Lets talk about objetives
A walthtrough from outcomes and outputs, OKR anatomy and Cascading Logic
Outputs vs Outcomes
We tend to focus on the tasks and activities that we carry out, what we call “outputs”. But watch out for the trap! the "outputs" do not always translate into significant results.
On the other hand, the "outcomes" are the actual results and the impact that we want to achieve with those tasks or activities. They are the tangible changes and benefits that we seek to obtain. Imagine it's launching a new dating app. The "output" would be all the work you do to develop and launch that product, such as design, development, and marketing.
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It is important to keep in mind that the "outputs" are important and necessary to achieve the "outcomes". But by focusing solely on the "output", we run the risk of losing sight of the purpose and the real impact we want to achieve.
The next time you set yourself a goal, ask yourself: am I focusing on tasks and activities, or am I thinking about the impact and results I want to achieve?
OKRs, an outcome-focused goal framework
OKRs stands for Objectives and Key Results, and it is a methodology used by successful companies around the world such as Intel, Google, Amazon or Adobe. They are an effective way to set and achieve ambitious goals in teams and organizations.
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What are the Objectives?
They are clear and ambitious goals that we want to achieve. They are challenging but achievable, they must inspire and be connected to the vision and mission.
What are Key Results?
They are goals that answer the question of how are we going to measure that goal? That define how we are going to know that we are approaching those objectives. They help us stay focused and measure success.
And there is a last structure, The initiatives!
They are the concrete actions that we are going to carry out to achieve the objectives and the KRs. It's the outputs!
Cascading OKRs
There are many ways to cascade goals. Today I tell you several strategies that organizations follow.
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Full Cascade. At the company level, directors and the CEO make goals, with Key Results. That they go to the next level. That they take one (or several of the KRs) and make them their targets, and so on until they reach the team.
Stepped Cascade. At the company level, only objectives are established, which are sent to the departments where KRs are made on them and the teams take those KRs and make initiatives.
Cascade with space. At the company level, goals are made and it skips to the teams where they do KRs and initiatives.
Objective’s network. The objectives are decoupled from the hierarchical structure, a model is created and the teams are organized around them.
And of course combinations between them. The more levels of cascade, the more time and effort the organization will require. So keep it simple. Make sure you don't make big structures and focus on the most important thing: being aligned.
Moonshots vs Roofshots
There are some companies that when they set goals they agree that 70% is what they can achieve but then they increase by 30% to be more ambitious and set the bar higher.
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Imagine that we want to get more customers. If our realistic goal is to get 20% more (go from 100,000 to 120,000), our moonshot could be to get 30% more.
If you aim high, even if you don't get there, you are more predisposed to achieve something greater. And in fact the great revolutionary and innovative projects work with this way of thinking.
However, it is not for everyone, nor for all times. Roofshots are those objectives that are realistic and that are made so that 100% of them can be achieved.
For example, if your company is starting to use a new goal framework like OKRs, it's good to start on roofshots, until the process and framework are well understood.
The final check!
Finally, let me give you a couple of checklists. They won’t make you have a perfect OKR set, but give you some advises and checks that can help you increase their quality. Enjoy!
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You can read more about those checklists here:
