Tao Zhang

Essay

Product 101: How to Define Key Results in OKRs: A Practical Guide

“How would we know if we met our Objective?”

Feb 21, 2025 · 327 words

OKRsProduct

When setting Objectives and Key Results (OKRs), the key results are what keep you on track. But how do you create effective key results?

It starts with a simple question:
👉 “How would we know if we met our Objective?”

This forces you to define success in clear, measurable terms rather than vague phrases like “awesome,” “kill it,” or “pwn.”

How to Set Strong Key Results

A good rule of thumb is to have three key results per objective. They should be based on measurable outcomes, such as:

Growth – User acquisition, retention rates
Engagement – Active users, feature adoption
Revenue – Sales, conversion rates
Performance – Speed, efficiency, quality
Loyalty – Customer satisfaction, repeat usage

Example: A Strong Objective with Key Results

Let’s say your objective is:
🚀 “Launch an awesome MVP.”

Here’s how you could define key results:
40% of users return twice within a week
Recommendation score of 8+
15% email newsletter open rate

What If You Don’t Have a Baseline?

If you’re tracking a metric for the first time, make an educated guess. The goal isn’t perfection—it’s learning. By the end of the quarter, you’ll have real data to refine your approach.

Why OKRs Shift Teams from Output to Outcome Thinking

One of the biggest benefits of using OKRs is that they help teams focus on outcomes rather than just outputs. Instead of saying, “We shipped this feature,” OKRs push you to ask, “Did the feature improve engagement, revenue, or retention?”

What Metrics Can You Track for Key Results?

The best metrics depend on your goals, but here are some ideas:
📊 User Engagement: DAUs, MAUs, session time
💰 Revenue: MRR, conversion rate, LTV
📈 Product Performance: Feature adoption, speed improvements
🤝 Customer Satisfaction: NPS, churn rate, support tickets resolved

By defining clear key results, you set yourself up for focused execution and measurable success. 🚀

First published on Substack. Original