in the company and its outcome, the increase in sales achieved.

Clearly, the plan is a means to achieve increased sales. That's what's interesting, because in OKRs we don't track the completion of the project, but rather the value generated by it. The team's commitment is not only generated by the project, but mainly by the result to be achieved.

The challenge lies in striking the right balance. Occasionally, we can use outputs in our KRs, however, these should be the exception rather than the rule. When we create KRs, we are not only dependent on ourselves, but also on our stakeholders.

These could greatly influence the choice of some outputs as key results, due to the need for visualization or relevance and that strategically they need to be considered as KRs.